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operating a public utility or for any other use, except as otherwise provided by State Law. Franchises must be granted by ordinance. The terms and conditions of the franchise must be stated in the ordinance. The grantee must pay for the publication of the franchise ordinance, leaving a sufficient deposit with the Clerk-Administrator to guarantee publication before the ordinance is passed. Exclusive franchises may only be granted upon the majority affirmative vote of those voting on the ordinance at a municipal election following a public hearing on the ordinance. Section 10.02 Term. Franchise terms must not exceed twenty- five years. Section 10. 03 Public Hearing. The Council must hold a public hearing before adopting a franchise ordinance, or before the Council fixes the rates, fares or prices to be charged by a public utility. Notice of the hearing must be published in at least two places. One notice must be in the official City newspaper and the other may be in a City newsletter or a City-wide mailing. Notice must be published at least 30 days prior to the hearing. Section 10. 04 Power of Rectulation Reserved. The Council may, by ordinance, reasonably regulate and control the exercise of any franchise, subject toapplicable law. This regulation may include setting the maximum rates, fares or prices to be charged by the grantee. The value of the franchise must not 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 regulations, 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 franchise is subject to the same limitations and must be granted in the same manner as a new franchise. CHAPTER 11 PUBLIC OWNERSHIP AND OPERATION OF UTILITIES 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 to supply its own utility needs and/or to supply utility service to private consumers. The City may, by ordinance, construct or acquire all necessary facilities to supply utility service. The City may purchase in bulk and resell gas, electric, water and other utilities. The City Council supervises all City-owned utilities. Section 11. 02 Rates and Finances. Following a public hearing with notice as described in Section 11. 05, the Council will [95-1] 17