Ark. Code Ann. § 14-54-704 (2020)
Contracts for utility services
- 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.
- 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.
History. Acts 1875, No. 1, § 14, p. 1; 1915, No. 163, § 1, p. 692; C. & M. Dig., § 7492; Acts 1929, No. 122, § 1; 1929, No. 291, § 1; Pope's Dig., §§ 9535, 9537; Acts 1981 (Ex. Sess.), No. 23, § 9; A.S.A. 1947, § 19-2319.
Publisher's Notes. Acts 1985, No. 1001, § 8, provided that nothing in the act repealed, by implication or otherwise, Acts 1981 (Ex. Sess.), No. 23, part of which is codified in this section.
The former last part of subsection (b) of this section provided that all assignments and transfers that had been made were ratified and approved.
Cross References. Rate-making authority of Arkansas Public Service Commission, § 23-4-201.
Case Notes
Authority.
Municipal corporation is empowered to contract with any person or corporation to construct and operate waterworks. Lackey v. Fayetteville Water Co., 80 Ark. 108, 96 S.W. 622 (1906).
Franchise granted to a corporation to furnish gas for heat, light, and power becomes, when accepted, a binding contract to be governed by the same rules and principles that control other contracts. Natural Gas & Fuel Corp. v. Norphlet Gas & Water Co., 173 Ark. 174, 294 S.W. 52 (1927).
Privilege, Exclusive or Otherwise.
Municipal council may grant an exclusive privilege or not, as in their judgment seems best. City of El Dorado v. Coats, 175 Ark. 289, 299 S.W. 355 (1927).
Electric power company that occupied some territory of a town prior to its incorporation did not prevent the town from granting to another company an exclusive privilege to use the streets of the town for furnishing electricity. Arkansas Power & Light Co. v. West Memphis Power & Water Co., 187 Ark. 41, 58 S.W.2d 206 (1933).
Rates.
Injunction would not be granted to protect contract rates when contract for change in rates was disapproved and rendered inoperative by referendum. Texarkana v. Southern Cities Distributing Co., 64 F.2d 944 (8th Cir. 1933) (decision prior to § 23-4-201).
Cited: City of Ft. Smith v. Arkansas Pub. Serv. Comm'n, 278 Ark. 521, 648 S.W.2d 40 (1983); L & H Sanitation, Inc. v. Lake City Sanitation, Inc., 769 F.2d 517 (8th Cir. 1985).
Subchapter 8 — Public Health
Effective Dates. Acts 1875, No. 1, § 95: effective on passage.
Acts 1901, No. 70, § 2: effective on passage.
Acts 1901, No. 102, § 2: effective on passage.
Acts 1929, No. 202, § 2: effective on passage.
Research References
ALR.
Regulation of private landowner's disposal of solid waste on own property. 37 A.L.R.4th 635.
Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 439.
C.J.S. 62 C.J.S., Mun. Corp., §§ 133, 265, 270.