AN ORDINANCE GRANTING KANSAS CITY POWER & LIGHT COMPANY, ITS GRANTEES, SUCCESSORS AND ASSIGNS, THE RIGHT AND FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN ALL WORKS AND PLANTS NECESSARY OR PROPER FOR SUPPLYING CONSUMERS WITH ELECTRIC OR OTHER ENERGY, GRANTING TO SAID COMPANY THE RIGHT TO USE THE STREETS, ALLEYS AND ALL OTHER PUBLIC PLACES, PROVIDING FOR COMPENSATION FROM SUCH COMPANY FOR SAID RIGHT AND FRANCHISE, PRESCRIBING THE TERMS OF AND RELATING TO SUCH FRANCHISE AND REPEALING INCONSISTENT ORDINANCES OR PARTS THEREOF.
WHEREAS, Kansas City Power & Light Company (herein called the Company) is a corporation duly organized and existing under and by virtue of the laws of the State of Missouri, and admitted to do business under the laws of the State of Kansas as a foreign corporation for the purpose of generating and distributing electric energy; and
WHEREAS, the Company is operating a system for the production, transmission and distribution of electric current in the State of Kansas and has heretofore built, or proposes to build, its electric facilities within and through the City of Ottawa, Kansas (herein called the City); and
WHEREAS, the parties hereto desire that the Company furnish energy to consumers in said City located in the areas of the City in which the Company shall hold a Certificate of Convenience and Authority from the State Corporation Commission of the State of Kansas;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF OTTAWA, KANSAS:
SECTION I.
(a) In consideration of the benefits to be derived by the City and the inhabitants thereof from the construction, operation and maintenance of an electric light and power system and the supplying of electric energy to the public, there is hereby granted to the Company and to its successors and assigns, for the term of ten (10) years from the effective date hereof (subject to termination as provided for in Section VII, below) a non-exclusive franchise and authority to construct, operate and maintain within the existing and any future extended corporate limits of the City for which the Company now or shall hereafter hold a Certificate of Convenience and Authority from the State Corporation Commission of the State of Kansas all appropriate facilities and plants for the purpose of supplying electric energy to that specific area of the City to be called the Franchise Area and for the purpose of transmitting power through the City via transmission lines and related facilities and all other operations connected therewith or incident thereto for the purpose of supplying within the Franchise Area electric or other energy in such forms as may be reasonably required for domestic, commercial, industrial, municipal and other purposes and to produce and supply such energy by manufacture, generation, purchase or otherwise, and to transmit and distribute same by means of underground or overhead facilities or otherwise, and for any or all of said purposes it is authorized to (i) construct, install, replace and remove conduits, poles, lamp posts, guys, anchors, wires, cables, street lights and all other related facilities in, on, under, along, across and over all streets, alleys, avenues, bridges, parks, parking and other existing and any future alleys, avenues, bridges, parks, parking and other existing and any future public places or thoroughfares, (ii) construct, erect, maintain and remove all structures, machinery and attachments of any and every kind for any and all said purposes, (iii) enter upon any and all of said public places within the corporate limits of the City as they now exist or may hereafter be opened, widened, extended, laid out and established, including any other territory hereafter added thereto or coming under the City’s jurisdiction, and (iv) to trim trees upon and overhanging such places and make such excavations thereon as may be appropriate for the construction, operation, maintenance, repair, renewal and removal of the Company’s overhead and underground facilities and plants.
(b) The Franchise Area shall consist of those certain properties and the customers thereon contained in Exhibit A to this Agreement. A listing of the legal descriptions of the properties comprising the Franchise Area is attached hereto as Exhibit A and incorporated by reference:
(c) The Company shall not use, or allow any other person or entity to use, its facilities or the City’s right-of-way for any purpose other than the provision of electric power; provided, however, that nothing contained herein is intended to limit or restrict facilities already in place or indirectly related to the provision of electric power, such as Company communications equipment. The Company shall not permit a subsidiary, affiliate, or a third party to acquire rights to occupy the rights-of-way under this franchise, except that the Company may allow the use of its facilities when the City receives prior written notification of such use, and such use is compensated to the City under the provisions of a franchise granted by the city to any such third party.
SECTION II. Any pavements, sidewalks or curbing taken up or any and all excavations made shall be done under the supervision and directions of the governing body of said City under all necessary permits issued for the work, and shall be made and done in such manner as to give the least reasonable inconvenience to the inhabitants of the City and the public generally, and pavements, sidewalks, curbing and excavations shall be replaced and repaired in as good condition as before with all convenient speed, by and at the expense of the Company.
