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Ord 26 Grant Franchise for Community Water SystemM ORDINANCE NO. AN ORDINANCE GRANTING TO MENDOTA DEVELOPMENT COMPANY, INC , , AND ITS SUCCESSORS. IN INTEREST A FRANCHISE FOR THE DEVELOPMENT OF A COMMUNITY WATER SYSTEM INCLUDING THE TRANSMISSION, DISTRIBUTION AND SALE OF WATER AND PRESCRIBING THE TERMS AND CONDITIONS OF SUCH FRANCHISE The Village Council of Mendota Heights ordains as follows: ARTICLE I. GRANT OF AUTHORITY 1.01 The Village of Mendota Heights hereby grants unto Mendota Development Company, Inc., a Minnesota corporation, hereinafter called the company, its successors and assigns, an exclusive right and franchise to construct, maintain and operate a water supply and distribution system within the following described territory, in Dakota .County, Minnesota: That part of the S.outhwe:st Quarter of the Southwest Quarter, Section 13 and that part of the Northwest Quarter, Section 24; all in Township 2.8, Range 23 described as commencing at the .Southwe-st corner of the said Northwest Quarter, thence East along the South line of the said Northwest Quarter 1475,10- feet; thence Northwesterly deflecting to the left 109- degrees 621,49_ feet to the point of beginning; thence continuing Northwesterly along the extension of the last described line- 6.72, 51 feet; thence deflecting to the left 16 degrees and 10 minutes to- the West line of the said Southwest Quarter of the :Southwe -st Quarter thence South along the West line of the said Southwest Quarter of the_ Southwest Quarter and South along the West line of the said Northwest Quarter to a point on the. West line of the said Northwest Quarter 58-7.7-2 feet North. along the West line of the said Northwest Quarter from the Southwest corner of the said. Northwest Quarter; thence East to the point of beginning, a proposed plat of which, known as Cherry Hills. Addition., has. been approved. by the Village Council, L 0.2 The company shall install and erect its facilities for the production of water for the system upon the following described territory-. Lot A as shown on the proposed plat of Cherry Hills Addition. -I- 0 1, 03 The company may sell and distribute water within the territory described in Section 1,01, and for these purposes may construct the necessary facilities and equipment, lay and maintain water mains- and all appurtenances necessary to. the sale and distribution of water under and along the streets., alleys and other public places within said territory, and do= all other things reasonably necessary or customary in the accomplishment of these objectives, subject to. the: provisions of this franchise, 1.04 The company shall be under no. obligation to extend the system beyond the limits. of the territory described in Section 1, 01, except upon its acceptance of an ordinance providing therefor, 1.0 -5 The company shall submit to the Village complete plans and specifications for its proposed .system, and shall not commence construction of the system, or make any changes therein, without first obtaining the: approval of the Village of the design, materials and equipment to be used therein. 1.06 Prior to commencing construction of the. system, the company shall furnish to- the village a corporate surety performance and completion bond. equal in amount to the cost of its proposed system. 1.07 The company shall pay to the Village a construction permit fee in the:. amount of $50;00. The company shall reimburse the Village for .expenses reasonably incurred in connection with the approvals and inspections required of the plans- and specifications of the system, the co- nstruction thereof, and its condition at the time. of delivery to. the Village., -2- ARTICLE II, SERVICE STANDARDS: AND CONTROLS 2,01 The company agrees to provide and maintain its entire plant and system in such condition that it will furnish. safe, adequate and continuous. service. Water furnished to consumers under this franchise shall be free from impurities and foreign matter to the degree prescribed by the Department of Health for the State of Minnesota. 2;02. Water pressure, as measured at the outlet of the companyt.s service to any consumer, shall be not le.s.s- than the minimum requirements. of the Fire Underwriters Inspection Bureau. 2-.03, All water service .shall be supplied through meters which shall accurately measure the quantity of water supplied. to any consumer. The consumer shall furnish an adequate and proper place for the installation of such meter. The meter shall be tested for accuracy by the. company upon the request of any customer who- believes his meter to be inaccurate. If, upon test, it appears that such meter- overruns- to- the .extent. of 6 per cent or more, the company shall pay the cost of such test and shall make a refund for overcharges collected since the last known date of accuracy, but. in no event for a period earlier than six months from the time of the testing. Any said refund .shall be: upon the basis of the extent of inaccuracy found to- exist at the time of the test, If, when any meter is tested. upon the demand of a customer, it is found to be accurate or les.s than 6 per cent inaccurate, the customer shall pay the reasonable coast of the testing. The company shall submit an annual statement to the Village:, indicating the number of meters removed for testing, together with all meter complaints received and the results of tests made on meters, which are the subject of complaint. -3- ARTICLE. M. RATES 3.01 Rates. charged by the .company for service hereunder shall he fair and reasonable. and designed to. meet all neces -sary costs of the service, including a fair return on the fair value of its propertie -s devoted thereto, under efficient and economical management, 3, 0.2 The company shall furnish water to the Village for fire protection purposes without charge through hydrants to- be provided therefor, ARTICLE. IV USE: OF STREETS 4.01 The. company shall secure. a permit for anyopening