364.2 - VESTING OF POWER -- FRANCHISES.

        364.2  VESTING OF POWER -- FRANCHISES.         1.  A power of a city is vested in the city council except as      otherwise provided by a state law.         2.  The enumeration of a specific power of a city does not limit      or restrict the general grant of home rule power conferred by the      Constitution of the State of Iowa.  A city may exercise its general      powers subject only to limitations expressly imposed by a state or      city law.         3.  An exercise of a city power is not inconsistent with a state      law unless it is irreconcilable with the state law.         4. a.  A city may grant to any person a franchise to erect,      maintain, and operate plants and systems for electric light and      power, heating, telegraph, cable television, district telegraph and      alarm, motor bus, trolley bus, street railway or other public      transit, waterworks, or gasworks, within the city for a term of not      more than twenty-five years.  When considering whether to grant,      amend, extend, or renew a franchise, a city shall hold a public      hearing on the question.  Notice of the time and place of the hearing      shall be published as provided in section 362.3.  The franchise may      be granted, amended, extended, or renewed only by an ordinance, but      no exclusive franchise shall be granted, amended, extended, or      renewed.         b.  Such an ordinance shall not become effective unless      approved at an election.  The proposal may be submitted by the      council on its own motion to the voters at any city election.  Upon      receipt of a valid petition as defined in section 362.4 requesting      that a proposal be submitted to the voters, the council shall submit      the proposal at the next regular city election or at a special      election called for that purpose before the next regular city      election.  However, the city council may dispense with such election      as to the grant, amendment, extension, or renewal of an electric      light and power, heating, or gasworks franchise unless there is a      valid petition requesting submission of the proposal to the voters,      or the party seeking such franchise, grant, amendment, extension, or      renewal requests an election.  If a majority of those voting approves      the proposal, the city may proceed as proposed.  The complete text of      the ordinance shall be included on the ballot if conventional paper      ballots are used.  If an optical scan voting system is used, the      proposal shall be stated on the optical scan ballot, and the full      text of the ordinance posted for the voters pursuant to section      52.25.  All absentee voters shall receive the full text of the      ordinance.         c.  Notice of the election shall be given by publication as      prescribed in section 49.53 in a newspaper of general circulation in      the city.         d.  The person asking for the granting, amending, extension,      or renewal of a franchise shall pay the costs incurred in holding the      election, including the costs of the notice.  A franchise shall not      be finally effective until an acceptance in writing has been filed      with the council and payment of the costs has been made.         e.  The franchise ordinance may regulate the conditions      required and the manner of use of the streets and public grounds of      the city, and it may, for the purpose of providing electrical, gas,      heating, or water service, confer the power to appropriate and      condemn private property upon the person franchised.         f.  A franchise fee assessed by a city may be based upon a      percentage of gross revenues generated from sales of the franchisee      within the city not to exceed five percent, without regard to the      city's cost of inspecting, supervising, and otherwise regulating the      franchise.  Franchise fees collected pursuant to an ordinance in      effect on May 26, 2009, shall be deposited in the city's general fund      and such fees collected in excess of the amounts necessary to      inspect, supervise, and otherwise regulate the franchise may be used      by the city for any other purpose authorized by law.  Franchise fees      collected pursuant to an ordinance that is adopted or amended on or      after May 26, 2009, to increase the percentage rate at which      franchise fees are assessed shall be credited to the franchise fee      account within the city's general fund and used pursuant to section      384.3A.  If a city franchise fee is assessed to customers of a      franchise, the fee shall not be assessed to the city as a customer.      Before a city adopts or amends a franchise fee rate ordinance or      franchise ordinance to increase the percentage rate at which      franchise fees are assessed, a revenue purpose statement shall be      prepared specifying the purpose or purposes for which the revenue      collected from the increased rate will be expended.  If property tax      relief is listed as a purpose, the revenue purpose statement shall      also include information regarding the amount of the property tax      relief to be provided with revenue collected from the increased rate.      The revenue purpose statement shall be published as provided in      section 362.3.         g.  If a city grants more than one cable television franchise,      the material terms and conditions of any additional franchise shall      not give undue preference or advantage to the new franchisee.  A city      shall not grant a new franchise that does not include the same      territory as that of the existing franchise.  A new franchisee shall      be given a reasonable period of time to build the new system      throughout the territory.         5.  If provided by ordinance, a city may enter into a chapter 28E      agreement for the collection of delinquent parking fines by a county      treasurer pursuant to section 321.40 at the time a person applies for      renewal of a motor vehicle registration, for violations that have not      been appealed or for which appeal has been denied.  The city may pay      the treasurer a reasonable fee for the collection of such fines, or      may allow the county treasurer to retain a portion of the fines      collected, as provided in the agreement.  
         Section History: Early Form
         [C51, § 664; R60, § 1047, 1056, 1057, 1090, 1094, 1095; C73, §      454--456, 471, 473, 474, 517, 523, 524; C97, § 695, 720--722, 775,      776; S13, § 695, 720--722, 776; C24, 27, 31, 35, § 5738, 5904,      5904-c1, 5905--5909, 6128, 6131--6134; C39, § 5738, 5904, 5904.1,      5905--5909, 6128, 6131--6134; C46, 50, § 368.1, 386.1--386.7,      397.2, 397.5--397.8; C54, 58, 62, 66, § 368.2, 386.1--386.7,      388.5--388.9, 397.2, 397.5--397.8; C71, 73, § 368.2, 386.1--386.7,      397.2, 397.5--397.8; C75, 77, 79, 81, § 364.2] 
         Section History: Recent Form
         83 Acts, ch 127, § 5; 93 Acts, ch 143, § 49; 98 Acts, ch 1123,      §15; 98 Acts, ch 1148, §1, 9; 2001 Acts, ch 82, §1; 2001 Acts, ch 98,      §1; 2005 Acts, ch 54, §11, 12; 2006 Acts, ch 1010, §96; 2007 Acts, ch      190, §42; 2009 Acts, ch 57, §89; 2009 Acts, ch 179, §228, 231         Referred to in § 68A.503, 306.46, 357A.23, 358C.13, 364.4, 384.3A,      403.7, 477A.2, 477A.5, 480A.6, 714H.4