Ord 7 Water FranchiseVILLAGE OF MENDOTA HEIGHTS
-.Dakota Qounty0_Mjnnesota...
WATER FRANCHISE ORDINANCE
AN ORDINANCE GRANTING A FRANCHISE FOR
THE CONSTRUCTION AND OPERRTION.OF A
WATER S)ttEm-, WITHIN _A .. PRESCRIBED ..AREA
The Village Council of Mendota Heights ordains as follows:
ARTICLE I
General Terms of Grant
1.01 The Village of Mendota Heights .. hereby grants unto Mendota
Water Comp4nyp a Minnesota corporation (hereinafter referred to
as "Grantee"), a non"exclusive right and franchise to construct,
OV) maintain and-operate a system for the supply of water for domes-
tic, public and other uses (hereinafter referred to as the
"system "), within the following described territory:
(a) All of Friendly Hills Addition, according to
- - the recorded plat thereof on file and oftre,-
cord in the office of the Register of Deeds of
Dakota County, Minnesota;
(b) The Southwest Quarter of the Northwest Quarter
(SW .1 of NW -,'T) of Section Thirty"six (36),, Town-
ship 28 N6rth.,..Range 23 West.,,Dakota County., M-tnne-
sota., excepting therefrom the following two parcels
of land.-
(i) The West 433 feet of said.Southwest
Quarter of the Northwest Quarter (SWTI
of NW ) lying northerly of a line distant -
1,164n2 feet north of and parallel to the
south line of said Northwest Quarter (NW�);
and
(ii) The North 175 feet of the South 205
feet-of the West 248.92 feet of said
Southwest Quarter of the Northwest Quarter
(SW-' of NWj&),- and
(c) Tfi'e North . east-Quarter of the Northwest Quarter
- -
(NE of NWT) of Section Thirty -six (36).,. Town-
ship 28 o rth...Range 23 Nest,,,Dakota County, Minne"
sota., excepting. the West- ,400 feet thereof.
1002 The wells., pumps and tanks to be drilled., installed and
erected by Grantee for the purpose of providing water for the
system shall be located upon such property- within or without
the territory described in Section 1,01., as is hereafter ap-
proved by the Council by appropriate rezoning thereof,
1,03 Grantee shall be under no obligation to extend the sys-
tem beyond the limits of the territory described in Section
1,01 except upon its acceptance of an ordinance providing
therefor.
ARTICIE II
Covenants.of Grantee
2.01 Grantee shall submit to'the Council
vance-of commencement of construction of
plans and specifications thereof,
in triplicate, in ad"
the system., complete
2.02 Grantee shall pay to the Village a construction permit
in an amount equal to One Dollar Fifty Cents per One Thousand
Dollars of the original cost of the system., as certified under
Section 4.01, plus Seventeen Hundred Dollars. At the time of
applying for construction permits a deposit of Two Thousand
Dollars shall be made against the fee as finally determined.
2003 Grantee shall commence construction of the system within
thirty (30).days following,,, but not-before, approval of the
plans and specifications by the Council and the issuance of a
construction permit therefor, and it shall thereafter prosecute
construction promptly*to completion,
2.04 prior to commencement of construction of the systems
Grantee shall procure the issuance of and thereafter keep in
force until completion of construction of the system and its
approval by the Village and for one year thereafters a cor-
porate surety performance and completion bond in favor of the
Village, in an amount not less than Two Hundred Thousand Dolt
Lars, conditioned upon its construction of the system to com-
pletion in accordance with the plans and specifications, and
it shall file such bond with the Village Clerk,
2,05 Grantee shall indemnify, keep and hold the Village of Men,
dota Heights., its officers and employees., free and harmless from
liability on account of injury to or death of persons and damage
to property, in any way arising out of the constructions main-
tenance or operation of the system., and in the event that.suit
shall be brought against any one or more of the foregoingo
either independently or jointly with Grantee or others, upon
notice thereof Grantee.shall defend them at Granteels expense;
and in the event of a final judgment being obtained. against
any one or more of the foregoing., either independently or
jointly with Grantee or others., Grantee shall pay such judg-
ment together with all costs and.shall hold them harmless
therefrom.
2.006 Prior to commencement of construction of the system.,
Grantee shall procure the issuance of and keep in force at all
times thereafter' public liability insurance with.personal in,
jury limits of not less than One Hundred Thousand Dollars each
persons Three Hundred Thousand Dollars each accident., property
damage limits of not less than Ten Thousand Dollars., and it
shall file certificates evidencing such insurance with the
Village Clerk,
2.07 Grantee shall construct the system in accordance with the
approved plans and specifications.
2.08 Grantee shall at all times maintain the system in good re-
pair and operating condition,
2.09 Grantee-shall at.all times.furnish an adequate supply of
pure water for the needs of the domestic,, public and other users
within the franchised territory; the standard-of adequacy shall
be the minimum requirement of the Fire Underwriters Inspection
Bureau; the standards of purity shall be those of the Minnesota
State Department of Health.
