82 of 1905 - Ordinance 82 of 1905 – Franchise to George A. Snow and William Darst, to manufacture gas and to co . •
- STEPHENS&SMITH
ATTORNEYS AND COUNSELORS
SALT LAKE CITY
,} sit 7--,.7-:e City, Utah, Auguat 1.;),t . 100r
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,!t To the HOncrable City Council,
1 SaltLab7e City, Utah,
Gentiomen:-
Raferrin to the check of Geo. A. Snow for Three Thou ,and Dol-
lars ( 3000) dram to the orif.er of 71coolcli & Co. end :le- In ill
of the City Recorder, will say that to mt tb(: v;ea7s of certais council
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1 committemen to whom one referred our arnliaation for o os frsnchise, we
Isubmit the fo'lowing rtorosition:
First: That the aforesiid check for Thro Thom-and Dollara ( 3000)
tk''' 4'ite forthwith returoad to us.
Seco.nd__,... t if your Hone 'D..1s. hody,,shan puss a faripishich,
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is acsepteld by us, then the a tached chock of Geo. A. Snow shall he held
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, as a guaranty of good faith on our part, that we will qodertako to del-
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iver gas into the moins within the imnite of Salt Lake City within the
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time required by the franchise, but should we decline to accept the !ram-
,
i ChiSe AS passed by your Honoroble• bc,(7.y, thca the afores,ti cbock shall he
t . fo:athith returd to us.
Third: That malt check w',-,-,; this letter L.s •,• .iority to s1.11 Bank
and Shall be delivered to the Banking Rouse of McCorniek & Co. suhjsct to
the following conditions:
(a) That in the event we or our mccesscrs or ar,signo fn,11 to
deliver Was into the sale; --:itbio the limits of ,alt Lake City ithin th-
ree years from the date of our acceptance of sail fr';.nchise, tInan said sux
of Five Thousand Dollars ($5000) shall be forfeited to ,alt Luke City und
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this letter shall c2arstitute authority to MoCoruir!k & Co. to pay said sum
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to the City Treasur.;r of Salt Lake City.
(h) But whenever we shell have delivered gas into the mains
in Salt Lake City within the said three year limit as herein and in said.
franchise provided, then said cheek for Five ThT-usand Dollars ($5000)
shall be returned to us,
Fourth: That re shall have the right to draw down the Five Thous-
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and Dollars ($5000) held by the Banking House of McCornick & Co. at any
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time after we shall have deposited in lieu thereof in the said Bank a
suitable bond in the ,um of Five Thousand Dollar, ($5000) a1-prove4,$y.-
the wyor or City Council,
Res„e _ly ,ted
September 7th,1905.
Received from J. S. Critchlow, City Recorder, check No. 1485
of Geo. A. Snow for 15,000.00,
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/, �,,,✓ AN ORDINANCE GRANTING TO GEORGE A.SNOW
/P .� AND WILLIAM DARST AND TO THEIR HEIRS,
EXECUTORS, ADMINISTRATORS AND AS-
o"4 p SIGNS THE RIGHT TO MANUFACTURE GAS
�y"��� , AND TO CONSTRUCT, OPERATE AND MAIN-
0. ��•' l TAIN GAS MAINS, PIPES AND NECESSARY
ATTACHMENTS FOR SUPPLYING MANUFAC-
TURED GAS, IN THE CITY OF SALT LAKE,
COUNTY OF SALT LAKE AND STATE OF
UTAH,AND DEFINING THE RIGHTS, PIIIV1-
L EGES AND POWERS GRANTED UNTO THE
SAID GRANTEES.
1 Sacriow I.
2 Be it Ordained by the City Council of Salt Lake City,
3 Utah,that George A.Snow and William Darst,their heirs,
4 executors, administrators and assigns,have the authority
5 and consent of the City Council,and permission is hereby
6 granted them,for a period of 50 years after acceptance of
7 this franchise, to construct, operate and maintain gas
8 works in said City of Salt Lake,and also the right to lay,
r 9 use and maintain in,through and along any of the public
10 streets, alleys, avenues, highways and public grounds
11 within the limits of said City,gas mains and service pipes
12 and the necessary attachments, connections and fixtures
13 for conveying, distributing, supplying and selling manu-
14 factured gas for fuel and illuminating purposes.
15 SECTION II.
16 In consideration of the granting of this franchise the
17 said Grantees agree as follows,to-wit:
18 That the rates to be charged consumers for gas fur- I
19 rushed by them,shall not exceed the sum of 85 cents per
20 thousand cubic feet for gas for fuel purposes only,and not
21 to exceed$1.35 per thousand cubic feet for gas for illumi-
22 nating purposes only, with a deduction of 10 cents per
23 thousand cubic feet,if payment of bill be made on or be-
24 fore the 10th day of each month,following the meter read-
25 ing, provided, however, that said Grantees shall have the
1 right and privilege to collect from each consumer a mini-
2 mum charge of one dollar per month.
