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HomeMy WebLinkAboutCity of Tamarac Ordinance O-1969-016• cz a 1 6 - `4" / ORDINANCE NO.,6f AN ORDINANCE GRANTING A FRANCHISE TO TAMARAC UTILITIES$ INC., FOR THE FURNISHING OF WATER AND SEWER SERVICES WITHIN CERTAIN DEFINED AREAS OF THE CITY OF TAMARAC; DEFINING WATER AND SEWER SERVICES; AUTHORIZING THE USE OF PUBLIC EASEMENTS' AND RIGHTS OF WAY FOR SUCH PURPOSES; PROVIDING FOR THE DURATION OF THE FRANCHISE; PROVIDING CERTAIN OBLIGATIONS OF THE CITY AND OF THE HOLDER OF FRANCHISE; AUTHORIZING WATER AND SEWER PLANTS IN CONNECTION WITH SUCH SERVICES; EXTENDING THE FRANCHISE TO OTHER AREAS OF THE CITY AND AREAS OUTSIDE THE CITY AS AND WHEN POWERS VESTED IN THE CITY MAY BE SO EXERCISED; PROHIBITING SEPTIC TANKS WITHIN THE LIMITS OF THE CITY; AND PROHIBITING PRIVATE WELLS FOR WATER AND DOMESTIC CONSUMPTION INSIDE THE CITY; FOR OTHER PURPOSES CONNECTED WITH THE WATER AND SEWER FRANCHISE; PRESCRIBING PENALTIES FOR VIOLATION THEREOF. WHEREAS, the City Council of the City of Tamarac has determined that the inhabitants of the Casty require public water and sanitary sewer services; and WHEREAS, a franchise for the operation of such a public utility will permit such services to be rendered more efficiently, effectively and economically to the benefit of all of the inhabitants of the City; and WHEREAS, water and sewer services are essential to the health and welfare of the inhabitants of the City; and WHEREAS, TAMARAC UTILITIES, INC., a corporation organized and existing under the laws of the State of Florida, is established to render suitable and satisfactory services to r • E.] • the inhabitants and is willing so to do at rates established pursuant to law; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: The City of Tamarac, here- inafter referred to as "City", acting by and through its City Council, does hereby grant unto TAMA.RAC UTILITIES, INC., hereinafter referred to as the "Utility", its successors or assigns, subject to the terms and conditions of this Ordinance, a franchise to render water and sanitary sewer services to those inhabitants of the City located within the areas of the City described in Exhibit "A" attached hereto and made a part hereof as if set forth in full herein, hereinafter referred to as the "area of service". SECTION 2: The term "water service" shall mean and include the obtaining, treatment, supplying and distribution of water to the public for human consumption, fire protection, irrigation and use by business and industry and all activities or operations therewith connected. Water service shall not include the distillation, preparation, bottling, selling or distributing of water in bottles. The term "sewer service" shall mean and include the collection, treatment, purification or disposal of sewage and sewage effluant and residues for the public. SECTION 3: The Utility is hereby authorized to construct within the limits of the City in any area now zoned or hereinafter to be zoned for public utility purposes - 2 - • the inhabitants and is willing so to do at rates established pursuant to law; and, WHEREAS, Notice of Public Hearing to consider granting of such a franchise was published in the Fort Lauderdale News, a daily newspaper published in Broward County, Florida; and, WHEREAS, pursuant tjo said Notice, Public Hearing was held this JJ:b day of ,A.D., 1969; and, WHEREAS, no valid objections were made at such hearing to the granting of such franchise; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: The City of Tamarac, hereinafter referred to as "City", acting by and trhough its City Council, does hereby grant unto TAMARAC UTILITIES, INC., hereinafter referred to as the "Utility", its successors or assigns, subject to the terms and conditions of this Ordinance, a franchise to render water and sanitary sewer services to those inhabitants of the City located within the areas of the City described in Exhibit "A" attached hereto and made a part hereof as if set forth in full herein, hereinafter referred to as the "area of service". SECTION 2: The term "water service" shall mean and include the obtaining, treatment, supplying and distribution of water to the public for human consumption, fire protection, irrigation and use by business and industry and all activities or operations therewith connected. Water service shall not include the distillation, preparation, bottling, selling or distributing of water in bottles. The term "sewer service" shall mean and include the collection, treatment, purification or disposal of sewage and sewage effluant and residues for the public. SECTION 3: The Utility is hereby authorized to construct within the limits of the City in any area now zoned or hereinafter to be zoned for public utility purposes - 2 :r • such wells, plants, storage tanks, treatment plants, basins or othFrstructures necessary or useful in the exercise of the franchise herein granted. SECTION 4: The Utility is hereby granted the privilege of using the streets, alleys, roads and other public rights of way in the City for carrying into effect the privileges granted by this Ordinance, and the Utility is further authorized to make all necessary excavations therein to install, repair or replace such pipes, mains or othErfacilities essential and useful in the distribu- tion of water and the collection of sewerage, subject to the regulations as hereinafter provided, or as may be needed in the operation of water and sewer systems. SECTION 5: