4111 Operation of Pipe Line SystemORDINANCE NO. 4111
Published in the Salina Journal October 10th. 1931)
AN ORDINANCE granting to the Kansas Pipe Line & Gas Company, a Kansas
corporation, operating a pipe line system for the conveyance of
natural gas in excess of fifteen miles in length, its successors
and assigns, the right, permission and authority to construct,
maintain and operate a system of mains, pipes, services and other
appliances in, upon, over, across and along the streets, avenues,
alleys, bridges and public places of the City of Salina, Kansas,
for the transmission, distribution and sale of gas for lighting,
heating, industrial and other uses.
BE IT ORDAINED by the Board of Commissioners of the City of Salina,
Kansas:
Section 1. That in consideration of the benefits to be derived
from the operation of a gas distribution system in the City of Salina,
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Kansas, by said City and its inhabitants, and of the further agreements
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to be kept and performed, and the payments to be made by the grantee,
as hereinafter provided for, there is hereby granted to THE KANSAS PIPE
LINE & GAS COMPANY, a c&rporation duly incorporated under the laws of
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the State of Kansas, now and heretofore operating a system of pipe
lines for the conveyance of natural gas between certain places in the
State of Kansas (hereinafter sometimes designated as "grantee"), its
successors and assigns, the right, permission and authority to acgilire,
lay, install, reconstruct, extend, maintain and operate a gas trans-
mission and distribution system within the limits of said city, as the
same now exists or be hereafter extended for a period of Eighteen (18)
years from and after the date this ordinance becomes effective; and
for this purpose, there is hereby further granted to said grantee, the
right, permission and authority during said period to acquire, lay, in-
stall, reconstruct, extend, maintain and operate in, upon, over, across
and along all of the streets, avenues, alleys, bridges and public places
of said city, all mains, services, pipes, conduits and appliances nec-
essary or convenient for transmitting, distributing and supplying of gas
to said city and its inhabitants for heating, industrial, power and other
purposes for which gas may be used during the term here of, and for the
purpose of transmitting such gas into, through or beyond the immediate
limits of said City.
Section II. That all mains, services and pipes which shall be
laid or installed under this grant, shall be so located and laid as
not to obstruct or interfere with any water pipes, drains, sewers or
other structures already installed, and excavations for all such mains,
services and pipes shall be subject to the approval of the Board of
Commissioners of said City, or subject to the approval of such representa-
tives of said City as said City may from time to time provide.
Grantee shale in the doing of any work in connection with its
said mains, pipes and services avoid, so far as may be practicable,
interfering with the use of any street, alley or other highway, and
all such work shall be done in accordance with such reasonable rules
and regulations relating thereto as the City may prescribe by ordinance,
and where the paving or surface of the street is disturbed, grantee
shall, at its own expense and in a manner satisfactory to the duly
authorized representatives of the City, replace such paving or surface
of the street or alley in as good condition as before said work was
commenced, and with like material unless otherwise directed or consented
to by said City. In the event, that at any time hereafter said city
shall lawfully elect to change or alter the grade of any street, avenue,
public ground or highway, the grantee will, upon being directed by
resolution of the governing body of said City, so to do, relay its
mains, or service pipes where the same shall be necessary by reason
of said change of grade; the cost of relaying said mains or service
pipes to be paid by the said grantee, its successors and assigns.
Section III. That grantee shall make such reasonable extensions
of its mains from time to time and shall install services to the curb
line where mains are located in a street and to property line where
mains are located in an alley, as may be required to furnish service
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to parties making application therefor located within the corporate
limits of the City, provided, however, the grantee shall not be re-
quired to make any such extensions of its mains for the purpose of
serving any new consumer or consumers, which will require the in-
stallation of more than Seventy -Five (75) feet of mains for each con-
sumer to be served thereby, nor where the estimated revenue to be de-
rived from such service is not sufficient to shoal an adequate return
upon the investment required to serve such consumer or consumers. All
extensions shall be made subject to legal rules and requirements as may
be in force and applicable.
Section IV. The rates to be charged for gas by grantee shall be
such as are or may be prescribed by the regulatory governing body having
jurisdiction thereof.
Such rates shall apply only when bills are paid on or before ten
days after the monthly billing date. Vihen not so paid the gross rate,
which is ten per cent higher than such rates, will apply, and unless
said bill plus said ten per cent penalty is paid in full within fifteen
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days after the monthly billing date, the grantee may discontinue gas
service until such bill is paid in full and a charge of $1.00 may be
collected for reconnection.
