The Town Council shall have the power, subject to the provisions
hereof, by ordinance to confer upon any person, firm, corporation
or other legal entity the franchise or right to use the public property
of the Town for the purpose of furnishing to the public any general
public service or benefit, including, but not limited to, heat, light,
power, telephone service, transportation, or other telecommunication
providers for compensation or hire. The Town shall have the power
by ordinance to grant, renew, and extend all franchises of all public
utilities of every character operating within the Town. No such franchise
shall be granted until after a public hearing shall have been called
and held and until such ordinance shall have been passed and accepted
by the franchisee.
No public utility or other franchise shall be transferable except
with the approval of the Town Council expressed by ordinance.
No franchise or easement involving the right to use the streets,
alleys, highways, parks, and public ways shall be valid unless granted
in compliance with the terms of this chapter. No granting of a franchise
by ordinance pursuant to this chapter shall convey any ownership or
interest in any property of the Town other than the right to use the
public property for purposes of such franchisee’s operations
as expressed in the ordinance granting such franchise.
In granting, amending, renewing and extending public service
and utility franchises, the Town shall retain the right to:
(1) Repeal
such franchise by ordinance for failure to comply with the terms thereof,
such power to be exercised only after due notice and hearing;
(2) Require
an adequate extension of plant and service as is necessary to provide
adequate service to the public and require maintenance of the plant
and fixtures at the highest reasonable standard of efficiency, based
upon applicable state and federal regulations;
(3) Establish
reasonable standards of service and quality of products and prevent
unjust discrimination in service or rates;
(4) Impose
regulations to ensure safe, efficient and continuous service to the
public. The franchise holder in opening and refilling all earth openings
shall re-lay the pavement and do all other work necessary to complete
restoration of streets, sidewalks or grounds to a condition equally
as good as or better than when disturbed; and
(5) Upon
notice to franchisee and a reasonable opportunity to be heard, to
regulate, locate, or prohibit the erection of any and all poles, wires,
or other utility equipment, conveyance, or structure, on the streets,
alleys and public places of said Town, and to cause the same to be
changed, removed, altered, increased, diminished, placed underground,
or be supported by poles of such material, kind, quality and class
as may be determined by the Town Council whether the same be telegraph,
telephone, electric, cable television, or otherwise, and to enforce
the provisions hereof by appropriate action in any court of competent
jurisdiction.
All persons, corporations, or association of persons, to whom
a franchise or privilege may hereafter be granted shall pay to the
Town for such privilege such compensation as may be fixed by the Town
Council in the grant of such franchise or privilege. Such compensation
as fixed by contract or provided by State law(s) shall become due
and payable at such time as the Town Council shall fix in the granting
of such franchise or privilege. The failure of any franchisee to pay
said compensation when due may result in forfeiture of the franchise
or privilege.
If applicable State law so provides, the Town Council shall
determine, fix, and regulate the charges, fares or rates of any person,
firm, or corporation enjoying a franchise or privilege granted under
the provisions of this chapter, and shall prescribe the kind of service
to be furnished to the public by such person, firm, or corporation,
and the manner in which it shall be rendered and may from time to
time alter or change such rules, regulations, and compensation after
reasonable notice and public hearing. The rates, charges and fares
so fixed shall at all times be reasonable and permit the franchisee
a reasonable opportunity to earn a reasonable return on the franchisee’s
invested capital used and useful in providing service to the public
in excess of its reasonable and necessary operating expenses. In this
connection, the Town Council may require any utility or franchise
holder to furnish such financial reports and information as the Town
Council may request including reports of actual operating costs and
the financial conditions of its operations within the Town. The Town
Council may employ, at the expense of such franchisee, necessary outside
experts to examine and audit the accounts and records of the franchisee
to determine the reasonableness of such charges, fares, and rates.