2.10 Prior to commencement of operation of the system, Grantee
shall procure the issuance of and keep in force at all times
thereafter, a corporate surety performanc b�nd in favor of the
Village, in the amount of not less than W, 1-`
conditioned upon Grantee,!s continuing compliance with all ap-'
plicable terms and conditions of this franchise,, and it shall
file such bond with the Village Clerk, Grantee may at any time,
at its option and in lieu of obtaining and filing the bond re-
quired by this section,, deposit with the Village Clerk cash
and/or negotiable United States Government Bonds aggregating
the amount of the said performance bond, United States Govern-
ment Bonds being for this purpose valued at par.'_ Such deposit
of cash and/or bonds shall be conditioned as provided in the
first sentence of this section,, and it shall be held by . the
Village as trustee for Grantee, subject to appropriation by
the Village for the purpose of making good any breach of con-
ditiono but only to the extent required therefor. Grantee
shall., promptly following any such appropriationff deposit addi...
tional cash and/or bonds so as to maintain the deposit at the
required figure. The said deposit, or so much thereof as re-
mains upon termination of this franchise, shall be returned to
Grantee upon such termination., subject to the Village,!s right''
of appropriation with respect to any breaches of condition
then existing.
2,11 Grantee shall at all times keep the water tanks., Pumps
and pump houses insured in a stock insurance company, against
the perils of fire, windstorm and other perils enumerated in
the standard extended coverage endorsement, to the extent of-
eighty per cent of the replacement value thereof, and shall
�ile with the Village Clerk certificate of such insurance.
2.12 Grantee shall keep the properties, real and personal,
comprising the system free from liens except the lien of
2
taxes, the payment of which has not yet become delinquent.
( 2,13 Grantee shall furnish to the Village within the limits
of the territory described in Section 1.01 free of c arge.,
nb L C-
19 -tv -V)'L L-0
146 -rh ae C9 b S E
-jr-)J OIZ E 6. P FO c i= r h P9 C F 6 k -1-Y
41 c3 2 ,d r4 - 7 G 'FO U k Je t= L, -t- C-a P- pn, e- P t A to=- tia u
water for ,fire tprotectiori purposes and for such other purposes,
incident to the ,performance -of its governmental functions as
the Village may from time to time require; this shall not be
construed to require the furnishing of water.for swimming pools
or lakes.
2.14 In the event of installation or subsequent repair of any
conduit., main.9 pipe or.appurtenance to the system located in a
street or other public.place which has theretofore been accepted
by the Village, Grantee shall, on each such occasion., prosecute
such work as promptly as possible and so as to cause the least
possible interference with or inconvenience to the public, and
upon completion thereof Grantee shall restore the said street
or public place to its original condition.
R
ARTICIE III
Water Rates
3.01 Grantee shall be entitled to charge its customers such
rates for the furnishing of water as will produce a reasonable
return upon its investment, based upon a reasonably efficient
and economical operation of the system. It shall depreciate
its properties at a rate of not less than.four per cent per
gunum., and such depreciation shall be a proper expense of op-
eration for purposes of determining the return upon its in-
vestment.
3.02 Grantee may require any customer requesting water ser-
vice to pay an amount not to exceed the actual cost to Grantee
including labor, materials and a reasonable overhead charge.,
of installing and connecting a service line from the property
line to the structure to be served.
3.03 Grantee may bill its customers on a quarterly or other
periodic basis., and it may require each customer to make an
initial deposit in an amount not to exceed Fifteen Dollars.
In the event that water service is metered] -it may require'of
the customer an additional deposit in an amount not to exceed
the actual net cost to Grantee''of the meter installed upon the
premises of such customer,
3,04 The initial rates to be charged upon commencement of
operation of the system and to remain in effect until changed
in accordance with Section 3.06, shall not exceed the following:
jp�- -S
-uud charge of $4,,25 _e:r.
(a) In the event meters are used,
w46h a minim _p
month k,,gThe. first 1.,000 cubic feet of water used by
the consumer Lm
M
(b) in the event meters are not used, there shall
- - be a flat charge of $4425 per month for each
single family dwelling and a land area of not more
than twenty thousand square feet with one bathroom
and an additional charge of $1.50 for each addi-
tional bathroom. An,additional flat charge of
$2.00 per month shall-be made for water used on
each additional one-half acre or portion thereof.
(c) In the event water is furnished to any come-
- .. mercial or industrial establishment by said
Company., the supply f water furnished to any such
establishment shall metered and the charge
therefor shall be at—the--rVe or
la- � -w-lth a minimum charge of .. $5.00 per month, 411
,the first 1J.000 cubic feet of water used by the
consumer
Qj
kka
Zs
47
C7�.
/*
Jc
VVII
V
I
i
3.05 Grantee shall file with -the-Council annually, in dupli-
cate, not later than One Hundred days following the close of
Granteels fiscal year, complete financial statements prepared
and certified by a certified public accountant.
