The City shall have the full power, to the extent the same is
conferred by applicable law, to own, lease, operate, prohibit, regulate
and control any public utility within or without the limits of the
City and to provide for the compensation and rental to be paid to
the City by any public utility for the use of its streets, highways
and public areas.
In addition to the City’s power to buy, construct, lease,
maintain, operate, and regulate public utilities and to manufacture,
distribute, and sell the output of such utility operations, the City
shall have such regulatory and other powers as may now or hereafter
be granted under applicable law.
The City Council shall be and act as the Board of Directors
of all utilities owned and operated by the City.
The City Council shall have power by ordinance to grant, renew
and extend all franchises of public utilities of every character operating
within the City and for such purposes is granted full power. The term
“public utility” as used herein is construed to mean any
person, firm or corporation furnishing to the public any general public
service, including, but not limited to heat, light, gas, power, telephone
service, communication services, community antenna or cable television
service, sewer service and the treatment thereof, water, wrecker service,
the carrying of passengers for hire, or any other public service whereby
a right to, in part, appropriate or use the streets, highways, or
other property of the City, as necessary or proper is granted. Any
ordinance granting, renewing or extending franchises shall not take
effect until at least thirty (30) days after its passage; and during
such thirty (30) day period the descriptive caption of the ordinance
shall be published at least twice in the official newspaper(s) of
the City, the expense of the publication being borne by the proponents
of the franchise.
Franchises granted by the City under this Charter shall be considered
to be of no value in fixing reasonable rates and charges for utility
service within the City, and in determining the just compensation
to be paid by the City for public utility property which the City
may acquire by condemnation or otherwise.
All grants, renewals, extensions, or amendments of public utility
franchises, whether so provided in the ordinance or not, shall be
subject to the right of the City Council:
(a) To repeal
the same by ordinance at any time upon the failure of the grantee
to comply with the terms of the franchise, the ordinance, this Charter,
any applicable law, or the rule of any applicable governmental body,
such power to be exercised only after written notice to the franchise
holder stating wherein the franchise holder has failed to comply with
the terms of the franchise, and if said default is not cured within
a reasonable time such power shall be exercised only after the grantee
has been given the opportunity for hearing.
(b) To establish
reasonable standards of service and quality of products and prevent
unjust discrimination in service or rates.
(c) To require
such expansion, extension, and improvements of plants and facilities
as are necessary to provide adequate service to the public; and to
require that maintenance of facilities be performed at the highest
reasonable standard of efficiency.
(d) To prescribe
the accounts and accounting system to be used by a franchise holder
so that they will accurately reflect the value of the property used
in rendering its service to the public; and the expenses, receipts,
and profits of all kinds of such franchises. (It shall be deemed sufficient
compliance with this paragraph if the franchisee keeps its accounts
in accordance with the uniform system established by an applicable
federal or state agency for such service.) To examine and audit, at
any reasonable time during regular business hours, the accounts and
other records of any franchise holder; and to require annual and other
reports including reports on operations within the City.
(e) To impose
such reasonable regulations and restrictions as may be deemed desirable
or conducive to the health, safety, welfare, and accommodation of
the public.
(f) To require
such compensation and rental as may be permitted by applicable law.
(g) To require
that the franchise holder restore to the applicable City standards
at that time, at his/her expense, all public and private property
damaged or destroyed by construction, maintenance, or removal by such
franchise holder.
All extensions of public utility service shall become a part
of the aggregate property of the public utility, shall be operated
as such, and shall be subject to all the obligations and reserved
rights contained in this Charter. The extension of any public utility
shall be considered as a part of the original grant and shall be terminable
at the same time and under the same conditions as the original grant.
