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HomeMy WebLinkAboutORDINANCE NO 175r7s" ORDINANCE NO. �V AN ORDINANCE OF THE CITY COUNCIL OF SEBASTIAN, FLORIDA, GRANTING A FRANCHISE TO GENERAL DEVELOPMENT CORPORATION, A DELAWARE CORPOR- ATION, TO OPERATE AND MAINTAIN A WATER SYSTEM IN THE CITY OF SEBASTIAN, FLORIDA; SETTING FORTH CONDITIONS AND PRIVILEGES ACCOMPANYING THE GRANT OF FRANCHISE; PROVIDING FOR RATES AND CHARGES, AND FOR SERVICE STANDARDS: PROVIDING FOR WATER CONNECTIONS AND PENALTIES FOR THE VIOLATION OF SUCH PROVISIONS; AND FOR OTHER PURPOSES. BE IT ORDAINED BY THE CITY COUNCIL OF SEBASTIAN, FLORIDA: Section 1. Short Title. This ordinance shall be known and may be cited as the SEBASTIAN WATER FRANCHISE ORDINANCE. Section 2. Definitions. (1) The word "Utility" as used herein refers to the General Development Corporation, a Delaware Corporation. (2) The word "City" as used herein refers to the City of Sebastian, Florida. Section 3. Grant of Authority. In consideration for the undertaking by the Utility of furnishing water distribution services to the area included in the City, there is hereby granted by the City to the Utility, the non-exclusive right and privilege to erect, construct, operate and maintain: (1) A water distribution system and the right and privilege to pipe water into the City, to transport the same by mains and pipes throughout the City, and the right to sell and distribute water within the City; and for these purposes to establish the necessary facilities and equipment to lay and maintain water mains, pipes and any other appliances and appurtenances necessary to the sale and distribution of water in, under, and along the streets, alleys, and other public places of the City. (2) The City agrees to offer the Utility the first right of refusal to erect, construct, operate and maintain a sanitary sewerage system in, under and along the streets, alleys and other public places within the City when such a sewerage system becomes necessary or feasible. Section 4. Compliance with Applicable Laws and Ordinances. The Utility shall, at all times during the life of this franchise, be subject to all lawful exercise of police power of the City, and to such regulations as the City shall hereafter, by resolution or ordinance provide. It is specifically agreed that in the event the Florida Railroad and Public Utilities Commission should at any time in the future assume control of City franchises, public works, public water and sewer systems, and the rates for service therefore, the said City Council may submit to the authority of the Florida Railroad and Public Utilities Commission and said City VOCELLE • VOCELLE VERO BEACH. FLORIDA • Council shall relinquish its control over said public franchises, water and sewer systems, to the extent but only to the extent that the same is assumed by or vested in the Florida Railroad and Public Utilities Commission. Section 5. Liability of Utility: Indemnification. It is expressly understood and agreed between the Utility and City that the Utility shall save the City harmless from all loss sustained by the City on account of any suit, judgment, execution, claim or demand whatsoever resulting from liability on the part of the Utility in the construction, operation or maintenance of its water system in the City. The City shall notify the Utility's representatives as soon as possible after the presentation of any claim or demand, either by suit or otherwise, made against the City on account of any liability as aforesaid on the part of the Utility. The Utility shall at all times maintain minimum liability insurance in accordance with accepted practices dictated by safe business standards and as recommended by the approved Board of Underwriters recognized as an authority in the public utilities field. The City shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by Utility of its system hereunder, and the acceptance of this ordinance shall be deemed an agreement on the part of Utility to indemnify City and hold it harmless against any and all liability, loss, cost, damage or expense, which may accrue to City by reason of the neglect, default or misconduct of Utility in the construction, operation or maintenance of its facilities hereunder. Section 6. Service Standards. The Utility shall operate and maintain its water supply and distribution system and render efficient service in accordance with this ordinance, and all requirements and regulations of the Florida State Board of Health, and particularly without limitation in accordance with the following provisions: (1) Water (a) Fire Hydrants. The Utility shall from time to time, install at no cost to the City fire hydrants along the water mains to be constructed in the City, in such numbers and at such locations as may be designated by the City and in con- formance with the accepted standards of the National Board of Fire Underwriters. The Utility shall deliver such water in such