AN ORDINANCE GRANTING A FRANCHISE TO THE COUNCIL GROVE GAS SERVICE COMPANY, INCORPORATED. A KANSAS CORPORATION, ITS TRUSTEES, SUCCESSORS AND ASSIGNS TO OPERATE AND MAINTAIN A GAS TRANSMISSION AND DISTRIBUTION SYSTEM IN THE CITY, SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE: PROVIDING FOR THE CITY REGULATIONS OF THE GAS SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS.

Section 1. SHORT TITLE. This ordinance shall be known and may be cited as the “Council Grove Gas & Service Company Franchise Ordinance.”

Section 2. DEFINITIONS. For the purpose of this ordinance, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number. The word “shall” is always mandatory and not merely directory.

(1)   “City” is the City of Council Grove, Kansas.

(2)   “Company” is the grantee of rights under this Franchise.

(3)   “Council” is the City Council of Council Grove, Kansas.

(4)   “Person” is any person, firm, partnership, association, corporation, company or organization of any kind.

Section 3. GRANT OF AUTHORITY.

There is hereby granted to the Company by the City the right and privilege to erect, construct, operate and maintain a gas transmission and distribution system and to import, transport, sell and distribute gas, whether natural, manufactured or mixed, within the city and for these purposes to establish the necessary facilities and equipment and to lay and maintain gas mains, service pipes and any other appurtenances necessary to the sale and distribution of gas in and along the streets, alleys, public ways and places, to any person or corporation at any time during the period of the Franchise.

Section 4. COMPLIANCE WITH APPLICABLE LAWS AND ORDINANCES.

The Company shall, at all times during the life of this Franchise, be subject to all lawful exercise of the police power by the City, and to such reasonable regulation as the City shall hereafter by resolution or ordinance provide.

Section 5. COMPANY LIABILITY-INDEMNIFICATION. It is expressly understood and agreed by and between the Company and the City that the Company shall save the City harmless from a,11 loss sustained by the City on account of any suit, judgment, execution, claim or demand whatsoever, resulting from negligence on the part of the Company in the construction, operation or maintenance of its gas system in the City. The City shall notify he Company’s representative in the City within ten (10) days after the presentation of any claim or demand, either by suit or otherwise, made against the City on account of any negligence as aforesaid on the part of the Company.

 

Section 6. SERVICE STANDARDS. The Company shall maintain and operate its system and render efficient service in accordance with the rules and regulations as are, or may be, set forth by the council as provided herein.

Section 7. COMPANY RULES. The Company shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable the Company to exercise its rights and perform its obligations under this Franchise and to assure an uninterrupted service to each and all of its customers. Provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof or with the laws of the State of Kansas.

Section 8. CONDITIONS ON STREET OCCUPANCY.

(1)   Use. All pipes, mains and other natural, artificial or mixed gas equipment and apparatus laid or placed by the Company shall be so located in the streets, alleys and other public places in the city, as not to obstruct or interfere with any water pipes, sewers, drains or other structures already installed. The Company, shall, when practicable, avoid interfering with the use of any street, alley, or other highway where the paving or surface of the street would be disturbed.

(2)   Restoration. In case of any disturbance of pavement, sidewalk, driveway or other surfacing, the Company shall, at its own cost and expense and in a manner approved by the city council, replace and restore all paving, sidewalk, driveway or surface of any street or alley disturbed.

(3)   RELOCATION.

In any event, that at any time during the period of this Franchise the city shall lawfully elect to alter or change the grade of any street, alley or other public way, the Company, upon reasonable notice by the city, shall remove, relay and relocate its mains or service pipes, manholes and other gas fixtures at its own expense.

Section 9.PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED. The Company shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any preference or advantage to any person, nor, subject any person to any prejudice or disadvantage, provided that nothing in this franchise shall be deemed to prohibit the establishment of a graduated scale of charges and classified rate schedules to which any customer coming within such classification would be entitled.

Section 10. APPROVAL OR TRANSFER. The Company shall notify the city in case of transfer or assigns that no sale or transfer shall be effective until vendee, assignee or lessee has filed in the office of city clerk, an instrument duly executed, reciting the fact of such a sale.

Section 11. (a) Municipal Rules. The right is hereby reserved to the city to adopt, in addition to the provisions herein contained and existing applicable ordinances, such additional regulations as it shall find necessary in the exercise of the police power, provided that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted and shall not be in conflict with the laws of the State of Kansas.

(b)   Procedure After Termination or Revocation. Upon the revocation of this Franchise by the council, or at the end of the term of the Franchise, the city shall have the right to determine whether the Company shall continue to operate and maintain its transmission and distribution system pending the decision of the city as to the future maintenance and operation of the transmission and distribution system.

Section 12. In consideration of said franchise the Grantee shall pay the city of Council Grove, Kansas, an annual sum of two percent of the annual gross revenue derived from the uninterruptable sales of gas sold to consumers within the corporate limits of said city; such sums shall be payable at six month intervals or in the months of April and November for the preceding six months. Nothing herein contained shall be construed as limiting the rate making power of any authorized body, board or commission which may now or hereafter be vested or under the laws of the State of Kansas, with power to fix or review rates.

Section 13. RATES. Rates charged by the Company for service hereunder shall be fair and reasonable and designed to meet all necessary costs of the service, including a fair rate or return on investment, under efficient and economical management. The Company agrees that it shall be subject to all authority now or hereafter possessed by the city, or any other regulatory body having competent jurisdiction to fix just, reasonable and compensatory gas rates.

Section 14. RECORDS AND REPORTS. The city shall have access at all reasonable hours to all of the Company’s plans, contracts and engineering, accounting, finance, statistical, customer and service records relating to the property and the operations of the Company.

Section 15. TERM OF FRANCHISE. The franchise and rights herein granted shall take effect and be in force after the passage and approval by the governing body of the City of Council Grove, Kansas, and its publication as provided by law, the effective date being after the expiration of sixty (60) days from its final passage and upon filing of acceptance by the Company with the city clerk and shall continue in force and effect for a term of ten (10) years after the passage, approval, final publication of ordinance as provided by law, the provisions of this Franchise shall be null and void.

Section 16. AUTHORITY. This franchise is granted pursuant to the provisions of K.S.A. 12-2001.

Section 17. PUBLICATION COSTS. The Company shall assume the cost of publication of this franchise as such publication is required by law.

Section 18. SEPARABILITY. If any section, sub-section, sentence, clause, phrase and all rights hereunder is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions hereof.

(9-2-80)