SECTION III. The Company shall at all times during the term of this franchise supply to consumers of electric energy, residing in those portions of the Franchise Area duly certificated to the Company by the State Corporation Commission of the State of Kansas, such electric energy as they may require, and shall extend and construct its lines and services in accordance with legal requirements, and rules and regulations as filed from time to time with the State Corporation Commission of the State of Kansas. However, nothing contained herein shall be construed as a guarantee upon the part of the Company to furnish uninterrupted service, and interruptions due to Acts of God, fire, strikes, civil or military authority, orders of the court and other causes reasonably beyond the control of the Company are specifically exempted from the terms of this Section. The City shall provide the Company a map of the City’s corporate limits (the “Map”). The Map shall be of sufficient detail to assist Company in determining whether their customers reside within the City’s corporate limits. The Map shall serve as a basis for determining Company’s obligation hereunder to collect and pay the franchise fee from customers; provided, however, that if the City’s corporate limits are changed by annexation or otherwise, it shall be the City’s responsibility to (a) update the Map so that such changes are included therein, and (b) provide the updated Map to the Company. Company’s obligation to collect and pay the fee from customers within an annexed area shall not commence until such time after Company’s receipt from the City of actual notice of the annexation along with an updated Map including such annexed area as is reasonably necessary for such Company to identify the customers in the annexed area obligated to pay the fee. During the term of this franchise, the City shall notify the Company in the event of service territory boundary modifications that affect both the Company and the City’s Certificates of Convenience and Authority on file with the Kansas Corporation Commission. The City shall also provide a detailed legal description (metes and bounds) depicting the boundary modifications.
SECTION IV. All poles and wires shall be erected in accordance with the rules and regulations of the State Corporation Commission of the State of Kansas as set out in Docket No. 1944 and any amendments thereto. All poles carrying said wires shall be placed in such manner as to interfere with and obstruct as little as reasonably possible, the ordinary use of the streets, alleys, lanes and highways of said City, and shall not unreasonably interfere with any gas main, water main or sewer now laid out or constructed in or under said streets, alleys, lanes or highways of said City. The Company shall comply with all building, electrical, and zoning codes currently or hereafter in force in the City.
SECTION V. The Company shall, at all times, in the construction, maintenance, and operation of its electric transmission, distribution and street lighting system, use all reasonable and proper precaution to avoid damage or injury to persons or property, and shall hold and save harmless said City from any and all claims, damage, injury and expense caused by the negligence, in whole or in part, of the Company, its successors and assigns.
SECTION VI. As a further consideration for the rights, privileges and franchise hereby granted, and in lieu of all rental, license or occupation taxes for the use of the ways and alleys and streets involved herein, the Company agrees to pay to the City, and the City agrees to accept as adequate compensation and consideration for the Franchise hereby granted five percent (5%) of the total gross receipts charged and collected solely from the sale of electric energy used within the Franchise Area for domestic, commercial and industrial consumption. Any consideration made hereunder shall be reported and paid to the City by the Company on a semiannual basis on each March 31 and September 30 for the years in which this Franchise remains in effect, reflecting such electric energy sold to customers for the six months’ period ending at the last meter reading preceding each February 28 and August 31, respectively. Such payments shall be rendered in cash to the City. During the term of this Franchise Ordinance, the City shall provide a listing of customers that are exempt from franchise fees under the provisions outlined in this Ordinance. The City shall also be responsible for providing notification of any changes to the list of exempt customers.
SECTION VII. The City of Ottawa has the right to terminate this Franchise as of the fifth or succeeding anniversary dates hereof by providing written notice of such termination to the Company at least one hundred twenty (120) days in advance of such anniversary date.
SECTION VIII. The term “gross receipts,” when used in this ordinance shall mean the aggregate amount of all sales and charges from the business of supplying electricity by Company, or any affiliated company, in said municipality during any period less discounts, late payment charges, credits, refunds, sales taxes, uncollectible accounts and payments made pursuant to this agreement.
SECTION IX. All provisions of this Ordinance shall be binding upon the Company and successors and assigns from and after the date of written acceptance hereof by the Company, and shall inure to the benefit of the Company, its grantees and its successors and assigns.
SECTION X. All ordinances and parts of ordinances in conflict herewith are hereby repealed as of the effective date of this Ordinance.
SECTION XI. This Ordinance is made under and in conformity with the laws of the State of Kansas, and shall take effect and be in force as of the first day of the first month after written acceptance by the Company.
(10-19-2016)