The Utility, at no cost to the City, shall restore all such paved streets, alleys, roads and other public rights of way to their original paved condition within due and reasonable dispatch and with the least prac- ticable interference with, or inconvenience to, the rights of the public and individuals in and to such paved streets, alleys, roads and other public rights of way. The Utility shall be required to obtain a permit from the appropriate City official prior to cutting into or in anywise affecting any paved street, alleyway, road or other improved public right of way. As a condition precedent to the granting of said permit, a performance bond shall be required from the Utility; provided, however, this requirement may be waived by the City Council in the exercise of their sole discretion. The amount of said bond shall be established by the City Engineer and shall bear a reasonable relationship to the cost of said replacement or repair, and shall be in amount sufficient to replace and repair the cut into or otherwise affected paved street, alleyway, road or other improved public right of way; provided, however, it shall be sufficient for the Utility to furnish a master bond which, in the opinion of the City Engineer, shall be sufficient to cover the replacement and repair as above -defined for the contemplated work in progress at any given time. Should a master bond be utilized by the Utility and should the work in progress exceed the amount of the master bond, the Utility may be required to either increase the amount of the master bond, or obtain individual bonds for individual improvements in progress or proposed. in the event of any emergency, said emergency being defined as an interruption or suspension of services provided for in this - 3 - agreement to any ultimate user, the Utility shall be allowed to proceed without the necessity of obtaining a permit or bond; provided, however, the Utility shall obtain the necessary permit or bond at the earliest possible time. SECTION 6: In the event any obstruction or excavation caused by the Utility shall remain Longer than five (5) days after notice from the City to remove same, or in the event of failure by the Utility to pro- tect any dangerous places by proper guards or warning devices, the City may remove, fill or protect the same, at the expense of the Utility. SECTION 7: In excavating, the Utility shall conform to the Laws of the State of Florida, the ordinances and resolutions of the City of Tamarac and all reasonable regulations which are or may be prescribed by the City, and shall not interfere with or injure any gas pipes, or the facilities, of whatever kind and nature, of any other public utility operating with the consent of the City; and, the Utility shall receive similar protection from any subsequent franchises or contracts entered into by the City and any other utility. SECTION 8: The Utility, as an express condition of the granting of this franchise, shall save the City harm- less from any claims resulting from damage or injury to per- sons or property caused by the neglect or mismanagement of itself or of any of its employees or agents, while engaged in constructing or operating its works; and should the City be sued in any such claim, it shall be the duty of the Utility, upon demand, to defend or settle the same and otherwise save the City harmless by virtue of any such actions, or by virtue of the recovery of any judgment in connection therewith. SECTION 9: The Utility shall at all times have available to the inhabitants of the City adequate water and sewer service, and shall render such service on demand in accordance with the regulations of the Florida Public Service Commission, and the State Board of Health, and of any other governmental body having jurisdiction over the rendition of such services. Unless required by the lawful ordinances, rules and regulations of any other governmental - 4 - authority, the Utility shall not be unreasonably required by this Ordinance to extend any of its mains or other distribu- tion lines. Nothing herein contained shall require the Utility to furnish service except pursuant to contracts with consumers of the systems, which contracts may be subject to such reasonable rules and regulations of the Utility relating to the payment of rates, connections, use of equipment, deposits, service guarantees or contributions in aid of construction, and other such items as the Utility may deem necessary to efficient, economical and safe operation. And, provided further, the Util- ity shall not be required to extend any of its sewer lines into areas not servicEd by water furnished by the Utility, nor shall it be required to render sewer service to any property not util- izing the water service of the Utility. SECTION 10: In the event the City shall determine that other areas, within the corporate limits, as now or here- inafter existing, but outside of the "areas of service", as defined on Exhibit "A", and the present or future inhabitants thereof shall require public water and sanitary sewerage services, this Ordinance shall be extended to such additional areas upon the same terms and conditions set forth herein; provided, however, it is contemplated by the Utility and City that the City may, in selected areas other than Exhibit "A", purchase water from the Utility for distribution to the inhabitants and nothing herein shall be construed to prohibit the effectuation thereof. SECTION 11: The City reserves the right to