3006 The maximum rates which. may be charged by Grantee may be
altered by the Council by ordinance adopted after notice of not
less than twenty days.to Grantee and to the p ublic; -and-hearing
thereon. The reasonableness of any `ordinance changing the'maxi-
mum. rate .shall be sub ject to review by a court of competent
jurisdiction®
ARTICIE - IV
Acquisition, of, System by Village
4.01 Prior to final approval-of'the system by the Village.,
Grantee shall file with the Village Clerk., in duplicate., a
statement of "original 'cost' of the system., prepared and cer"
tified by a certified publi' accountant, "Original cost* is
defined to be the sum of Grantee: !s actual expenses reaze, �*- yA,zFc
incurred and paid in connection with the original construe,
Lion of the system authorized by this franchise, subject to
the following:
(a) Land cost shall not exceed Two Thousand Dollars.
(b) There shall be excluded the cost of installing
service lines to customers4 premises., to the ex-
tent that such lines are not within the limits of
streets or other public property.
(c) There shall be excluded all costs, otherwise
includibleo for which Grantee has received re-
imbursement from any source whatsoever.
4,02 The "adjusted cost" of the system shall be thecriginal
cost, increased by any a0ditiGns authorized by the Village and
decreased by any reimbursements therefor received by Grantee,
Each adjustment in original cost shall be shown upon the annual
financial statement required by Section 3.05 for the year in
which such adjustment occurs. -
4.03 The Village may purchase the system from Grantee at any
time following its completion and approval by the Village., and
upon adoption of an appropriate ordinance providing therefor,
at a price equal to the adjusted cost of the system, reduced
by depreciation calculated at the rate of four per cent for
each full year of operation of the system following its ap-,
proval by the Village.
4.04 In addition to the purchase price calculated as provided
in Section 4,03,, the Village shall., upon its purchase of the
system,, pay Grantee the reasonable value of such tools and
supplies as are on hand and are reasonably required for the
operation of the system, together with the reasonable value
of accounts receivable and unbilled accounts for water serer
vice rendered.
4.05 The purchase price shall be applied first to the payment
of such liens as may exist against the system or any part thereof,,
including the lien of taxes., the payment of which has not yet
become delinquent, and there shall be reserved from the purchase
price an estimated amount
r-
-to-Gover the payment of real estate
taxes which have been assessed but which have not yet become a
lien upon the propertye- Any excess of the amount so reserved
over the actual liability,'-tltimately determined'for'such taxes,
shall be promptly paid over to Grantee.
4.06.: Upon such purchase of the system-by'the Village and tenr-
der-.of. payment ..therefor., Grantee shall execute-and deliver to
the Village such conveyances,. bills of sale, assignments and
other-instruments as maybe required by the Village for the.
purpose of transferring to it. title to the system:and'its re-
lated properties.
ARTICLE. 'V:
Forfeiture
5.01 In the event that Gr&htd6'f&ils to operate or maintain
the system or fails.to furnish an adequate supply of pure water
to its customers., or-otherwise fails to :comply with any of the
terms or conditions of this-franchise-., and if such default con.
tinues for more than thirty days after notice thereof from the
Village, the Village may, by proper ordinance, terminate this
franchise. The reasonableness of such ordinance shall be sub►
ject to review by a court of competent jurisdiction,
5.02 Upon a termination of this franchise in the manner pro"
vided by Section 5,01., Grantee shall convey to the Village in
the manner provided by Section 4.06., all of the properties com-
prising the system, at no cost to the Village,
5.03 A failure of Grantee to provide water service by reason
of acts of God or by reason of other accidents or delays which
are consistent with ordinary precaution,,, shall not constitute
a default hereunder., provided that Grantee restores the opera"
tion of the system as promptly as possible.-
ARTICLE VI
Miscellaneous
6.01 The term of this franchise shall be twenty,five years
from the date of approval of the system by the Village; pro"
vided that the franchise shall terminate on such,earlier date
upon which the Village acquires title to the system through
the operation of either Article: IV or Article V.
6.02 This franchise shall not be assignable except upon con.
sent by the Village evidenced by ordinance providing therefor.
The Village shall not unreasonably withhold consent to a pro-
posed assignment,,, but as a condition of .such consent, the asp
signee shall be required to accept all the terms and conditions
of this franchise.
6.03 All of the terms and conditions of this franchise shall
be binding upon the successors and assigns of Grantee. This
section shall not be construed to modify the provisions of..'
Section 6.02.
6.04 This franchise shall be accepted by Grantee by instrument
in writing filed with the Village Clerk not later than thirty
days following the effective date hereof. In the event of its
failure so to accept., all rights of Grantee.hereunder shall cease.
6.05 The ordinance adopted by the Town Board of the Town of '
Mendota, Dakota County, Minnesota, on February 24, 1956, grant-,
ing a franchise to Grantee herein, to the extent that such or-
dinance is valid and binding upon the Village, is hereby repealed,
6.06 Grantee shall pay the expense of the official publication
of this ordinance. Such payment shall be due promptly upon its
being furnished with -a statement thereof.
6.07 If any section or provision of this ordinance shall be
declared to be invalid by competent authority, such invalidity
shall not affect or invalidate the remainder or any other por-
tion of this ordinance,
6.08 This ordinance shall take effect upon its passage and
publication.
Enacted and ordained into an
x.956
(SEAL)
ATTEST:
-"Cler
ordinance this e!:;71 day of May.,
VILLAGE OF MENDOTA HEIGHTS
Mayor