VIII-7 Franchise--sale or assignment

ARTICLE VIII
PUBLIC UTILITY SERVICES

Section

VIII-1 General powers respecting municipal utilities

VIII-2 Rates

VIII-3 Collection of municipal utility rates and charges

VIII-4 Disposal of municipal utility plants and utility property

VIII-5 Franchise—defined—granting

VIII-6 Franchise—terms and conditions

VIII-7 Franchise—sale or assignment

For statutory provisions regarding franchises and permits, see AS 29.35.060.

VIII-1 General powers respecting municipal utilities

The City shall have all the powers not prohibited by law to acquire, own, operate, and regulate public utilities, whether within or beyond its corporate limits, and may also sell utility services beyond its corporate limits.

VIII-2 Rates

(1) The council may provide by ordinance for the establishment of utilities and provide for their regulation, promotion, control, and the fixing of the rates to be charged, which must be sufficient to return to the City a reasonable profit after taxes.

(2) In furnishing service from municipally-owned utilities no agreements shall be made for services outside of the City which will return to the City less net revenues than it realizes from the same services within the City. Increased rates for utility service outside of the City may be established by the council.

(3) Transactions pertaining to the ownership and operation of each municipal utility shall be recorded in a separate group of accounts, which shall be classified in accordance with generally accepted accounting practices. An annual report shall be prepared to show the financial position of each city utility and the results of its operation. Such reports shall be available for inspection at the offices of the city clerk.

VIII-3 Collection of municipal utility rates and charges

The council shall provide in the code for the collection of rates and charges for public utility services furnished by the City. When any person fails or refuses to pay to the City any sums due on utility bills, the service upon which such delinquency exists may be discontinued and suit may be brought for the collection thereof.

VIII-4 Disposal of municipal utility plants and utility property

The council may sell, lease, or otherwise dispose of a municipal utility or of property and interest in property used in the operation of a utility only after a proposition to do so is approved by three-fifths of the City voting on the proposition.

VIII-5 Franchise—defined—granting

A franchise is a contract between the City and a person providing for the person to furnish a public utility service to the City and its inhabitants and permitting the person to use the streets, alleys, bridges, easements, and other public places of the City in the furnishing of the public utility service.

A franchise may be granted to a person, extended, renewed, or amended only by an ordinance accepted as provided herein below by the person to whom the franchise is granted, passed by the council, and approved at an election by a majority of the qualified voters voting on the question. After introduction, a copy of the ordinance in its final form must be in the office of the city clerk and subject to public inspection for at least one month before it is passed. Before passage, the council shall hold a public hearing thereon, a notice of which must have been published at least one week prior to the hearing.

Also, before passage, the applicant must file with the city clerk an unconditional acceptance of all terms of the franchise, and if a special election is to be held for the purpose, must pay to the finance department of the City an amount of money estimated by the city clerk to be adequate to pay all expenses of holding such election. If any balance remains after all such expenses have been paid, it shall be repaid to the grantee.

VIII-6 Franchise—terms and conditions

No franchise shall be granted by the City for a term exceeding twenty years, and every franchise shall contain a provision requiring the franchise to take effect within one year after the voters approve the ordinance granting it. Franchises may include provisions for fixing utility rates and charges and may provide for readjustments thereof; but the terms of a franchise shall not limit the power of the City to regulate such rates and charges. With respect to any franchise granted after this charter goes into effect, whether or not provided in the franchise, the City may:

(1) Terminate the franchise for violation of any of its provisions, for the misuse or non-use thereof, or for the violation of any regulation imposed by this charter or by ordinance;

(2) Require proper and reasonable extension of plant and facilities and the maintenance thereof at the highest practicable standard of efficiency;

(3) Establish reasonable standards of service and quality of products, and prevent unjust discrimination in service and rates;

(4) Require continuous and uninterrupted service to the public in accordance with the terms of the franchise throughout the entire period thereof;

(5) Impose other regulations determined by the council to be conducive to the health, safety, welfare, or convenience of the public;

(6) Require the public utility to permit joint use of its property and appurtenances located in the streets, alleys, bridges, easements, and other public places by the City and by other public utilities insofar as such joint use may be reasonably practicable, and upon payment of reasonable rental therefor; and in the absence of agreement, upon application by the public utility, provide for arbitration of the terms and conditions of such joint use and the compensation to be paid therefor;

(7) Require the public utility to pay any part of the cost of improvement or maintenance of streets, alleys, bridges, easements, and other public places that arises from its use thereof and to protect and save the City harmless from all damages arising from such use; and

(8) Require the public utility to file with any designated city officer or officers reports concerning the utility and its financial operation and status and such drawings and maps of the proposed location or locations and nature of its facilities as the council may request; and require the public utility to permit designated city officers to inspect its books and other records.