levy an excise or other tax upon consumers of the services of the Util- ity, subject to such tax under the laws of the State of Florida, and to require the Utility to collect and pay over such tax as in said laws provided. SECTION 12: The provisions of this Ordinance shall be deemed to be a contract between the City and the Utility for a.period of thirty (30) years from the effective date hEr eof; provided, however, either party may seek a judicial termination for cause, including, but not necessarily limited to a violation or non-performance by the Utility. SECTION 13: As of the date of this Ordinance, the parties recognize that the jurisdiction to regulate all rates and services of utilities in Broward County, Florida, rests with the Florida Public Service Commission, pursuant to the provisions of Chapter 367, Florida Statutes, and further pursuant to the regulations of that Commission. Therefore, regulation by the City of the Utility's rates - 5 - and services have been abrogated by such Commission for such period of time as the Commission through the power delegated to it by the Legislature of the State of Florida shall continue in full force and effect. However, in the event that the Public Service Commission, or other similar agencies designated by the Legislature, shall not have the power to regulate the rates and services of the Utility, then such power shall vest in the City of Tamarac, subject to terms and conditions hereinafter set forth: RULES AND REGULATIONS: The City shall adopt Rules and Regulations providing for the manner and method under which the Utility shall be regulated. Such rules and regulations shall provide for the hiring of a utility expert in the field of rate making and utility accounting to assist the City in any regulatory proceeding. The rules and regulations shall further provide for a full and fair hearing at which the Utility may present its petitions for increase to the City or defend allegations regarding its rates and services arising upon the motion of the City. Regulatory decisions of the City shall be fully reviewable by a court of competent jurisdiction. RATE BASE: The Utility shall be entitled to have its rate base, established by the City, based upon the fair value of the Utility's property used and useful in the public service as of the date the regulatory power is vested in the City. Such determination shall be made by the City after receiving competent testimony as to the replacement cost less accumulated depreciation of the Utility's property on such date. The rate base of the Utility shall be determined upon the company's net invest- ment, and shall be the money honestly and prudently invested by the public utility in property used and useful in serving the public, less accrued depreciation, and, shall not include any contributions in aid of construction, nor any good will or franchise value in excess of payment made therefor. It is the expressed intent of the parties hereto that regardless of the regulatory agency, be it the State or City, or otherwise, contribution in aid of construction shall not be included in the rate base. RATE OF RETURN: In all rate proceedings, the City shall allow to the Utility, a fair return on the Utility's rate base as defined above. In determining a fair return the City shall give due consideration to the following: 1. The Utility's requirements for the cash working capital, materials and supplies. 2. The reasonable operating expenses and other costs of the Utility necessary to provide service to the public. 3. Depreciation expenses reflecting rates or depreciation intended and reasonably designed to enable the Utility to recover the cost of its invested and con- tributed property over the estimated periods of their respective life. 4. All taxes of every description levied or imposed on the Utility and its property, revenues, income and expenses. 5. The previously incurred and estimated future reasonable costs and expenses of the Utility in and in connection with the regulatory proceedings under consideration. In determining the fair rate of return, the City shall, in addition to the foregoing items of expenses, consider the Utility's total cost of its capital allowing for the rate of interest on the Utility's debt and a re- turn on its equity to enable the Utility to compete for equity capital with other similar businesses and industries having similar risks and to attract to the Utility sufficient additional equity capital to provide for the expansion and growth of the Utility's system. SECTION 14: It shall be unlawful for any person to drill any well for the production of water for domestic consumption with the limits of the City or for any person, firm or corporation to distribute water for use by another within the limits of the City. SECTION 15: It shall be unlawful for any person, firm or corporation to use any cesspool, septic tank or mains other than sanitary sewers of the Utility for the collection or disposal of human or animal waste or offal or other forms of sewage, including industrial waste, - 7 - • provided, however, should, in the opinion of the City Council, a hardship arise as the result of the Utility being unable to offer the proper service, the City Council may, in the exercise of sound discretion consistent with the Utility's investment and the rights of the private individual, allow a cesspool, septic tank or other main for a period not to exceed five (5) years. SECTION 16: Violations of this Ordinance are