ORDINANCE NO. 8030
AN ORDINANCE AMENDING ORDINANCE NO. 6450 CONCERNING THE NON-EXCLUSIVE FRANCHISE TO WESTAR ENERGY, FORMERLY KNOWN AS WESTERN RESOURCES, INC., A KANSAS CORPORATION, TO CARRY ON THE BUSINESS OF SELLING AND DISTRIBUTING ELECTRICITY TO THE CITY OF LAWRENCE, KANSAS AND ITS INHABITANTS PURSUANT TO K.S.A. 12-2001 ET SEQ.
BE IT ORDAINED BY THE GOVERNING
BODY OF THE CITY OF
Section 1. Section 5 (Franchise Fee) of Ordinance No. 6450 is hereby amended to read as follows:
Section 5. Franchise Fee.
(A)
In consideration of the grant of this franchise and the
premises herein, the Company agrees to pay and the City of Lawrence, Kansas
agrees to accept as adequate compensation and consideration for the franchise
hereby granted in lieu of any occupation, license, or privilege tax or any
lease or easement charge, four percent (4%) five percent (5%) of
the total gross receipts from the sale of electrical energy during the term of
this franchise to all consumers within the corporate limits of the City. The City may by ordinance modify the
franchise fee, without approval of the Company, to an amount not to exceed five
percent (5%) of the total gross receipts from the sale of electrical energy
during the term of this franchise to all consumers within the corporate limits
of the City, such ordinance shall take effect not earlier than ninety (90) days
after publication. Total gross receipts
shall include all sources of income generated, directly or indirectly, by the
use of City property, right-of-way, and utility easements granted by this
franchise. Gross receipts shall not
include other operating revenues received by the Company, which are not related
to the “sale of electrical energy.”
These other operating revenues include, by are not limited to, delayed
payment charges, connection fees, disconnection and reconnection fees,
collection fees and return check charges.
(B) The franchise fee shall be paid monthly, by electronic transfer to the City of Lawrence, Kansas, or other method approved by the City and Company, for the preceding monthly period. On or before March 1 of every year, the Company shall also submit a report in substantially the same form as Attachment A to this Ordinance which shall detail revenues from specific sources for the preceding year. The company shall pay the applicable fee to the City within forty-five (45) days of the last day of the applicable month for which a fee payment is due and owing. Payments received after the due date shall be subject to a late payment charge of one percent (1%) per month. Payments due and owing as a result of an audit of franchise fee payments shall be subject to a late payment charge of one percent (1%) per month; provided such late payment charges shall 1) begin to accrue forty-five (45) days after notice is mailed to the Company; and 2) the late payment charge shall only apply to audit generated payments agreed to by the City and the Company. In the event the Company makes an overpayment of franchise fee payments, the appropriate payment to the Company shall include a one percent (1%) per month charge beginning on and after forty-five (45) days after the City and the Company agree in writing to the amount of the overpayment.
Section 2. Section 5 (Franchise Fee) of Ordinance No. 6450 is hereby repealed it being the intent to supersede the repealed provision. It is not the intention of this ordinance to repeal or amend any other portion of the existing Ordinance No. 6450, and all remaining provisions shall remain in full force and effect.
Section 3. This ordinance shall take effect and be in full force and effect following its adoption and publication as provided by law.
Passed by the governing body this day of , 2006.
Mike Amyx, Mayor
ATTEST:
Frank S. Reeb, City Clerk
Approved as to form and legality:
David L. Corliss, Interim City Manager and
Director of Legal Services