54 of 1912 - Franchise, Merchants Light and Power Company. ^Sale Lake City, Utah,.._ May lot, 1912
VOTING Ye, , No I move that the amendment be passed.
Keyser ✓
Korns
Lawrence . Commissioner of Public Affairs E: Finance.
Morris
Mr.Chairman
RESULT -
Sale Lake City, Utah, _ May lot, .191 2
VOTING Ycs No ): move that the ordinance be passed as amended.
40.1
Keys
Kerse
/! r
Lawrence . Commissioner of Streets & Public Improvements
Morris .
Mr.Chairman . . ."". '""""`hqs_._.
Passed by the Board of Commissioners of
RESULT - - I . I..4..�
4 Salt Lake City,Utah,May 1st, 1912.
Ac ing cMayor Ci y e order
jy
I move to amend Section 1 of this ordinance granting a fran-
ehise to the Merchants' Light and Power Company, by striking out
the words "fifty years", and inserting the words "twenty-five
years"; and to insert at the end of said section the following:
"Salt Lake City reserves the right, upon three years notice
to the grantee, its successors or assigns, to terminate this fran-
chise 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 effective. The price so to be
paid to be arrived at by arbitration, *o which arbitration the
said grantee, its successors and assigns, hereby agrees; the arbi-
trators 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
successors and assigns."
RV1.1. 1.t11-.1.
Salr Lake City, Utah,__ T1ay let, .191 2
VOTING ve�JI'I No I move that the amendment be adopted.
Keyser . . . • . .
Korns
Lawrence ! . ,+ ! Commissioner of Streets & Public Improvements.
Morris
Mr.Chairman . . . ... Passed by the Board of Commissioners of Salt Lake
Rasa - - City,Utah, May 1st, 1912.
Acting Mayor i y ecor er
Section 15. The grantee by the acceptance (f this franchise
agrees that it will not by agreement, secret or otherwise, sell to
or consolidate its business or property with that of any competitor
operating under a franchise granted by Salt Lake City, without first
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, at the option of the grantor, this franchise shall
at once end and terminate, and the property of the grantee shall be
forfeited as .rovided in Section 12 of this franchise.
SECTION 16. This ordinance shall take effect one day after its
publication
Commissioner of Streets P Public Improvements.
Salt Lake City, Utah, ` ":
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VOTING Yes ° I move that
CI. ; \ i d L,
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Keyser .___.. •. - i.
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Lawrence f
Morris � __ � �^ � f
Mr.Chairman r ...J�. .. .. 4' r' '- //
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Pasr,ed byy4,
00 mmiseioner., "`(� 8 pity, U h, pril 2 , 191',
fo
ilctInc Lin.yor City Iteco'_le,x: —
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` AN ORDINANCE .
An ordinance 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, QQ
Be it ordained by the Board of Commissioners of Salt Lake
City, IItah:
i
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 Commissioners
of Salt Lake City, and permission is hereby granted to then for a
period of fifty (50) years from and after their acceptance of this
franchise, to construct, operate, and maintain an electric light
and power system for the distribution and oonveyanoe of electrical
energy and currents across, upon and under public streets, alleys, .
and other public thoroughfares in said City of Salt Lake, County of
Salt Lake, State of Utah,_ ve
and to construct conduits and erect, and
maintain lines of poles in such streets, lanes, alleys, 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 currents for furnishing
power, light, and heating to the inhabitants, property owners, manu-
fatyturera, and users in said city, provided, that all poles shall be
erected inside 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, a dd hereby are vested with the
rights and privilege of entering upon ewck streets, lanes, alleys,
and public grounds in said city . ,, ,.,
for the following
purposes: 10,
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First. To erect and maintain in suoh streets, lanes, alleys,
and public grounds of said city, poles, and attaching thereto, or
extending thereon, wires, and other conductors, for the purpose of
transmitting electrical currents within the limits of said city, for
power, lighting, and heating, or other purposes, to the inhabitant>
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 electrical currents for power, lighting, heating and
other purposes, to the inhabitants of said pity, said conduits to be
placed at such places as shall be designated by the City Engineer of
grantor.