unlaw- ful, and shall be punished by fine not exceeding Five Hundred ($500.00) Dollars, or by imprisonment in the City jail for a term not exceeding six (6) months, or by both such fine and imprisonment. SECTION 17: The City hereby expressly reserves the right, and the Utility in accepting the franchise established herein, grants to the City, the right, at and after the expiration of the treatment of this franchise to purchase the Utility's water and sewer properties used in connection with rendering service to the public at a valuation of the Utility's real and personal property, which valuation shall be fixed as may be provided by law. SECTION 18: That the construction, maintenance and operation of the said facility shall be subject to all of the Ordinances of the City of Tamarac relating to construction, zoning, etc. SECTION 19: That the construction, maintenance and operation of said system shall not cause a pollution of any waterway in the City of Tamarac, and the said facility shall not be unreasonable by virtue of the emission of dust, dirt, smoke, noise, odors, fumes, vibrations or substances which possess an abnormal explosion hazard. SECTION 20: That the sewerage treatment and disposal plant and the water plant shall be in operation within six (6) months from the date hereof. SECTION 21: Unless accepted by the Utility within thirty (30) days from final passage of this Ordinance, the terms and conditions of this Ordinance shall be null and void. C, • SECTION 22: That as construction of said facilities progresses and upon the construction being completed, the Utility shall furnish the City proof of the costs of such construction, so that the City will have on file a record as to the total cost of construction, which information will be of assistance to the City in any determination it may make as to a desire to purchase the facilities as hereinbefore set out; provided, however, the 40 cost figures and cost items shall create rebuttable presumptions and not conclusive presumptions when utilized in arriving at a purchase price as hereinbefore set out; provided, however, that if the reports filed with the Public Service Commission contain the information requested in this paragraph, copies of said re- ports shall be sufficient to satisfy the requirements of this paragraph. SECTION 23: The Utility shall submit to the City annual financial statements showing its financial condition and its operations for the preceding year, including customer accounts, operational expenses, a gross and a net income, and matters of similar import, so that the City can determine the earning capacity of the facilities, the reasonableness of its rates, and the advisability of the City purchasing the facilities, and • matters of similar import; provided, further, that if the reports filed with the Public Service Commission contain the information requested in this paragraph, copies of said reports shall be sufficient to satisfy the requirements of this paragraph. SECTION 24: That the Utility shall have no right to sell, convey or assign in any way any of the water or sewerage facilities without the written consent of the City, said approval and consent not to be unreasonably withheld. SECTION 25: That within thirty (30) days after the first anniversary date of this franchise, said date being de- fined at the date this franchise is accepted by the Utility, and within thirty (30) days after each succeeding anniversary date of this franchise, the Utility shall pay to the City a Utility franchise tax of 4% of the utility's revenue from the sale of water and sewer service to residential and commercial customers within the area of service for the twelve months preceeding the applicable anniversary date; said 4% to include amounts expended by the Utility for taxes, licenses, and other impositions levied or imposed by the City upon the Utility's revenue from property, business or operations for the preceeding tax year; provided, however, connection charges, or water and • sewer service sold to the City under special service agreements �Z between the City and the Utility shall be excluded from the Utility obligation under this paragraph. Payments of said franchise tax shall be made by the Utility to the City on a quarterly basis within thirty (30) days after each three (3) month period from and commencing with the acceptance of this franchise by the Utility, and within thirty (30) days after each successive three (3) month period, said amounts to be adjusted on an annual basis within thirty (30) days from the anniversary date. At the option of the City, the quarterly payments may continue for the first ten (10) years of this franchise agreement, and, after said ten (10) year period, the franchise tax shall be paid annually within thirty (30) days from the respective anniversary date. SECTION 26: Should any section or provision of this Ordinance or any portion thereof, or any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or any part hereof, other than the part declared to be invalid. SECTION 27: All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. PASSED FIRST READING this % day of 09,;/ , 1969. PASSED SECOND READING this --S- day of / 14y , 1969. PASSED THIRD READING this �' day of --:Lve , 1969. MAYOR ATTEST: 9 of City Clerk - 10-- * , , EXHIBIT "A" i 0 I I�=o N x m 0 � ►- -,0 � L0 O' to � daQ w��aQWQ 3 IL I� prN� LL 0 lL Y �- 0 J1 p d) Ld C1 ,. � I Cc—aUQ�i— •� W ZF-��.d1�aU �Ld�QadoQ aui0uirD-0 raa,t�--:10M r I* 1* d?I UN�vsr-zSVTY