15-10802 Westar Energy Electric Franchise AmendmentSummary published in The Salina Journal on October $, 2015.
ORDINANCE NO. 15-10802
AN ORDINANCE AMENDING ORDINANCE NO. 05-10292 TO AMEND WESTAR
ENERGY, INC.'S EXISTING ELECTRIC FRANCHISE.
WHEREAS, pursuant to Ordinance No. 05-10292 (the "Franchise"), which was passed
and approved by the Governing Body on July 11, 2005, Westar Energy, Inc. (the "Company")
was granted a non-exclusive contract franchise to construct, maintain, and operate its facilities
in the public right-of-way for the purpose of supplying electric energy within the City of Salina,
Kansas;
WHEREAS, pursuant to Section 4 of the Franchise, the Company agreed to pay the
City of Salina ("City") a franchise fee equal to five percent (5%) of the Company's gross
receipts received from the distribution of electric energy within the City of Salina, Kansas;
pursuant to Section 3 of the Franchise, the City may change the franchise fee percentage rate, to
be effective January 1, 2016, by providing sixty (60) days' advance written notice to the
Company; and
WHEREAS, the Governing Body wishes to amend Section 4 of the Franchise to
change the franchise fee percentage rate to six percent (6%), to be effective January 1, 2016,
SO NOW THEREFORE,
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:
Section 1. Section 4 of the Franchise is amended to provide as follows:
Section 4. Compensation to the City.
a. In consideration of and as compensation for the franchise hereby granted to the
Company by the City, the Company shall make an accounting to the City of all
electric energy that has been distributed on a monthly basis. The Company shall pay
the City:
A sum equal to six percent (6%) of the Gross Receipts received from the
Distribution of electric energy; and
The above sum shall be adjusted for uncollectible receivables and for
uncollectible receivables which are later collected.
b. Payment of the compensation above shall commence on January 1, 2016. Prior to
January 1, 2016, payments shall continue to be calculated and be paid in the manner
previously provided in the Franchise. Such payments shall be made to the City
under procedures, which are mutually agreed to by the Company and the City within
thirty (30) days of the last day of the month to which such accounting shall apply.
c. In the event the accounting rendered to the City by the Company is found to be
incorrect,"then payment shall be made on the corrected amount, it being agreed that
the City may accept any amount offered by the Company, but the acceptance thereof
by the City shall not be deemed a settlement of such item if the amount is in dispute
or later found to be incorrect. The Company agrees that all of its books, records,
documents, contracts and agreements as may be reasonably necessary for an
effective compliance review of this Ordinance shall upon reasonable notice and at
all reasonable times be opened to the inspection and examination of the officers of
the City and its duly authorized agents, auditor, and employees for the purpose of
verifying said accounting. Notwithstanding the obligation herein, the Company shall
have the right to require the reasonable protection of proprietary information of the
Company.
Section 2. Repealer. Existing Section 4 of the Franchise is repealed.
Section 3. Effective. This ordinance shall take effect and be in full force from and after
January 1, 2016, following its adoption and publication by the following summary once in the
official city newspaper:
Ordinance No. 15-10802 Summary
On September 21, 2015, the City Commission passed Ordinance No. 15-10802.
The ordinance amends Ordinance No. 05-10292 to amend Westar Energy, Inc.'s
existing electric franchise for purposes of increasing the franchise fee to an
amount equal to six percent (6.0%) of Westar Energy, Inc.'s gross receipts
received from the distribution of electric energy within the City of Salina,
Kansas. A complete copy of the ordinance is available at www.salina-ks.gov or
in the office of the city clerk, 300 W. Ash Street, free of charge. This summary
is certified by the city attorney.
Section 4. Notice to Company. The City Clerk is directed to mail a copy of this ordinance to
the Company in the manner and at the address provided in Section 14 of the Franchise within
five (5) days following its adoption.
Introduced: September 21, 2015
jAdod: October 5, 2015
rd, Mayor
[SEAL]
ATTEST:
Vaw
Shandi Wicks, CMC, City Clerk
Certification of Publication Summary:
Bengtson, qy Attorney