125 of 1912 - Franchise, Merchants Light and Power Company. ,S'alt Lake Ci'
ROLL CALL Salt Lake City, Utah, G�^�i 2 4 191....7
VOTING es No I move that the ordinance be amended by
Keyser j adding the following
Koms. . . . .
Lawrence . . . . . . _✓
Morns _. 7-
Mr.Chairman I,s �y� '2
Result L �� ,
AMENDMENT.
"Salt Lake City reserves the right, during the life of this franchise, upon three
years notice to the grantee, its successors or assigns, to terminate this franchise by
paying the said grantee, its successors or assigns, the value of the improvements
made in compliance with this franchise, at the time said termination becomes effect-
ive. The Price so to be paid to be arrived at by arbitration, to which arbitration the
said grantee, its successors and assigns, hereby agrees; the arbitrators to be selected
as follows: One by Salt Lake City, and one by the grantee, its successors or assigns,
and in the event that those two are unable to agree upon a valuation, then they shall
select a third arbitrator or referee, and the award made by them shall be binding
upon Salt Lake City and upon said grantee, its successor ins."
ROLL CALL
U .,aer Lake City, Utah, 0�
Aug.Aug .±m�.� .--_l9l_.2...
VOTING Yes No I move that the ordinance be pas ed.
Keyser
Korns M -
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Lawrence
Morris L..VP ..
Mr.Chairman . . . y.!
RESULT - -
ROLL CALL
ty, Utah
�Cer�VOTING 1 Yea o 1 move that{J..x,Sar � �—
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Keyser
,,
orns
La ;II 1 q 1,-(5---T&A.- 1-"-----' \\--Ct- C:3"--"- ---4 -}tit ,
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Morris .._..... iT�
Mr.Chairman _ q /1.-it--krs- -
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RESULT - - i
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AN ORDINANCE .
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An ordinance granting permission to the Merchants' Light and I
Power Company, a corporation, to construct, maintain, and operate
an electric heating, lighting and power system within the limits •
of Salt Lake City.
Be it ordained by the Board of Commissioners of Salt Lake
City, Utah:
SECTION 1. That the ::erchants' Light and fewer Company, a
corporation, and it.• ass ns, Grantee, (and hereinafter designated
so such) have the authority and consent of the Board of Commission-
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ors of Salt Lake City, and permission is "aeroby granted to them To:
1 a period of fifty (50) years from and after their acceptance of
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1 this franchise, to construct, operate, and maintain an electric
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light and. power system for the distribution and conveyance of elec-
trical energy and currents 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,
with the necessary Salt Lake mires and
and public grounds of SCity,,
other proper appliances attached thereto above the surface of the
ground, orb menus of suitable_i ,yes....a:E con dui is to ue 1 -id_,_be7�ou�
the surface of thn, for the transmission of electrical cur-
rents for furnishing power, li.;ht, and heating to the inhabitants,
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property owners, manufacturers, and users in said city, provided,
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that all poles shall be erected inside the curb on all streets of
said city.
SECTION 2. That time said Merchants' Light and Poorer CorrOsny,
and its assigns, during said term, be, and hereby are vested with
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the rights and privilege of entering upon the streets, l.`.nes,
alleys, and public grounds in said city, for the following plmrpos s:
First. To erect and maintain in such streets, lanes, alleys,
and public grounds of said city, poles, . 1.t attaching thereto, Or,
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extending thereon, wires, and other conductors, for the purpose of
transmittineelectrical currents within the limits of said city,
for po:^.er, lighting, and heating, or other purposes, to the inhab-
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itmnts 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, d public
grounds, for the purpose of laying conduits under ground for the
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purpose of transmitting electrical currents for power, lighting,
heating and other purposes, to the inhabitants of said city, said
conduits to be placed at rach places as shell be designated. by thel
II City Engineer of grantor.
SECTIONT 3. That said rights and privileges are hereby grante ,
subject to the following conditions, viz. :
First. That the 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 als.
subject to such laws of the state, and ordinances and resolutions
e,
of the Board of Commissioners of Salt Lake City, which are now i
force or which may hereafter be passed, governing excavations in
streets, and the construction, erection or maintenance of soles,
wires, conduits, or other erections, or appliances now in use or
to be used in the transmission and distribution of electricity in
said city"
Second. All work done in the . greets, alleys, or public
grounds of Salt Lake City for the purpose of carrying out the pro-
visions of this franchise, shall be done and. performed under the
supervision of, and to the satisfaction of the City Engineer, or
such other officer or department as may hereafter be designated
for the purpose by the Board of Commissioners.
