HomeMy WebLinkAboutCity of Tamarac Ordinance O-1969-016•
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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
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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
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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
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• 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
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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
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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
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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,
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• 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
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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
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