Saginaw Michigan Charter Chapter 11

UTILITIES-FRANCHISES-PERMITS

Franchises

            Section 70. All irrevocable public utility franchises and all renewals, extensions and amendments thereof shall be granted only by ordinance. No such ordinance shall be adopted before thirty (30) days after application therefor has been filed with the council, nor until a full public hearing has been held thereon. No such ordinance shall become effective until it has been submitted to the electors and has been approved by three-fifths of the electors voting thereon. No such ordinance shall be submitted to the electors at an election to be held less than sixty (60) days after the grantee named therein has filed its unconditional acceptance of such franchise, and it shall not be submitted to a special election unless the expense of holding the election as determined by the council shall have been paid to the treasurer by the granted. No exclusive franchises shall ever be granted and no franchise shall be granted for a longer term than thirty (30) years. No such franchise shall be transferable, directly or indirectly, except with the approval of the council expressed by ordinance.

Right of Regulation

            Section 71. All public utility franchises, whether it be so provided in the ordinance or not, shall be subject to the right of the city: (a) to repeal the same for misuse or nonuse, or for failure to comply therewith; (b) to require proper and adequate extension of plant and service and the maintenance thereof at the highest practicable standard of efficiency; (c) to establish reasonable standards of service and quality of products, and prevent unjust discrimination in service or rates; (d) to make independent audit and examination o accounts at any time, and to require reports annually; (e) to require continuous and uninterrupted service to the public in accordance with the terms of the franchise throughout the entire period thereof; (f) to impose such other regulations as may be determined by the council to be conducive t the safety, welfare and accommodation of the public.

Regulation of Rates

            Section 72. All public utility franchises shall make provision for fixing rates, fares and charges, and for readjustments thereof at periodic intervals of not more than five (5) years, either by arbitration upon terms to be specifically set forth in the franchise, or by any state agency, at the election of the city. The value of the property of the utility used as a basis for fixing such rates, fares and charges shall in no event include a value predicated upon the franchise, goodwill or prospective profits.

Purchase, Condemnation

            Section 73. The city shall have the right to acquire by condemnation or otherwise the property of any public utility in accordance with the general laws of the state, provided that the price to be paid shall in no event include any value predicated upon the franchise, goodwill or prospective profits.

Revocable Permits

            Section 74. Temporary permits for public utilities, revocable at any time at the will of the council, may be granted by the council by resolution on such terms and conditions as it shall determine, provided that such permits shall in no event be construed to be franchises or amendments to franchises. Any such resolution shall be subject to the referendum provided for by this charter.

Joint Use

            Section 75. Every public utility may be required by the city to permit joint use of its property and appurtenances located in the streets, alleys and public places of the city by other utilities insofar as such joint use may be reasonably practicable upon payment of reasonable rental therefor; provided that in the absence of agreement, upon application by any public utility, the council shall provide for arbitration of the terms and conditions of such joint use and the compensation to be paid therefor, which award shall be final.

Use of Streets