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Editor's Note: This Franchise was granted by Ordinance No.
610, 1972
In consideration of the benefits to the City and its inhabitants,
to be derived from the furnishing of a water supply and the operation
of a water supply and water distribution system in the City of Ralston,
Nebraska (hereinafter designated "City"), there is granted to Metropolitan
Utilities District of Omaha, a municipal corporation and political
subdivision of the State (hereinafter referred to as "Grantee"), its
successors and assigns, the exclusive possession and control of the
water system of the City now existing and lying within the corporate
boundaries of the City and the exclusive right, privilege and authority
to lay, install, maintain and operate a water distribution system,
including all necessary appurtenances and structures therefor, and
including the existing water distribution system within the limits
of the City as the said boundaries now exist or hereafter may be extended,
for a period of 25 years from and after the effective date of the
ordinance codified in this chapter; and for this purpose there is
also further granted to Grantee the right, permission and authority
during said period to lay, install, maintain and operate in, upon,
over, across and along all of the said streets, avenues, alleys, bridges
and public places of said City, all mains, pipes, structures and appurtenances
necessary or convenient for transmitting, transporting, distributing
and supplying water for domestic, manufacturing, industrial, public
and fire protection purposes for which water may be used by the inhabitants
of the City during the term hereof, and for the purpose of transmitting,
transporting and conveying such water through or beyond the immediate
limits of the City to other customers, Villages or Cities.
All mains, pipes, structures and appurtenances shall be laid
or installed under this grant shall, when construction is completed,
be so located and laid as not to obstruct or interfere with any other
pipes, drains, sewers, paving or other structures already installed,
and all such mains, pipes and structures shall be laid in place under
practices being followed by Grantee within its own boundaries. Grantee
shall, in the doing of any work in connection with its water distribution
system, avoid so far as may be practicable, interfering with the use
of any street, alley or other highway, and where the paving or surface
of the street is disturbed; Grantee shall, at its own expense, replace
such paving or surface of said streets or alleys in as reasonably
good condition as existed before said work was commenced.
In the event that a change in the grade or location of any street,
alley or bridge within the City or other construction or repair work
required by the City requires the relocation or alteration of any
portion of the water system, either temporary or permanent, Grantee
shall be reimbursed by City for the cost thereof. Grantee shall obtain
from City all required permits for street openings in connection with
work on the water distribution system, but City shall waive any permit
fees on such permits issued to Grantee. In the event of emergency
street openings, Grantee shall obtain the permit as soon thereafter
as practicable.
Grantee, its successors or assigns, shall make reasonable extension
of its mains from time to time as may be required to furnish service
to parties making application therefor, located within the corporate
limits of the City; Provided, that Grantee's Rules and Regulations
Covering the Use of Water and Installation of Mains, Services, Meters
and Piping, duly adopted by its Board of Directors pursuant to the
laws of Nebraska, together with such other policies with respect to
payment of feeder line fees, connection fees or other capital charges,
shall, to the extent not inconsistent with applicable State law, govern
the installation of mains, services, meters and piping, and the use
of water, except as may be otherwise agreed herein or by separate
agreement.
Grantee, its successors or assigns, shall file and make effective
initially a schedule of rates for water service, and shall furnish
water at such rates or at such other reasonable rates as may be hereafter
established from time to time in accordance with this Water Franchise.
Any schedule of water rates for service shall apply to all customers
within the corporate limits of the City, as the same now exist or
hereafter may be extended, except that if any extension of City boundaries
shall include an area or areas within the boundaries of Grantee, rates
charged by Grantee in its district shall be applicable in such areas.
Such rates will include charges sufficient to amortize the initial
investment of Grantee required to install two major reinforcing mains
for fire protection purposes, installation of pressure
Reducing stations, connections to Grantee's own system, abandonment
of wells, and general upgrading of the system to bring it into comparable
condition with the water system operated by Grantee within its own
boundaries, in the approximate amount of $162,000, at an interest
rate of 6% per year on the unamortized balance, such amortization
to be completed over a period of 15 years from date of this Franchise,
upon a basis which will reasonably equalize the annual amortization
from year to year. After completion of the items of work involved
in making such changeover and improvement of the existing water system,
Grantee shall render the City an accounting of its actual costs thereof,
including overhead and indirect costs normally charged by Grantee,
which amount shall be amortized as herein set forth.
The amount applied in any year to amortization will be the aggregate
of:
1.
A sum equal to the difference between Grantee's total actual revenues
(excluding any portion thereof attributable to fire protection charges)
for said year from sales of water within the City and Grantee's costs
of service thereof (exclusive of depreciation related to local distribution
systems) as allocated to similar classes of customers for Grantee's
general ratemaking purposes;
2.
The net amount realized by Grantee by way of salvage of any portion
of the water system within City boundaries, and salvage realized from
any wells abandoned existing at the date of this Franchise; and
3.
The net amount of any refund which may be due City on the amount
paid for connecting facilities provided for under Paragraph 7 of the
agreement between City and Grantee for sale of water, dated April
4, 1969; such amount to be proportionate to the time remaining in
the primary term of such agreement, as terminated at the effective
date of this Franchise.
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Such water rates will also include charges sufficient to provide
fire protection service in a sum equal to the sum which might have
been realized if the water tax levied for Grantee within its own boundaries
for such year were to apply to property within the City, such sum
to be computed by multiplying the value of all taxable property, except
intangible property, within the City as shown by the records of the
Douglas County Assessor, which is used as the tax base for current
levies of the City, by the amount of the tax levy made for Grantee
within its boundaries for such year for fire protection service.
