ORDINANCE NO.          8080    

AN ORDINANCE AMENDING ORDINANCE NO. 7147 CONCERNING THE NON-EXCLUSIVE FRANCHISE TO KAW VALLEY ELECTRIC COOPERATIVE TO SUPPLY ELECTRIC SERVICE 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 LAWRENCE, KANSAS:

Section 1.  Section 6 (Franchise Fee) of Ordinance No. 7147 is hereby amended to read as follows:

Section 6.         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 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 included, but 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.  Concurrent with the payment, the Company shall monthly 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 the 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 payments 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 the audit generated payments agreed to by the City and the Company.  In the event the 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.

(C) The franchise fee shall be in lieu of all other licenses, charges, fees or impositions (other than the usual general or special ad valorem taxes) which might be imposed by the City for the privilege of operating an electric system within the City.

(D) The company agrees to use due diligence in ascertaining the boundaries of the City, including the annexation of property into the City.  The City shall provide copies of annexation ordinances to the Company on a timely basis.  The Company shall obtain a copy of the annual boundary resolution adopted by the City, and the Company shall compare the City boundaries with existing and planned Company services and customers to ensure appropriate franchise fee collection from customers within the corporate limits of the City.  The Company shall be responsible for ensuring that appropriate jurisdictional codes for customer accounts have been altered to reflect the adoption of ordinances annexing territory into the City limits.

Section 2.  Section 6 (Franchise Fee) of Ordinance No. 7147 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. 7147, and all remaining provisions shall remain in full force and effect.

Section 3.        This ordinance shall take effect following its adoption and 90 days after publication as provided by law.

Passed by the governing body this  day of , 2007.

                                                                        Mike Amyx, Mayor

ATTEST:

Frank S. Reeb, City Clerk

Approved as to form and legality:

Toni Ramirez Wheeler, Interim Director of Legal Services

The City Clerk is instructed to publish this ordinance one time in the official city newspaper and provide proof of publication to the Interim Director of Legal Services.