(A) Application for franchise. Any private entity desiring to construct and operate a water system and/or sewer system, or to extend any existing system within the county water/sewer service area, shall file a written franchise application with the county manager. The application shall include the applicant’s name, a statement of the services to be furnished, a description of the specific area to be served, and a proposed service area map of sufficient clarity and detail to accurately show and delineate the specific area for which a franchise is requested. The applicant shall also furnish a current financial statement and any other information and data as may be determined necessary by the county manager.
(B) Award of franchise. The county manager, or his or her designee, shall evaluate the applications and make recommendations thereon to the County Council within 30 days of receipt of a completed application. The County Council may then award a franchise by enactment of a franchise ordinance, which shall not be inconsistent with the provisions of this subchapter. The terms and provisions of any franchise ordinance enacted by the County Council shall constitute a contract between the county and the franchisee, and every franchise ordinance shall include, as a minimum, the following:
(1) A written description of the franchised area, which shall specifically refer to a service map clearly showing and delineating the exact franchised area. The map shall constitute a part of the franchise ordinance;
(2) A provision establishing a construction schedule for completed construction of the system;
(3) A provision that the franchise is nonexclusive and is granted for a term of 10 to 25 years, as the County Council may determine; provided, however, the term of the franchise may be renewed and extended, from time to time, for one or more successive additional terms of not less than five years, provided that all provisions of the franchise agreement have been met. The franchisee shall notify the county manager in writing, not less than 90 days prior to the expiration of the franchise, of its intentions concerning renewal of the franchise; subject, however, to the provisions of this subchapter relating to the right of the county to purchase the franchise system;
(4) A provision that the franchise cannot be changed or transferred without the prior consent of the County Council, which consent shall not be unreasonably withheld. Failure of the County Council to act on a request for transfer or change, within 60 days of receiving all information relevant to the proposed transfer or change, shall be deemed consent;
(5) A provision that the franchisee shall fully comply with all applicable standards and regulations for the design, construction and/or operation of water and/or sewer systems;
(6) A provision that the franchisee shall provide service to all customers within the franchised area on a fair and nondiscriminatory basis, on terms available to all other customers of the franchisee in a similar class;
(7) A provision that the franchisee shall not deny service to any customer within the franchised area because of the current or proposed use of the property;
(8) A provision that, if the franchisee rejects a request for service by a customer or potential customer within the franchise area who complies with the franchisee’s applicable rules, regulations and reasonable service requirements, or fails to provide the service to a customer or potential customer who complies with the franchisee’s applicable rules, regulations and reasonable service requirements within a period of one year of the request, the County Council may, by an amending ordinance, remove the area from the franchised area;
(9) A provision that the franchise may be revoked or the size of the franchise area reduced by the County Council for cause as set forth in division (C) below;
(10) A provision that the county shall have the right and option, at the end of the franchise term or any extension thereof, to purchase from the franchisee the water and/or sewer system within the franchised area at a fair and reasonable price;
(11) Other terms and provisions, consistent with the intent and purpose of this subchapter, as the County Council may deem necessary and proper.
(C) Reduction of franchise area; revocation of franchise.
(1) The County Council may, by ordinance, reduce the size of the franchised area or revoke a franchise by repeal of the franchise ordinance only for cause, which may include one of the following:
(a) The failure of the franchisee to comply with any term, provision or condition of this subchapter or its franchise ordinance; or
(b) A determination by the County Council that the action would be in the best interest of the health, safety or welfare of the citizens of the county.
(2) The franchisee shall have the right to appear and to be heard by the County Council, prior to final action being taken on any ordinance to revoke a franchise or reduce the size of the franchised area. Upon any revocation of a franchise or reduction in the size of any franchised area, the county may then provide water and/or sewer service within the area or may take other action as it deems appropriate to secure water and/or sewer service for the area as soon as may be practicable.
(D) Provisions for granting of franchise to private entity. The County Council shall not grant a private entity a water and/or sewer franchise for any unincorporated area of the county within an established municipal water and sewer service area, without the prior written consent of the affected public entity; provided, however, franchises may nevertheless be granted by the County Council without the consent of the affected public entity, after the County Council has made the findings set forth herein.
(E) Right to purchase systems. In the event the franchisee should at any time decide to sell all or any portion of its water and/or sewer system, the county shall have the right of first refusal to purchase the system, or any part thereof, at a fair and reasonable purchase price, within 90 days after receipt of written notice thereof, which shall be given to the county by the franchisee. The purchase of any water and/or sewer system by the county shall thereby eliminate or reduce the size of the franchised area.
(‘77 Code, § 7-178) (Ord. 2590, passed 5-8-90; Am. Ord. 692, passed 2-17-92; Am. Ord. 5206, passed 12-18-06)