ARTICLE X
FRANCHISES

Section 10.1 Present Franchises:

All franchise ordinances of the City in effect at the time that this Charter is adopted shall remain in full force and effect, according to their provisions and terms, until the expiration date provided in such ordinances.

Section 10.2 Franchises Granted upon Vote:

No franchise shall be granted until such time as the Council shall determine, in its discretion, by resolution, the advisability and/or necessity of granting such a franchise, and until the question of whether or not the City should grant a franchise for the purposes approved by council has received an affirmative vote of a majority of the qualified electors voting thereon at a special election called for that purpose. In the event the City council shall determine that the granting of such a franchise is neither advisable or necessary, it shall list its reasons for such determination at the request of any person seeking such a franchise. Should Council decide to refer the matter to a special election, said special election shall be held after the deposit by an applicant with the City Clerk and anticipated expenses of holding such an election, which amount shall be determined by the City Clerk. In the event there is more than one applicant for such a franchise, the City Clerk is authorized to collect from each applicant a pro rata share of the anticipated expenses.

Section 10.3 Powers of City Council:

After approval by the qualified electors as called for in Section 10.2, Council shall have full power and authority to determine and negotiate with the applicants the nature and extent of the franchise to be granted covering all areas of the franchise agreement, including but not limited to, the nature and extent of services to be provided, the means by which said services shall be provided, the geographic areas in which such services are to be provided, to approve the rates for such services to be provided by the franchisee, to fix the franchise fee payable to the City of Gunnison for such franchise, to provide for regulation of the franchisee, to determine which applicant, if more than one applicant, shall be awarded the franchise, and such other authority as may be appropriate to carry out the purposes of this Charter. Provided, however, that in no event shall an exclusive franchise ever be granted unless, by reason of the terms and conditions contained therein the granting of such an exclusive franchise will clearly be to the benefit of the inhabitants of the City.

Section 10.4 Extension of Territory:

With respect to any existing franchise, the Council may, by ordinance, extend the area to include streets, alleys, or public places and properties not embraced in such original franchise where public necessity and convenience would require, subject to all the terms and conditions of such original franchise and co-extensive with the terms thereof, without a vote of the qualified electors.

Section 10.5 Term, Compensation, Description:

No franchise, lease, or right to use the streets or public places or property of the City shall be granted for longer than twenty (20) years. Every grant of a franchise shall fix the franchise fees and manner of payment of said fees to be paid by grantee for use of the same, and no other compensation of any kind shall be enacted for such use during the life of the franchise. This provision shall not exempt the grantee from any lawful taxation upon his or its property, nor any license, charge, or other imposition levied by Council, not levied on account of the use granted by the franchise.

Section 10.6 Revocable Licenses:

After public hearing, the Council by ordinance may grant a revocable license to lay sidetracks and switches along or across any public thoroughfare, in accordance with standards and procedures to be adopted by the Council.

Section 10.7 Revocable Permits:

The Council may grant permits for the temporary use or occupation of any street, alley or public place, and establish conditions and compensation to be paid the City therefor.

Section 10.8 Condemnation or Purchases:

The right of the City to construct, purchase, or condemn any public utility, work or way, as provided by law, is expressly reserved.

Section 10.9 Assignments:

Assignment or leasing of a franchise shall be considered a forfeiture unless consent is given by the Council by ordinance.

Section 10.10 Books and Records:

The Council shall cause to be kept in the office of the City Clerk, an indexed franchise record in which shall be transcribed copies of all franchises granted by the City. The record shall be a complete history of all such franchises, and shall include a comprehensive and convenient reference to all actions at law affecting the same and copies of all annual and inspection reports, and such other information as the Council may require.

Section 10.11 Control of Franchise for Use of Water Reserved to City:

No franchise, right, or privilege shall be granted affecting the use of water belonging to the City, or affecting its water systems, without retaining complete and absolute control of the City.

Section 10.12 Common Use of Facilities:

The Council shall have power to require any holder of a franchise from the City, or other public utility, to allow the use of its right-of-way, poles, structures, and wires by any franchise holder, or the City itself, upon payment of a reasonable rental therefor; and the City may, under the terms prescribed by the Council, allow such franchise holders to use rights-of-ways, poles, structures and wires of City-owned utilities.