HomeMy WebLinkAboutOrdinances Book 8, Page 413, No Ordinance NumberNo. / 13
f AN ORDINANCE TO CREATE AND ESTABLISH A FRANCHISE TO �
' CONSTRUCT, OVIN, ACQUIRE, I.IAINTAIN AND USE A ','IATI,,R '++'ORKS PLANT AND
WATER DISTRIBUTING SYSTEM -XLTIiid'_'HE CORPORATE LII.IITS OF PADUCAH, AND
INVESTING THE PURHCASER THEREFOIfVIITH THE RIGHTS, POWER AND PRIVILEGES
HEREIN SET FORTH, AIM II,IPOSING UPON SUCH. PURCHASER THE DUTIES A14D RE-!
SPO_ISIBILITIES SET OUT IN THIS ORDINANCE.
BE IT ORDAINED BY THE GENERAL COUNCIL OF THE CITY OF
PADUCAH, KENTUC;SY:
SECTION 1.
!' "Purchaser" as used in this Ordinance, means person or
persons, Company or Companies, and the successors or assigns of such
purchaser. "City" means the City of Paducah, Kentucky, as now or
hereafter organized, and "City Limits" means the corporate boundaries
of the City of Paducah, as now or hereafter fixed or established
under the laws of Kentucky.
SECTION 2.
There is hereby created and established a franchise to
construct, own, acquire, maintain and use a water works plant and
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water distributing system within the City of Paducah, and the pur-
chaser of this franchise shall have the right to construct, acquire,
own, maintain and;use such water works plant and mater distributing
system; the purchaser shall have the right to construct, maintain,
use and operate standpipes, elevated tanks, reservoirs and other
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works, buildings and appurtenances necessary for the operation o -f a
water works, and to lay and use mains, conduits and pipes, and to
place hydrants in, under, along and across any and all present or
future streets, alleys, avenues, bridges and public ways of said city;
for the purpose of purveying water to the inhabitants thereof, and
to other persons desiring to use water for domestic or commercial !
purposes.
SECTION .3.
All work done in the construction, maintenance or
operation of said water works plant or water distributing system,
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and the location of all buildings, reservoirs, elevated tan{s or
ii other necessary structures, as well as the location and laying of
mains, conduits, pipes and appurtenances thereto, in, along, or
across any and all streets, alleys, avenues, bridges or public ways,'
shall be subject to and governed by the general rules, regulations
and ordinances of the City now in force, or that may hereafter be
lawfully adopted for the regulation of the construction of buildings
and other structures in the City, and the transmission and distribu-
tion of water notinconsistent with the provisions of this contract.
SECTION 4.
The terms of the Franchise hereby established shall con-
tinue for twenty years from the dates of the purchase and approval of
such purchase by the General Council of the City.
SECTION 5.
The purchaser shall extend its mains, when so required to do,
,by resolution of the City Council, whenever there is, for each three
hundred feet of pipe extensions, at least an average or equivalent of
(three minimum consumers, who guarantee to use, take and pay for water
at the rates herein established or lawfully hereafter adopted, for a
term of not less than two years, the taking, using and paying for water
to commence within thirty days after said pipe extension is complete and
service connection made, and the City obligates itself to rent an addi-
tional fire hydrant for each four hundred feet, or major portion thereof,
of such extension, and to pay the purchaser for fire service, at the
rates as hereinafter specified.
SECTION 6.
All mains shall be laid with not less than two and one-half
feet of cover thereon, but no main shall be laid until the purchaser has
been furnished with finished street grades, as.established by the City
Engineer. Streets or other public places excavated in the course of
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construction, extension or repair of the water distributing system, shall
be promptly restored in good order to the reasonable satisfaction of the
City; and such filled excavation shall be maintained by the purchaser for
the period of one year in as good condition as the adjacent, undisturbed
payment or surface. A permit shall be secured from the City, except
in cases of emergency, before streets or other public places are excavat
or disturbed. The excavation of streets or other public places shall
be so arranged as to trench program that not more than one street inter-
section shall be obstructed at a time, and streets excavated or disturbed
shall be replaced and resurfaced in accordance with specifications pro-
viding for the construction or resurfacing of said streets at the time
the same are excavated or disturbed. If the purchaser fails or refuses
to restore a street, pavement or other public place which it has e::cava-
ted or disturbed, to the reasonable satisfaction of the City Engineer,
I or in accordance with the provisions of this Ordinance, within a reasonable
time, the City, at its option, after giving ten days notice in writing to,
purchaser that said street, pavement, or other public place, is not re-
stored to the satisfaction of the City Engineer, may make restoration
or improvement of such street, pavement, or other public place, and
charge to and collect from the purchaser the cost of making such repairs.
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SECTION 7.
Fire hydrants shall be of approved design and make and
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shall be located and set as required or recommended or approved by thel
Regulation of the National Board of Fire Underwriters, and as
directed by the City Engineer. Hydrants shall be used only for fire
protectipn service, and necessary practice and trial of the fire de-
partment, and for washing gutters and flushing sanitary sewers when
same become clogged or obstructed, and for washing streets when
covered with snow, but this provision shall not extent to or embrace
-)ater for street sprinkling or street watering. Fire hydrants
shall be used only under direction of the Chief or acting Chief of
the fire department of the City of Paducah, or the Superintendent of
the Water Works, and not more than two fire hydrants shall be open at
one time for any purpose except in cases of fire, or for necessary
or r asonable testing. 'Then fire hydrants are open for any purpose
,except in advance j
.for fire protection, notice shall be given/to the purchaser.
