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HomeMy WebLinkAboutORDINANCE - 5 - 1/28/1957 - WATER SUPPLY FRANCHISEORDINANCE NO. 5 An ORDINANCE providing for a supply of water for domestic, commercial, industrial and public use and fire protection, granting to Elk Grove Water and Sewer Company, Inc., its successors and assigns, the privilege and franchise to construct, operate and maintain a water works and distribution system for said water supply in The Village of Elk Grove Village, Illinois, and granting to the said Elk Grove Water and Sewer Company, Inc. the right and privilege to construct, operate and maintain water pipes, water mains, appurtenances and connections In end upon the streets, avenues, alleys, sidewalks, bridges and public grounds in The Village of Elk Grove Village for the supply of water for domestic, commercial, industrial and public use and fire pro- tection in The Village of Elk Grove Village, Illinois. BE IT OPDAINED by the President and Board of Trustees of The Village of Elk Grove Village, Illinois: Section 1. That there is hereby granted to Elk Grove Water and Sewer Company, Inc. (hereinafter sometimes referred to as "Corporation"), a corporation existing under and by virtue of the laws of the State of Illinois, and its successors and assigns, from the date this ordinance takes effect until December 31, 1986, the franchise, right and privilege of supplying The Village of Elk Grove Village, Illinois (hereinafter sometimes referred to as "Village"), and the inhabitants of said Village with water for public and private use to be taken from wells located in said Village or adjacent there- to or from any other source which will best secure an abundant supply of suitable water for public and private use and fire protection, together with the right to use the streets, avenues, alleys, side- walks, public grounds and bridges of The Village of Elk Grove Village within its present or future corporate limits for placing, maintain- ing, taking up and repairing mains, pipes, hydrants, and other structures, appliances and devices for the service of water within the present or future corporate limits of said Village. Section 2. That the said Corporation shall have, during the continuance of this grant or any extension thereof, the right to use any streets, avenues, alleys, bridges, sidewalks or other public grounds in the present or future corporate limits of said Village for the water mains, service pipes, hydrants and other appliances and fixtures for the conveying of water and distributing the same to the said Village and the inhabitants thereof. All work done by said Corporation in laying down new mains, service pipes, hydrants or other appliances and fixtures and all repairing, replacing and re- maing of water mains, service pipes, hydrants or other appliances and f5_xtures shall be done in accordance with the provisions of any and all general ordinances of said Village governing the excavation in and repair of streets, avenues, alleys, sidewalks, bridges or other public grounds of said Village. In case said Corp'bration refuses or neglects to repair any such street, avenue, alley, sidewalk, bridf,e or other public ground within a reasonable time after said work is completed and notice in writing of such refusal or neglect shall have been given by said Village to said Corporation, the Board of Trustees of said Village may direct the necessary repairs thereof to be made at the expense of said Corporation and said Corporation shall be responsible for all damages sustained by any person or per- sons by reason of such refusal or neglect on the part of said Corporation. Section 3. That there shall be no unnecessary or unrea- sonable obstruction of the streets, avenues, alleys, sidewalks, bridges or public grounds of the said Village by the said Corporation in constructing the said water works and distribution system or in placing, replacing, taking up or repairing any mains, service pipes, hydrants or other structures or devices for the supply of water and the said Corporation shall restore all paved or unpaved streets, avenues, alleys and public grounds and all bridges and sidewalks as soon es reasonably possible and as nearly as practicable to their former condition and shall hold the said Village free and harmless from any end all claims, demands, actions or causes of action arising from the placing, replacing, taking up or repairing of such pipes, -2- mains, service pipes, hydrants, structures or other devices or from any cause or thing whatsoever arising out of or by reason of the oc- cuPaneY or use of the streets, avenues, alleys, sidewalks, bridges or public grounds of said Village by said Corporation, including any expenses and attorneys' fees incurred by said Village in defending itself against any such claims, demands, actions or causes of action. When making street excavations for the aforesaid purposes or for any other proper purpose, the said Corporation shall erect barricades at the end of all excavations and at all street crossings. Upon demand of the Village, to be evidenced by a resolution adopted by the President and Board of Trustees of said Village, the Corporation shall furnish to the Village an indemnity bond in a sum not exceed- ing Five Thousand Dollars (5,000) indemnifying said Village and its officers, servants and employees against all claims, demands, actic.ns, or causes of action arising from the making, of excavations in the streets, avenues, alleys, sidewalks or other public grounds of said Village. Section 4. That if the said Corporation shall desire to lay a main or pipe in 'a street, the grade of which has not been established, it shall be the duty of said Village to establish said grade. All mains and pipes laid in and upon said streets, avenues, alleys, sidewalks, bridges and public grounds