it shall. make . in the streets, alleys and public places in the Village., and .shall be subject to all applicable ordinances., The Village reserves the. right by resolution or otherwise to designate the location. of any water mains or- water service: lines, with reference to- other street facilities such as sewer and gas mains and services, in such a manner as to promote the. public. safety and to protest public property. No trench shall b.e filled and no main shall be covered without giving the Village the opportunity to inspect the same. Any designation of location, or inspection, authorized herein shall be accomplished so as to not unnecessarily delay the company in any of its operations, 4,02 'Whenever the Village grants a permit. for an excavation in a street, alley, or other public ground and the work contemplated by the permit may expose water pipes, mains and appurtenances of the company, the Village. shall promptly furnish a copy of the permit to the company, 4.0-3- The exercise. of the privileges herein. granted .shall he subject- at all times to- the: police power of the. Village. and. all ordinances adopted pursuant thereto. The company shall not unnecessarily or unreasonably ob.struc -t the use _of or injure any street or alley, and. shall immediately upon the completion of any construction or repair work, restore all streets and alleys to the same order and condition as they were before the .excavation was made insofar as reasonably possible, and. shall maintain, repair and keep. in good condition for a period of one year all portions of streets and alleys disturbed by it or it.s agents.. The company shall be responsible for any obstruction. or any . defect in any street, alley, or other public place caused by it in the_ operation and maintenance of its properties. occurring at any time and shall promptly remove any such .ob:struction. or defect. Any such obstruction or defect which, after proper notice. to the company demanding removal or repair- as the case_ may be, is not promptly removed or repaired. by the company, _shall be. taken care of by the Village, and. the costs thereof shall be charged against the company and may be enforced as a lien upon any of its properties or assets, ARTICLE V. ACQUISITION BY VILLAGE 5, 01 At .such time as the: company has seventy (70) meters- connected to its system, or at the expiration of two_ (2} years from the date the company first distributes water to a customer, whichever event occurs first, the company agrees to- convey, and the Village agrees to: accept, all the property, equipment, books, records, and appurtenances -5- of the company used in producing and distributing. water within the Village: without charge to the Village, whereupon all rights, duties and liabilities arising under or by virtue of this franchise shall cease: forthwith. The. company agrees to deliver the system to- the Village in good repair and operating condition, and. free and clear of all liens and. encumbrances of any kind whatsoever. ARTICLE VI:. LIA�BILIT Y 6.01 The company shall be liable for and shall pay all damages which may result to; persons. or property within the. Village. by reason of the construction, installation, maintenance, or operation of such water plant, mains and service lines and for the furnishing of water to: the Village and its inhabitants, including claims for- damages and judgments against the. Village due to alleged defects. in any street or alley which are in fact due directly or indirectly to the. construction, operation or repair of structures owned or operated. by the company during the term of this franchise.. The company shall .defend. the Village against all suits arising hereunder. 6.8 0 2 Prior to commencing construction of the system, the company shall obtain., and keep in force during the. term of this franchise, public liability insurance with personal injury limits of not less than. $100,.000 „00 each person and $30.0,.0.00 00 each accident, and property damage limits of not less than $10,0.0.0,00 -, and it shall file. a certificate e- videncing such insurance with the Village Clerk, ARTICLE VII', APPRROVA.L, OF TRANSFER L01 01 No: sale:, assignment -or lease of this franchise shall be - effective until it is approved by the Village Council and until the vendee, assignee; or- lessee has filed in. the office of the Clerk an instrument, duly executed reciting the fact of such sale., assignment or lease, accepting the terms. of the. franchise, and agreeing to: perform all the conditions thereof, ARTICLE. VIII; FORFEITURE .8, 01 The violation of any material portion of this franchise by the company or its successor in interest, or its failure promptly to perform any of the provisions of this franchise, shall be cause for the forfeiture. of this franchise and the termination of all rights hereunder. Such forfeiture .shall be accomplished by resolution of the Village after written notice to the company and continuation of the violation, failure or default specified in the notice: for at least 9.0: days from the .date: when the .notic.e. is. served, ARTICLE ]X, NISC ELLANEOUS 9; of The company shall within 3.0 days after the passage and. publication lof this ordinance file with the. Village. Clerk its aacepta.nce of same in signed by its proper officers and attested by its. corporate seal, shall begin to. supply water under this .franchise not later than ober 20, 196.0; otherwise: the provisions of this franchise shall be: null void. 119,02 The. company shall pay the. expense. of the. official publication of s ordinance promptly upon its. being furnished with a. statement thereof, -7- 9:,i 0 3. If any section or provision of this ordinance -shall be declared. to be- invalid by competent authority, such invalidity shall not, a -Unet, Qr invalidate: the remainder or any other portion. of this ordinance, R. 04 This ordinance .shall take effect upon its passage and publication. Dated:., ATT ST: age .Clerk f VILLAAGE. OF MENDOTA EIGHTS By/, Mayor