SECTION 8.
Purchaser shall furnish a two inch suitable standpipe for
each six blocks of improved streets'in the City, to be used in filling
sprinkling wagons or flush tanks and similar service, which standpipes
shall be located as the City directs. Water drawn fnm,such stand-
pipes shall be measured through meters. Such standpipes shall
not be used by any other than the City without the premission of the
(purchaser, and the City, and any person securing such permit, shall be!
(responsible for all water drawn therefrom during,the period of such
permit._ "The City shall be entitled to draw up to twenty million
(20,000,000) gallons per year from such standpipes without charge,
but shall pay for all water in excess of t,venty million gallons per
year at the duly established rates. All water drawn from standpipes
by others than the city shall be charged at the duly established meter
,!rates, provided if the City contracts for the washing or sprinkling
of its streets, then such contract shall be entitled to the benefits
therein provided for the City.
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SECTION 9.
The West and South side of each street adjacent to the
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Icurb line is hereby set aside and reserved for water main construction;
abut the City reserves the right to lay or permit to be laid, sewer,
gas, water, oil and heating pipes or other pipes and conduits for
;;electric or other cables, and to do or permit to be done any under -
,ground work it deems necessary or proper under, across or along any
No. t,6.
istreet, alley, avenue, bridge, public ground, or public way occupied or
(traversed by the pipes of the purchaser, but in granting or permitting
such work to be done, the City shall not be responsible to the purchaser
for any damages occassioned by others in the prosecution of such work,
(Whenever, by reason of changes in the grades of any street or in the
location of manner of construction any sewer, water pipe,.gas pipe or
other underground structure, it shall be deemed necessary by the City to
falter, change, or adapt or conform the mains, egnduits or pipes of pur-
chaser thereto, such alterations or changes shall be made by the pur-
chaser when so ordered, in writing, by the City, so to do, without claim
for reimbursement or damage against the City; provided; however, the City
shall not require purchaser to lower, at purchaser's cost any main by
reason of changes in street grades, which have been duly established and
to which purchaser's mains have properly conformed. In the event the
established street grades are changed by order of the City, and it
becomes necessary for purchaser's mains to be lowered on account thereof,
then the City reserves the right to lower such mains or cause the same to
be lowered at its own (the City's) expense.
Further provided, the City shall not require the Purchaser
to remove its mains, conduits or pipes entirely from any such street,
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alley, avenue or public grounds or ways, and if the City shall require
purchaser to adaptor conform its mains, conduits or pipes or in any way
alter, relocate or change its property to enable any other person or
corporation, except the City to use said street, alley, avenue, public I
ground or way, the purchaser shall be reimbursed by the person or Corpora
tion desiring or occasioning such change, for all loss, cost or expense
cause&._by or arising out of such change, alteration or removal of pur-
chaser's property; and provided further, if the -turchaser is directed or
required by the City to change, alter, or relay any pipe, main or conduit
;for the use or accommodation of another person or company (other than the
City) the purchaser shall not be required to make such change, altering
or relaying of any pipe, main or conduit, until the person or Company
to be benefited thereby shall secure to the purchaser the cost of making
such change, alteration or relaying of its pipes, mains or conduits.
SECTION 10.
The purchaser, during the term of this franchise, shall
furnish the City, its inhabitants, persons and corporations therein
I with an adequate supply of filtered water, conforming in quality to the
j requirements that are now or may be from time to time established for
Interstate Carriers, by the United States Public Health Service, or its
successors in authority.
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ry;
No. %417.
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SECTION 11.
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The purchaser shall supply water, under reasonable rules
and regulations established, to the City, its inhabitants, persons
Bland corporations therein, which shall be at all times adequate in
quanity and at a pressure as herein defined, so far as is commercially)
;practicable, provided the 'purchaser shall not be. liable for interr-
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uptions of service orIfluctuations of pressure, occasioned by acts or l
conditions over which said purchaser has no control or which could
not reasonably._have been avoided in the course of prudent management
i of such water works system.
SECTIO14 12.
' The City shall establish, maintain and operate, at its
Town expense, in or near the present City Hall, and the purchaser
shall establish, maintain and operate, in its office, an automatic
recording pressure gauge, which will continuously and accurately
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record the water pressure at such places. Such pressure shall be
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Imaintained in the water mains that said two gauges will consistently
'i register not less than fifty pounds pressure referred to street level;
:and not less than thirty pounds pressure shall be maintained referred
to street level,at any point of test, at all other points of the
(system within the present City Limits of the City of Paducah, and not
Lless than twenty pounds pressure referred to street level at any
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!point of test at all points on the system outside of the present City
Limits, but within the City Limits as they may be hereafter extended.
lIf the City ascertains from actual test that the twenty and thirty
!)pounds pressure mentioned in this Section is not maintained in the
(mains by the purchaser, it may, after ascertaining such fact, and
after notice to the purchaser, establish a recording gauge or gauges,
and the 'purchaser hereby agrees that it will also -establish a recording
gauge or gauges at the point ole points where the City elect to establish
such recording gauge or gauges, and after the establishment of such
(recording gauge or gauges, if it appears, after thirty or more days
test of same, purchaser has failed to maintain the twenty or thirty
pounds pressure, as herein agreed upon, then the City shall collect
from the purchaser, damages as herein established in respect to the
!two gauges (one at the City Hall and one at the office of the pur-
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chaser) for failure to maintain proper pressure. It is understood
land agreed that damages for the twenty or thirty pounds test re-
I:ferred to above, will not apply to dead ends. When a structure
(within the City is burning, and after notice is received by the pur-
chaser as herein defined, a pressure shall be maintained and secured
in the purchaser's mains, as now prescribed or required, or approved
No. 19118.