quantities as will maintain a static water pressure equal to forty (40) pounds per square inch at the fire hydrants, and in accordance with the Code of standards of the National Board of Fire Under- -2- VOCELLE & VOCELLE VERO BEACH, FLORIDA writers. However, the Utility does not guarantee that the supply of water to be distributed to such fire hydrants shall be at all times constant or maintained at the pressure specified above, it being understood that temporary cessation of delivery of water or drop in water pressures at any time cause d by an Act of God, fires, strikes, casualties, accidents, necessary maintenance work, breakdowns, damage to machinery or lines, civil or military authority, or by riot or other cause beyond the control of the Utility, shall not constitute a breach of the provisions of this sub -paragraph or impose liability upon the Utility to the City or to its inhabi- tants or water consumers therein. (b) Residential - Other Users. At all times the Utility shall. be able to provide for the use of consumers within the City an adequate quantity of water per day, under adequate pressure for domestic or other use at all the taps or water outlets of such consumer, and to maintain at all times the quality and purity of such water to meet the United States Public Health Service Drinking Water Standards. However, the Utility does not guarantee that the supply of water to be distributed shall be at all times constant in the above quantities or under the above pressure, it being understood that temporary cessation of delivery of water, or drop in water pressures at any time caused by an Act of God, fires, strikes, casualties, accidents, necessary maintenance work, breakdowns, damage to machinery or lines, civil or military authority, or by riot or other cause beyond the control of the Utility shall not constitute a breach of the provisions hereof, or impose liability upon the Utility to the City or to its inhabitants or water consumers therein. (c) Meters. All. water delivered to consumers hereunder (except water delivered to fire hydrants) shall be measured by meters of standard make and of sufficient size, such meters to be furnished, installed and maintained by and at the cost of the Utility. In case the City shall at any time question whether any meter or meters are registering; correctly, the City shall have the right, upon making written request to the Utility, to have such meter or meters tested in the presence of a representative of the City and if, as a result of such test, such meter or meters shall be found to be incorrect or inaccurate, the same shall be restored to an accurate condition or a new meter or meters shall be installed at the cost of the Utility. If such meter or meters be found to be within three per cent (3%) of the accurate or -3- VOCELLE & VOCELLE VERO BEACH. FLORIDA . true reading, the cost of such test shall be borne by the consumer but otherwise shall be paid by the Utility. Should any test or tests show any such meter or meters to be substantially inaccurate, computations for water previously delivered since the last preceding monthly meter reading shall be adjusted accordingly. Section 7. Other Provisions. The Utility shall furnish and maintain all necessary fittings, pipes and appliances, including all meters and meter boxes, to deliver water to the consumer at the property line. All such fittings, pipes, appli- ances, meters and meter boxes shall remain the property of the Utility, and shall at all times be accessible to it and under its control. The service line from the meter to the consumer's premises shall be laid and maintained by the applicant at his own cost. All of such water connection.: required to be furnished by the applicant shall be of such size and quality as shall be required by the Utility, and shall be laid and installed and maintained in accordance with its rules and regulations. The Utility shall be authorized to establish reasonable rules and regulations not in violation of the terms of this franchise, providing, however, that the City Council may review said rules and regulations at all times. Section 8. Extensions. The services of the Utility must be extended by the Utility to serve areas not designated in the original plan upon approval by the City Council. As a consideration for extension the Utility may enter into separate agreements with future consumers to afford the Utility reasonable compensation for such extension, provided, however, agreement shall be submitted to the City Council for its approval, which approval shall not ; be unreasonably withheld. Prior to any extension of its facilities, the Utility may require a capital contribution, cash deposit, refundable deposit agreement, bond or other assurance from prospective consumers applying for such extension. There is attached hereto Exhibits 1, 2 and 3 designating Stage 1, 2 and 3 of the extensions by Utility and further it is agreed that such exhibits are