SECTION 3. That said rights and privileges are hereby granted,
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 Legis-
lature 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 also 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 which
may hereafter be passed, governing excavations in streets, and the
construction, erection or maintenance of poles, wires, conduits, or
other erections, or appliances now in use or to be used in the trans-
mission and distribution of eleog{rivity in said city.
Second. All work done in the streets, alleys, or public grounds
of Salt Lake City for the purpose of carrying out the provisions 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 bq%tl(
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Board of Commissioners.
SECTION 4. That Salt Lake City shall in no way be liable for
any accident ,or damage that may occur to Salt Lake City or any person
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 de-
fault, neglect, or misconduct of said grantee, or its employees, and
the acceptance of this grant shall be deemed an agreement on the part
of said grantee to save said pity harmless from and against any and
all such liability, loss, costs, expense or damage from any cause
arising out of said default or misconduct, or which may occur by
reason of any act done by the grantee, and to indemnify and pay said
city for any loss, costs, expense, or damage of any kind it may sus-
tain by reason of such act, default, misconduct, accident, or injury,
or if any judgment, by reason of such act, default, misconduct, E
accident, or injury shall be recovered against said city, the recovery
thereof shall be final as between said city and the said grantee,
and conclusive as to the liability of the latter to the former, pro-
tided, however, that said grantee shall have had notice in writing
of the pendency of such action within a reasonable time after the
service of prooess in such action on the city, and that the grantee
shall be permitted, at its own expense, to appear and defend the
same.
SECTION 5. The said grantee herein further agrees that, before
it shall commence any of the actual construction work, or make any
excavations, or erect any pole lines in any of the streets, avenues,
alleys, or other place in said city, it shall give to said city an
approved bond, in the penal sum of $25,000.00 (twenty-five thousand
dollars) to indemnify said city from any loss or damae which may be
occasioned Salt Lake City or any person or property, by reasop'o ,
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making such excavations, or ereoting and maintaining such poles and
tbansmission lines; and said grantee 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 reasonable
diligence, and proper workmanship, and that it will, at its own ex-
pense, promptly repair and put in as good condition as before the
openings were made, every such portion of the streets, alleys, ave-
nues, or public grounds in said city where such openings shall be
made, and the bond aforesaid shall oover this last agreement and the
A
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 approved
)
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-wit:
That the rate to be charged consumers for electric current, for i
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 franchise, it will furnish to said city '
for municipal street lighting purposes, through contracts of not less
than three (3) year periods, the latest model luminous arc, or
metallic flame arc light which will give an average illumination of
not less than the present standard of four amperes lamp of this type,
or a lamp of equal efficiency; all might servioe at a price not to
exceed four dollars and seventy-five cents N4.75) a lamp per month,
and under such terms and conditions as shall be agreed upon in a
contract between said city and the grantee.
(b) ARC LIGH ING TO PRIVATE PARTIES. Arc lights which will
give an illumination of not less than the present standard of�4 -\
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watt enclosed carbon lamp:
SATES. For above service, for all night service, not to exceed
ten (410.00) dollars per lamp per month; for midnight service, not to
exceed six (46.00) dollars per lamp per month; for ten o'clock ser-
vice, not to exceed five (45.00) dollars per lamp per month; for ser-
vice by meter, a rate of ten cents per Kilowatt hour for the electric 1
energy used; in each of the above oases in this subdivision a charge
of one and 50/100 dollars (41.50) per aro lamp per month, in addition
thereto, for the care and maintenance of the lamp.
(o) INCANDESCENT LIGHTING. For incandescent lamps, a meter rate
n
of not to exceed ten (10) cents per Kilowatt hour for electric energy i
used; provided, that the minimum charge shall be one (41.00) dollar a
month for each consumer of electric energy for incandescent lighting.
Consumers paying monthly, on or before the 10th day of the month suc-
ceeding the month in which such electricity was used, shall have a
discount of ten (10)' per cent on the Above prices, but no bill shall
be less than the minimum of one (41.00) dollar per month.