That grantee, its successors and assigns shall have the right
to make such reasonable rules and regulations for the protection of its
property, prevention of loss and waste in the conduct and management of
its business, and for the sale and distribution of gas as may from time
to time by it be deemed necessary including the requirements of a reason-
able meter deposit to insure the collection of bills; and shall return
any deposits so made upon the cessation of service, together with in-
terest thereon at the rate of four per cent, (4%) per annum, provided,
the customer has paid all sums due from him to the grantee, and in the
event, upon the cessation of service, such sums are not paid, the same
may be deducted from said meter deposit. Copies,of all such rules and
regulations shall be furnished to the City; 1,rovided, such rules and
regulations shall be in conformity to those in force in other cities
of similar size and character, and shall not be in contravention to any
of the pro,-isions of this ordinance, or any other reasonable ordinance
now in force or hereafter adopted by the City.
Section V. That grantee shall furnish and instdll for its
customers, reliable meters and shall keep the same in repair without
cost to the customer; all meters used by grantee shall at all reasonable
times be subject to inspection by the City, and the City shall have the
right to test said meters at reasonable times; all meters shall be in-
stalled under ground or within the buildings or basements of the premises
to be served.
If any consumer shall desire a test of his meter, he shall deposit
the sum of §1.00 with t#e City Clerk, and thereupon the grantee shall
test said meter under the supervision of the City, or its authorized
representative. If the test discloses the meter to be inaccurate to the
extent of overcharging the customer more than two per cent (2%) of his
bill, said deposit shall be refunded to the customer and a similar sum
shall be paid to the City by grantee. Grantee shall also make refund
and adjustment in accordance with the Rulings of the Public Service
Commission of Kansas, or such other regulatory body ha-ing jurisdiction
thereof.
Section VI. The said grantee, its successors and assigns, shall
file a map or plat with the City Clerk of the City of Salina, showing
the location and size of all gas mains and distributing pipes laid in
the said City of Salina, and said map or plat shall be corrected from
time to time, showing all additional mains and distributing pipes laid.
I Section VII. That in case the available supply of natural gas
shall at any time fail or become insufficient to supply the needs of
the public of said city, the grantee shall be authorized, upon its
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election, so to, do, to change to manufactured gas service and to
distribute and sell manufactured gas in and through its mains and
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services. Such change in service shall be made with the consent and
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approval of the governing body of the City, if required by law, and
such reasonable rates may be established for manufactured gas as the
City and grantee may agree upon; or as may be established by the
regulatory body having ,jurisdiction thereof.
Section VIII. That grantee shall be required and by the acceptance
hereof, agrees to save harmless the City from and against all claims
and demands and from all loss and expense incurred as a result thereof,
arising out of the laying, installing, removing, inspection or repair
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of any mains, pipes, services or appliances of grantee, or by the
negligence of the grantee, or by reason of the negligent use and
operation thereof, during the term of this ordinance.
Section IX. The gas to be supplied to the City and its inhabitants
under the terms hereof, shall be merchantable gas, and supplied to the
consumersmeters at such reasonable pressure as may be prescribed by
the regulatory body having jurisdiction over said matter.
Until and unless -lawfully changed, the standard of pressure ser-
vice shall be the same as now or hereafter fixed by the Public Service
Commission of the State of Kansas, pertaining to the pressure in a
maiority of the cities of Kansas being suplies by natural gas service.
Natural gas containing 900 or more British Thermal Units per cubic
foot and manufactured gas containing 550 or more British Thermal Units
per cubic foot shall be deemed to meet the above requirements. Grantee
shall at once install at its own expense and thereafter maintain at the
place designated by the City, such devices and equipment as shall be
necessary to test the pressure and quality of the gas and shall furnish
free of charge the gas used in making such tests, and the City may make
such tests thereof as its governing I-ody shall deem necessary. Should
the gas so tested be found at any time of lower pressure or heating
value than above provided, then the price to the consumers for that
month shall be proportionately reduced.
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Section X. In the event of failure of the grantee to comply with
this ordinance or any of its provisions, this franchise may be forfeited
at the option of the City, and upon such forfeiture all rights hereunder
shall cease and determine; provided, however, before such forfeiture shall
become effective, the City shall serve a written notice by registered
maill addressed to thero er post office address upon the
p p p grantee and
the holder of any deed of trust or mortgage, as shown by the records of
the of ice of the Register of Deeds, Saline County, Kansas; which notice
shall advise the grantee or said mortgagee, or trustee, wherein the grantee!
is in default, and if said default is corrdeted within thirty (30) days
from the date of the mailing of such notice, then this franchise shall
not be forfeited for the reasons set forth therein; otherwise, said for-
feiture and said notice shall be in full force and effect. Provided,
further that should said franchise be forfeited, the grantee, its sue-
cessors or assigns, or the mortgagee or any trustee under any deed of
trust which is of record, shall have the term of six months in which to
remove the pipes and pipe lines from the streets, avenues, alleys or
other public grounds of said City; and during the removal of said property,'
said grantee shall not be obligated to distribute gas through said dis-
tribution system. Any person lawfully undertaking to remove said pipes
or pipe lines under the provisions of this section, shall provide good
and sufficient evidence that it will save the city harmless from any
loss or damage occasioned by such removal; and that it will repair and
replace all streets, avenues, alleys and easements in as good condition
as they were before said removal; such removal shall be under supervision
of the city. Provided, further that in the event the City prevents said
persons from removing said pipes or pii.e lines, the time herein provided
for removal shall be extended for a period equal to that caused by the
acts of the City.