specifically made a part of this franchise. It is specifically agreed by the Utility that Stage 1 shall be completed within two (2) years from the effective date of the franchise, that Stage 2 will be completed within three (3) years from the effective date of the fran- chise and Stage 3 will be completed within four (4) years from the effective date of the franchise. -4- VOCELLE 6 VOCELLE VERO !EACH. FLORIDA It is agreed that the consumer served by said stages must connect with the Utility within twelve (12) months after such stage is fully completed and operable. It is specifically agreed that the Utility shall place with the City Council a performance bond in the amount of One Hundred Twenty Five per cent (125%) of the estimated installation cost of each stage, subject to approval of City Attorney and City Engineer; conditions being that completion of Stages 1, 2 and 3 as aforesaid, and with penalty prescribed for non -conformity therein. The City Council shall pass all ordinances necessary or suitable to enable the Utility to enforce all regulations requiring consumers to tie-in to the Utility service when it is available in accordance with the procedure outlined above. Section 9. Rates and Charges. So far as it is within the power of the City to fix rates and charges, and subject to the provision that all rates hereunder shall at all times be such as to provide the Utility with a fair return on the replacement or reproduction value of its water supply and distribution system, rates and initial charges to consumers of water within the City shall be as follows: (1) Water. (a) Residential Users: For residential consumers or users of water using a one (1) inch meter, or one of less size, the quantity of water delivered by the Utility shall be determined from meter readings made by or on behalf of the Utility monthly and billed by the Utility monthly to the consumer on the following rates: 0 to 3, 000 gallons Minimum monthly charge $3. 25 Next 3, 000 gallons 50t per 1, 000 gallons Next 40 000 gallons 40� per 1, 000 gallons Next 10, 000 gallons 35� per 1, 000 gallons Over 20, 000 gallons 30� per 1, 000 gallons (b) Other Users. For water consumers other than those described in sub -paragraphs (a) above, the quantity of water delivered by the Utility shall be determined from meter readings made by or on behalf of the Utility monthly and billed by the Utility monthly to the consumer at rates set by special contract be- tween the consumer and the Utility, but subject to approval by the City Council. (c) Changes in Rates and Chanes. The Utility and its successors and assigns shall at all times be limited in its charges for services furnished in accordance with the franchise to a schedule of charges which shall be presented -5- VOCELLE 4 VOCELLE VERO BEACH, FLORIDA and approved by the said City Council following an advertised public hearing. The public hearing shall be advertised a minimum of ten (10) days in advance of the hearing and not more than twenty one (21) days in advance of the hearing. The Utility may, if it deems it necessary to amend or change said charges, give the Council notice in writing of same and within thirty (30) days after notice as aforesaid, the Council shall authorize and hold a public hearing and within thirty (30) days after such public hearing if the council shall decline to act, then the Utility may forthw6ith put into effect such amendment or change of schedule. It is understood and agreed that if the Utility should raise charges or rates as hereinabove stated, the monies so collected shall be escrowed by the Utility with a National or State banking institution for a period of ninety (90) days. In the event the Council should deny the raise or increase at any time during the ninety (90) day escrow period, the Utility shall refund to its consumers the monies collected by virtue of the raise. If, however, the Council takes no action upon the expiration of the said ninety (90) days escrow period, the monies coll- ected shall become the funds of the Utility and there shall be no further obligation on the part of the Utility to escrow any monies and the new rates and charges shall continue the same as if the request by the Utility for the increase had been granted. The Utility is not permitted to submit unreasonable charges for maintenance and operation. Any charges submitted must be in line with good business prac- tices relative to maintenance and operation and in no event shall salaries of officers and directors be excessive with respect to services rendered to the Utility. If at any time the rates for water furnished are insufficient to maintain and operate the water system with an allowance for a normal return on the Utility's investment for maintenance and operation on the Utility, and for an allowance for replacement of equipment, retirement of debt service, and allowance for depreciation of the water system, including all pipes, lines, valves, tanks, machinery