The council may by ordinance provide a procedure for the granting of franchises or leases or grant franchises pursuant to the procedure provided by the state law. Franchises or leases may be granted for the use of the streets, public places or property of the city upon such terms, conditions, restrictions and limitations as may be prescribed by ordinance, but no franchise or lease shall be granted without reserving to the city adequate compensation for the privilege conferred. Franchises or leases may be granted for a period of fifty years with the option to renew for an additional twenty-five years. No franchises or leases shall be granted for a longer period than herein specified except that franchises or leases granted to a public utility may be granted for a longer period. provided there is reserved to the city the right to take over at any time the portion of such utility located within the city without compensation for the value of franchise or lease granted.