shall conform to the grade established by said Village so that on the completion of said work no obstruction of pipes or other materials shall prevent the free use of any such street, avenue, elley, sidewalk, bridge or public ground. In any case where said Village shall make or cause to be made any street improvements, including surfacing, resurfac- ing or widening of streets, resulting in any change in the street grade, the said Village agrees to include in the cost of such im- provements and to nay all necessary costs of raising stop boxes, distribution mains, manhole covers, hydrant locations and other changes necessary to the maintenance of the water supply and to have -3- the work done under the terms of the general contract for such street improvements. If the Corporation shall be ordered or requested to make any such change, the cost of such work shall be billed to the Village, and the Village shall pay the Corporation for the same within ninety (90) days after said work is completed. If such im- provements are constructed by any contractor engaged by the Village for the purpose of making such street improvements, then the same shall be done under the supervision of a duly authorized officer or agent of said Corporation. Section .�. That the water supplied by said Corporation shall be good, clear water suitable for culinary and drinking purposes and shall conform to the standards for safe drinking water now or hereafter established by the Department of Public Health of the State of Illinois or such other department or agency of said State as shall hereafter have authority to establish such standards. Section 6. That in the operation of said water works and distribution system the Corporation shall use machinery and appli- ances of such character and capacity as will furnish the necessary supply of water (excepting during periods of unusual and unavoidable casualties) for private and public use and fire protection along all lines of its water mains. Section 3. That in compliance with its undertaking to furnish suitable water for private and public use and fire protec- tion, the Corporation shall thoroughly flush out all dead -ends of water mains as often as may be necessary and shall thoroughly flush out all hydrants located upon its water mains at least once annually or as often as may be necessary. The Corporation shall make fre- quent inspections of said hydrants and shall use every reasonable means to keep said hydrants and mains in as good operating condi - ti on. as possible. Section 8. That the said Corporation shall not be re- ouired to furnish water consumers with water service when all proper -4- bills for water used by such consumers have not been paid, particu- larly in the case of water consumers who have become delinquent in their water bills and are still occupying or residing on the premises for which said delinquent bills for water have not been paid. Section 9. That if any person or persons shall injure, break or destroy any fire hydrant, main, pipe, service pipe, fix- ture, machinery or other property or apparatus of said Corporation or shall turn on or turn off or use any water supplied by said Corporation without any authority from said Corporation or pollute any of the water supplied by the Corporation, every such person and his or her aiders or abettors shall, on conviction thereof before any competent court or authority having jurisdiction,be fined in a sum not less than Five Dollars ($5) nor exceeding Two Hundred Dol- lars 0200) for each and every such offense, together with the costs of prosecution and shall also be liable for any such injury or damage in a civil action to the said Corporation for all damages arising from any of such acts or actions. Section 10. That the said Corporation shall install and maintain a meter at the Corporation's expense on the service pipe of each consumer located within the present or future corporate limits of said Village. Section 11. That the Village hereby agrees to take and the Corporation hereby agrees to furnish all the water which may be reouired by said Village for any purposes whatsoever, including public fire protection, flushing of public gutters, sewers and streets, testing of fire apparatus and practice of fire departments, Village buildings, fire stations, park and library buildings and public fountains which may be constructed at any time during the term of this ordinance and the said Village agrees to pay to the Corporation for all of the water service so furnished to it by the Corporation in accordance with the applicable rate or rates set forth in the schedule of rates then on file with the Illinois -5- Commerce Commission or such other regulatory body of the State of Illinois as may hereafter have authority to fix, establish or ap- prove rates. In consideration of the grant of this franchise by the Village, the Corporation agrees that no charge will be made to the Village for any water service, including public fire protection, furnished to said Village prior to January 1, 1958, and that there shall be no charge made to said Village for public fire protection service prior to January 1, 1959. Section 12. That the Village shall use the fire hydrants located therein only for the purposes of extinguishing fires, for flushing public gutters and sewers and for testing of fire appara- tus and practice by the fire department. In using fire hydrants for flushing, only one hydrant shall be turned on at a time, using one line of hose with fire nozzle, and no hydrant shall be used for flushing during the existence of a fire or without first notifying the said Corporation of the time and place such use is required. If any hydrant shall be injured or damaged or rendered useless while in use by any officer, agent or employee of the said Village, the said Village shall pay