(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)
(a) 
Right of the city.
Whether or not it is stated in the franchise ordinance, a grant, renewal, extension, or amendment of a public utility franchise is subject to the right of the city council:
(1) 
to terminate the franchise by ordinance at any time for the failure of the franchise holder to comply with the terms of the franchise, this power to be exercised only after notice and hearing and an opportunity to correct the default.
(2) 
to require expansion and extension of plant facilities that are necessary to provide adequate service to the public and to maintain plant and fixtures at the highest reasonable standard of efficiency.
(3) 
to establish reasonable standards of service and quality of products and prevent unjust discrimination in service or rates.
(4) 
to impose regulations that insure safe, efficient, and continuous service to the public.
(5) 
to examine and audit at any time during regular business hours the accounts and records of the utility which relate to the city's regulation.
(6) 
to prescribe the form of accounts kept by each utility; provided, that the utility is in compliance with this paragraph if it keeps its accounts in accordance with the uniform system of accounts prescribed for the utility by a federal or state agency with regulatory authority over the utility.
(7) 
to require the utility to compensate the city for use of the city's public rights-of-way and other public property as permitted by state or federal law.
(b) 
Repair of rights-of-way.
A franchise holder shall refill and repair openings or other damage to the public rights-of-way caused by the franchise holder. It shall replace the pavement and perform all other work necessary to complete restoration of streets, sidewalks, or grounds to a condition equally as good or better as when disturbed. The city council may adopt ordinances to implement the requirements of this paragraph.
(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.
(El. of 5-2-1998)
(a) 
Authority of the city council.
The city council has authority:
(1) 
after notice and hearing, to regulate by ordinance, the rates of every public utility operating in the city;
(2) 
to employ expert advice and assistance in determining a rate and equitable profit to the public utility; and
(3) 
space to require within the franchise grant, extension, or renewal, or as a condition of a hearing concerning rates and service, that the public utility seeking the rate or service change pay the cost of the expert advice and assistance as chosen by the city council.
(b) 
Ordinance regulating rates.
The city council shall not adopt an ordinance regulating utility rates as an emergency measure.
[1]
Editor's note—An amendment approved at election Nov. 5, 2013, repealed former §§ 128, 129 of the Charter which pertained to municipality owned utilities and sales of municipal services, respectively, and derived from the original Charter as amended by the election of May 2, 1998.