109 of 1912 - Franchise, Merchants Light and Power Company. AN•
ORDINANCE .
An ordinance granting permission to the Merchants' Light and 1
Power Company, a corporation, to'oonstruct, maintain, and operate
an electric heating, lighting and power system within the limits
of Salt L<::ke City.
Be it ordained by the Board of Commissioners of P'xlt Zane
i •
City, Utah:
SECTION 1. That the Merchants' Light and Power Company, a
corporation, and its assigns, Grantee, (and hereinafter designated
as such) have the authority and consent of the Board of Commissionw.
ei Salt Lake City, and permission is hereby granted to. them for
a period of fifty (50) years from and after their acceptance of
this franchise, to contrast, operate, and maintaM en eleotril
light and power system for the distribution and conveyance of eleo-
trioal energy and ourrents across, upon and under the public streets,
alleys and other public thoroughfares in said.City of Salt Lake,
County of Salt Lake, State of Utah, and to construct conduits and
erect, and maintain lines of poles in such streets, lanes, alleys,
1 and public grounds of Salt Lake City, with the necessary wires and
other proper appliances attached thereto above the surface of the
ground, or by means of suitable pipes or conduits to be laid below
the surface of the ground, for the transmission of electrical our-
1 rents for furnishing power, light, and heating to the inhabitants,
property owners, manufacturers, and users in said aity, uroviditt,
that all poles shall br erected lucide the curb on all streets of
said city.
SECTION 2. That the said Merchants' Light and Power Company,
and its assigns, during said term, be, and hereby are vested with
the rights and privilege of entering upon the Streets, lanes,
alleys, and public grounds in said city, for the following purpose
First. To erect and maintain in suoh streets, lanes, alleys,
and public grounds of said city, poles, and attaching ther€te. er
109
-2-
extending thereon, wires, and other conductors, for the purpose of
transmitting electrical currents within the limits of said oity,
for power, lighting, and heating, or other purposes, to the inhab-
ieants thereof, but no wooden poles shall be erected on any paved
street, or on any street about to be paved.
Second. To open said streets, lanes, alleys, and public
grounds, for the purpose of laying conduits under ground for the
purpose of transmitting oloo rioal currents for power, lighting,
heating and other purposes, to the inhabitants of said city, said
conduits to be placed at ouch places as shall be designated by the
City Engineer of grantor.
SECTION 3. That said rights and privileges are hereby grantee,
subject to the following conditions, viz.:
First. That tho permission and authority hereby granted is
subject to all laws, ordinances, and resolutions, now in force in
Salt Lake City, and which may hereafter be passed by the State
Legislature or Board of Commissioners, authorizing or fixing the
rates to be charged for electricity used in said city for light,
heat, power, or other industrial or commercial purpose, and is ale
subject to such laws of the state, and ordinances and resolutions
of the Board of Commissioners of Salt Lake City, which are now in
force or whioh may hereafter be passed, governing oxoavations in
streets, and the construction, erootion or maintenance of poles,
wires, conduits, or other erections, or appliances now in use or
to be used in the transmission and distribution of electrioity in
said city,
Second. All work done in the streets, •,.11eye, or public
grounds of Salt Lake City for the purpose of carrying oat the pro-
visions of this franchise, shall be done and performed under the
supervision of, and to the satisfaotion of the City Engineer, or
such other officer or department as may hereafter be designated,.
for the purpose by the Board of Commissioners.
