CHAPTER 10
FRANCHISES

   Section 10.01.   Franchises required.Except as otherwise provided by law a person, firm or corporation may not place or maintain a permanent or semi-permanent fixture in, over, upon or under a street or other public place in the city for the purpose of operating a public utility or for any other purpose without a franchise from the city. A franchise is granted by ordinance that may not be an emergency ordinance. An ordinance granting a franchise must contain all the terms and conditions of the franchise. The grantee must pay the cost of publication of the franchise ordinance. A franchise is not effective unless it has been unconditionally accepted by the grantee and filed with the clerk.

   Section 10.02.   Term.A perpetual franchise may not be granted. A franchise for a term exceeding 25 years is not effective until approved by a majority of the voters at a regular or special election.

   Section 10.03.   Public hearing.Before a franchise ordinance is adopted or the rates, fares, or prices to be charged by a public utility are fixed by the council, the council must hold a public hearing on the matter. Notice of the hearing must be published at least once in the official newspaper not less than ten days prior to the date of the hearing.

   Section 10.04.   Regulation.Subject to applicable law, the council may by ordinance reasonably regulate the exercise of a franchise, including the rates to be charged by the grantee. Unless prohibited by law, the ordinance may impose a franchise fee on a public utility grantee. The city may inspect the books and records of the grantee at reasonable times. The council may require the grantee to provide the city with written reports on the grantee's operation in the city. The grantee must notify the city in writing of a proposed rate increase at least 60 days prior to the proposed effective date of the increase. The city council may appoint a commission or referee to investigate the grantee and report to the council on matters regulated by a franchise. The value of a franchise may not be included in either the valuation of the grantee's property in regulating rates under an applicable law, ordinance or regulation or in proceedings for city acquisition of the grantee's property by purchase or eminent domain.

   Section 10.05.   Renewals and modifications.The renewal or modification of a franchise is subject to the limitations of this chapter and is granted in the same manner as a new franchise.