AN ORDINANCE, granting to Southern Pioneer Electric Company, a Kansas not-for-profit corporation and public utility under K.S.A. 66-104a, its lessees, successors and assigns, an electric 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 SATANTA, KANSAS:
SECTION 1. That in consideration of the benefits to be derived by the City of Satanta, Kansas, hereinafter designated as “City”, and its inhabitants, there is hereby granted Southern Pioneer Electric Company, a Kansas not-for profit corporation (hereinafter the “Company”), said Company being a not-for-profit corporation owning, operating and maintaining an electric transmission, subtransmission and distribution system for the transmission and distribution of electricity, the non-exclusive right, privilege, franchise and authority for a period of five (5) years from the 6th day of July, 2022, to occupy and use the several streets, avenues, alleys, bridges, parks, parkings and public places of said City, for the placing, constructing, inspecting, maintaining, operating, extending, repairing and rebuilding of electric lines, poles, substations, facilities, equipment and property necessary to carry on the business of selling and distributing electricity and other operations connected therewith or incidental thereto for all purposes to the City of Satanta, Kansas, its inhabitants and additions thereto, and through said City and beyond the limits thereof (hereinafter collectively referred to as the “System”); to obtain said electricity from any source available; and to do all things necessary or proper to carry on said business in the City of Satanta, Kansas.
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 its gross revenue from all sales of electric energy within the corporate limits of said City; provided, the City and Company may review and adjust such franchise fee percentage every five years (5) during the term of this franchise. Payment shall be made monthly, on or about the last day of the month, for the preceding monthly period or as otherwise mutually agreed to by the parties. This amount paid by the Company shall be in lieu of, and the Company shall be exempt from, all other fees, charges, taxes or assessments which the City may impose for the right and privilege of doing business within the present or future corporate limits of the City. The City shall provide copies of annexation ordinances to the Company on a timely basis to ensure appropriate franchise fee collection from customers within the City’s corporate limits.
SECTION 3. That the Company, its lessees, successors and assigns, in the construction, maintenance, and operation of its System, shall use all reasonable and proper precaution to avoid damage or injury to persons or property, and shall hold and save harmless the City of Satanta, Kansas, from any and all damage, injury and expense caused by the sole gross negligence or willful misconduct of said Company, its lessees, successors and assigns, or its or their agents or servants.
SECTION 4. IN NO EVENT SHALL EITHER PARTY HERETO BE LIABLE TO ANY OTHER PARTY HERETO FOR SUCH OTHER PARTY’S INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES.
SECTION 5. It shall not be a breach or default under this ordinance if either party fails to perform its obligations hereunder due to force majeure. Force majeure shall include, but not be limited to the following : (1) physical events such as acts of God, landslides, lightning, earthquakes, fires, freezing, storms, floods, washouts, explosions, breakage or accident or necessity of repairs to machinery, equipment or distribution or transmission lines; (2) acts of others such as strikes work-force stoppages, riots, sabotage, insurrections or wars; (3) governmental actions such as regulations promulgated by a governmental authority having jurisdiction; and (4) any other causes, whether of the kind herein enumerated or otherwise not reasonably within the control of the affected party to prevent or overcome. Each party shall make reasonable efforts to avoid force majeure and to resolve such event as promptly as reasonably possible since once it occurs in order to resume performance of its obligations hereunder.
SECTION 6. That within sixty (60) days from and after the passage and approval of this ordinance, said Company shall file with the City Clerk of said City of Satanta, Kansas, its unconditioned written acceptance of this ordinance.
SECTION 7. That any and all ordinances in conflict with terms hereof are hereby repealed.
SECTION 8. That this ordinance shall become effective as a binding contract between the parties hereto, their successors and assigns, from and after its passage, approval and publication as required by law, and this ordinance being duly executed by the Company.
SECTION 9. That this ordinance 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 10. This franchise is granted pursuant to the provisions of K.S.A. 12-2001.
(07-06-2022)