174 Iowa 205 | Iowa | 1916
I. The city of Ottumwa owns and, through’ trustees, operates the waterworks of that city. The Harper &' Mclntire Co. owns a building fronting on Commercial Street 93 feet, extending back 128% feet, and 5 stories high, with a basement, and conducts therein its business as a wholesale hardware dealer. This building was completed early in 1913, on the site of another which had been destroyed by fire in August previous, with which fire, as is claimed, the facilities afforded by - the city were inadequate to cope. This may account for the installation in the new building of the automatic sprinkler system. It consists of supply pipes or “leaders” hanging below the ceiling on each story, about 8 feet apart. On each pipe, also about 8 feet apart, are attached sprinkler heads. The air pressure in the supply pipes in the building feeding the sprinkler heads holds the water back until released by opening the sprinkler head by fire. An electric pump with- which to force in the air holding back the
J. W. Edgerly & Co. constructed a four-story building on West Main Street, and conducted therein a wholesale drug business. An automatic sprinkler system was installed by it with a tank of capacity of 17,000 gallons, at an expense of $5,000. It is the wet system, as the pipes-were not exposed to freezing temperature and air pressure was not necessary. It differs from that installed by the Harper & Melntire Co., in that the 6-inch pipe connecting the sprinkler system with the city water main runs back under the basement floor at a distance of 30 or 40 feet from the front of the building. There,the 6-inch pipe branches into two 6-inch pipes, one 6-inch -pipe
■ “So long as water supplied for protection against fire is a purely public service, under the control and management pf municipal authorities generally and under the fire department specifically, no direct charge to individuals is proper. When, however, a sprinkling connection is made with private premises, the situation is materially different. These premises and the primary causes of catastrophe to the building and of the consequent possible use of disastrous quantities of water are primarily under the control, not of the public, but of the owner. A peculiar personal service is provided for his benefit, which is not enjoyed in common by the community in general, but is available only to a limited class of individuals. It does not advance the reasoning in this connection to split hairs between the ‘use’ and the ‘consumption’ of water. As a matter of good sense the property owner beneficially employs the water mains for his own purposes and to his own advantage, although he may not, except in case of fire, acutally draw any water from the pipes. It is necessary and proper that for this he should pay. In effect he gets something of pecuniary value from another, which that other is not compelled to give except on the basis of contract. That the law requires the terms of that contract to be reasonable and impartial, or that*211 advantage is mutual and involves no expense is merely incidental or collateral. Such facts do not relate to the right to exact some consideration, however they may affect the extent of the charge which may properly be made.”
The same view was entertained in Cox v. Abbeville Furniture Factory, (S. C.) 54 S. E. 830; Niehaus Bros. Co. v. Contra Costa Water Co., 159 Cal. 305 (36 L. R. A. [N. S.] 1045); Shorn Stocking Co. v. City of Lowell, (Mass.) 85 N. E. 90.
“The said board of waterworks trustees shall from time to time fix the water rentals or rates to be charged for the*212 furnishing of water, and such rates shall be sufficient, together with the proceeds of the five-mill water levy and the sinking fund levy of two mills, for the maintenance and operation of such works, the proper and necessary extension thereof, for all repairs, and for the payment of the purchase money or cost, principal and interest, incurred in the purchase or erection of such works, as the-same falls due, according to the tenor of the mortgage and bonds given to secure the payment of such purchase price or cost.”
This section not merely confers on the board of trustees full authority to fix_ water rents or rates, but, while exacting that these shall be sufficient with the tax levy to meet specified purposes, impliedly prohibits fixing them in excess of what may be essential to meet such demands. This inference is confirmed by the fact that there is no provision for other disposition of the income from the plant in excess of these needs. Plainly enough, the enjoyment of the utility by the public at the actual cost of the service rendered, and without profit to the city, is contemplated in authorizing the acquirement of waterworks at the expense of the taxpayers. As the latter, through the municipality, own the plant, and it can acquire it in no manner other than as pointed out in the chapter mentioned, the inquiry as to whether the rates exacted by said trustees are reasonable or not, unless constituting in some way an abuse of the taxing power, is not pertinent to any proper issue, for the trustees are required to make them high enough to be sufficient for the purposes specified.
“If protection given by the city to a private concern, in the form of protection through fire hydrants, is not adequate, the concern in question will be unable to secure water enough to meet its fire demand. In such a case the total apparent fire demand upon the water plant will fall short of the total as it would be with adequate protection by the amount by which the private concern is unable to exercise its full demand, and the cost to the utility of furnishing such inadequate protection will be less than the cost of supplying adequate protection. Therefore, in case the city fails to furnish adequate protection, the installation of a private hydrant system, enabling the concern to secure adequate protection, will increase the costs to the utility up to the point where sufficient protection is furnished to meet the fire demand of the concern in question. The cost to the utility will, however, be the same whether such adequate protection is furnished by the city or by a system of private hydrants. In view of the. fact that it is a recognized function of a city to furnish reasonably adequate fire protection, it seems clear that, as far as the water utility is concerned, the city should be the only party to pay for hydrant fire protection. The mere fact that a city fails to fulfill its duty of supplying adequate fire protection to buildings and structures within its limits, does not justify the water utility in making a charge against a private concern because that concern has installed hydrants which enable it to secure adequate protection.”