SECTIOit 4. That Salt Lake City shall in no way be liable for
l any accident or damage that may occur to Salt Lake City or any pa
son or property, in the construction, operation, or maintenance o
any of the electrical transmission lines, either above or below t,
surface of the ground, or in the operation of any business oondu°,.
by the grantee, under and by virtue of this franchise, by reason
of the default, neglect, or misconduct of said grantee, or its em
ployees, and the acceptance of this grant shall be deemed an agre -
moat on the part of said grantee to s&.ve said city harmless from
and against any and all such liability, lose, posts, expense or
damage from any cause arising out of said default or misconduct,
or which may occur by reason of any act dono by the grantee, and
to indemnify and pay said city for any loss, posts, expense, or
damage of any kind it may sustain by reason of such cot, default,
misconduct, accident, or injury, or if any judgment, by reason o•
such act, default, misconduct, accident, or injury shall be ree< erect
against said city, the recovery thereof shall be final as betwee
said pity and the said grantee, and conclusive as to the liabili y
of the latter to the former, provided, however, that said grant,
shall have hal notice in writing of the pendenoy of such action
within a reasonable time after the service of process in such ao
tion on the city, ane that the grantee shall be permitted, at it
own expense, to appear and defend the same.
SECTIO1Y 5. The said grantee herein further agrees that, be
fore it shall commence any of the actual construction work, or e:ke
any oxcagations, or erect any pole lines in any of the streets,
avenues, alleys, or other places in said city, it shall give to
said city an approved bond in the penal sum of $26,000.00 (twen y-
five thousand dollars) to indemnify said oity from any loss or
damage which may be ocoasioned Salt Lake City or any person or
I �
•
-4-
i
property, by reason of making suoh excavations, or erecting and
maintaining such poles and transmission lines; and said grantee
further agrees to carry on all of said work in suoh a manner as to
cause as little impediment of the common, ordinary use of said
streets as is consistent with reasonable diligence, and proper
workmanship, and that it will, at its Own expense, promptly repair
and put in as good condition as before the openings were made,
every such portion of the streets, alleys. avenues, or publio
grounds in said city where such openings shall be made, and the
bond aforesaid shall cover this last agreement and the agreement
contained in Section 4 of this ordinance.
SECTION 6. Said Grantee further agrees that the wires, trans
formers, apparatus, and system employed shall be up to the approve,
standard used in other cities of like population to the City of
Salt Lake City, in the United States.
SECTION 7. And in further consideration of the granting of
this franchise, the said grantee further agrees as follows, to'wi
That the rate to be charged consumers for electric current,
i
for lighting purposes, furnished by them, shall not exceed the
following schedule of prices:
(a) MUNICIPAL STREET LIGHTING BY ARC LAMPS. Said grantee
agrees that, during the life of this franohise, it will furnish t
said oity for municipal street lighting purposes, through oentree s
of not less than three (S) year periods, the latest model lum
aro, or metallic flame are light whioh will give an average illu-
mination of not less than the present standard of four amperes
lamp of this type, or a lamp of equal effioionoy; all night ser-
vice at a price not to exceed four dollars and seventy-five (44.7,)
cents a lamp per month, and under such terms and conditions as s. 11
be agreed upon in a oontraot between said city and the grantee.
(b) ARC LIGHTING TO PRIVATE PARTIES. Aro lights which will
-5-
give an illumination of not less than the present standard of 456
watt enclosed carbon lamp:
RATES. For above service, for all night service. not to exce d,
ten (410.00) dollars per lamp per month; for midnight service, not
to exceed six ($6.00) dollars per lamp per month; for ten o'clock ,
service, not to exceed five (45.00) dollars per lamp per month; fo
service by meter, a rate of ton cents per kilowatt hour for the
electric energy need; in each of thc above oases in this subdivisi•xx.
a charge of one and 50/100 dollars (41.50) per are lamp per month,
in addition thereto, for the care and maintenance of the lamp.
(e) INCANDESCENT LIGHTING. For incandesoent lamps, a meter
Bete of not !,o exceed ten (10) eento per kilowatt hour for eleotri
energy need; provided, thet the minimum charge shall be one (*1.00
dolle.r a month for each consumer of eleotrie energy for incandesce t
lighting. Consumers paying monthly, on or before the 10th day of
the month succeeding the month in which such electricity wets used,
shall have a discount of ton (10%) per cent on the above prices,
but no bill shall be less than the minimum of one (41.00) #ollar
per month.