(d) INCANDESCENT LIGHTING FOR PUBLIC SCHOOLS. For incandescent
lighting for the public schools of Salt Lake City, a rate of not to ex-
ceed three (03) cents per Kilowatt hour, for the electric energy used;
provided, that the grantee herein shall not be required to extend its
lines more than one block from previously oonstruoted 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 muni-
cipal purposes for lighting She city's portion of the public square
at the City and County Building, including all offices therein, fire
stations, public library, city jails, including all hall-ways in said
buildings, cemetery hous$ park houses, Isolation Hospital, and C,ty
Crematory also twenty-five (25) arc lights, of the same kind, . " -
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ter, and strength as those provided for in subdivision "a" of Section
7 of this franchise, to be located in the public parks and public
grounds of said city, in such places as the Board of Commissioners
of Salt Lake City may designate; provided, however, and upon the ex-
press condition that the grantee herein shall not be required to
furnish such free light except during such periods of time as Said
grantee shall have the contract for municipal street lighting pro-
vided for in subdivision "a" of Section 7 of this franchise. Also,
said grantee agrees to furnish 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 (01) cent per Kilowatt hour, for twenty-one
(21) hours a day service, viz.: commencing at the hour of 8 P. M. and
until the hour of 5 P. M. the next day; and for twenty-four (24) hours
a day service, one and one-fourth cents (.014) per Kilowatt hour;
provided, that none of the power purchased or obtained by the city
from said grantee, or its assigns, shall be used for lighting purposes;
provided, further, that said city shall notify the grantee of the
number of horse power desired or required 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 pay for such power as is actually used, at
the rate as hereinbefore provided, However, the said city shall pay
for at least fifty per cent (50%) of the electrical energy so called 1
for, as hereinbefore provided, whether used or not.
(b) As an occupation or license tax, tho grantee, its successors
and assigns, shall pay to Salt Lake City, for the use of the privilege
hereby granted by this franchise, for the first five (5) years one-
half of one per cent CIO upon the gross revenues of the company,
derived from the sale of electrical energy within the cororate; imits
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of Salt Lake City; for the next twenty (20) years, one per cent (1%)
upon the gross revenues of the company, derived from the sale of
electrical energy within the corporate limits of Salt Lake laity; for
the remaining twenty-five (25) years, two per cent (20) upon the gross
revenues of the company, derived from the sale of electrical energy
within the corporate limits of Salt Lake City. The term "gross 1
)
revenues" as used in this section, shall be construed to mean that sum i
which the company has actually received from the sale of electrical
energy, as hereinbefore stated, and shall be determined from the books
of the company at the end of each calendar year. A statement, verified
by the Treasurer or Auditor of the grantee, e.s to its truth and oor-
rectness, showing such gross revenue and the source thereof, for the
preceding year, shall be delivered to the 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 such preceding year. That the books of said grantee shall
be open to the inspection and examination of the City Auditor of the
grantor at any time after the receipt of such statement, for the pur- j
pose of ascertaining the amount of said gross revenues.
SECTION 9. The said grantee further agrees that it will furnish
said oity,after January 1, 1915, during the remainder of the life of
this franchise, free of oharge,to said Salt Lake City, the equal of
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thirty (30) horse power of electrical energy, to be used for power
purposes by said pity in the manner it may deem necessary and proper,
but this power shall not be used for lighting.
SECTION 10. (a) Should the grantee, or its successors or swigs '
assigns, after having constructed and put in operation an electric
plant and distributive system for electric current, as herein contem-
plated, desire to Ibsen the same, then, and in that event, Salt Lake
City shall have an option to purchase it, at a price equal to any
bona fide offer which can be obtained from other parties; provided,
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however, that, after notice of such offer, the city must,
ninety th (90) days, Sleet to purchase, and must, within s..
months after such election, pay to said grantee the purchase pl.
said plant. 3vidence of such bona fide offer shall be furnished t.