3 SECTION III.
4 The said Grantees further agree, that within six
5 months after the acceptance of this franchise they will
6 commence work thereunder, and within two years after
7 the acceptance thereof,they will have laid at least 20 miles
8 of mains within the limits of said City, and at least 10
9 miles additional mains each year for the next two succeed-
10 ing years., and the said Grantees further agree to caiuse gas
to he delivered in said mains within said city within three
11 SECTION IV.years from the time of thedr acc-
eptance of this franchise,
12 AitxtkeLtorxxxIkkvacxaxwOornmencing January first,
13 next,after the expiration of the first taa years following
14 the granting of this franchise,the Grantees herein further
15 agree,that from the gross revenues from the sale of gas,
16 within the limits of Salt Lake City,there shall be paid to
17 the Treasurer of said City,within 60 days after the end of
each year, 1 per cent for the first ten years, 1-k per cent
for the next ten years, and 2 per cent for the remainder"
of the life of the said franchise of said gross revenues,
21 XRfxli Iaitexobt aiexfirxnaisealieaxxeo)txx.bivaxsei
22,04104§000503941tat and for the purpose of determining the am-
ount to be paid, the hooks of the Grantees shall he subject
23 SECTION ye the inspection of the Qity
Auditor, and such amount, wheth-
24 That said Salt Lake City shall in no way be liable for Cr said per-
centages aggre-
25 any accident or damage that may occur in the laying of hate the same 6'-
not shall never
26 said mains and pipes,or in the operation of any business he less than
.A1000 per an-
27 conducted by the Grantees, under and by virtue of this num.
28 franchise, by reason of the default or misconduct of said {'
29 Grantees or their employees, and the acceptance of this
30 grant shall be deemed an agreement on the part of said
31 Grantees for themselves,to save said City harmless from
32 and against any and all liability, loss, costs, expense or
33 damage from any cause arising out of any such default
34 or misconduct,or which may accrue by reason of any ac-
1 cident or injury which may occur by reason of any act
2 done by Grantees, and to indemnify and repay said City
3 for any loss,costs,expense or damage of any kind it may
4 sustain by reason of any such default, misconduct, ac-
5 cident or injury,and if any judgment for damages for any
6 such default,misconduct,accident or(injury"shall be recov-
7 Bred against said City,the recovery thereof shall be final
8 as between said City and said Grantees,and conclusive as
9 to the liability of the latter to the former, provided,how-
10 ever,'that the said Grantees shall have had notice in writ-
11 ing of the pendency of such action in time to appear and
12 defend the same.
13 SECTION VI.
14 That in the construction, maintenance and operation
15 of said mains and service pipes,the said Grantees shall at
16 all times conform to such ordinances,rules and regulations
17 as now exist or may hereafter be adopted by the City
18 Council of said City in relation thereto., and the gas so furnished sh—
all equal in efficiency the general standard of efficiency of
19 SECTION VILgas used for like purposes-in the
cities of New York Chicago fund
20 The Grantees herein further agree, that before they phildelphia.
21 shall begin the laying of mains or make any excavation in
22 any of the streets,avenues,alleys or other public places in
23 said City,they will give to said City an approved bond in
24 the penal sum of$10,000.00 to indemnify said City against
25 any loss or damage which may be occasioned by reason of
26 making such excavations;and said Grantees further agree
27 to conduct the construction,operation and maintenance of
28 said mains and pipes in such a manner as to cause as little
29 impediment to the common,ordinary use of said streets as
30 is consistent with reasonable diligence and proper work-
31 manship,and that they will,at their own expense,promptly
32 repair and put in as good condition as before the openings
33 were made, every such portion of the streets, alleys, ave-
34 nues or other public places in said City,where such open-
1 ings shall be made.
2 SECTION VIII.
3 Said Grantees further agree, that the mains and ser-
4 vice pipes and apparatus and system employed shall be up
5 to the approved standard used in the United States.
6 SECTION IX.
7 Said Grantees further agree, that if this franchise be
8 not accepted in writing within 60 days after its passage and
9 •approval,or if work be not commenced within six months
10 after its acceptance, or if 20 miles of mains be not laid
11 within two years after the acceptance and 10 additional
or if within three years after acceptance of this franchise gas
12 miles each year for the next two years thereafter then this he not delivered in
Salt Lake City as
13 franchise shall be void,provided that no delay occasioned provided in Sect—
ion Three,
14 by the act of God,the elements,strikes,lockouts,or inabil-
15 ity to procure with reasonable diligence the delivery of''ma-
16 chinery,pipes,apparatus and supplies,shall be counted as
17 a part of the time within which any act is to be performed
18 under this franchise;the said Grantees further agree,that
19 if at any time,after reasonable notice in writing so to do,
20 they shall fail,neglect or refuse for 60 days to comply with
21 any provision of this franchise, to be by them complied
22 with, or shall, after like notice, fail or refuse for 60 days
23 to comply with any reasonable regulation which may be
24 lawfully imposed by the City Council, then this franchise
25 and all rights thereunder shall, at the option of the City
26 Council,be forfeited,and the said City shall at once,upon
27 such forfeiture, have the right to require that all pipes
28 and other property of said Grantees be removed from its
29 streets.