the said Corporation the cost of repairing or replacing: the same. In no case shall any hydrant be used by the Village for flushing of private sewers. Section 13. That the Village and the Corporation hereby agree that this ordinance shall from time to time be subject to rules and regulations adopted by the Corporation end approved by the Illinois Commerce Commission or any other regulatory body having jurisdiction thereof during the term of this ordinance, and that all rules and regulations which may be hereafter adopted by the Corpora- tion and approved by the Illinois Commerce Commission or such other regulatory body shall be and become a part of this ordinance to the same extent and with the same effect as if said rules and regula- tions were herein set out in full. -6- Section 1_4. That the said Corporation shall charge con- sumers other than the Village for water service furnished to such consumers during the term of existence of the franchise granted by this ordinance in accordance with the applicable rate or rates from time to time lawfully in effect and set forth in the schedule of rates then on file with the Illinois Commerce Commission or such other regulatory body as may then have authority to establish, fix or approve such rate or rates. Section 15. That during the term of this ordinance no charge shall be made by the Village to the Corporation for any per- mit or privilege to excavate in the streets, avenues, alleys, side- walks or public grounds of the Village for the purpose of construct- ing or installing mains, pipes, service pipes or other devices and appurtenances or for otherwise carrying out the provisions of this ordinance. Section 16. That upon giving at least six (6) months notice in writing to said Corporation at any time prior to December 31, 1984, which notice shall be in the form of a certified copy of a resolution or ordinance of the Board of Trustees of the said Village, the Village shall have the right and option to purchase said water works and distribution system for a price to be ascer- tained as follows: In the event the Village and the Corporation cannot agree upon the Arice, three (3) disinterested persons shall be chosen to determine the value thereof. The Village shall appoint one (1) of these arbitrators, the Corporation another, and the two (2) thus chosen shall select a third. The said Village and the said Corpora- tion shall make their respective appointments of arbitrators within thirty (30) days after the date of the service of said notice on the Corporation and the two (2) arbitrators thus appointed shall choose a third arbitrator within thirty (30) days after their appointment. In case the two (2) arbitrators cannot agree upon a third within -7- such time, either the Village or the Corporation may apply to the senior judge of the Circuit Court of Du Page County, Illinois, to have such arbitrator appointed by such judge in term time or vacation and thereupon said judge shall make such appointment. In case either party shall neglect, for a space of thirty (30) days after service of the aforesaid copy of the resolution or ordinance of the Board of Trustees of the Village as above provided, to select an arbitrator and notify in writing the other party of such selection, the party having selected an arbitrator may apply to the said senior judge of the Circuit Court of DuPage County either in term time or vacation upon petition with ten (10) days notice to the other party of such appllcation,for the appointment of an arbitrator to represent such party and the said judge may thereupon appoint such arbitrator who shall have the same powers to perform the duties of an arbitrator as though selected by the party for whom he was to be ap- pointed. Either party shall have the right to produce witnesses and submit evidence as to value before said arbitrators and all witnesses shall give their testimony under oath. The arbitrators shall fix the fair cash market value of the water works and distribution system (taking into consideration original cost, going value, reproduction cost, values of intangibles and snch other factors as are commonly taken into consideration in the valuation of public utility plants) within four ()a) months from the date of the notice to the Corporation,and the Village shall have the option of refusing to purchase or purchasing at the price fixed by the award of such arbitrators; provided, if the Village elects to purchase the water works and distribution system, it shall complete the purchase within three (3) months from the date of the award by paying in cash (or in such medium other than cash as is acceptable to the Corporation) to the Corporation the purchase price fixed in said award. The cost and expenses of such arbitration shall be borne -8- equally by the parties unless after the fixing of the award, the Village neglects or refuses to exercise its right and option to pur- chase, in which event the Village shall pay the whole cost of such arbitration proceedings. Section 17• That if such right and option to purchase the said water works and distribution system in accordance with the pro- visions of Section 16 hereof is not exercised by the Village and if the Village grants the right to any other person, firm or corpora- tion to operate a water utility business in the streets and parts of streets occupied by the Corporation, the Village shall in any ordi- nance or resolution granting such additional franchise include an express provision requiring the grantee therein to purchase the then existing water works and distribution system upon the terms and con- ditions and at a purchase price to be fixed in conformity with the provisions of Section 16 of this ordinance. Section 18. That in the event the Corporation shall at any time during the term of this ordinance desire to sell the