(d) INCANDESCENT LIGHTING FOR PUBLIC SCHOOLS. For incandes-
cent lighting for the public schools of Salt Lake City, a rate of
not to exceed three (03) cents per kilowatt hour, for the electric
that the herein shall not be recant
suer used; resided, granteeenergyP
to extend its lines more than one block from previously construct
lines for the purpose of supplying any of said school buildings.
SECTION 8. (a) The said grantee hereby agrees to supply,
free of charge, to Salt Lake City, under the provisions of this
franchise, hereinafter contained, all the reasonable, necessary
light for municipal purposes for lighting the oity's portion of
the public square at the City and County Building, including all
offices therein, fire stations, public library, oity jails, in-
a.
_6_
eluding all hall-ways in aaid buildings, cemetery houses, park
housee, Isolation Hospital, and City Crematory, also twenty-five
(25) arc lights, of the same kind, eharmoter, and strength as tbosb
arovided fear in subdivision "A" of Section 7 of this franchise, to'
be located in the public parks and public grounds of said city, in
suoh places as the Board of Commi;i inners of Salt Lake City may
designate; provided, however, and upon the express condition that
the grantee herein shall not be re uired to ferntoh such free light
except during ibuoh periods of time no said grantee shall have the
contract for municipal street lighting provided for in subdivision
"a" thisranchise. Also, said r:,ntee agrees to
Section 7 of fu�
a of Sec i
tarnish such other and further electrical energy for power purposes
as the city may desire, for pumping and other municipal purposes,
up to one hundred (100) horse power, at a price not to exceed one
II
(01) cent per kilowatt hour, for twenty-one (21) hours a day ser-
i vise, viz.: commencing at the hour of 9 P. M. and until the hour
of 5 P. M. the next day; and for twenty-four (24) honro a day ser-
vice. , one'and one-fourth cents (01 ) per kilowatt hour; provided,
that none of the power pnrch.ased or obtained by the city from said
grantee, or its assigns, shall be used for lighting purposes; pro-
vided, further, that said. city shall notify the grantee of the
number of horse power desired or reouired by it for a definite
period of time, which time shall not be less than one month of
continuous use. Should. the said city, however., fail during such
specified time to use the full number of horse power so called for,
then and in that event the said city shall pey for such power as
is actually used, at the rate Flo horeinbefore provided, However,
the said city shall pay for at least fifty pr.r cent (50%) of the
electrical energy so called for, as hereinbefore provided, whether
used or not. -
(b) Aa 77..= ra.a-w.a;::w:.iaa a+N e fax the grantee, its suooes-
sors and assigns, shall pay to Salt Lake City for the ma.o af AW.
I
-7-
pr3.vilogo grrted by this franchise,
1 Firt: For the firs': five (5) years no 1 o-ease.tax- ei!a.l:- be+--
11
Second: For the next twenty (20) years one-half of one per
cent upon the gross revenues of the company derived from the sale
of electrical energy for lighting purposes within the corporate
limits of Solt Lake City;
Third: For the remaining twenty-five (25) years one per cent
upon the gross revenue of the company derived from the sale of
electrical energy for lighting purposes within the corporate limits
of Salt Lake City.
The term "gross revenue", a.s used. in this section, shall be
construed to mean that sun which tho company actually received
from the sale of electrical energy for lighting purposes within
the corporate limits of Salt Lao City, as herein atatod, and shall
be determined from the books of the company at the end of each
'calendar year. t statement, verified by the treasurer or auditor
of the grantee as to its truth and correctness, showing this gross
revenue for the preceding year, shall be delivered to tin: Auditor
of the grantor on or before the first day of February in each year;
• and the payment aforesaid shall be made on or before the first day
of March in each year for the year.ear. The books of the
preceding
said. grantee, wherein the records of sales of electrical energy
for lighting purposes within the corporate limits of $:it Lake City,
shall be open for inspection and examination by the City Auditor
of the grantor, at any time after the receipt of such statement,
far the purpose of ascertaining the amount of such gross revenues.