and equipment and appurtenances thereto, including all parts and portions of the water system in its entirety, the Council shall have the right and power to fix and make effective such rates and charges to effect a normal return after taking into consideration the matters herein referred to. -6- VOC[LL[ • VOCELL[ VERO BEACH, FLORIDA Any tax or charge imposed by any governmental authority on the Utility which is imposed solely because the nature of the operation is a Utility as distinguished from other individuals, firms, corporations, or businesses in general, the said tax or charge may be apportioned among the consumers as a direct tax upon the consumers without resort to the Council for permission to increase the Utility's rates, provided, however, such taxes or charges must be proportionately assessed against all the Utility's consumers covereu by this franchise and which consumers are effected by such tax or charge. (d) Penalties, In the event water bills are not paid within thirty (30) days, the Utility shall have the right to disconnect the water service to the consumer with- out further notice and such service shall not be restored until after all delinquent bills have been paid, plus reimbursement to the Utility for all extra expenses (such as special trips, inspections, disconnecting and reconnecting service, additional clerical expenses, etc. ) incurred by the Utility on account of any delinquent bill, or on account of the consumer's violation of the contract fo- water service or of the Utility's rules and regulations. The minimum charge to cover such extra expenses as to each of said services is Five Dollars ($5. 00). (e) Connection Charges: Deposits. Applications for connection to the water distribution system shall be made upon forms to be furnished by the Utility in compliance with the rates, rules and regulations of the Utility, and after approval of the application by the Utility thereon, provided, however, that such rules and regulations shall have been previously approved by the City Council. The size of service lines, valves, meters and other fittings, fixtures or appliances necessary to give the service applied for shall be a reasonable and proper size to be determined by the Utility at the time of the application. Such applications shall be accompanied by the payment of the following connection charges: Size of Connections 3/4" 1" Over 1" Connection Charge $ 50.00 $100.00 To be set by Utility and by payment of a reasonable deposit to guarantee payment of water bills. (f) Tax Clause. The rates and charges, including minimum and other charges and service guarantees are dependent upon Federal, State, County, Municipal, District or other governmental taxes, license fees and/or other -7- VOCELLE • VOCELLE VERO BEACH. FLORIDA impositions upon the Utility, and such rates and charges may be increased or a surcharge added, if and when any or all such taxes, license fees, and/or other impositions are increased, at the cost per hundred gallons or other applicable unit of charge, of such additional taxes, license fees and/or other impositions., All provisions contained in Section 9, paragraph (c) of this franchise shall also apply. Section 10. Term of Franchise. This franchise shall take effect and be in force from and after the final passage hereof, as required by law, and upon filing of acceptance by the Utility with the City Clerk. Such franchise shall continue in force and effect for a term of thirty (30) years beginning with the date of such acceptance. At the expiration of the said thirty (30) year franchise term, the City shall have first refusal on the purchase of the Utility, based on a price and value as computed and agreed upon by three competent and qualified appraisers. The City shall select an appraiser, the Utility shall select an appraiser, and these two appraisers shall mutually agree upon and select a third independent appraiser and these three appraisers shall arrive at the value of the Utility and the sales price involved; provided, however, that no value will be placed on additions or extensions to the system which were paid for by any person, firm or corporation other than the Utility; provided, however, that at the end of the franchise period, the City shall not be required to pay to the Utilit, any amount for good will and the appraised value shall be based entirely upon physical assets only.. And provided further that in the event said Board of Appraisers cannot agree as to the price to be paid by the City, then the City may file appropriate condemnation proceedings under not Florida Law. In the event the City does/exercise its right of purchase at this time, the Utility may negotiate for a new franchise or offer the water system for sale. If, any time prior to the expiration of this franchise, the Utility wishes to negotiate for a new term, the Utility shall furnish the City Council with notice in writing of J its desires and the City Council shall