HomeMy Public PortalAboutOrd 339 KS Gas Serv Franchise
This Ordinance was filed with the State Corporation Commission on the ~ day of
~\\ ,2<D\
ORDINANCE NO. .3 39
AN ORDINANCE, granting to Kansas Gas Service, Inc., its successors and assigns, a
natural gas franchise, prescribing the terms thereof and relating thereto, and repealing all
ordinances or parts of ordinances inconsistent with or in conflict with the terms hereof.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE:
SECTION 1. That in consideration of the benefits to be derived by the City of Bel
Aire ("City"), and its inhabitants, there is hereby granted to Kansas Gas Service, Inc.
("Company"), said Company being a corporation operating a system for the transmission and
distribution of natural gas in the State of Kansas, the right, privilege, and authority for a
period of twenty (20 ) years from the effective date of this ordinance, to occupy and use the
several streets, avenues, alleys, bridges, parks, parkings, and public places of said City, for
the placing and maintaining of equipment and property necessary to carry on the business of
selling and distributing natural gas for all purposes to the City, and its inhabitants, and
through said City and beyond the limits thereof; to obtain said natural gas from any source
available; and to do all things necessary or proper to carry on said business in the City.
SECTION 2. As further consideration for the granting of this franchise, and in lieu of
any city occupation, license or revenue taxes, the Company shall pay to the City during the
term of this franchise five percent (5%) of said gross cash receipts from the sale of natural
gas for consumption in the City for all purposes within the corporate limits of the City, such
payments to be made monthly for the preceding monthly period. Gross cash receipts shall
not include other operating revenues received by the Company, which are not related to the
"sale of natural gas", These include, but are not limited to, delayed payment charges,
connection fees, disconnection and reconnection fees, collection fees, and return check
charges.
SECTION 3. That all mains, services, and pipe 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. Company shall obtain at no additional
cost to Company, such permits prior to commencing work in the streets, avenues, bridges,
parks, parkings, and public places as the City may from time to time require for purposes of
record keeping. Except that in the event of an emergency Company shall have the right to
commence work without having first obtained such pertnit(s).
SECTION 4. Company shall, in doing of the work in connection with its said gas
mains, pipes, and services, avoid, so far as may be practicable, interfering with the use of any
street, alley, avenue or other public thoroughfare, shall at itsown expense and in a manner
satisfactory to the duly authorized representatives of the City replace such paving or surface
in substantially as good condition as before said work was commenced.
SECTION 5. It is recognized that the natural gas to be delivered hereunder is to be
supplied from a pipeline system transporting natural gas from distant sources of supply; and
the Company, by its acceptance of this franchise as hereinafter provided, does obligate itself
to furnish natural gas in such quantity and for such length of time, limited by the terms
hereof, as the said sources and said pipelines are reasonably capable of supplying.
SECTION 6. That Company, its successors and assigns, in the construction,
maintenance, and operation of its natural gas system, shall use all reasonable and proper
precaution to avoid damage or injury to persons and property, and shall hold and save
harmless the City from any and all damage, injury and expense caused by the negligence of
said Company, its successors and assigns, or its or their agents or servants.
SECTION 7. The City may by separate ordinance provide for the assessment and
collection of franchise fees on all natural gas transported (transport gas) by the Company or
by others, but not sold by the Company, to any consumer or user within the City through the
facilities of the Company located in the public right of way. Said separate ordinance may
also provide for the assessment and collection of franchise fees based upon the compensation
paid by a consumer to the Company for the transportation of natural gas not sold by the
Company using Company facilities located in public rights of way within the corporate limits
of the City. In this event the Company may be granted the authority to collect on behalf of
the City the total compensation to be made to the City by other parties using the Company's
facilities for distribution of transport gas. The Company shall not be responsible for the
nonpayment of such franchise fees, but under a satisfactory collection agreement between the
City and the Company, agrees to collect such sums for the city and to submit such payments
in a reasonable manner to be prescribed in the separate ordinance.
The City and Company shall cooperate in developing a fair and equitable method of
calculating the fees to be charged on transport gas. Such calculations shall be included in the
separate ordinance covering transport gas consumers within the City.
SECTION 8. That within twenty (20) days from and after the passage and approval
of this Ordinance, Company shall file the same with the State Corporation Commission for
the Commission's approval.
SECTION 9. After the approval of this Ordinance by the State Corporation
Commission, Company shall file with the City Clerk of the City its unconditional written
acceptance of this Ordinance. Said Ordinance shall become effective and be in force and
shall be and become binding contract between the parties hereto, their successors and
assigns, from and the expiration of sixty (60) days from its final passage, approval, and
publication as required by law, and acceptance by said Company.
SECTION 10. This Ordinance, when accepted as above provided shall constitute the
entire agreement between the City and the Company relating to this franchise and the same
shall supersede and cancel any prior understandings, agreements, or representations
regarding the subject matter hereof, or involved in negotiations pertaining thereto, whether
oral or written.
SECTION 11. This franchise is granted pursuant to the provisions of
K.S.A. 12-2001.
SECTION 12. That any and all ordinances or parts of ordinances in conflict with the
terms hereof are hereby repealed.
SECTION 13. Should the State Corporation Commission take any action with respect to
this franchise ordinance, which or may preclude Kansas Gas Service, Inc. from recovering from
its customers any cost provided for hereunder, the parties hereto shall renegotiate this ordinance
in accordance with the State Corporation commission's ruling.
PASSED AND APPROVED this d rvI day of ~'J)
, 20t> /.
< n f "'"
"C '. u ' <'
;' ,~l ~)~.,...~.._,~~,~ J:t
,';" \'/, -, p, ....... IA,
, " r' ~.,.....r ,~.
~:// ~~< V (~:t.\,\ ~"
'"" L "c:'~' :'l' r, ~ '~ \~.
XS~A' ,t=-\... \LIJ L \;I, \ ,;'
~u I .;.JJCITY H I ~
~ <\-:"-~:;:"---Tl' "I." ,::..
'"" \ .0,.,/ ".... f U Y\.. I t..;O'
-:;;"'IH Hue:1 fn I':"
"^ , I ,
\' ". I T I , is T" ~)
!.t..t. ", ' ,./ ,;;+
A 1- ,fE&T, "',..' '1 \ "'\,
''t'r r.,\',
~jJ~
City Cler