SECTION 4. That Salt Lake City shall in no viey be liable for
any accident or damage that may occur to Salt Lake City or any per-
son or property, in the construction, operation, or maintenance of
any of the electrical transmission lines, either above or below the
surface of the ground, or in the operation of any business conducted
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 shell be deemed an agree-
ment on the part of said grantee to save said city harmless from
and against any and all such liability, loss, costs, e:_pcia,o or
damage from any cause arising out of said default or misconduct,
or vosich may occur by reason of any act done by the grantee, and
to indemnify and pay said city for any loss, costs, enpenne, or
damage of any kind it may sustain by reason of such act, default,
misconduct, accident, or injury, or if any judgment, by reason of
such act, default, misconduct, accident, or injury shall be recovered
against said city, the recovery thereof shall be final as betueon
said city and the said grantee, and conclusive as to the liability
of the latter to the former, provided, however, that said grantee
shall have had notice in writing of the pendency of such action
-within a reasonable time after the service of process in such ac-
tion on the city, and that the grantee shall be permitted, at its
own e:caense, to c.ppc r and. defend the same.
SECTION 5. The said grantee herein further agrThs that, be-
fore it shall comreence any of the actual construction work, or mak-
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any excavations, 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 GUM of ,i25,000.00 (twenty-
five thousand dollars) to indemnify said city from any loss or
damage ,,litch':ney be occasioned Salt Lake City or any person or
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property, by reason of making such excavations, or erecting and
maintaining such poles and transmission lines; and said grantee
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further agrees to carry on all of said work in such a manner as to
cause as little impediment of the common, ordinary use of said
streets as is consistent with resona:ole diligence, and proper
workmanship, and that it will, at its oem e�>pen:e, promptly repair
and nut in as good. condition as before the openings were made,
every such portion of the streets, alleys, avenues, or public
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 ordinence-
SECTION 6. Said Grantee further agrees that the Wires, trans- .
formers, apparatus, and system employed shall be up to the v.p ;-oval '
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-wiu:
That the rate to be charged. consumers for electric current,
for lighting purposes, furnished by them, shall not exceed the ,
following schedule of prices:
(a) MUNICIPAL STREET LIGU'TIkC BY .ARC LLBTS. Said grantee
agrees that, during the life of this franchise, it will furnish ti
said city for r.:u:..ici ,al sti.eet liE:ht,ics, through contrac l s
of not less than three (s) year periods, the latest model lucsinou
arc, or metallic flame arc light which 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 efficiency; ant ni;u t „er-
vice at a - rice not to exceed four dolle.-_3 and seventy-five (5,;4.7 )
1 cents a lamp per month, and under such tors: and conditions as shall
be agreed. upon in a contract between said city and the grantee.
(b) ARC LIG:TI_C TO PRIVTE PARTIES. Arc lights which will
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give an illumination of not less than the present standard of 455
watt enclosed carbon lamp:
RATES. for above service, for all night service, not to exceed
ten (0.0.00) dollars per lamp per month; for midni,ht service, not
to e.:eeed six (pc.00) dollars per lamp per month; for teen o'clock
service, not to exceed five ( 5.00) dollars per lamp per month; fo
service by meter, a rate of ten cents per kilowatt hour for the
electric energy used; in each of the above eases in this sulidivi.si n
a chaTgo o' ono and 50;/1:%0 dollars (4.50) per arc lamp i2oc month,
in addition .i:ereto, for tho care ana maintenance of the lamp.
(c) IidCLItDLSCE0'P' LldhPIliG. For incandescent lamps, a meter
rote of not to exceed ten (10) cents per kiloaft hour for electri
energy used; providet, tint the minimum charge shall be o. (0..00
dollar a month for each consumer of electric energy for incandesce t
lighting. Consumers payinc monthly, on or cfore ,;he 10th day of
the month succeeding the month in which such electricity was used,
shall hove a discount of ten (10; ) per cent on. the above prices,
but no bill shall be less than the minimum ci one (0..00) lioll^r
ill per month.
(d) IIiC:,FiDESCXNT LIG}`TII:u FOR 1'IT)]:iC 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
energy used; provided, that the grantee herein shall not be requir d
to extend its lined 'core than one block from previously construct°
lines for the purpose of sup lying any of said school bui.ld.i.ngs.