water works and distribution system then located in the Village and the Corporation shall receive a bona fide offer for the purchase thereof from any other person, firm, corporation or from any other municipal corporation, authority or political subdivision of the State of Illinois at a purchase price, and upon terms and conditions, satis- factory to it, the Corporation shall within ten (10) days after receipt of said bona fide offer advise the Village in writing of the purchase price and the other terms and conditions of such offer, and the Village shall, for a period of sixty (60) days after the giving of such notice, have the right and option to purchase the said water works and distribution system from the Corporation at the purchase price and upon the same terms and conditions as are set forth in said offer. In the event the Village shall fail or refuse to exer- cise the right and option granted to it by this Section within the time limit set forth above, and the Corporation shall sell the water -9- works and distribution system to the prospective purchaser thereof, such purchaser shall have the right, at its election (to be evidenced by written notice to the Village within sixty (60) days after the date of the agreement for purchase thereof), to terminate the right and option given to the Village to purchase the property under the terms and provisions of Section 16 of this ordinance. Section 19. Nothing herein contained shall be construed as preventing the Corporation in the construction of said water works and distribution system and in placing, replacing, taking up, repairing or removing water pipes, mains, service pipes, hydrants or other• devices for furnishing water services, from using any easements for• water service or other public utility purposes which are shown on any plat or plats of any portion of said Village here- tofore or hereafter platted or recorded or any such easement which may hereafter be created, granted or dedicated for any such utility purposes by any person, firm or corporation whatsoever. Section 20. That if any section or portion of any sec- tion of this ordinance shall hereafter be declared or determined by any court of competent authority to be invalid, the Corporation at its election (to be given to the Village by notice in writing within thirty (30) days after any such declaration or determination) may ratify or confirm the remaining portions of this ordinance and upon such ratification or confirmation the remaining portions of this ordinance shall remain in full force and effect. Section 21. That the Corporation shall, within sixty (60) days after the passage of this ordinance, file with the Village Clerk of The Village of Elk Grove Village its unconditional accept- ance signed by its President or its Vice President of the terms and conditions of this ordinance and after the filing of such acceptance this ordinance shall constitute a contract between the parties thereto and shall, subject to the rights and powers vested in the Illinois Commerce Commission or such other regulatory body of the -10- State of Illinois as may hereafter succeed to the rights and powers of the Illinois Commerce Commission or as may exercise statutory jurisdiction of water companies furnishing water service in the State of Illinois, be the measure of the rights, powers, obligations, privileges and liabilities of said Village and of said Corporation. It is understood and agreed that the Corporation is making applica- tion to the Illinois Commerce Commission for a Certificate of Con- venience and Necessity which will allow it to operate a water utility business in the Village, but if for any reason such Certificate of Convenience and Necessity is not obtained within a period of one (1) year from the date of enactment of this ordinance or the Corporation shall not commence operations as a water utility during such one (1) year period, the franchise hereby granted may, at the option of the Village, be terminated without liability or obligation on its part. Section 22. That title to all mains, pipes, service pipes, hydrants, and other appliances and devices constructed or laid in the streets, avenues, alleys, bridges, sidewalks and other public grounds of the Village or in property designated or dedicated as easements for water service or other public utility purposes shall, from the date of construction thereof, be and remain in the Corpora- tion, its successors and assigns. Section 23. That this ordinance shall, to the extent now or hereafter permitted by the statutes or law of the State of Illinois, inure to the benefit of and be binding upon any city, village or other municipal corporation to which The Village of Elk Grove Village may hereafter be attached or annexed or into which it may be incorporated and any agency, instrumentality or political subdivision of the State of Illinois which may be authorized or empowered to furnish water service within the present or future corporate limits of said Village, and shall also inure to the benefit of and be binding upon the successors and assigns of the Corporation. The Corporation shall have the right at any time to assign this -11- franchise to any public utility corporation organized under the laws of the State of Illinois or authorized to engage in public utility business within the State of Illinois and to any other person, firm or corporation authorized or empowered to own and/or operate a water utility business in said State. Section 24. That this ordinance shall take effect and be in force immediately upon its passage and approval by the Village and publication according to law. PASSED: this 29th day of January , 1957• APPROVED: this 29th day of January , 1957. ATTEST: Charles A. Hodlmair President Margaret C. Petrie Village Clerk POBLISHED this 31st day of January , 1957- -12-