Contracts for utility services

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  1. (a) For the purpose of providing water, gas, electric lights, heat, power, cold storage, street railroads, emergency medical services, and other public utility necessities for itself and for the inhabitants of any municipality, the mayor and city council, or the other governing bodies of municipalities having a commission, administrator, or city manager form of government, may contract on its own behalf, and on behalf of the inhabitants of the municipality, with any person or company to construct and operate the utility and may grant to the person or company, whether municipally owned and operated or otherwise, for a time which may be agreed on, for the privilege, exclusive or otherwise, of using the streets, alleys, and public grounds of the municipality for such purposes, on such rates, charges, and terms as may be agreed upon.

  2. (b) The mayor and council or other governing body may authorize the person or company to assign the contract or privileges and to transfer the utility to any other person, or company having authority to conduct any such business in the municipality, with full authority to assignee or transferee to enjoy and use them, in like manner and to the same extent, as the assignor could have done.


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