appoint within ninety (90) days a committee or board to meet with the Utility's representatives to discuss and negotiate new terms. Section 11. Assignment. The City hereby reserves the right to purchase the property of the Utility used under this grant as provided under the laws of the State of Florida, and as a condition precedent of the taking affect of this grant, VOCELLE • VOCELLE VERO BEACH, FLORIDA the Utility gives and grants to the City the right to purchase so reserved. The Utility shall not at any time transfer and assi&;m its rights under this fran- chise to any person, firm or corporation without consent of the majority of the City Council, said consent not to be unreasonably withheld. Section 12. Consideration. Within thirty (30) days after the first anniversary date of this franchise and within thirty (30) days after each succeeding date of this franchise, the Utility, its successors and assigns, shall pay to the City an amount which shall equal five per cent Mo) of the Utility's revenues from the sale of water services to residential and commercial subscribers within its present or future corp- orate limits or additional areas serviced by the Utility excluding connection charges, for the twelve (12) fiscal months preceding the applicable anniversary date. Section 13. Location of Transmission Lines and/or Pipes. It is specifically agreed that no lines will be located in other than public easements of the City, and it shall be the duty of the Utility, prior to extension of any lines or pipes, to first have dedicated to and acceptance by the City of said easement. All lines or pipes so placed or located within a public easement shall at the termination of this fran- chise belong to the City in fee simple absolute if the lines or pipes were paid for by persons, firms, or corporations other than the Utility. In the event of the election of purchase by the City if the Utility services areas owned by the Utility Corpor- ation and if the lines or pipes are paid for by the consumer or by subsidiary corp- oration, at the termination of said franchise, said lines or pipes shall be the property of the City in fee simple absolute. Section 14. The City may require and the Utility is bound to alter, remove and relocate the transmission lines and/or pipes as may be necessary for the City's carrying out its function in the interest of public health, safety or welfare. The City shall not at any time unreasonably require any relocation. The cost of re- location shall be borne by the Utility, unless the City Council, in its sound discretion approves full or partial payment for alteration, removal �)r relocation of the trans- mission lines or pipes;provided, however, where public funds are available for re- location pursuant to law then and in that event, the Utility shall not be required to pay for said relocation. The City agrees not to require the above relocation unless absolutely necessary. The Utility's facilities shall be so located or relocated and so constructed as to interfere as little as possible with traffic over streets, alleys, bridges and public places, and with reasonable egress from and ingress to abutting property. The location or relocation of Utility's facilities -9- VOCELLE a VOCCLLE VERO BEACH. FLORIDA shall be made under the supervision and with the approval of such representatives as the governing body of City may designate for the purpose, but not so as to unreasonably interfere with the proper operation of Utility's facilities and services. Further, that the Utility in the installation of its transmission lines and/or pipes shall restore any street, sidewalk or other City property in the same condi- tion as the property was prior to the installation of said transmission lines and/or pipes. Section 15. Reports. The Utility agrees that it will supply the City Council with copies of the reports made by both the State Board of Health and the Utility's laboratory technician as to the results of bacteriological analyses at such intervals of time as set forth in the Standards of the United States Health Service. Section 16. Additional Ordinances. The City agrees to pass all ordinances necessary or suitable both for the reasonable protection of the rights and property of the Utility and to enable the Utility to enforce any of its reasonable rules and regulations for the management, operation and control of the services to be rendered by the Utility hereunder and to pass any reasonable ordinance or ordinances that will be necessary or hereby granted or intended so to be. Section 17. Separability. If any section, sub -section, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remain- ing portions hereof. FIRST READING the ! day o 1959 SECOND, FINAL READING AND A5SA E theL Attest,�, Ci -C erk (Seal) The foregoing Franchise is accepted this j /slaay of �� �l _ , 1959. Attest: By Secrktary (Seal) -10- VOCELLE • YOCELLE VERO BEACH. FLORIDA GENERAL DEVELOPMENT CORP. By President