CHAPTER XII
BIDS, CONTRACTS, PURCHASES, FRANCHISES, AND PERMITS
CONTRACTING AUTHORITY OF COUNCIL:
Section 12.1 The power to authorize the making of contracts on behalf of the city is vested in the council, and shall be exercised in accordance with the provisions of the law. All contracts, except as otherwise provided by ordinance in accordance with the provisions of this charter, shall be authorized by the council, and shall be signed on behalf of the city by the mayor and the clerk.
PURCHASE AND SALE OF PROPERTY:
Section 12.2 The council shall establish by ordinance the procedures for the purchases or sale of personal property for the city for the direction of the city manager. At the beginning of each fiscal year, the council shall establish by resolution a dollar limit within which purchases of property may be made without the necessity of securing competitive bids, and the dollar limit within which the purchases may be made without the necessity of prior council approval. No purchases of personal property shall be made unless a sufficient, unencumbered appropriation balance is available therefor.
LIMITATIONS ON CONTRACTURAL POWER:
Section 12.3 (a) The council shall only have power to enter into contracts which, by the terms thereof, will be fully executed within a period of ten (10) years, unless such contract shall first receive the approval of the majority of the qualified electors voting thereon at a regular or special election. This qualification shall not apply to any contract for services with a public utility, or one or more other governmental units, nor to contracts for debt secured by bonds or notes which are permitted to be issued by the city by law.
(b) Except as provided by ordinance authorized in this charter, each contract for construction of public improvements, or for the purchase or sale of personal property, shall be let after opportunity for competitive bidding.
(c) All bids shall be opened and read aloud in public by the city manager or an authorized representative at the time designated in the notice of letting, and shall be reported by him to the council at its next regular meeting. The council may reject any or all bids if deemed advisable. If, after ample opportunity for competitive bidding, no bids are received, or such bids as are received are not satisfactory to the council, the council may either endeavor to obtain new competitive bids or authorize the city manager, or other proper officials of the city, to negotiate or contract on the open market. No contract shall be made with any person, firm or corporation in default to the city.
FRANCHISES:
Section 12.4 (a) No franchise ordinance, which is not revocable at the will of the council, shall be granted or become operative until same shall have been referred to the people at a regular or special election and has received the approval by three-fifths (3-5) of the electors voting thereon at such election or as required by statute.
(b) All irrevocable public utility franchises, and all renewals, extensions and amendments thereof, shall be granted only by ordinance. No such ordinance shall be adopted before thirty (30) days after application therefor has been filed with the council, nor until a full public hearing has been held thereon. No such ordinance shall become effective until it has been submitted to the electors and has been approved by a majority of the electors voting thereon. No such ordinance shall be submitted to the electors at a general election to be held less than sixty (60) days after the grantee named therein has filed its unconditional acceptance of all terms of such franchise, and it shall not be submitted to a special election unless the expense of holding the election, as determined by the council, shall have been paid to the city treasurer by the grantee.
(c) No exclusive franchise shall ever be granted, and no franchise shall be granted for a longer term than ten (10) years.
(d) No such franchise shall be transferable, directly or indirectly, except with the approval of the council expressed by ordinance.
(e) Purchase of a franchised utility by the city shall require the approval of three-fifths (3-5) of the electors voting thereon.
RIGHT OF REGULATION:
Section 12.5 All public utility franchises, whether it be so provided in the granting ordinance or not, shall be subject to the right of the city to:
(a) Repeal the same for misuse or non-use, or failure to comply with provisions thereof.
(b) Require proper and adequate extension of plant and service, and maintenance thereof, at the highest practicable standard of efficiency.
(c) Establish reasonable standards of service and quality of products, and prevent unjust discrimination of service or rates.
(d) Make independent audit and examination of accounts at any time, and to require reports annually.
(e) Require continuous and uninterrupted service to the public, in accordance with the terms of the franchise throughout the entire period thereof.
(f) Impose such other regulations as may be determined by the council to be conducive to the safety, welfare, and accommodation of the public.
RATES OF FRANCHISED UTILITIES:
Section 12.6 The rates charged by public utilities under the supervision of state regulatory agencies shall be fixed by such agencies. Those rates not pre-empted by the state for public utilities shall be set, after public hearing, by the city council.
REVOCABLE RATES:
Section 12.7 Temporary permits for public utilities, revocable at any time at the will of the council, may be granted by the council by resolution on such terms and conditions as it shall determine, provided that such permits shall in no event be construed to be franchises or amendments to franchises.
USE OF STREETS BY UTILITY:
Section 12.8 Every public utility franchise shall be subject to the right of the city to use, control and regulate the use of streets, alleys, bridges, and public places, including the space above and beneath them. Every public utility shall pay such part of the costs of improvements and maintenance of streets, alleys, bridges, and other public places as shall arise from its use thereof, and shall protect and hold the city harmless from all damages arising from said use. The council shall by ordinance establish the terms and conditions for such joint use of public right-of-way and the compensation to be paid therefor.