for recommended, or which shall be hereafter prescribed, or required or
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approved or recommended by the national Board of Fire Underwriters, or
'any similar body succeeding it. Should the daily average pressure
at the two water gauges herein established fall below the pressure pre-
scribed herein for such gauges, for more than three full calendar days
iof any thirty days period, the City shall charge and collect from the
purchaser, as liquidated damages, one day§ total fire protection service
!rental, for each pound of such deficiency of pressure, and such liquid-
ated damages may be charged and collected for each full calenday day or
,part of day during which the pressure is deficient in the manner ;just
prescribed, during any thirty day period, there being excepted, however,
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(the three full calendar days of grace above mentioned. IIo amount of
liquidated damages paid by-curchaser shall be charged to operating cost.
The provisions as to liquidated damages shall not apply to deficiency of
fire pressure. The liquidated damages set out in this section shall
not apply until seventy per cent of the purchaser's consumers have been
supplied with meters..
SECTION 13.
The purchaser, shall at his own expense, furnish, install
land continuously maintain and operate a water meter of approved make and
,adequate size for each and every individual service, provided, however,
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:no hotel, apartment, office building, tenement or other structure, under
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one ownership or control or under one roof, shall be providedeith more
than one meter, except at the option of the purchaser or upon payment by
lithe owner, agent or occupant of such structure, of the cost of the meter
and the cost of installing such meter or meters, in excess of one.
,This provisions shall not be construed to mean that more than one single
residence on one lot or adjacent lots under the ownership shall not be
:provided with more than one meter, but shall be construed to mean that
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,,each and every single residence served by purchaser shall be provided
!,with one meter. All meters shall he set between curb and property
(lines, and in cases where such location involves a change in private
piping, such change shall be made by the owner, to the meter.
The provisions of this section shall not apply to private
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sprinkling systems or to private fire protection, designed exclusively I
for fire protection, as set out in section 23 of this franchise.
Reasonable deposits to guarantee the payment of its bills may be required
of its patrons
by the purchaser, but shall not exceed the following amount;
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3. 00 for consumers with 5/8 inch meter.
5.00 for consumers with 3/4 inch meter.
10.00 for consumers with 1 inch meter.
15.00 for consumers with 1-�- inch meter.
30.00 for consumers with 2 inch meter.
50.00 for consumers with 3 inch meter.
75.00 for consumers with 4 inch meter.
100.00 for consumers with 6 inch meter.
':!here deposits are made, same shall bear simple interest at the rate
of six per cent. The purchaser shall install, at its expense, a
check valve on all service pipes, between all meters and hot water,
or steam connections, when, in its judgment it may be necessary.
The purchaser shall have the right to discontinue service to any
consumer who shall fail to pay any bill for water consumed or service
rendered, within ten days after the presentation thereof, until such
bill, together with any and all expense of disconnecting and reconnec
ing the service is paid. The purchaser shall have the right also
to discontinue the service to any consumer who shall use or permit
to be used from his fixtures, water not cohtracted for.
The purchaser shall, upon written demand of any consumer,
accompanied by the deposit of Two Dollars, remove such consumer's
meter, and test it for accuracy of registration. If such'test
shows the meter registers within three per cent, plus or minus, of
the correct quantity, it shall be considered accurate; if it over -
registers to the extent of three per cent of the correct quantity,
the cost of the test shall be borne by the purchaser, and the deposit
shall be returned to the consumer, but if it under -registers to the
extent of three per cent or registers accurately, as above defined,
the consumer shall pay Two Dollars to partially compensate the pur-
chaser for the expense of removing, testing or replacing such meter.
Upon request the consumer, or his representatiges, may be presnmt
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when the test of the meter is made, which test shall be conducted j
according to the standard method of testing water meters.
1 SECTION 14.
The purchaser shall install and continuously maintaim
!and operate in good working order, an improved meter or other
reasonably accurate automatically recording measuring device, to
ascertain for permanent record the quantity of water handled daily
Ithrough its plaht, and the record so obtained shall be kept on file
and open to the inspection of the City at all reasonable times.
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VlithiP six months after the adoption of this ordinance, -
the purchaser shall prepare and file with the City, a map in dup-
licate, mounted on a roller after the manner of window shades, set in
proper housings for attachment to a wall, showing in reasonable detail
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the water distributing>, system, including the location of fire hydrants
and gate valves, and which shall be corrected and brought up to date
No. IT -20.
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once each year thereafter.
SECTION 15.
The purchaser shall install, and thereafter properly
maintain, all water services complete from its mains, to and including
the water meters to be setinside the street curb, and the property owner
or applicant for water service shall, at his own cost, make other connec-
tions necessary from the meter, and in -accordance with existing Ordinances
or such as may hereafter be lawfully adopted, governing installation of
water plumbing.
SECTION 16.
SERVICES OUTSIDE OF CITY. From the date that this
Ordinance goes into effect, purchaser shall not supply water service to any
person, persons, or corporation, or for any purpose whatsoever outside
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of the corporate limits of the City, from its properties within the City,
without the approval of the City. It is understood and agreed, however,
that nothing in this Ordinance shall operate to vitiate or abrogate any
contract, or contracts, now in force between the purchaser and any person,'
persons or corporation without the City limits covering the furnishing
of eater service to such person,persons or corporation.