SECTION 8. (a) The said grantee hereby agrecs to supply,
free of charge, to Salt Lake City, under the provisions of this
fra.,ichi.se, hereinafter contained, all toe reasonc,ble, necessary
light Tor municipal purposes for lighting t'c:c city's portion. of
the public scuare at the City and County Building, including all
Offices therein, .dire stations, public library, city jails, in-
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eluding all hall-wayc in said buildings, cemetery houses, park
houe , Isolation Hospital, end City Crematory, alo twenty-five
(25) arc lights, of tile same kind, character, and strength as those
provided for in subdivision "A" of Section 7 of this franchise, to
be located in the public parks and nubile grounds of said city, in
such places as tac Ijoard of Commissioners of Salt L:.ke City nay
designate; provided, however, and upon the express condition that
the grantee herein shall not be required to furnish such free light
excevA daring tuch periods of time cc said grartee shall have the
contract for municipal street lighting nrovided for in subdivision
"a" of Section 7 of this franchise. Also, said grantee agrees to
furnish such other and farther electrical energy for power purpose:
no the city- may lesire, for pumping cand otiher municipal -eta-Poses,
up to one hundred (100) horse purer, at a price not to exceed one
(01) cent per kilowatt hour, for twenty-one (Cl) hours a 0-0:y ser-
vice, viz.: commencin at the hour of 3 P. Ii. and until the hour
of 5 P. JU. the next day; and for twenty-four (24) hours v. day ser-
vice , one and one-fourth cents (01 :) per kilowatt hour; provided,
that none of the power purchased or obtained by the city from sai.
grantee, or its assigns, shall be used for lighting purposes; pro-
vided, further, that said city shall notify the grtnitee of the
number of horse power desired or required by it for e definite
period of time, which time shall not be less than one month of
continuous use. Should the said city, however, foil duringsuch
specified time to use the full number of horse power so called for,
then and in that event the said city shall pay The such power as
is actucaly used, at the rate as hereinbefore provided, However,
the said city shall pay for at least fifty von cent (50 ) of the
electrical energy so c. 11ed for, as hereinbefore provied, whethe-1
used or not.
(b) ;Mg 0. 1r, grntee, its svcces-
SOTS and aSCiCri , SI all pay to Salt Lake City for the tesillaltft,
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privilegesgronted by this franchise, i
First: for tho first .ive (5) years no shall be
Second: Por 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 li hti.ng purposes within the corporate
limits of Salt Lake City;
Third: For the remeininc twenty-five (25) years one per .cent
upon the gross revenue of the company derived from the sale of
electrical energy for liebting purposes within the corporate lir:,it.
of Salt Lake City.
The term "gross revenue", as used in this section, shall be
construed to mein that sum which the coxoLmy actually received
from the sale of electrical energy for 1 i tiny purposes within
the corporate limits of Salt LLke City, as herein st. ted, and 21. .1i
be determined from the books of the compaaiy at the end of each
calendar year. A sf::tenent, verified by the treasurer or auditor
of the grantee as to its truth snd correctness, showing this gross
revenue for the preceding year, shall be delivered to the Auditor
of the grantor on or before the first day of Pebruary in each year;
and the payment aforesaid shall be made on or before the first day
•i• the preceding year. The boo..c., o,. the
of 'larch in each yesr for
said grantee, -:,herein the records of sales of electrical energy
forpurposes lighting within the corporate limits of S::it Lake City,
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shall be open for inspection and examination by the City Auditor
III of the grantor, at any time after the receipt of such statement,
for the purpose of ascertaining the amount of such gross revenues.
SECTION 9. The said. grantee further agrees that it will fur-
nish said city, after January 1, 1915, during the rema.i.nder of the
life of this franchise, free of charge to said. Salt L ke City, the
equal of thirty (30) horse power of electrical energy, to be used
a.
for power purposes by said city in the meaner it may deem necessary
and proper,' but this poser shall not be used for li„hti.ng.
SECTION 10. (a) Should the grs ntee, or its successors or
assigns, after Laving constructed and put in operation an electric
plant and. distributive system for electric cu' rent, as herein con-
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tenila..ted, desire to sell the same, then, nd in that event, Salt
Lake City shall hove an option to purchase it, at a price equal to
any bo
na na fide offer which 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. musd., within six
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(6) months after such election, pa; to said grantee the purchase .
price of said plant. Evidence of such bona fide offer shall be
furnished the City Auditor of the grantor by the affidavit of the
president of the grantee, which affidavit shall state in full the
terms of such offer, and shall state that tie full terms of such
offer arc so stated therein. If ae grantee oliall sell, or at-
temtempt to sell its property without giving the notice and furnishing
the affidavit provided for in this section, then this franchise shall
at once cad and terminate.
