AN ORDINANCE GRANTING TO WESTAR ENERGY, INC., A KANSAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, PRESCRIBING THE TERMS THEREOF.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAKE QUIVIRA, KANSAS.
SECTION ONE:
In consideration of the benefits to be derived by the City of Lake Quivira, Kansas (the “City”), and its inhabitants, there is hereby granted to Westar Energy, Inc., a Kansas corporation, hereinafter sometimes designated as “Company,” said Company being a corporation engaged in the business of selling and furnishing electric power throughout the state of Kansas and to the inhabitants of the City, the right, privilege, and authority for a period of twenty (20) years from the effective date of this Ordinance, to occupy and use the present and future streets, avenues, alleys, bridges, parks, parking lots, and public places of said City, for the placing and maintaining of equipment and property necessary to carry on the business of selling and distributing electricity for all purposes to the City, and its inhabitants, and through said City and beyond the limits thereof; to obtain said electricity from any source available; and to do all things necessary or proper to carry on said business in the City.
SECTION TWO:
As further consideration for the granting of this franchise, and in lieu of any city occupation, license, or revenue taxes, the Company shall pay to the City during the term of this franchise If:%) of its gross cash receipts from the sale or distribution of electric energy within the corporate limits of said City, such payment to be made monthly for the preceding monthly period. Gross cash receipts shall not include other operating revenues received by the Company, which are not related to the “sale or distribution of electric energy”. Other operating revenues include, but are not limited to, delayed payment charges, connection fees, disconnection and reconnection fees, collection fees and return check charges. Company will use commercially reasonable efforts to ensure the accuracy of its records and of the determination of the amount of gross cash receipts subject to the fee provided for in this Section Two.
The City may at its option change or amend the compensation to be paid to the City hereunder by passage of an Ordinance pursuant to K.S.A. 12-2001, et seq., or any amendment thereto and the City shall in such case notify the Company in writing of such amendment not later than ninety (90) days before the fifth, tenth, or fifteenth anniversary of this franchise, the rate of compensation hereunder may be renegotiated.
Any new rate of compensation that results from such renegotiation shall be effective on and after the fifth, tenth, or fifteenth anniversary of this franchise. Notwithstanding anything to the contrary in this Franchise, the fee provided for in this Section Two shall not become effective within any area annexed by the City until 30 days after the City provides the Company with a certified copy of the annexation ordinance, proof of publication as required by law and a map of the city detailing the annexed area.
SECTION THREE:
Company, its successors and assigns, in the construction, maintenance, and operation of its electric transmission, distribution and street lighting system, shall use all reasonable and proper precaution to avoid damage or injury to persons and property, and shall indemnify, hold and save harmless the City, from any and all damage, injury and expense caused by the acts of said Company, its successors and assigns, or its or their agents or servants.
SECTION FOUR:
After the approval of this Ordinance by the City, Company shall file with the City Clerk, the Company’s unconditional written acceptance of this Ordinance. Said Ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successors and assigns, from and after the first day of the first month after such acceptance is provided by said Company to the City after its final passage, approval and publication as required by law, and acceptance by said Company.
SECTION FIVE:
The City shall have access to and the right to examine, at all reasonable times, all books, receipts, files, records and documents of Company as necessary to verify the correctness of any statement of gross cash receipts or a percentage thereof, and to correct the same, if found to be erroneous. If such statement of gross cash receipts is incorrect, then such payment shall be made upon such corrected statement.
SECTION SIX:
All costs of publication of this Ordinance shall be paid by Company.
SECTION SEVEN:
Company shall file this Ordinance with the State Corporation Commission of Kansas within thirty (30) days of the date of passage and approval of this Ordinance by Governing Body of the City. Should the State Corporation Commission take any action with respect to this franchise ordinance, which would or may preclude Westar Energy, Inc., a Kansas corporation, from recovering from its customers any cost provided for hereunder, the parties hereto shall renegotiate this Ordinance in accordance with the State Corporation Commission’s ruling.
SECTION EIGHT:
Within sixty (60) days from and after the approval of this Ordinance by the State Corporation Commission, Company shall file with the City Clerk of the City, its unconditional written acceptance of this Ordinance. Said Ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successors and assigns, from and after passage, approval and publication as required by law, and acceptance by said Company.
SECTION NINE:
This Ordinance, when accepted as above provided, shall constitute the entire agreement between the City and Company relating to this franchise and the same shall supersede and cancel any prior understandings, agreements, or representations regarding the subject matter hereof, or involved in negotiations pertaining thereto, whether oral or written.
SECTION TEN:
This franchise is granted pursuant to the provisions of K.S.A. 12-2001.
(01-30-2013)