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Upon the expiration of any such contract, or contracts,
however, purchaser shall not renew the same without the approval of the
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City. Furthermore, purchaser shall not, without the approval of the
City, make, cause or allow to be made to any of its properties without
the corporate limits of the City, any new addition or extension, or to
attach any new consumer to present properties, or to furnish any service
whatsoever not fully covered by existing contfact or contracts.
SECTION 17.
The purchaser shall at all times maintain in good working
order an approved fire alarm system, similar to the one now in use by
the fire department of the City, connected to the City fire alarm system
in such way that each and every fire alarm turned into a fire station
will be sounded on gongs or other signalling device, and a gong or other
signalling device shall be so placed in the pumping plant as to give.
notice to the plant operatives of a fire alarm and that a fire alarm has
been turned into a fire station. The Chief of the Fire Department
of the City or the City Electrician shall have the right to inspect at
any time the fire alarm system installed and operated by the purchaser.
No.T21.
SECTION 18.
The purchaser shall be entitled to earn, and shall have
the right to charge and collect, rates which will produce a total
income sufficient to;
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I' First. Pay the fair and necessary cost of operation,
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i taxes, maintenance and repair of its property.
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Second. To earn an amount to amortize depreciation, which
amount is hereby agreed to be equal to one per cent per annumn, of
the average value of the purchaser's property during the ,year.
Third. To earn as return to the investors an amount
annually equivalent to 7'2 per cent of the average property value.
Fourth. If the income authorized in Articles 2 and 3
of this Section exceeds 8}7 per cent of the property value of the
purchaser, the surplus over and above such income shall go into an
adjustment reserve which adjustment reserve shall not be less than
Fifteen Thousand ($15,000,00) Dollars, nor exceed Twenty-five Thous-
and (�,>25,000.00) Dollars at any one time. The adjustment reserve
established by this Article shall be held in trust by the purchaser
and invested in securities, which fund, together with the interest
realized from the investment thereof, shall be used in this way.
If the total income of the purchaser for any year, fails to produce
sufficient income to pay the fair and necessary cost of operation,
taxes, maintanance and repair of purchaser's property, and in addition
a sufficient amount to amortize depreciation of property, which amor-
tization is fixed at one per cent of the average value of purchaser's,
property during the year, and income upon the purchaser's property
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as fixed in the third article of this Section, the purchaser shall
have the right to apply to its total income, a sufficient portion
of said adjustment reserve to make its total revenue for the ,year
produce the _sums herein set forth. All income from such adjustment)
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!reserve shall be added to the principal thereof, and if, at the end
I of any year, the amount of such adjustment reserve is in excess of
ITwenty-five Thousand (25,000.00) Dollars, such excess shall be paid
to the City of Paducah, but no such payment to the City shall be made
11 from such fund until there has been paid to the purchaser a sum
sufficient to produce the income herein authorized for any year or
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i years previous. Should the City purchase the water works estab-
lished under this Franchise, then, or at the expiration or termina-
tion of this Franchise the adjustment reserve herein mentioned shall
�Ibe the property of the City absolutely. If it develops during the
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life of this Franchise that the adjustment reserve herein established
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exceeds, for two successive years, Twenty-five Thousand (25,000,00)
Dollars, the City reserves the right to direct and the purchaser hereby
agrees to reduce its rates established herein, to such extent that the
total revenue derived will produce an adjustment reserve not in excess
of ?;251000100.
SECTION 19.
If and when, by reason of age, use, rot, rust, inade-
quency, obsolescenee or otherwise, any elemtn of purchaser's physical
property removed and replaced by other element of similar character
or similar utility, the cost of such removal and replacement shall be
c'r,arged to the depreciation reserve referred to in Article 2 of Section
18, in an amount equal to the original cost of such removed element.of
property. When any amount accruing under Article 2 of Section 18,
is credited to the depreciation reserve, a like amount shall be charged
to capital account, so as to reduce the contemporaneous property value
by such amount. For the purpose of regulating the rates established
herein,the Purchaser shall during July and January of each and every
year submit to the City a verified statement of receipts and expenditures
for the past six months, and if it appears therefrom that the amount re- I
ceived by the purchaser, after the payment of all expenses, is insuffi-
cient to yeild income upon invested capital, and depreciation re serve
as herein fixed, the purchaser may increase its rates until the sum of
the increase will produce sufficient revenue to pay the income upon
invested capital'and depreciation reserve as herein authorized, or if it
appears therefrom that the amount received by the purchaser is greater
than a sum sufficient to pay the income upon invested capital and depre-
ciation reserve as herein fixed, and has resulted in an accumulation of
an adjustment reserve exceedinE Twenty-five Thousand 0025,000,00) Dollars,
the City reserves the right to reduce rates, but shall not at any time
authorize a rate which will not produce sufficient net revehue to pay the
return upon invested capital, and depreciation reserve herein established.
If the City is dissatisfied with the report of the pur-
chaser, it may, at its option and expense, cause an examination of pur-
chaser's books, by a certified accounting, but such examination shall not
be made more than twice each year.
At all times during the continuance of the rights herein
granted, purchaser shall keep in his office in the City of Paducah,
Kentucky, all contracts, books of account and costs and operating records,,
a full, true, complete and accurate account of all money received and ex-
pended and liabilities incurred by it in connection with its business in
the construction, maintenance and operation of the property of the pur-
chaser, and also complete, statistical records of its business operations,
which accounts and record shall be kept in the manner herein prescribe 141
and purchaser shall furnish to the City, during the months of January
and July each year, a copy of its semi-annual operating and financial
report, for the six months previous, prepared in the ordinary course
of busineUs by the purchaser's employes, for the use of the Officers
and Directors of the purchaser.