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Initial rates to be charged for water service to be filed by
Grantee and made effective are:
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Schedule of Rates
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First 300 cubic feet or less
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$2.32
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Next 4,700 cubic feet per month
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$0.304 per 100 cubic feet
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Next 95,000 cubic feet per month
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$0.244 per 100 cubic feet
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Over 100,000 cubic feet per month
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$0.210 per 100 cubic feet
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First 2,240 gallons or less
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$2.32
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Next 35,160 gallons per month
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$0.4058 per 1,000 gal.
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Next 710,000 gallons per month
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$0.3262 per 1,000 gal.
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Over 748,000 gallons per month
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$0.2804 per 1,000 gal.
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To each bill for water service to consumers within the City
there may be added any sum which Grantee is or may be required by
law to pay on account of such sales of water. At the time of such
initial service hereunder, Section 14-1041, R.R.S. Neb., 1943, requires
payment to the City of an amount equal to 2% of retail sales within
the City.
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Grantee shall be entitled to file and make effective subsequent
schedules of rates for water service; Provided, however, any increases
from existing rates shall not exceed the percentage that rates for
similar consumers within Grantee's district are increased, unless
otherwise provided herein, except that such rates may also include
any reasonable charge necessary to amortize subsequent additional
capital investment which is required to be made during the period
of amortization to the now existing water distribution system in City
which is unforeseeable and extraordinary in nature.
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Rates shall be reviewed by Grantee at the end of each three
years of the franchise period and any adjustment shall then be made
which is necessary to maintain reasonably level amortization of the
then remaining amount to be amortized over the then remaining balance
of the 15 year amortization period. Commencing at the termination
of the amortization period, or sooner at Grantee's option, the rates
to be charged for water service (exclusive of fire protection charges)
within the franchise area shall thereafter, during the then remainder
of the term of this Water Franchise, be the same as those charged
by Grantee to customers of similar class of service within Grantee's
boundaries.
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All net rates stated in the rate schedules apply only when bills
are paid on or before 10 days after the monthly billing date. When
not so paid, the gross rate permitted to be collected under statute
for customers within the district will apply. At the date of this
Franchise, such gross rate is 10% higher than the stated net rates.
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In the event that this Franchise shall be terminated by cancellation
or forfeiture by action taken by the City and not the result of the
voluntary sole action of Grantee or the result of agreement between
City and Grantee as to the terms of such termination, Grantee shall
be entitled to reimbursement for its expenditures and interest thereon
remaining unamortized at the date of such termination, and which it
shall have been entitled to include for amortization under the terms
of this Franchise, together with any costs of the Grantee of facilities
within the corporate limits of the City but not within Grantee's district
limits, and costs to sever the City from Grantee's system outside
the City.
Grantee shall endeavor to keep all public fire hydrants within
the City in good condition and repair, giving to such hydrants the
same degree of care and maintenance it affords hydrants on the water
system Grantee operates within its own boundaries. Subject to breakdown,
mechanical failure and other causes beyond its control, district will
maintain a constant and uninterrupted water supply to such hydrants.
On any extensions of the water system within the corporate limits
of the City, Grantee will install, or require to be installed, hydrants
for fire protection at approximately the same intervals as hydrants
previously installed on service mains now in existence within the
City. In the event the City or any other person or entity within such
City shall require hydrants to be placed upon service mains between
the hydrants originally installed, or at lesser intervals then hereby
required, Grantee will, if reasonably possible, install such hydrants
at the cost of the City or the person or entity requiring them. In
no event shall City be charged for any such hydrant installation unless
its City Council shall have, by resolution, first approved the City's
payment therefor.
The provisions of this chapter relative to fire hydrants shall
apply only to public hydrants and shall not control the rate which
Grantee may charge for construction, maintenance, supplying water
to, or other expenses incidental or necessary to private water hydrants
or other appliances for private fire protection or other private purposes.
City will be entitled to water for reasonable Municipal needs
for fire fighting, watering and irrigation of parks, public drinking
fountains, street cleaning, and sewer flushing, free of charge; Provided,
however, water usage for park purposes shall be measured by meter.
All other Municipal uses, including swimming pools and watering of
golf courses, and service for other Municipal needs, shall be metered
and charged for. City shall be entitled to have all such metered uses
combined for billing purposes.
Within 30 days after the passage of the ordinance codified in
this chapter, Grantee shall prepare and file a written acceptance
of the ordinance codified in this chapter, with the Clerk of the City.
Failure of Grantee so to accept the ordinance codified in this chapter
within said period of time shall be deemed a rejection thereof by
Grantee, and the rights and privileges herein granted shall, after
the expiration of said period of 30 days if not so accepted, absolutely
cease and terminate, unless said period of time shall be extended
by further ordinance duly passed for that purpose.
The ordinance codified in this chapter shall take effect from and after passage, approval and publication as provided by law, but shall not vest any rights in Grantee nor constitute a binding contract between City and Grantee unless and until Grantee shall have filed with the City, within the time and in the manner prescribed in § 10-908, its written acceptance hereof. Such acceptance is conditioned upon the City complying with its previous agreement to surrender to Grantee any and all claims it may have with respect to the service of water of the payment for any facilities operated by City outside the City boundaries.