City Auditor of the grantor by the =esut!'affidavit of the MOW
President of the Grantee, which affidavit etralagifekkawikte shall state
in full the terms of such offer, and shall state that the full terms
of such offer are so stated therein. If the grantee shall sell, or
attempt to sell its property without giving the notice and furnishing
the affidavit provided for in this section, then this franchise shall .
at once end and terminate. yy
(b) It is further understood and agreed that at any time after
25 years from the acceptance of this franchise by the grantee herein,
the city shall have the right to purchase the electric plant and the
entire power and distributive system, which shall be constructed by
said grantee under and by virtue of this franchise, from the grantee ,
herein, at a price, not to exceed the value of the said power plant
and distributive system, to be agreed upon by three disinterested
appraisers, one of whom shall be appointed by the grantee, and the
other by the said Salt Lake City, and the then Governor of the State
of Utah shall appoint the third, and in the event that the appraisers
so appointed are unable to agree upon a purchase price, then the said
city shall have the right to condemn in the manner provided by law
for the condemnation of private property for public use; provided,
that in the event the city should elect to purchase the said plant
and the distributive system thereunder, or in the event that the city
should acquire the said property by condemnation, that the value of
the franchise or rights granted thereunder shall not be considered or
taken into account in fixing Mc said purchase price. And provided
further, that if the said city acquires said plant and distributive
i :
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system under any of the provisions of this franchise, that all rights
and privileges hereby granted shall terminate and cease. And pro-
vided further, that in the event the said city elects to buy said
electrical power plant and distributive system, and the said grantee
declines or refuses to name or appoint an appraiser, as herein pro-
vided, then and in that event any Judge of the District Court of the
Third Judicial District in and for Salt Lake County, Utah, upon ali-
cation of said city Commissioners, shall name such appraiser for said
grantee, and the acts of said appraiser shall be as binding upon said
grantee as if named or appointed by it.
SECTION 11. It is further ordained, and the said grantee, its
successors and assigns, hereby agree, that it will commence work under
the provisions of this franchise, not later than ninety (90) days from
the acceptance thereof, and that it shall have constructed a sufficient
nufber of transmission lines to enable it to supply said Salt Lake City
with street lighting when the same shall be required of it; and that
it will construct its transmission lines as rapidly as the business
to be obtained will warrant.
SECTION 12. And said grantee further agrees that if this fran-
chise
is not accepted, in writing, within sixty (60) days after its
passage,aA or if work be not commenced on or before ninety (90) days
from the date of acceptance of the same, or if sufficient light and
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
oocasioned by the act of God, the elements, strikes, lockouts, 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 iQ to be performed under this ++
franchise, which delay shall not exceed Pilo months for any reason
'
whatever, and said grantee further agrees that, if at any time; After
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thirty days notice, in writing, so to do, *kw shall fail or neglect,
or refuse, for a period of ninety (90) days thereafter, tp comply
with any of the provisions of this franchise to be by f�
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, at once, upon such '
forfeiture have the right to require that all conduits, poles and
transmission lines,gnd other property` of the grantee, be removed from
its streets, and if the same are not removed within tr '
after written notios so to do, the grantor may remove the same, with-
out being liable in any way for so doing, and may sell and dispose of
said material for the purpose of paying the expense 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.
SECTION 13. To the grantee there is further granted the right
to require, at its reasonable discretion, a guaranty deposit from all
•
parties proposing to beoome consumers, the amount of which said de- !!i
posit shall be reasonable under the circumstances under which said
consumer proposes to use such electrical energy, which said deposit,
with interest at five (5%) per cent per annum, durinu the time the
same has been deposited, shall be returned to the depositor when he
ceases to become a consumer; provided, however, if the_meter deposit
beexpirationof 6 months, no interest shall
returned before the six ( )
be raid.
SECTION 14. That whenever and wherever the word "grantee" is
used herein, the same, in addition to its ordinary meaning, shall be
construed to mean, and include, the successors and assigns of/said
grantee. ; �'�
SECTION 15. The grantee by the acceptance of this franchise
agrees that it will not by agreement, secret or otherwise, sell to or
consolidate its business or property with that of any competitor operating
under a franchise granted bySalt Lake City without first obtaining the writ-
ten consent of the Board of Commissioners of the grantor thereto. If the
grantee shall violate any of the terms of this section, then, at the
option of the grantor, this franchise shall at once end and terminate, and
the property of the grantee shall be forfeited as as provided in Section i!
12 of this franchise.
SECTION 16. This ordinance shall take effect one day after
its publication.
Passed by the Board of Commissioners of Salt Lake City,Utah,
May lst, 1912.
iAc ing Mayor. i y ecor.er
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