452.08 ACQUISITION AND OPERATION.
Every city of the first class in this state shall have the power to own, construct, acquire,
purchase, maintain, and operate any public utility within its corporate limits, and to lease the
same, or any part of the same, to any company incorporated under the laws of this state, for the
purpose of operating such public utility for any period not longer than 20 years, on such terms and
conditions as the council shall deem for the best interests of the public.
Any city of the first class now owning and operating its own waterworks, or other public
utilities, may continue to own and operate the same in the same manner as if now authorized by
law to own and operate the same, without submitting any proposition so to do to the electors
thereof, and it may by a three-fifths vote of the council or other governing body and without
submission to the electors thereof issue bonds and certificates of indebtedness in the manner and
proportions provided in sections
for the purpose of refunding all bonds issued
for the construction and creation of the utility, and the remainder of the proceeds thereof, if any,
shall be covered into the treasury of the city as a sinking fund for the redemption of any existing
bonds, or for the purchase and acquisition of any new bonds of the city offered by the city.
It shall be lawful for any city of the first class to incorporate in any grant of the right to
construct or operate any public utility, a reservation of the right on the part of the city to take
over all or part of the public utility, at or before the expiration of the grant upon such terms and
conditions as may be provided in the grant; it shall also be lawful to provide in the grant, that in
case the reserved right be not exercised by the city and it shall grant a right to another company to
operate the public utility in the streets and parts of streets occupied by its grantee under the former
grant, the new grantee shall purchase and take over the public utility of the former grantee, upon
the terms that the city might have taken it over, and it shall be lawful for the council of the city
to make the grant containing such a reservation for either the construction or operation or both
the construction and operation of the public utility, in, upon, and along any of the public streets,
alleys, or ways therein, or portions thereof, in which the public utility is already located at the
time of making the grant, without the petition or consent of any of the owners of the land abutting
or fronting upon any street, public alley, or way, or portion thereof, covered by the grant.
No ordinance authorizing the lease of any public utility for any period, nor any ordinance
renewing any lease, shall go into effect until the expiration of 60 days from and after its passage.
If, within these 60 days, there is filed with the clerk of the city a petition signed by ten percent of
the voters voting at the last preceding election for mayor, in the city, asking that the ordinance be
submitted to a popular vote, then the ordinance shall not go into effect unless the question of the
adoption of the ordinance shall first be submitted to the electors of the city and are approved by
a majority of those voting thereon.
The signatures of the petition need not all be appended to one paper, but after each signer's
signature, which shall be in the signer's own handwriting, the signer shall add the place of
residence, giving the street number. One of the signers of each paper shall make oath before an
officer competent to administer oaths that each signature to the paper appended is the signature of
the person whose name purports to be thereto subscribed. The council of any city which shall
decide by vote of its electors to acquire or construct any public utility, shall have the power, unless
otherwise provided by law, to make all needful rules and regulations respecting the operation of
the same, including the power to fix and prescribe rates and charges. For the purpose of acquiring
a public utility either by purchase or construction, as provided for in sections
for the equipment of any such public utility, and in addition to the certificates of indebtedness
provided for in section
, any city may borrow money and issue its negotiable bonds to an
amount not exceeding one-fifth the cost thereof, pledging the faith and credit of the city therefor;
but no such bonds shall be issued until the question of the issuance of certificates of indebtedness
shall have been approved by a majority of the electors voting thereon as provided for in section
, and then only upon a three-fifths vote of the council or other governing body. In the
exercise of any of the powers, granted by sections
, any city shall have power to
acquire, take, and hold any and all franchises and necessary property, real, personal, or mixed, for
the purposes specified in sections
, either by purchase or condemnation in the
manner provided by law for the taking and condemning of private property for public use, but in
no valuation of public utility property for the purpose of any such acquisition, except of public
utilities now operating under existing franchises shall any sum be included as the value of any
earning power of the utility, or of the unexpired portion of any franchise granted by the city.
In case of the leasing by any city of any public utility owned by it, the rental reserved shall
be based on both the actual value of the tangible property and of the franchise contained in the
lease, and the rental shall not be less than a sufficient sum to meet the annual interest upon all
outstanding bonds or certificates issued by the city on account of any such public utility.
History: (1485) 1913 c 310 s 2; 1986 c 444; 1987 c 384 art 2 s 1