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(1) They may contract with and authorize any person, company or association to construct gas works, electric or other lighting works within the city, and give such persons, company or association the privilege of furnishing light for the public buildings, streets, sidewalks and alleys of the city for any length of time not exceeding three years.
(2) If any payment on a contract with a private person, firm, or corporation to construct gas works, electric or other lighting works within the city is retained or withheld, it shall be retained or withheld and released as provided in Section 13-8-5.