APPENDIX B – FRANCHISE ORDINANCES\ORDINANCE NO. 802 (ELECTRIC FRANCHISE)

ORDINANCE NO. 802 (ELECTRIC FRANCHISE)

AN ORDINANCE GRANTING KANSAS CITY POWER & LIGHT COMPANY, ITS GRANTEES, SUCCESSORS AND ASSIGNS, THE RIGHT AND FRANCHISE TO CONSTRUCT AND MAINTAIN ALL WORKS AND PLANTS NECESSARY OR PROPER FOR SUPPLYING CONSUMERS WITH ELECTRIC OR OTHER EMERGENCY, GRANTING TO SAID COMPANY THE RIGHT TO USE THE STREETS, ALLEYS AND ALL OTHER PUBLIC PLACES IN CERTAIN PORTIONS OF THE CITY, PRESCRIBING THE TERMS OF AND RELATING TO SUCH FRANCHISE, AND REPEALING INCONSISTENT ORDINANCES OR PART THEREOF.

Section 1. In consideration of the benefits to be derived by the city and the inhabitants of the tract from the construction, operation and maintenance of an electric light and power transmission and distribution system and the supplying of electric energy to the public, there is hereby granted to the company and to its successors and assigns, for the term of 10 years from the effective date hereof, a franchise and authority to construct, operate and maintain in the tract all appropriate facilities and plants for carrying on a power and light business and all other operations connected therewith or incident thereto for the purpose of supplying the tract with electric or other energy in such forms as may be reasonably required for domestic, commercial, industrial, municipal and other purposes and to produce and supply such energy by manufacture, generation, purchase or otherwise, and to transmit and distribute same by means of underground or overhead lines or otherwise, and for any or all of the purposes it is authorized to (i) construct, install, replace and remove conduits or other underground facilities for the installation and protection of its underground wire and cables, (ii) place poles, lamp posts, guys, and anchors for its overhead wires, cables and street lights on all streets, alleys, avenues, bridges, parks, parking and other public places or thoroughfares in the tract, (iii) construct, erect and maintain all buildings, machinery and attachments of any and every kind for any and all of the purposes, and (iv) enter upon any and all of the public places within the tract and to trim trees upon and overhanging such places and make such excavations thereon as may be appropriate for the construction, repair and renewal of its overhead and underground facilities and plants. The legal description of the tract is set forth in Exhibit A, attached hereto and made a part hereof.

Section 2. Any pavements, sidewalks or curbing taken up or any and all excavations made shall be done under the supervision and direction of the governing body of the city under all necessary permits issued for the work, and shall be made and done in such manner as to give the least inconvenience to the inhabitants of the city and the public generally, and pavements, sidewalks, curbing and excavations shall be replaced and repaired in as good condition as before with all convenient speed, all at the expense of the company.

Section 3. During the continuance of this franchise, the company shall construct, maintain and operate its transmission and distribution system within the tract and shall furnish electric energy to the tract and its inhabitants in accordance with the terms of this franchise, the rates, charges, rules and regulations now on file with the State Corporation Commission of the State of Kansas, or such revision of rates, charges, rules and regulations as may be lawfully established from time to time in accordance with the laws of the State of Kansas. Nothing contained herein shall be construed as a guarantee upon the part of the company to furnish uninterrupted service, and interruptions due to acts of God, fire, strikes, civil or military authority, orders of court and other causes reasonably beyond the control of the company are specifically exempt from the terms of this section.

Section 4. The company shall, at all times, in the construction, maintenance and operation of its electric transmission, distribution and street lighting system, use all reasonable and proper precautions to avoid damage or injury to persons or property, and shall hold and save harmless the city from any and all damage, injury and expense caused by the sole negligence of the company, its successors and assigns.

Section 5. In consideration of the premises, the company agrees to pay to the city and the city agrees to accept as adequate compensation and consideration for the franchise hereby granted and in lieu of occupation, license, privilege and all other taxes and fees, five percent of the total of the gross receipts for electric energy sold by the company to all consumers located in the tract during the term of this franchise. Any consideration hereunder shall be reported and paid to by the city by the company on a semi-annual basis on each March 31 and September 30 for the years in which this franchise remains in effect, reflecting such electric energy sold to customers within the tract for the six months' period ending at the last meter reading preceding each February 28 and August 31, respectively. Such payments shall be rendered in cash to the city. The term gross receipts, as used in this section shall not include (1) the electrical energy sold to the United States or the State of Kansas or to any agency or political subdivision thereof, (2) the electrical energy sold for other use which cannot be classified as domestic, commercial, or industrial, such as the electrical energy used by public utilities, telephone, telegraph, and radio communication companies, railroads, pipe line companies, educational institutions not operating for profit, churches and charitable institutions and (3) the electrical energy sold for resale.

Section 6. That this ordinance shall not take effect and be in force until after the expiration of 60 days from the date of this final passage and acceptance by the company, within the 60 days, in writing; if no acceptance as hereinbefore provided has been filed, then this ordinance shall be ipso facto, absolutely, null and void.

Section 7. The percentage of gross receipts charged and collected from the sale of electric energy hereunder, as specified in Section 6 above, shall be subject to a review and revision at the written request of either party on the annual anniversary of the effective date hereof. If either party desires a review and revision of the percentage of gross receipts charged and collected from the sale of electric energy hereunder at that time, it shall so notify the other party in writing not later than 60 days prior to the review date, whereupon representatives of the parties will meet and in good faith attempt to reach an agreement with respect to the percentage. In the event the parties agree to revise the percentage, such revision shall be effected by ordinance duly passed as an amendment to this ordinance, and all expenses connected with such revision, including but not limited to costs of publication, shall be borne by the city.

(05-22-89)