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Section 10.03. Public Hearing. Before any franchise ordinance is adopted or any rates, fares, or prices to be charged by a public utility are fixed by the Council, the Council shall hold a public hearing on the matter. Notice of such hearing shall be published at least once in the City Newsletter and in the official newspaper not less than ten (10) days prior to the date of the hearing. Section 10.04. Power of Regulation Reserved. Subject to any applicable state law, the Council may by ordinance reasonably regulate and control the exercise of any franchise, including the maximum rates, fares, or prices to be charged by the grantee. No franchise value shall be included in the valuation of the grantee's property in regulating utility rates, fares, or prices under any applicable state or municipal law, or regulation, or in proceedings for municipal acquisition of the grantee's property by purchase or eminent domain. Section 10.05. Renewals or Extensions. Every extension, renewal, or modification of any existing franchise, or of any franchise granted thereafter, shall be subject to the same limitations and shall be granted in the same manner as a new franchise. CHAPTER 11 PUBLIC OWNERSHIP AND OPERATION OF UTILl11hS Section 11.01. Acquisition and Operation of Utilities. The City may own and operate any gas, water, heat, power, light, telephone or other public utility for supplying its own needs for utility service, or for supplying utility service to private consumers or both. It may construct all facilities reasonably needed for that purpose, and may acquire any existing utility properties so needed; but such action may only be taken by ordinance, which shall not be an emergency ordinance. The operation of all public utilities owned by the City shall be under the supervision of the City Council. Section 11.02. Rates and Finances. The Council may by ordinance fix rates, fares and prices for municipal utilities, but such rates, fares and prices shall be just and reasonable. The Council shall endeavor to make each municipal utility financially self-sustaining. Before any rates, fares or prices for municipal utilities shall be fixed by the Council, the Council shall hold a public hearing on the matter in accordance with Section 11.06 of this Chapter. The Council shall prescribe the time and the manner in which payments for all such utility services shall be made, and may make such other regulations as may be necessary, and the penalties for violations of such regulations. Section 11.03. Purchase in Bulk. The Council may in lieu of providing for the local production of gas, electric, water and other utilities, purchase the same in bulk and resell them to local consumers at such rates as it may fix. Before such rates are fixed by the Council, the Council shall hold a public hearing on the matter in accordance with Section 11.06 of this Chapter. Section 11.04. Lease of Plant. The Council may, if the public interest will be served thereby, contract with any responsible person, co -partnership or corporation for the operation of any utility owned by the City upon such rentals and conditions as it may deem necessary; but such contract shall not be an emergency ordinance. In no case shall such contract be for a longer term than ten (10) years. City of Mounds View — Home Rule Charter - Page 19 of 21 Revision Date 1/11/07