SECTION 9. The said grantee further agrees that it will fur-
l' Fish said city, after January 1, 1916, during the remainder of the
life of this franchise, free of charge to said Salt Lake City, the
=qual of thirty (30) horse power of electrical energy, to be used
, •
-8-
for power ;urposes by said city in the manner it may deer neoesaa
and proper, but this power shall not be used. for lighting.
SECTION 10. (a) Should the grantee, or its. successors or
assigns, after having constructed end put in operation an eleetrie
plant and distributive system for electric current, as herein eon-
templeted, desire to sell the eaa.m.;, then, and in. that event, Salt
Lake City shall have an option to Curohaoe it, at a price equal to
any bona fide offer shish can be obtained from other parties; pro •
-
vided, however, that after notice of such offer, the city must,
within ninety (90) days, elect to purchase, and. mu.t, within six
(6) months after such election, pay to said grantee the purchase
price of said plant. Evidence of such. :•onafide offer shall be
furnished the City Auditor of the graatcr by the affidavit of the
president of the grantee, ,which :affidavit shall state in full the
terms of ouch offer, and ehell state that the full terms of such
offer arc so steted therein. If the grantee ;shall cell, or at-
tempt to sell i�.:, property reu u�i' t -�ivi,:g the notice a.rd furnls
the affidavit provided for in this section, teen this franchise s =11;
at once end one terminate.
(b) It is further understood. end agreed that at any time
after 25 years from the acceptance of thin franchise by the grant e
herein, the city shall hove the right to purchase the electric
plant and the entire power and distributive system, which shall
constructed by said grantee under end by virtue of this franchise
from the grantee herein, at a price not to exceed the value of th
said peeler plant and distributive nyetem, to be agreed upon loot
three dinintoreeted. appraisers, one of when shall be appointed by
the grantee, and. the other by the said Salt Take Oily, and the t4 n
Governor of the State of Utah shall appoint the third, and in the
event that the appraisers so appointed are unable to agree upon
purchase price, then the said city shall have the right to cot® a.
. .
. ,
' ! • L----
, . ...-
... -
,n the manner trovided by law for tie condemnation of private prep-
rty for Ilie tse; ptovleed, tlert in the event the city should •
elect to purchase the said plant and the distributive system there-
or In ifee event that the city should acquire the said prop-
erty by coneemention, that the value ot the freneniee or rights
granted thereunder shall not be considered or taken into account
fixing said eurcheee price. And provided, further, that if the sai&
i
oily uctufros teid plant and distributive system under any of the
provieiene of this frenchise, that ell rights and privileges hereby I
I
granted shall terminate and. cones. And provide& further, that in
!
the event xt the taid city elects to buy taid eleotrioal power plat
and distributive system, end the said grantee cleolines or refuses
to memo or attoint an aptraiocr, as heroin provided, then and in
that event any judge of the District Uourt of the Third Judiolal
District in end for Salt Lake County, Utah, upon application of
said oity Commictionors, eheil name ouch appraiser for said grants ,
teti the acts of said ateraicer shall be so binding upun said grant
as if named or appointed by it.
SECTION 11. It, is further ordained, end the said grantee,
it aeceessore and teeigns, heroy agree that it will commenee we
under the provisions of this franehiee, not later than ninety (90)
days from the acceptance thereof, and that it shall have construct
a sufficient number of transmiesion lines to enable it to supply
said Salt Lake City with street lighting when the same shall be
required of it; provided, honorer, tint the grantee, its suoceseor,
and aseit-ne, chat' leNe at least one (1) ycer within which to corn-
meece the ftreishing of street liehte for Salt Yoke City after the
arareing of a contract by said city to the glen-tee, its edoeeesore
or assigns, for said street lighting. And the grantee further
agrees with the grantor that it will extend its distributing systt,
as rapidly as the business obtained shall warrant.
