The city shall have power to own and operate any public utility, to construct and install all facilities that are reasonably needed, and to lease or purchase any existing utility properties used and useful in public service. The city may also furnish service in adjacent and nearby communities which may be conveniently and economically served by the municipally owned and operated utility, subject to agreements with such communities, and subject to provisions of state law. The City Commission may provide by ordinance for the establishment of such utility, but an ordinance providing for a newly owned and operated utility shall be enacted only after approval by referendum in the same manner as provided in this Charter for the approval of issuance of bonds and revenue certificates. If a municipally owned and operated utility would cover service areas already supplied by a privately owned and operated utility, the city shall make every reasonable effort to purchase or lease the existing properties that are used and useful before undertaking any duplication of properties or service. If the properties of an existing privately owned and operated utility cannot be acquired at a reasonable purchase price, the city may proceed with an independent and competitive municipally owned and operated utility. The city shall, however, take over such competitive private properties when a reasonable purchase price as heretofore defined shall be acceptable to the private owners, provided that if the city has already incurred duplicating costs of construction, such cost shall be deducted from the purchase price which otherwise would be properly paid.
(Ref. of 3-9-76)