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understood a that at any time
<.21d u creed t
at
reed I t is further
after 25 years from the acceptance of this franchise by the grant�e
herein, the city shall have the right to purchase the electric
plant and the entire poser and distributive system, which shall bo
constructed by said. grantee under and by virtue of this franchise,
from the grantee herein, at a price not to er;ceed the value of th
said. power plant and distributive system, to be agreed upon • b
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three disinterested appraisers, one of whom shall be appointed by
the grantee, and the other by the said Salt Lake City, and the th n
Governor of Pie State of Utah shall appoint the third, <^.nd :in the
event that the appraisers so appointed are unable to agree upon a
purchase .rice, then the said city shall have the ri.;;'hd to corder,
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;n the manner provided by law for the condemnation of private prop-
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sty for public use; provided, that in the event the city should
elect to purchase the said plant and the distributive system thereI
under, or in the event that the city should. acquire the said prop-
erty by condemnation, that the value of the franchise or rights
granted thereunder shall not be considered or taken into account it
fixing said purchase ;,rice. And provided, further, tut if the salt
city acquires said _plant and distributive system under any of the
provisions of this franchise, that a11 ri„hts and ,.privileges hereby'
granted shall terminate and cease. And provided. further, that in
the event x$ the said city elects to buy said electriccl ooPor plant
and distributive system, and the said grantee declines or refuses ,
to name or a ,point an appraiser, as herein ,provided, then and in
that event any judge of the District court of the 'Third Judicial
District in and for Salt Lake County, Utah, upon application of 1
said city Commissioners, shall none such appraiser for said pronto '
and the acts of said appraiser shall be as binding upon said grant e
as if named. or appointed by it.
SLC'TIO_T 11. It is further ordained, and the said. grantee,
its successors and assigns, herey agree tint it will commence wort
under the provisions of this franchise, not later than ninety (90)
days from the acceptance thereof, and. that it shall hive construct d
a sufficient number of transmission lines to enable it 'to 'supply
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said Salt Lake City with street lighting when the same shall be
required of it; Provided, however, that the grantee, its successors
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and assigns., shall have at least one (1) year within ,;flash to com- I '
mence the f.-rnishing of street lights for Salt L ke City after the
awarding of a contract by said city to the grantee, its successors
or assigns, for said street li :i tia„ And the grantee further
agrees with the grantor that it will extend its distributing system
as rapidly as the busine;:s obtained shall warrant.
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SECTION 1' And said grantee further agrees that if this fra.n- '
curse is not accepted, in writing, within sixty (60) days after it
passage, or if work be not commenced on or before ninety (90) days
from the date of acceptance of the same, or if sufficient light an
power lines are not constructed to meet the demands for lighting
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 elements, strikes, lookoutp,
or inability to procure, with reasonable diligence, the delivery
of machinery, wire, poles, pipes, and supplies, shall be counted
as a part of the time within which any act is to be performed under
this franchise, which delay shall not exceed twelve months for any'
reason whatever, and said grantee further agrees that, if at any
time, after thirty days notice, in writing, so to do, it shall
fail or neglect, or refuse, for a period of ninety (90) days there-
after, to comply with any of the provisions of this franchise to be
by it complied with, or shall, after like notice, fail or refuse,
for ninety (90) days, to comply with any reasonable regulation
which may be lawfully imposed by the City of Salt Lake, then this
franchise, and all rights thereunder, shall, at the option of the
Board of Commissioners of said city, be forfeited, and the said
city shall, el once, upon such forfeiture have the right to require
that all conduits, poles and transmission lines, and other property
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 enpense of such removal; or, at the option of
the grantor, it may take over and become the owner of said material
without being in any way or manner liable to pay the grantee for
the same.
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SECTION 13. To the grantee there is further granted the ri„hr
deposit t from
to require, at its reasonable discretion, a., guaranty i
all parties proposing to become consumers, the amount o'' which sai'
deposit shall be reasonable under the circumstances under which
said consumer proposes to use such electrical energy, which said
deposit, with interest at five (5`,L) per cent per annum, during the
time the same has been deposited, shall be returned to the deposit
• when he ceases to become a consumer; provided, however, if the
meter deposit be returned before -the expiration of six (6) months,
no interest shall be paid. _
SECTION 14. That wherever and wherever the word "grantee"
is used herein, the same, in.addition to its ordinary moaning,
shall be construed to mein, and include, the successors and assign
of said grantee.
1 SECTION 15. The grantee by the acceptance of this franchise,
agrees that it --ill not by agreement, secret or otherwise, sell to
or consolidate its business or property with that of any competito
operating under a franchise granted by Salt Lr.ice City without firs
obtaining the written consent of the Board. of Commissioners of the
grantor thereto. If the grantee shall violate any of the terms of
this section, then, et 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 granting permission to the Merchants' Light and Power Company,
a corporation, to construct, maintain and operate an electric
heating, lighting and power system within the limits of Salt Lake
City", is hereby repealed.
SECTION 17. This ordinance shall take effect one day a.,'tor
ite fs.rat publication.
Passed b the Board of Commissioners of Salt Lake City, Utah,
August 22, 191$:
Mayor. seer er
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