. . .•
1
1 - -
•
-10-
SECTION Iv And said grantee further agrees that if this fr F
ohise is not accepted, in Writing, within siety (60) flays after it •
passage, or if work be not commenced on or before ninety (90) days
from the date of aooeptanee oa the came, or if sufficient light
power lines are not constructed to meet the demands for lighting
I �
the streets of said city when the said city shall require the same
to be done, then this franchise shall be void; provided, that no
delay occasioned by the act of God, the demonic, strikes, lookout-,
or inability to procure, with reasonable diligence, the delivery
of machinery, wire, poles, pipes, and supplioc, shall be counted
as a part of the time within which any act is to be performed under
this franchise, which delay ohall not ex.:eod twelve months for any
reason whatever, and said grantee further agrees that, if at any
time, after thirty days notice, in writing, co to do, it shall
fail or negleot, or refuse, for a period of ninety (90) days there
after, to comply with any of the proviaione of tale franchise to b
by it complied with, or shall, after like notice, fail Jr refuse,
for ninety (90) days, to oomply with any rea onablo regulation
which may bo lawfully imposed by the Jity of edit Lake, then this '
fraanchico, and all lights thereunder, shall, at the option of the
Board of Commissioners of said city, be forfeited, and. the said
city shall, at once, upon ouch forfeiture nave the right to requt
that all conduits, poles and transmission lines, and other proper
of the grantee, be removed from its streets, and if the same are
not removed within one year after written notice so to do, the
grantor may remove the same, without being liable in any way* for
so doing, and may sell and dispose of said material for the pur-
pose of paying the expense of such removal; or, at the option of
the grantor, it may take over and become the owner of said materi-
without being in any way or manner liable to pay the grantee for
the same. •
-11-
S''CTI'Tx 13. To the grantee there is further granted the right
j to rocuire, at ite reaeo n_ble discretion, a gaax•efiy deposit from
all p rticu proposingto become consumers, the amount of which sal.
I j
deposit shall be reasonable dander the circumutencos under which
said consumer p epcses to nee ouch electrical energy, which said
deposit, with intcreat at five (5, ) per cent per annum, during the
j time the same has been: 'deposited, yha3.1 be e;tu led{; to the deposit r
« j
when he ce ees to become a conuum t, provf4 , iiew0Ter, if:the
meter deposit be returned before the Czziretien;of .six (6), months,
no intFre; t shall be paid. - '
SECTION 14. That whenever ante. w1aezeyor4tk word, "grantee" •
Is used herein, the same, in addiflon to dt04 ivary mea*ng,
shall be construed to mean, and inclu .o, the au oo$sore and asap4
of said grantee.
SECTION 15. The gr::ntoe by the aoceptanee of this franchise,
agroes that it will act by agroomeat, aecret or othe:Twine, sell to
or consolidate its busineso or property with that of any oompetito
operating under a franchise granted by bait Lake City without fire
obtaining the written coneent of the Board of Commissioners of the
granter the eto. If the grantee shall violate any of the terms of
this section., thou., at the option of the grantor, this franchise
shall at once end and terminate, and the property of the grantee .
shall be forfeited as ;provided in Section 12 of this franchise.
SECTION 16. The ordinance hitherto passed by the Board of
Commissioners of Salt Lake City on May 1, 1912, entitled "An ordi-
nance grunting permission to the Merchants' Light and Power Comp ,
o corporetio.a, `hi construct:, maintain end operate an electric
heating, lighting and power system within the limits of Salt Lake
City", is hereby repealed.
SECTION 17. This ordinance shall take effeot one day after
its first publication. 01
w
AY. _
6 Via. .
i .. / 67 _,
__,,;.. ! t
�J C
na o
7. tr.. --,
E r.) ,�
,5:7-
+ \
,_