The City Auditor or official oy similar character of the
City, or any competent accountant designated by the Council, shall
twice each year, after receiving semi-annual financial,report and
the verified statement -of oeceipts and expenditures above set out,
have, during business hours, free access to and full authority to
inspect, examine, verify and audit all accounts, vouchers, documents,
books and property and records of purchaser, -relating to the receipt
and expenditure of money and the business done by Purchaser in the
construction, maintenance and operation of the property to be operatei
hereunder.
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The purchaser shall in the operation of its business, use,
in keeping its books of accounts and costs, and operating records,
the forms and methods of accounting and rules and regulations for
vouchering expenditures consistent with those adopted, or that may be
hereafter adopted by the National Association of Hailway and State
Utility Commission for 'later Utilities, or as prescribed by the
isconsin Railway Commission, or by any law of the State of Kentucky,
or authority thereunder, applying to rater utilities, and not incon-
sistent with the provisions hereof.
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I' The purchaser shall, at all times, maintain and keep in
repair, the property devoted to the use of the water distributing
system, and the water works plant herein mentioned, in an efficient
manner,
SECTION 20.
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The purchaser, may from time to time, invest so much of
the depreciation reserve as is not immediately required, for pur-
chaser's proper purpose, in advance to his 'Treasury, for its use in
making additions or betterments to or extension of purchaser's
property in which event such sum to invested may be included in the
I computation of.purchaser's property value, for a rate base upon
which purchaser may earn the -return provided for herein, or may
such
invest so much ofdepreciation reserve not irmnediately required for
its proper use, or for additions or betterments to, or extensions
of purchaser's water works system, in high grade securities, in which
event such purchaser shall have as his own, all earaings produced
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by such securities.
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No. �?4`_
In no event, however, shall any extraneous property, acquired
through the use of the depreciation reserve, be included in computing
purchaser's property value for a rate base upon which to earn a return
herein provided.
SECTI0N 21.
The City reserves the right and privilege, at the expiration
of five days, from the passage and approval of this Ordinance, and at the
expiration of every five years thereafter, upon giving six months notice
in writing, to purchase said water works and all property connected
therewith, at a fair valuation, to be ascertained as follows: Three
disinterested experts, not residents of the County of ]JcCracken, nor
interested in the water works in any way, shall be chosen and sworn to
determine the value; one to b.e appointed by the City, one by the purckaser,
and the other by the two arbitrators so appointed. in case the two.
arbitrators so appointed, are unable to agree upon a third arbitrator,
such third shalt be selected by lot from six experts, three of whom are
to be suggested by the President of the American Vlater Works Association
and three by the President of the American Society of Civil Engineers,
and the three experts so selected shall proceed to determine the fair
value of the water works, but neither the amount in the adjustment re-
serve, nor the franchise granted by the City shall be taken into considera-
tion in valuation.
A majority of said arbitrators shall decide, and when a
majority of them have agreed, they shall reduce the agreement to writing,
and when the award is completed, one copy shall be delivered to the City
and one to the purchaser, such award shall be final and conclusige.
Within six months after the date of such award, the City,
I'at its option, shall pay to said r.urchaser the full amount of said valua-
tion in bonds of the City, issued by the proper authorities, bearing
interest at five per cent per annumn, interest payable semi-annually,
at the office of the Treasurer of the City, said bonds to be due thirty
years afterdate and pgyable at the option of the City any time after ten
,years.
Said bonds shall be taken at par or the City may pay the
amount of said valuation in cash. On the delivery of said bonds or
cash, the purchaser shall convey to the City all right, title, privilege
fa'
and franchise in said water works, but upon the failure, ure, of the City.
for a period of six months, after the date of such award, to deliver said
bonds or to pay cash, the right of the City to purchase shall be waived
until the expiration of another five years. The cost of appraisement
shall be equally divided between the City and the purchaser, if the sale
��is consumated, but if the sale is not consnmated, the City shall pay all
cost of appraisement, and if the City purchase the water works it
shall assume and perfect all unfinished contracts for furnishing
water.
SECTIO14 22.
The purchaser is hereby given the right to charge a
rate or rates that will result in a total income sufficient to cover
cost of operation, depreciation reserve and a return as specified
herein, under Section 18. All reduction or increase in the rates
charged and in the gross income, provided in Section 18 herein, shall
apply in the same percentage to all classes of service, for which
compensation is provided hereunder, unless a different application
is mutually agreed upon by the City and the purchaser. Rates for
the first two years to all consi:mers unless otherwise provided, shall
be as set forth in the succeeding section.
BEC T IO14 23.
The meter charges shall be as follows:
A. 14INIIOM CHARGES.
For 5/8 inch meter the minimum charge will be ?; .75 per mo.
For 3/4 inch meter the minimum charge will be 1.25 per mo.
For 1 inch meter the minimum charge will be 2.25 per mo.
For 1-12 inch meter the minimum charge will be 4.50 per.mo.
For 2 inch meter the minimum charge will be 7.50 per mo.
For 3 inch meter the minimum charge will be 15.00 per mo.
For 4 inch meter the minimum charge will be 22.50 per mo.
For 6 inch meter the minimum charge will be 45.00 per mo.
The above minimum charges cover the supply of water at
the rates hereinafter stated, up to the total of such minimum charge,
B. 'VIATER CHARGES.
The charge for water used shall be as follows:
For the first 10,000 gallons per month at the rate of 30V per
thousand gallons.
For the next 90,000 gal. per month, at the rate of 20V per thousand gal.
