Milford chronicle., 1952-01-11

cost in respect of the right of the
Company to terminate this contra ct
under the foregoing provisions shall .
ne the percentage which said total
OF the results of said computations
bears to the total contract price here
inbefOre specified
"a Notwithstanding any other
provision hereof, it is of the essence /
of this proposal that no Indebtedness
or other obligation or duty shall be /
created or inferred hereby which may
require payment from taxes or gem !
eral funds, or constitute an indebted /,
ness within the meaning of, OF be iE |
any wise in cOntraventiOn of, the Con- |
stitution or laws of the State of Del /
aware. On the contrary is is the |
essence of this proposal that the pay
ments provided by paragraph hereof
shall he payable solely and exclusively
from a special fund created in the
manner provided herein. Subject al
ways to the foregoing the Municipality
covenants and agrees as follows: O)
to operate said utility in a prudent,
efficient, and economical manner; C2h
to create a special fund into which all
gross receipts or revenues shall be
deposited; go to pay the obligation
hereof from the met revenues" deriV-
ed from the operation of the machin-
cry and materials purchased heTeUn-
der as hereinafter defined; (4) to pass
all resolutions or ordinances necessary
or required to effect the intent and
purposes hereof; 90 to fix, establish
and maintain during the term of any
contract resulting from this proposal,
rates and charges for electric service
at least equal in amount to the rates
and charges of the Municipality for
such service prevailing and existing
at the date hereof; and CO. to charge
and collect for all such product or ser
Vo1Rh n
or private use or purpose, that nei-
ther the Municipality nor other user
or consumer shall obtain such product
or service to the prejudice or detri-
ment of other users or consumers but
without hereby Obligating the NUM-
cipality to take the product or service
of or from said utility. All valid pro-
visions or portions hereof shall re-
main binding on the parties and be
SeVerally construed as though any IN
valid provision, paragraph, sentence,
or clause were omitted from the word
ing hereof and the provision contain
ing the same amended or modified 10
conform to the requirements or limit
ations of laws governing the same. II
revenue certificates or notes are is
sued pursuant hereto, said certificates
or notes and all provisions thereof
shall conform and be construed ac-
cording to the provisions OF this para
graph.
For the purpose of the foregoing
| provisions the met revenues" of the
1 property hereby purchased shall he
| that portion of the gross revenues OF
! the municipal electric light and power
! plant determined in the following
/ Within ninety 900 days after the
/ expiration of each yearly period, there
! snail be ascertained by independent
| public accountants engaged by the
| Municipality and by the application
of sound and accepted accounting
methods and procedures, the net cost
/ to the Municipality per XVIII fOl
/ electricity generated and delivered &c
| the switchboard of the Municipality
during such yearly period. Such cost
| per XVIII shall be aScertained bS
| using the total and actual cost n
fuel, lubricating oil, freight and Other
transportation charges, machinery
/ maintenance, supplies, salaries anC
wages of operating and supervisors
personnel and all other legitimate anC
necessary cost of generating and de
livering the said current to the switch
board and excluding all distribution
billing and collection costs.
II. There shall be ascertained by in
dependent public accountants engaged
by the Municipality and by the apple
alton of sound and accepted account
ing methods and procedure, the aN
erage cost per XVIII Of electric cur
rent purchased and delivered to tn
! switchboard of the Municipality dur
ing the period August 2, 1916 TO tn
date of the installation and accept
ance of the diesel electric plant hereii
conditiOnally sold, ascertained by IN
bills paid for such electric curren
plus salary and wages of plant oper
ating personnel, and all other legit
5 innate costs and expenses chargea bl
I af n ali nf
rent to the switchboard of the Nun
iciDality and excluding all distrihu
ton billing and collection costs. I
such average cost per XVIII of eleC
tric current, so ascertained, there Sha
!, be added or deducted from the sam
: for each yearly period, as fuel COS
adjustment, the amount OF lncreas
or decrease per XVIII which woul
. have been applicable for said yearl
period, if the contract between IN
Municipality and Delaware Power an
Light Company, dated August ,, 1874
had been in force during said yearl
period.
iii. Subtract from II to ascertai
the savings per XVIII for each yearl
period through the operation OF n
generating plant contemplated ny IN
| contract.
N. Multiply figure III by the XVIII
| of electricity generated and deliVerf
ity during such yearly period.
V. Subtract from figure ~ the al
nual depreciation, applicable by sour
and accepted accounting practices,
the cost of the new structures pro
e vided by the Municipality to hou:
the new equipment covered by IN
contract, plus a figure Ito be hNed 7
the Municipality representing Il
fair annual rental value for munich
ally owned land upon which such ne
structure or structures are erected az
including such land as is reasOnah
appur.enant to the use OF that ac
ueiiy occupied by buildings.
VI. N minus the aggregate OF
will I've the maximum figure appllcat
annually to the payment OF the pu
cnase price of equipment covered
thi- contract.
B. The Municipality agrees TO III
nish the Company quarterly win q
tailed statements OF operation OF l
electric light and power plant, cel
flied by the Clerk as to correctne!
showing the gross receipts, Operati
exDenseS and net earnings St
statements shall be furnished montf
when requested.
G.. The Municipality agrees TO o
crate said plant as munlclpal pa
until all obligations due under u
contract have been fully discharge
and until such time shall not dlspC
of said plant in any manner so as
deprive the Company Of its title
or interest in said machinery or IN;
erials without providing for the pa
ment to the Company Of all amour
then unpaid under this contract.
TO- The title and ownership OF
machinery or materials herein sp'
fled shall remain in the Company l
I'll final payment therefor has h,
made i'm fun as above provided ana
! the event that revenue certificates
notes are taken at amy time repr
rnting deferred payments or any 81
that may he due, or in the event Il
any Judgment is taken on account
-. ,,o,.4 of ,oid Gums tho Ii