(1) The governing body of each municipality
has the power:
(a) (I) To acquire waterworks, gasworks, and gas distribution systems for the
distribution of gas of any kind or electric light and power works and distribution
systems, or heating and cooling works and distribution systems for the distribution
of heat and cooling obtained from geothermal resources, solar or wind energy,
hydroelectric or renewable biomass resources, including waste and cogenerated
heat, and all appurtenances necessary to any of said works or systems or to
authorize the erection, ownership, operation, and maintenance of such works and
systems by others. No such works or systems, except waterworks, shall be acquired
or erected by a municipality until the question of acquiring or erecting the same is
submitted at a regular or special election and approved in the manner provided for
authorization of bonded indebtedness by section 31-15-302 (1)(d) and in accordance
with the requirements of law, including requirements of law relating to the
acquisition and financing of public utilities by municipalities. The question of
acquiring or erecting a waterworks need not be so submitted and approved at an
election.
(II) All such works or systems authorized by any municipality to be erected
by others or the franchise of which is extended or renewed shall be authorized,
extended, or renewed upon the express condition that such municipality has the
right and power to purchase or condemn any such works or systems at their fair
market value at the time of purchasing or condemning such works or systems,
excluding all value of the franchise or right-of-way through the streets and also
excluding any value by virtue of any contract for hydrant or private rental or
otherwise entered into with the municipality in excess of the fair market value of
the works or systems. If, after an election conducted in the manner prescribed in
section 31-15-302 (1)(d), the municipality is authorized to acquire any of said works
or systems after granting a franchise therefor to any person, the municipality shall
purchase or condemn such works or systems within the municipal limits then
utilized in serving the inhabitants of such municipality at their fair market value.
Nothing in this subparagraph (II) shall require such municipality to purchase or
condemn all or any part of such works or systems which is obsolete or which has
outworn its usefulness.
(III) If the municipality elects to purchase such works or systems and if the
parties in interest cannot agree on the purchase price, they shall enter into a
written agreement to arbitrate the matter and to abide by the award of the
arbitrators, in which event each party shall choose an arbitrator to determine their
fair market value. If the two arbitrators cannot agree on the fair market value, they
shall choose a third disinterested arbitrator, and the award of any two arbitrators
shall be final and binding upon the parties.
(IV) Nothing in this paragraph (a) shall authorize the condemnation or
purchase of any such works or systems within twenty years after the granting of
any franchise therefor, except at periods of ten or fifteen years thereafter, without
the consent of the owner of the franchise.
(b) To construct or authorize the construction of such waterworks without
their limits and, for the purpose of maintaining and protecting the same from injury
and the water from pollution, their jurisdiction shall extend over the territory
occupied by such works and all reservoirs, streams, trenches, pipes, and drains
used in and necessary for the construction, maintenance, and operation of the same
and over the stream or source from which the water is taken for five miles above the
point from which it is taken and to enact all ordinances and regulations necessary
to carry the power conferred in this paragraph (b) into effect;
(c) To make such grant to inure for a term of not more than twenty-five years
when the right to build and operate such water, gas, heating and cooling, or electric
light works is granted to a person by said municipality and to authorize such person
to charge and collect from each person supplied by them with water, gas, heat,
cooling, or electric light such water, gas, heat, cooling, or electric light rent as may
be agreed upon between the person building said works and said municipality; and
to enter into a contract with the person constructing said works to supply said
municipality with water for fire purposes and for such other purposes as may be
necessary for the health and safety thereof and also with gas, heat, cooling, and
electric light and to pay therefor such sums as may be agreed upon between said
contracting parties;
(d) To assess from time to time, when constructing such water, gas, heating
and cooling, or electric light works and in such manner as it deems equitable, upon
each tenement or other place supplied with water, gas, heat, cooling, or electric
light, such water, gas, heat, cooling, or electric light rent as may be agreed upon by
the governing body. Gas, heat, cooling, and electric light shall be charged for
according to use. At the regular time for levying taxes in each year, said
municipality is empowered to levy and cause to be collected, in addition to the
other taxes authorized to be levied, a special tax on taxable property in said
municipality. Such tax, with the water, gas, heat, cooling, or electric light rents
hereby authorized, shall be sufficient to pay the expenses of running, repairing, and
operating such works. If the right to build, maintain, and operate such works is
granted to a person by a municipality and the municipality contracts with said
person for the supplying of water, gas, heat, cooling, or electric light for any
purpose, such municipality shall levy each year and cause to be collected a special
tax, as provided for in this paragraph (d), sufficient to pay off such water, gas, heat,
cooling, or electric light rents so agreed to be paid to said person constructing said
works. The tax shall not exceed the sum of three mills on the dollar for any one
year.
(e) To condemn and appropriate so much private property as is necessary for
the construction and operation of water, gas, heating and cooling, or electric light
works in such manner as may be prescribed by law; and to condemn and
appropriate any water, gas, heating and cooling, or electric light works not owned
by such municipality in such manner as may be prescribed by law for the
condemnation of real estate.