Section XI. The City shall have the right and option to purchase
the gas distribution system and property of the grantee, located within
the City, upon the expiration of eight (8) years from the date this
ordinance becomes effective, and upon the expiration of each five (5)
year period thereafter during the term of this franchise, in the manner
provided by law at the time of said election to purchase.
S_ftion XIII. In the case of sale of the distribution system of the
grantee within the City, it will be the duty of the purchaser of said
distribution system to purchase gas on a competitive basis, in the event
gas can be so purchased; and the price paid therefor by the holder of this
franchise, shall be fair and reasonable, taking into consideration the
quantity of gas available, the quality thereof and other things rhich
shall enter into proper and due consideration; and the holder of this
franchise shall keep the city fully advised of all negotiations and I
terms of any contract for the purchase of gas and the consumnation j
thereof.
Section XIII. That within thirty (30) days after the passage
and approval of this ordinance, grantee shall prepare and file an
unconditional written acceptance of this ordinance with the clerk of
said City. Failure of said grantee to so accept this ordinance with-
insaid period of time, shall be deemed a rejection thereof by said
grantee, and the rights and privileges herein granted shall after
the expiration of said period of thirty (30) days, if not so accepted,
absolutely cease and determine, unless said period of time shall be
extended by further ordinance duly passed for that purpose.
Section XIV. That all provisions of this ordinance which are
obligatory upon or which inure to the benefit of said THE KANSAS
PIPE LINE & GAS COMPANY, shall also be obligatory upon and shall
inur to the benefit of all successors and assigns of said THE KANSAS
PIPE LINE & GAS COMPANY; that the word "grantee" whenever used in
this ordinance shall include and be taken to mean not only THE KANSAS
PIPE LINE & GAS COMPANY, but all successors and assigns of said THE
KANSAS PIPE LINE & GAS COMPANY.
Section XV. As a further consideration of and as compensation
for the franchise hereby granted, and in lieu of all occupation and
license taxes, the grantee shall pay to the City the sum of Two
Thousand Dollars ($2,000.00) per annum, payable on the lst day of
July of each year for the first eight years of the term granted here-
under; except the payment for the current year shall be payable with-
in ten (10) days after this ordinance becomes effective; and shall pay
to the City for the remaining term of the franchise granted hereunder,
the sum of one per cent (1%) of its gross receipts for each year for
said remaining term, which payment shall be made on or before June
30th and December 31st of each year; and the grantee shall render to
the City at the time of payment, a statement of the gross receipts for
the preceding six mohths, which statement shall be verified under oath.
In the event the City so desires, it may at all reasonable times,
examine the books of the Company for the purpose of ascertaining the
correctness of the statement of gross receipts submitted by the grantee.
Any sums accepted by the City by virtue of this section, shall not
preclude the City from making claim and collecting any additional sums
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sums which may be due in the event said amount so paid is incorrect.
-Section XVI. All provisions of any other ordinance or amend-
ments thereto now in force, granting to any person, firms or corpora-
tions, the right and privilege to distribute gas in the City of Salina,
are hereby repealed and revoked; and the grantee hereof shall obtain
from the holder of such right its agreement to the cancellation of
said right.
-Section XVII. That this ordinance shall become effective and
be in force and shall constitute a binding contract between the
parties hereto, their successors and assigns, from and after the
expiration of sixty (60) days after its final passage and after its
due publication, as required by law, and after its acceptance as
herein provided.
Section XVIII. This franchise is granted under and in con-
formity with the provisions of Section 13-2801, Revised Statutes of
Kansas, 1923, relating to the granting of franchises by Cities of the
First Class, having a Commission form of Government.
Introduced and Read in full June 22, 1931.
Read in full June 29, 1931.
Read in full and passed by the Board of Commissioners of the City
of Salina, Kansas, this 5th day of October, A. D. 1931.
M. A. Stevenson
Mayor
Attest:
Chas. E. Banker
City Clerk
City of Salina
) SS
County of Saline
I. Chas. E. Banker, City Clerk of the City of Salina, Kansas,
do hereby certify that the above and foregoing is a true and cofrect
copy of Ordinance No. 4111 passed and approved by the Board of Com-
missioners of the City of Salina, October 5th, 1931; and a record of
the vote on its final adoption is found on page Lel Journal No. 12
City Clerk