For the next 400,000 gal. per month, at the rate of 15¢ per Gal.
For the next 500,000 Sal. per month, at the rate of 10V per " gal.'
For the next 1,000,000 gal. per month, at the rate of 8� per. gal.
For the next 8,000 000 gal. per month, at the fate of 7V per gal.'
All over 10,006,006gal, per month, at the rate of 61-x±per gal.
These rates shall apply (except as to automatic sprinkler
systems or private fire service and water for building purposes) to
all services of all description, just as promptly as meters can be
installed,. No service,shall be without a meter. Installation
of meters shall not apply to automatic Sprir_kler system, or private
.fire protection as herein set out.
Water supply for building purposes may be metered at
the option of the purchaser.
All bills for metered water shall be payable every
thirty days at the office of said purchaser, within ten days follow-
ing that in which the bill is rendered.
For billing purposes the City shall be considered as
one consumer and entitled to the rate it would have if its entire
No. -Y7166.
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consumption of water sent through one meter; and for billing purposes,
the School Board of the City of Paducah, shall be considered as one con-
sumer and entitled to the rate it would have if its entire consumption of
water went through one meter, but each school building sha11 be separately
�metered. Any consumer whose requirements exceed a total consumption
of six million gallons per month, through one or more meters, shall be
entitled to the rate it would have if its entire consumption of water
(passed through one meter,
that
The purchaser covenants Ahe prices herein established shall be
charged to and collected from each, every arid all patrons other than em-
ployes and officers of the company; that n) rebates will be given any
of the purchaser's patrons, and further covenants that if water is not
charged for,or a rebate is given, that the City shall have the right to
charge and collect twice the value of the water not charged for or twice
the amount of the rebate given as liquidated damages.
SECTION 24.
The City shall pay to the purchaser for fire protection
service, quarterly, on the first day of January, April, July and October,
at the following rates:
For each fire hydrant, x,10.00 per year.
For each lineal foot of 4 inch pipe, 5 cents per ,year.
For each lineal foot of 6 inch pipe, 7'2 per,.year.
For each lineal foot of 8 inch pipe, 10/ per year.
For each lineal foot of 10 inch pipe,Mff� per year.
For each lineal foot of 12 inch pipe,15;1 per year.
For each lineal foot of 14 inch pipe,17z per year.
For each lineal foot of 16 inch pipe 20V per year; -
For each lineal foot of 20 inch pipe 25V per year.
For each lineal foot of 24 inch pipe 30� per year.
The contract for fire service shall continue for one ,year
lionly, but if -the City desires to extend this contract, it shall notify
I
the purchaser of its intention so to do, in writing, at least six months
prior to the expiration of,each year contract. The rates for fire
protection may be revised by the City at any time after two years from
,the date of passage of this Ordinance.
Notice in writing from the City of its determination to
extend the contract shall be treated by the purchaser as a contract for
the succeeding year.
SECTION 25.
Private fire protection charges will be as follows:
For 1 inch connection, x;10.00 per year.
For 1 ' inch connection, 15.00 per year.
For 1 z inch connection, 18.00 per year.
For 2 inch connection, 24.00 per year.
For 3 inch connection, 48.00 per year.
For 4 inch connection, 72.00 per year.
For 6 inch connection, 96.00 per year.
The above charges for private fire protection may be
changedip- with the consent of the City, at any time after two ,years from
'date of passage of this Ordinance.
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No #P 7.
consumer found using water for other than for fire
purposes from connection for fire purposes shall pay the fire rate
established in this Section, and in addition, the consumption rates
fixed in this Ordinance, and shall, at his expense, install a meter
on such connection.
SECTION 26.
The purchaser shall hold the City harmless for any and
i
all claims for damages arising from neglect or mismanagement of
officers or employes. There shall be no unreasonable or unnecessary
obstruction of streets, avenues, alleys or public grounds, and the
i
'same shall be permanently restored to their former condition as near
and as soon as practicable. The City, upon demand, agrees to enact
all needful, requisite and reasonable Ordinances to protect the works
and property of the purchaser from damage, fraud or imposition.
SECTION 27.
The purchaser shall have the right to shut off water
temporarily from the mains or any portion thereof, for the purpose
of making repairs of extensions to its works, and shall not be liable
for any damagesoccasioned by such temporary suspension of the water
supply, if notice, as soon as practicable, is given to the City of
such intention or shutting off water or lowering the pressure, and
is
if such repairs, breaks or extensions are made :without delay and with
due diligence. If, at any time, the supply of water is shut off
for any cause for more than five days at a time, the rental for fire
hydrants shall cease during the time of suspension, and if, after
the completion of said water works system, the purchaser, at any time
ffails to furnish an adequate supply of water for fire and other pur-
poses, as provided for in this Ordinance, for a period of three
i
months continuously, then this Ordinance shall be null and void and th€
privileges and franchise herein granted shall be forfeited and cease.
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�I ECTION 28.
�i The purchaser may transferor assign this franchise,
but if a transfer or assignment thereof is made, the purchaser shall
i
notify, in writing, the General Council, o£ the City of Paducah,
i', within thirty days after such transfer is made.
SECTION 29.
The purchaser shall, within thirty days, in good faith,'
begin the erection of a water works distributing system, and shall
diligently prosecute the same to completion and shall erect a plant
and lay mains, conduits and pipes of similar size and capacity of
the present water works and the present mains, conduits and pipes,
including mains, conduits and -pipes of the size and dimensions of
those mentioned herein, and betterments to be made by the raducah
',rater Company.
