Sec. 3. Franchise required.
(1) Every Provider subject to this Ordinance shall obtain a franchise from the City under the provisions of K.S.A. 12-2001 et seq., for the use of Distribution Systems located in Public Right-of-Way. Any Provider which only uses the Distribution System of a Franchised Entity and which reports and pays a sum equal to the compensation calculated by Section 4(2) of this Ordinance to the City through such Franchised Entity shall be exempt from the requirement of a separate franchise. Any interstate pipeline transportation company which is otherwise a Provider under this Ordinance shall not be required to obtain a separate franchise under this section, provided that all Users of such interstate pipeline transportation company which are located within the City shall obtain a franchise and shall report and pay a sum equal to the compensation calculated by Section 4(1)(b) of this Ordinance and a sum equal to five percent (5%) of the amount paid for the transportation of such natural gas.
(2) The franchise required under this Ordinance shall substantively contain the following elements:
(a) In consideration of and as compensation for the franchise, the Provider shall agree to pay to the City a sum equivalent to fees calculated in accordance with Section 4.
(b) The payments and compensation paid by the Provider shall be in lieu of all other licenses, taxes, charges, and fees, except the usual general property taxes and special ad valorem property taxes, sales and excise taxes, and any permit fees and charges for pavement cuts or other permit fees and charges based on restoring premises to their same condition, or charges made for privileges which are not in any way connected with the natural gas or Other Energy business, as such, will be imposed on the Provider and are not covered by the franchise fee payments.
(c) The Provider shall agree that the City shall have access to and the right to examine and audit all records reasonably necessary to verify the payment of the franchise fees. If any such payment is found to be incorrect, then payment shall be made upon a corrected statement. The Provider shall agree that for each and every month, or any part thereof, that the franchise compensation remains unpaid after the same becomes due and payable by the Provider, there shall be added as a late charge a sum equivalent to the statutory rate for interest on the unpaid amount.
(d) Provider shall agree to hold the City harmless from any and all damages arising from the exercise of any right or privilege granted under this Ordinance and the franchise, and from any and all damages accruing from the neglect or mismanagement of its employees, agents, or servants in the exercise of any right or privilege granted under this Ordinance and the franchise.
(e) Subject to the approval of the regulatory body having jurisdiction and control over rules and regulations of the Provider at the time in question, the Provider shall agree that the City has the right to make such reasonable rules and regulations for the protection of its property and for the distribution and sale of gas, and the appropriate conduct of business as the City may from time to time deem necessary.
(f) The franchise shall be non-exclusive.
(g) The franchise shall be for a term expiring no later than the earliest date of expiration of the franchise of any Franchised Entity and subject to reopening and renegotiation upon events materially affecting the rights or obligations of the City or Provider.
(h) In the event the Provider owns or maintains all or any portion of a Distribution System, it shall agree to provisions on the use of the Public Right-of-Way and the construction, location, and relocation of facilities, and the quality of standards of service, all substantively equivalent to those of the Franchised Entities.
(i) The Provider shall agree to file its acceptance in writing of the provisions, terms, and conditions of the franchise with the City Clerk within thirty (30) days after final passage and approval of the franchise ordinance. (Ord. 18296 § 3, 7-20-04.)