Except for franchises issued under state or federal law, the
City Council shall have the power by ordinance to grant, amend, renew
and extend, all franchises, both public and private, operating within
the City of Lucas.
No grant to use the public right-of-way or property under ownership
of the City shall be granted for a term of more than twenty (20) years
from the date of the grant, renewal or extension of such franchise
unless approved by citizens in accordance with this article. The City
Council may, by a majority vote, seek approval from the voters by
submitting all applications exceeding twenty (20) years to an election
in accordance with State law. The prospective franchisee, not the
City, shall fund the cost of said election.
(Ordinance 2021-05-00934, prop.
Q, adopted 5/6/21)
In granting, amending, renewing and extending public service
and utility franchises, the City reserves unto itself all the usual
and customary rights, including, but not limited to, the following
rights:
(1) To repeal the franchise by ordinance for failure to begin construction
or operation within the time prescribed, or for failure to comply
with terms of the franchise;
(2) To require all extensions of service within the City limits to become
part of the aggregate property of the service and operate subject
to all obligations and reserved rights contained in this Charter.
Any such extension is considered part of the original grant and terminable
at the same time and under the same conditions as the original grant;
(3) To require expansion and extension of facilities and services and
to require maintenance of existing facilities to provide adequate
service at the highest level of efficiency and effectiveness;
(4) To require reasonable standards of service and quality of product
and prevent rate discrimination;
(5) To impose reasonable regulations and restrictions to insure the safety
and welfare of the public;
(6) To examine and audit accounts and records and to require annual reports
on local operations of the public service or utility;
(7) To require the franchisee to restore, at franchisee’s expense,
all public or private property to a condition as good as or better
than before disturbed by the franchisee for construction, repair or
removal;
(8) To require the franchisee to furnish to the City, from time to time
within a reasonable time following request of the City, at franchisee’s
expense a general map outlining current location, character, size,
length, depth, height and terminal of all facilities over and under
property within the City and its extraterritorial jurisdiction; and
(9) To require compensation, rent or franchise fees to be paid to the
City as may be permitted by the laws of the State.
(Ordinance adopting Code)
(1) The City Council has the power to fix and regulate the rates and
charges of all utilities and public services, consistent with State
law.
(2) Upon receiving written request from a utility or public service requesting
a change in rates, or upon a recommendation from the City that rates
for services provided by or owned by the City be changed, the City
Council shall call a public hearing for consideration of the change.
(3) The City, public service or utility must show the necessity for the
change by any evidence required by the City Council, including but
not limited to, the following:
(A) Cost of its investment for service to the City;
(B) Amount and character of expenses and revenues connected with rendering
the service;
(C) Copies of any reports or returns filed with any state or federal
regulatory agency within the last three (3) years; or
(D) Demonstration that the return on investment, if any, is within the
state and federal limitations.
(4) If not satisfied with the sufficiency of evidence, the City Council
may hire rate consultants, auditors and attorneys to investigate and,
if necessary, litigate requests for rate changes, the expense of which
shall be reimbursed to the City by the franchisee.
(Ordinance adopting Code)
No public service or utility franchise is transferable, except
with the approval of the City Council. However, the franchisee real
or personal property may pledge franchise assets as security for a
valid debt or mortgage.
(Ordinance adopting Code)
Franchises granted by the City are of no value in fixing rates
and charges for public services or utilities within the City and in
determining just compensation to be paid by the City for property
which the City may acquire by condemnation or otherwise.
(Ordinance adopting Code)