The failure of such purchaser to comply with the provisions -
of this Section, shall operate as a forfeiture of this franchise.
SECTION 30.
The purchaser hereby agrees to avoid, wherever possible, the,
1l1creation of any "Dead Ends" in its proposed system of pipe extension.
If any "Dead Ends" are created by the purchaser, and if in the estimation
of the City, such "Dead End or Ends" are detrimental to the interests of
the City, its persons and inhabitants thereof, then the City may require
the purchaser to change its piping so as to abolish the detrimental "Dead
End or Ends", provided, however, it shall be feasable and practicable.
SECTION 31.
It is recognized that damages could not, in certain in-
stances compensate for the failure of the purchaser to perform certain
obligations resting upon it hereunder,.and it is agreed by the City and tie
purchaser that in the event of a breach or threatened breach by the pur-
chaser of the provisions hereof respecting normal pressure or fire
pressure, or quality of water or pine extensions, the City shall be en-
titled to an injunction in a suit in a court of competent jurisdiction _.
to prevent breach or further breach of any of said provisions, and to
compel the purchaser to comply .vith said provisions which have been
breached by the purchaser, or which the purchaser has threatened to
breach. But the remedy of injunction shall not exclude other aopro-
priate legal remedies, nor shall the remuneration of the above stated
rights to injunction exclude the right to injunction in other instances
where allowed by law.
I
This Section shall not give to the City nor deprive the
purchaser of any substantive right, but shall apply only to the remedy
of the City in the event of the breach or threatened breach of any of
said provisions by the purchaser. No permanent injunction shall
i
issue hereunder until such breach or threatened breach has bean proven
in Court under the established rules of law and evidence. No tem-
porary injunction shall issue hereunder until such notice has been given
and such proof has been made as is required by thorn provisions of Chapter
1V of the Civil Code of 'Kentucky, which relate to temporary injunctions.
This Section shall not in any instance be construed as an
i
admission by the purchaser of a breach or threatened breach by it of
�I any obligation imposed upon it by this Franchise.
SECTIOh 32. ,
If the Paducah "Vater Company becomes the purchaser of
this franchise, it shall be bound by all the terms above set forth, and
Pbe endowed with the privileges, rights and grants herein established,
and shall have, the following rights and privileges and be bound by the
Ali
following obligations and agreements.
SECTION 33.
The Paducah Water Company shall not be required to
remove any of its present works or structure or mains, conduits, pipes
and appurtenances thereto, or .fire hydrants from any lot, street, or
other place where such structures, mains and hydrants are at present
located, except as in this franchise specifically stipulated.
It shall not be required to erect a new water works
system or water works plant as provided in Section 29 herein,
,11 mains shall be cast iron, of not less than 6 inches internal
diameter, and of strength equal to class "B" as designated in the
standard specifications for water pipe, adopted by the American ',later
,forks Association in 1913. All new fire hydrants hereafter erecter
shall be of the design and make set forth in Section 7 of this fran-
chise.
The City reserves the right to compel, and the Paducah
',later Company hereby agrees, to abolish any or all "Dead End or Ends",
in its present or future pipe system, provided in the estimation of
the City, the existence of such "Dead End or Ends" is detrimental to
the City, its persons, inhabitants and corporations therein, provided
it shall be feasable and practicable to abolish same.
SECTION 34.
The purchaser shall maintain or renew, as may become
necessary, all service pipes as at present installed, if the owner
shall transfer in writing to the purchaser said owner's interest in �
said service pipes, but in case puch pipes are not thus transferred tol
the purchaser, the o-.vner shall maintain and renew the same at his own
expense. Nothing in this clause shall be interpreted to refer
to services made for the purpose of furnishing private fire protectioni
through sprinkling system or otherwise, which service shall be install
ed and maintained at the expense of the property owner.
SECTION 35.
For the purpose of fixing rates to be charged from
Iltime to time by the purchaser, and the amount of return to such
purchaser for services rendered to the City ofraducah, and its in-
habitants, and also for the purpose of determining the amount of de-
preciation, during the life of this franchise, as herein provided,
and for such purpose only, it is hereby agreed that the value of all
the Paducah Water Company's property wheeever situated, whether with-
in or without the present City limits, as of January 1, 1925, is
Fight Hundred Thousand (s>800,000,00) Dollars.
There shall be added to said sum slight Hundred Thousand)
(6;800,000,00 ) Dollars, to be provided by said Paducah hater Company, (a)
In cash, Ten thousand )x:10,000,00) Dollars for working: capital. (b) All
paid
sums/on account of extensions, betterments and improvements hereafter made
to the property, of said Paducah Water Company, as ;:erein provided.
(c) Additional working capital in a sum not to exceed forty-five days
.normal operating expense. (d) All other sums as chargeable in this
Ordinance to property value.
Whenever in this Ordinance property value is mentioned, it shall
,mean with respect to any particular time, the aggregate of the sum fixed
and determined in this Section provided, plus such additions thereto and
less such deductions therefrom, as may be provided for or required by
other provisions of this Ordinance.
If the present or future corporate limits of the City shall
be extended so as to include within the City limits, property of the
purchaser, which was heretofore outside of the City limits, then such
property shall be subject in all respects to this Ordinance, and when
said property shall have been so included within the City limits, any
franchise under which said property may have been theretofore operated,
,shall be deemed', subject to any mortgage or other liens thereon, to be
surrendered so far as the City is concerned.
SECTION 36.