30 SECTION X.
31 To the said Grantees there is further granted the right
32 to require, at their reasonable discretion, a guaranty de-
33 posit from parties proposing to become consumers, the
34 amount of which said deposit shall be reasonable under
1 the circumstances under which said consumer proposes to
2 use gas,which said deposit,with interest at 6 per cent.per
3 annum during the time the same has been deposited,shall
4 be returned to the depositor when he ceases to become a
5 consumer.
6 SECTION XI.
7 That whenever and wherever the word"Grantee" is
8 used herein, the Caine, in addition to its ordinary mean-
9 ing,shall be construed to mean and include the heirs,exec-
10 utors,administrators and assigns of the said Grantees.
RI I,
This franchise shall not he transferable
or assignable except to a corporation organized
under the laws of the state of 11tah.
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SECTION XIII.
In consideration of the premises, Salt Lake City agrees and ordains
that during the life of said franchise as 'herein fixed, it will not by
ordinance or resoluti on mate any rubes or regulations in regard to the
price of gas to be furnished for lighting or heating purposes different
from the prices herein named; nor shall the said Grantees or their assigns
be obliged to furnish gas to any one for less prices than herein named,
provided, however, that if there shall hereafter be any new inventions, or
improvements or condition that will materially reduce the cost of produc-
ing or distributing gas for lighting or heating purposes, then and in
either event there shall be a reasonable re-adjustment by the city council
and the mayor on the one part, and the said Grantees or their assigns upon
the other part, of the rates herein fixed.
In the event of disagreement between them either in respect to the
fact whether the said conditions authorizing a re-adjustment of said rates
have arisen as above provided, or as to the amount of reduction thereof,
or both, then the same shall be determined and ascertained by two com-
petent and disinterested appraisers, the city and the said Grantees each
selecting one, and the two so chosen shall select a competent and dis-
interested umpire, and the appraisers shall then determine whether the
said conditions exist, and what reduction or advance'of rates should be
made; and upon failing to agree, they shall submit their differences to
the umpire and the decision in writing of any two, shall determine the
question. Each party shall bear equally the expense of the appraisal.
I the event aiZ the said Grantees, their successors or assigns shall
uport demand of the city council, refuse or neglect to proceed to ar-
bitration for re-adjustment of rates as herein provided, or shall fail to
re-adjusted
carry into effect the rates when raexadtntstmea# as herein provided, then
the City Council reserves the right to alter, amend and change this fran-
chise in respect to rates or charges for the services referred to in this
section.
SECTION XIV.
The Grantees further agree that they will dur ng the life of this
franchise, beginning three year* after their acceptance of the same, furnish
gas sufficient to heat the Public Library of the City, Fire Stations Nos.
and 3, the city Jail, Felice ,station and )Id City _all, and the city's
half of the joint City and County Building, free of cost, this obligation
to extend not only to said buildings as they now exist, hut as they may
hereafter be rebuilt, improved, added to or repaired.
SECTION XV.
The Grantees further agree that on or before their acceptance of this
franchise, they will deposit with the City Recorder, a good and sufficient
bond in the sum of TEN THOUSAND DOLLARS 0110,000) approved by the Mayor,
the conditions of said bond being that if the Grantees shall fail to
commence work within six months after their acceptance of this franchise; i
or if twenty miles of mains be not laid within two years after such accept—
ance, and ten additional miles each year for the next two years thereafter,
or if gas be not delivered into the mains of said city within three years
from the time of their acceptance cf this franchise, then Salt Lake City
shall recover as liquidated damages, from the obligees and sureties in said
bond, the sum of Ten Thousand Dollars ($10,0o0) add the same shall be imm—
ediately due and payable upon the failure to comply with each or any of
said foregoing conditions;
Provided, however, that the said Grantees shall have the privilege
if they elect so to do, to deposit with the city treasurer, Ten Thousand
Dollars ( 10,000) in cash in lieu of said bond, to be held subject to the
conditions in this section provided;
If said bond be not given, or if said sum of Ten Thousand Dollars
( 10,000) be not deposited with the city treasurer upon acceptance by the
Grantees of this franchise, then and in that eTent this franchise shall
become absolutely null and void.
SEC TION XVI.
This Ordinance shall take effect from and after its passage and
approval.
Passed by the City Council of Salt Tie City,Utah,Soptember
6th,1905, and referred to the *.74, or for his approval.
i y Boor er.
Approved this 7 day pf September,
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l Mayor nro tem. • 1
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