(El. of 5-2-1998; El. of 11-5-2013)
(a) City
owned utilities.
The city has the following powers:
(1) to
buy, construct, lease, maintain, operate, and regulate public utilities;
(2) to
manufacture, distribute, and sell the output of utility operations;
and
(3) other
powers regarding utility services granted under the constitution and
laws of the state.
(b) Service
outside city limits.
The city may extend utility lines
and sell utilities service outside the city limits, in accordance
with state law.
(El. of 5-2-1998)
The city council has the power, by ordinance, to grant, renew,
extend, and amend franchises of public utilities operating within
the city. A franchise shall not be granted for an indeterminate period
nor for a term of more than 20 years from the date of the grant, renewal,
or extension.
(El. of 5-2-1998)
The grant of a franchise to construct, maintain, or operate
a public utility and the renewal or extension of the grant shall not
be exclusive.
(El. of 5-2-1998)
An ordinance granting, renewing, extending, or amending a public
utility franchise must be approved at two separate regular meetings
of the city council, and shall not be finally passed until 30 days
after the first approval. The full text of the ordinance must be published
once between the first and second approval in a newspaper of general
circulation in the city. The expense of the publication shall be paid
by the prospective franchise holder. A franchise becomes effective
after publication and second approval.
(El. of 5-2-1998)
A public utility franchise may not be transferred without approval
by ordinance of the city council. This restriction on transfer does
not prevent the franchise holder from pledging the franchise as security
for a valid debt or mortgage.
(El. of 5-2-1998)
A franchise holder shall not assign a value to the franchise
granted by the city for use in calculating reasonable rates and charges
for utility service within the city nor for determining just compensation
to be paid by the city for public utility property which it may acquire
by condemnation or otherwise.
(El. of 5-2-1998)
The city council shall adopt an ordinance requiring all public
utility corporations operating within the city to file a sworn annual
report of the receipts from the operation of the utility for the current
year, how expended, the amount expended on improvements, the rate
of charges for services to the public, and any other facts or information
that the city council determines is pertinent for its use in intelligently
passing upon questions that may arise between the city and the public
utility. The reports shall be filed with the city secretary, and preserved
for the use of the city council. The city council shall review the
reports annually to determine the propriety of the rates being charged.