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Created: 2022-07-19 16:12:32 [EST] <br />(Supp. No. 20, Update 2) <br />Page 9 of 29 <br />Sec. 18-42. Franchise ordinances. <br />The council may grant franchises by ordinance. Franchise rights shall always be subject to the superior right <br />of the public to the use of streets and public places. All persons desiring to make any burdensome use of the <br />streets or public places, inconsistent with the public's right in such places, or desiring the privilege of placing in, <br />over, upon or under any street or public place any permanent or semipermanent fixtures for the purpose of <br />constructing or operating railways, telegraphing or transmitting electricity, or transporting by pneumatic tubes, or <br />for furnishing to the city or its inhabitants transportation facilities, water, light, heat, power, gas or any other such <br />utility, or for any other purpose, shall be required to obtain a franchise before proceeding to make such use of the <br />streets or public places or before proceeding to place such fixtures in such places. <br />(Code 1984, § 2.60(2)) <br />State law reference(s)—When franchise required, Minn. Stat. § 300.05. <br />Sec. 18-43. Power of regulation reserved. <br />The city shall have the right and power to regulate and control the exercise by any person, of any franchise, <br />however acquired, and whether such franchise has been heretofore granted by it or by the state. <br />(Code 1984, § 2.60(3)) <br />State law reference(s)—Local control of franchisees, Minn. Stat. § 300.04. <br />Sec. 18-44. Conditions in every franchise. <br />All conditions specified in this section shall be a part of every franchise even though they may not be <br />expressly contained in the franchise: <br />(1)The grantee shall be subject to and will perform on its part all the terms of this section and will comply <br />with all pertinent provisions of this Code. <br />(2)The grantee shall in no case claim or pretend to exercise any power to fix fares, rates and charges; but <br />such fares, rates and charges shall at all times be just, fair and reasonable for the services rendered and <br />shall in all cases be fixed and from time to time changed, unless regulated by an agency of the state, in <br />the manner following: <br />a.A reasonable rate shall be construed to be one which will, with efficient management, normally <br />yield, above all operating expenses and depreciation, a fair return upon all money invested. <br />b.If possible, maximum rates and charges shall be arrived at by direct negotiation with the council. <br />c.If direct negotiations fail to produce agreement, the council shall, not less than 30 days before <br />the expiration of any existing rate schedule or agreement, appoint an expert as its <br />representative; the franchisee shall likewise appoint an expert as its representative; and the two <br />of them shall appoint a third person, preferably an expert; and the three of them shall constitute <br />a board of arbitration. The board shall report its findings as soon as possible, and the rates and <br />charges it shall agree upon by majority vote shall be legal and binding, subject only to review by a <br />court of competent jurisdiction upon application of one of the parties. <br />(3)The council shall have the right to require reasonable extensions of any public service system and to <br />make such rules and regulations as may be required to secure adequate and proper service and to <br />provide sufficient accommodations for the public. <br />12