If and when by reason of age, use, rot, rust, inadequency,
,obsolescence or otherwise, any element of purchaser's physical property
be removed and be replaced by other similar elements or of a similar
utility, then the cost of such removal and replacement shall be charged
to the depreciation reserve referred to in Article 2, of Section 18,
in an amount equal to the original cost of such removal element of proper
if such element was installed subsequent to January 1, 1925.
If installed prior to January 1, 1925, the deduction shall
I
'be in the amount equal to that allowed in the valuation, totaling Eight
',Hundred :'housand (`,;800,000,00) Dollars, upon which this Ordinance is
based a copy of which is on file with the City Clerk and in the Paducah
Slater Company's respective offices, and the property value account shall
be credited with any and all costs of replacement of elements of prop-
erty value so as to increase by the amount of expenditure made for the re-!
placement, the property value as it existed prior to such replacement.
',hen any amount accruing under Article 2, of Section 18, is credited to
the depreciation reserve, a like amount shall be charged to capital
account so as to reduce the contemporaneous property value by such amount.
SECTION 37.
The Purchaser agrees to reinforce the distributing system,
install meters and a second intake, and make other construction herein
Ni. 431
outlined, at a total cost of approximately Three Hundred Ten Thous-
andN',1310,000,00) Dollars and complete same as promptly as possible,
but not to exceed two and one half years after the passage of this
Ordinance. Mains shall be laid in substantial conformity with
the following: I
Size. Len .4th. CostI.
On Alley S. of let St, from `.ashington to Jefferson,24" 1100-6s81�'
On Kentucky from 10th St. to 25th St ..... e
16" 7000 29,000
On 6th St. from Washington St, to Ohio St......... 16" 1650' 6,856'
On 17th St, from Z entucky Ave, to Clay St...,..... 12" 2765' 7,974
On Clay St, from 17th to Harahan- ................. 121" 1200' 3,348
On Burnett St, from Trimble to 10th St........,... 12" 2400' 6,936
On 10th St. fromBurnett to Clay St ................ 12" 1730' 4,94,
On Clay St, from 10th St to 3rd St ................ 12" 2900' 8.168
,On 3rd, I.'adison 2nd, Jefferson, 1st to Broadway... 12" 2700' 7,710
On 6th St, from Ohio St, to Broad St .............. 12" -4900' 13,85
On Ohio St, from 6th St. to 13th St ............... 12" 2800' 7,969,
On 24th St, from Kentucky to Broadway,,,,,,,,,,,,, 8" 400' .596
On Burnett St, from 10th St, to 6th St. 8" 1400' 2.409
On &?ildred St. from Bloomfield Ave to 23rd St ..... )..8" 2175' 3,668
On 2rd St from I1ildred to Trimble St.. .)
On 21st St, from Jefferson to Trimble ............. 8" 2200' 3,789
On Brown St, to Broad.. ... .................. 6" 2100' 2,684
`approximately 2 miles of611mains
On I.,ill St. froii: Eyers to Bridge St, when City limits
are extended so as to include LIM St, within City
limits ............................................ 8" 4000' 6,800
Total estimated Cost of Mains. 41137.937,
Other improvements:
Installing meters on all services at estimated cost of .... 123,986
Idew intake at estimates cost of .......................... . 30,000
Venturi meter, fire alarm, etc... ... . 5,000
Engineering, legal costs of contingencies .................. 15,0001
'Dotal estimated Cost .................................... $311.893'
Purchaser shall at all times operate its plant and entire
system economically and efficiently. Purchaser shall have and main-
I�tain as near as possible, at all times during this franchise, a plant
iland equipment and machinery that shall conform to modern, efficient
I
jand economical water works practice; but in making such conformation,
purchaser may consider the condition, adaptability of machinery then
in use, applicability of new inventions or new machinery or process
to local conditions, number of customers, prospective growth of plant
land customers, and probable financial return, resulting from such
iincreased investment. If the purchaser fails in any of the obliga-
tions imposed upon it under this section, all cost, expense or outlay
sustained by purchaser in connection with the item or items involved
in such failure shall be disallowed as a part of operating cost or as
an addition to property value for rate making or depreciating purposes;
SECTION 38.
The Paducah Plater Company is given two and one half
years from the passage and approval of this Ordinance, to install
jmeters on all service and until meters are installed, those services,
still supplied at flat rates shall be charged at rates twenty per
i
cent greater than the rates now in effect.
The purchaser of this franchise shall signify tiie acceptance
•
thereof, and agreement to the terms thereof, in writing, filed with the .
Mayor of the City within thirty days after its passage.
SECTION 39.
Eighty per cent of the first One I,Iillion (;1,000,000,00)
Dollars expended in the erection of a water works plant and water dis-
tributing system is hereby declared to be the value of such w ai,er •corks
plant, and distributing system for rate making purposes, if this franchise
is bought or said system instaj; ed by a purchaser other than the Paducah
',later Company.
SECTION 40.
If any Section of this Ordinance shall be adjudged invalid
the other Sections hereof shall not be effected thereby, but shall remain
in full force and effect.
SECTION 41.
No change, modification or alteration of any clause or
Section of this Franchise, or the excerise of any power given herein,
shall curtail the right of the purchaser to earn, take and receive the
amount of income fixed in Section 18 hereof.
jSECTION 42.
This Ordinance shall be published for fifteen days in
the official newspaper of raducah, Kentucky, after its passage. The
Mayor of the City is hereby directed to cause such publication to be made,
and he is directed to sell, on the west front of the City Hall, this
franchise, to the highest and best bidder, after said publication, at
ten A. I:i, on a date to be designated in said publication, and he will
report the highest and best bid to the General Council for acceptance or
rejection.
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