All franchises heretofore granted are recognized as contracts
between the City and the grantee, and the contractual rights as contained
in any such franchise shall not be impaired by the provisions of this
Charter, except that the power of the City to exercise the right of
eminent domain in the acquisition of any utility property is in all
things reserved; and except that the general power of the City, heretofore
existing and herein provided for to regulate the rates and services
of a grantee, shall include the right to require proper and adequate
extension of plant and service and the maintenance of the plant and
equipment at the highest reasonable standard of efficiency. All franchises
hereafter granted shall be held subject to all terms and conditions
contained in the various sections of this article whether or not such
terms are specifically mentioned in the franchise.
The City Council subject to applicable law shall have full power,
after due notice and hearing, to regulate by ordinance the rates,
charges, and fares of every public utility franchise holder operating
in the City. Every franchise holder who shall request an increase
in rates, charges or fares shall have, at a hearing of the City Council
called to consider such request, the burden of establishing by clear,
competent, and convincing evidence the value of its investment property
allocable to service in the City, the amount and character of its
expenses and revenues connected with the rendering of such service,
and any additional evidence required by the City Council. If no agreement
between the City Council and the franchise holder can be reached on
such request for an increase in rates, charges, or fares, the City
Council may select and employ rate consultants, auditors and attorneys
to investigate and, if necessary, litigate such request. The franchise
holder shall reimburse the City for its reasonable and necessary expenses
so incurred and may be allowed to recover such expenses through its
rates during the period of recovery if authorized to do so by the
City Council.
Accounts shall be kept for each public utility owned or operated
by the City in such manner as to show the true and complete financial
results of each such City ownership and operation. The accounts shall
show the actual capital cost to the City of each public utility owned,
the cost of all extensions, additions, and improvements; and the source
of the funds expended for such capital purposes. The accounts shall
also show all assets and all liabilities of each utility appropriately
subdivided by classes, depreciation reserve, other reserves and surplus,
and revenues, operating expenses including depreciation, interest
payments, rentals, and other disposition of annual income including
the cost of any service furnished to any other City department. The
City Council shall annually cause an audit report to be made, by a
Certified Public Accountant, of such accounts.
Prior to the consideration of a sale of any City-owned public
utility, the City Council shall hold a public hearing during which
the City’s financial advisor shall present a report to the City
Council concerning the revenue that has been earned by the City’s
public utility throughout the City’s ownership thereof, and
an analysis of the revenue to be lost by the City through the proposed
sale of the utility.
There shall be two (2) City Council votes twelve (12) months
apart to call a referendum election concerning the sale of the public
utility. The City shall then hold a referendum election which must
be favorably passed by a majority of the voters voting at the election.
(a) The City
Council shall have the power and authority to sell and distribute
electricity and water and to sell and provide for sewer services and
any other utilities to any person, firm or corporation outside the
limits of the City, and to permit them to connect with said system
under contract with the City, under such terms and conditions as may
appear to be in the best interest of the City.
(b) The City
Council shall have the power and authority to prescribe the kind of
materials used within or beyond the limits of the City where it furnishes
the service, and to inspect the same and require them to be kept in
good order and condition at all times and to make such rules and regulations
as shall be necessary and proper, and to prescribe penalties for noncompliance
with same.
All franchises heretofore granted are recognized as contracts
between the City and the grantee, and the contractual rights as contained
in any such franchise shall not be impaired by the provisions of this
Charter, except that the power of the City to exercise the right to
eminent domain in the acquisition of utility property is in all things
reserved, and except the general power of the City heretofore existing
and herein provided for, to regulate the rates and services of a grantee
which shall include the right to require proper and adequate extension
of plant and service and in the maintenance of the plant and fixtures
at the highest reasonable standard of efficiency. Every public utility
franchise hereafter granted shall be held subject to all the terms
and conditions contained in the various sections of this article whether
or not such terms are specifically mentioned in the franchise. Nothing
in this Charter shall operate to limit in any way, as specifically
stated, the discretion of the City Council or voters of the City in
imposing terms and conditions as may be reasonable in connection with
any franchise grant.