![]()
Sec. 1. Franchises.
A person desiring to obtain a franchise to operate a public utility from this city
shall present the franchise desired to the city council of the city and it shall be filed
among its records.
If the council deems the granting of the franchise beneficial to the city, it shall pass a
resolution, to be spread upon its record stating that fact, and shall submit the question
to the qualified voters, as to whether or not the franchise shall be granted, at the
following regular election held in the city or at a special election called for that
purpose.
The proposed franchise shall be published in full in the official newspaper of the city
once a week for four (4) consecutive weeks prior to the election, or as otherwise provided
by law, and the cost of same, together with the election expenses shall be paid by the
applicant for such franchise.
If a majority of the votes cast are in favor of granting the franchise, the council
shall grant the franchise only in the form filed and published.
A franchise shall not be granted for a longer term than twenty-five (25) years.
Before calling any such election, the estimated expense of publication and election
thereof (to be determined by the council) shall be first deposited by the applicant for
such franchise with the city clerk.
Sec. 2. Establishment of municipally owned and operated utilities.
The city shall have the power to own and operate any public utility, to construct and
install all facilities that are reasonably needed, and to lease or purchase any existing
utility properties used or useful to public service. The city may also furnish service to
adjacent and nearby territories which may be conveniently and economically served by the
municipally owned and operated utility, subject to the limitations of the provisions of
the general laws of this state. The council may provide by ordnance for the establishment
of such utility and provide for its regulation and control and the fixing of rates to be
charged. The council may by ordinance provide for the extension, enlargement or
improvement of existing utility, and provide reasonable reserves for such purpose.
Sec. 3. Establishment of classifications and regulations of rates of public utilities.
The city shall have full power to and may prescribe just and reasonable classifications
to be used and just and reasonable rates and charges to be made and collected by all
corporations rendering public utility service within the corporate limits of the City of
Scottsdale as now or hereafter constituted, except public service corporations as such
corporations are defined and the regulation thereof delegated to the Arizona Corporation
Commission by article XV, section 2, Arizona Constitution.
The city council may establish such boards as are necessary and convenient to discharge
its duties pursuant to this enactment. The powers hereby conferred shall be exercised by
the city council pursuant to ordinance providing for hearings and investigations and
establishing procedures to be followed in determining and fixing fair value of any such
utility property and a reasonable rate of return and providing for suitable penalties,
civil and criminal, for violation of any lawful order or requirement made or imposed
pursuant to any regulatory ordinance or in furtherance of any regulatory investigation.