(1) The rights, privileges and license granted shall be for a continuing five (5) year term subject to annual license renewal, payment of license fees, and the provisions of subsection (2) of this section.

(2) The city manager or designee may elect to not extend a license, or all licenses, by notice in writing given to a licensee or all licensees by April 1. In such event, the license or licenses shall have a flat license term of five (5) years remaining from the following July 1.