■ It was concluded that the fire demand of the city should be treated as a unit; that the utility should charge the .city for necessary hydrant protection; and that the charge should be adjusted between the city «and the owner on whose premises
“With regard to inside fire protection, such as automatic sprinkler systems, the charge directly to the property protected may be justified. • It is not ordinarily regarded as being the duty of a- city to furnish inside fire protection, but, aside from any theories as to the city’s obligations, the charge for such protection appears to be in accord with the cost of service principle. The demand which may be made by an automatic sprinkler system is entirely apart from either the domestic demand or that of the hydrant system. From the very nature of the service it is likely to occur at the same time as the ordinary fire demand. When an automatic sprinkler system is in use, the waterworks must have a capacity equal to the combined domestic and hydrant demands, with sufficient leeway to take care of sprinkler systems. This is especially true in case of fire destroying a building equipped with sprinklers, where the pipe supplying sprinklers is likely to be broken, yet the waterworks-must be capable of supplying its other service, even with the waste through broken connections. It is true that the installation of a single sprinkler system might not affect the required capacity of the plant and the investment, but any general introduction of such systems would certainly require an increased station capacity. Investment and operating expenses are directly affected by such sprinkler systems, which indicates that inside fire pro-' tection is a class of service which should be charged for- independently of other classes, and charged directly to parties served.”
In In re Invest. Ashland Water Co., 14 Wis. Railway Commission Reports, 70, the commission remarked, on the same subject:
' “It is usually more quickly gotten into service when a fire starts and is universally considered as being more efficient than the use of ordinary fire hydrants by the fire department.*219 Its presence frequently obviates the use of the outside hydrants and any work on the part of the firemen. It being usually more efficient in fire fighting, its installation produces a saving to the property owner through a reduction of insurance rates. It is of value to all concerned, but particularly to the property owner served. That it is of value to others may, under some circumstances, warrant the elimination of charges for such service, but the necessary circumstances do not exist here. ”
There, the basis of estimating the compensation to be exacted was the floor area, but it was thought that the sizes and relative capacities of the connections with the mains furnished the most logical basis for fixing the charges. To this, cost of inspection and supervision should be added, according to this authority, as well as of the water supplied, the expense of installing the meter to be borne by the owner. The rate was fixed at $100 per annum for unmetered 6-inch connections, and for metered 6-ineh connections, $20 and commercial price for amount of water used. In In re Application City of Manitowoc, 15 Wis. R. Com. Reports, 212, the rate for private hydrants was fixed at $30 each, and for sprinkler system, $20, and 5 cents for each sprinkler head above 400. About the only comparison to be made of a private hydrant with the sprinkler system is that both are for fire protection, and each exacts a readiness to serve. But the hydrant, besides having smaller connection, is without pipes for distribution of water over a large area, and the like danger of breakage. A hydraulic elevator service with a 4-inch connection appears to have been installed in one 4-story building, but the rate therefor was not shown. We are not saying that charges exacted for different kinds of service are not appropriate to be considered in making that of any one. What we do say is that no other service is so like the service rendered the sprinkler system that the one may be referred to as a criterion for fixing the charges to be exacted for the other. In establishing rates for such service, the size of the connection
Though little water may be used, the city is required to ■be in readiness to serve at all times and maintain an adequate pressure, in order to render the system of any value. To be' in a situation to do so, it must provide for interest on $275,000 of bonds, the cost of maintenance, necessary repairs and improvements, and provide a sinking fund to discharge its indebtedness. There is no more reason for exempting
Of course the amount of water used should be taken into account, as well as any saving to the city by reason thereof in supplying water in event of fire through the sprinkler heads, instead of the fireman’s hose. As no meter was used, this was matter of estimation; but we are not inclined to the view that any benefit to the owner of the property in which the sprinkler system is installed may be considered. The benefits conferred by supplying water for domestic uses vary greatly, as do those enjoyed by business houses and factories. Scarcely two are alike in the advantages afforded by the utility, and yet no discrimination in rates is made on that account. In Ladd v. City of Boston, (Mass.) 40 L. R. A. 171, the point was not involved, the only issue decided being that fixing the rate according to the number of fixtures used was not unreasonable, even though complainant paid more than might have been exacted had a meter been used, the remark about benefit being dictum.
Under Section 749 of the Code, the trustees of the waterworks are to fix rates for the service rendered, not for the benefits received. Taking all these matters other than benefits into -consideration, it cannot be said from the record before us that the rates fixed were discriminatory or extortionate. Though the trustees erred in taking into account the benefits that the owners would derive from the sprinkler systems, it does not appear but they did the same in adjusting other rates, nor was it shown what was added because of • such benefits. If any material amount was added to the rates because of these, undoubtedly the trustees will readily adjust the same. The charges exacted in other cities, even though of like population, furnish little aid, for conditions may be
It follows that the decrees entered must be and are— Affirmed.