AN ORDINANCE GRANTING TO CITY OF HOISINGTON UTILITY DEPARTMENTS, SUBDIVISIONS OF THE CITY OF HOISINGTON, ITS SUCCESSORS AND ASSIGNS, A UTILITY 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 HOISINGTON, KANSAS:

SECTION 1. That in consideration of the benefits to be derived by the City of Hoisington, Kansas, (“City”), and its inhabitants, there is hereby granted to City of Hoisington Utility Departments, a Division of the City of Hoisington (“Provider”), said Provider operating a system for the treatment, transmission and distribution of water; treatment and disposition of wastewater; collection and disposal of solid waste; and purchase, generation and distribution of electricity within the City of Hoisington, the right, privilege, and authority for a period of twenty (20) years from the effective date of this ordinance, to occupy and use the streets, avenues, alleys, bridges, parks, parking areas, and public places of said City, for the placing and maintaining of equipment and property necessary to carry on the business of operating City utilities for an purposes to the City and its inhabitants, and through said City and beyond the limits thereof; to obtain said water, electricity, sanitation and wastewater from any source available; and to do all things necessary or proper to carry on said business.

SECTION 2. As further consideration for the granting of this franchise, the Provider shall pay to the City, a franchise fee. The amount of this franchise fee shall be five percent (5%). Such payments to be made monthly for the preceding monthly period. Gross cash receipts shall not include other operating revenues received by the Provider, which are not related to the “purchase, sale, treatment, distribution, transportation or disposition of municipal utility services”. These include, but are not limited to, connection fees, disconnection and reconnection fees, temporary service charges, delayed or late payment charges, collection fees, and returned check charges.

SECTION 3. Said Ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successors and assigns, no later than the first publication in the official City newspaper. The franchise fee will first appear on the utility bills for November-December 2009 usage.

SECTION 4. This Ordinance, when accepted as above provided, shall constitute the entire agreement between the City and the Provider relating to this franchise and the same shall supercede and cancel any prior understandings, agreements, or representations regarding the subject matter hereof, or involved in negotiations pertaining thereto, whether oral or written, shall be binding upon the parties, including their successors and assigns, and shall not be amended or further obligations imposed without mutual consent of the parties hereto.

SECTION 5. Upon written request of either the City or the Provider, the franchise shall be reopened and renegotiated at any time upon any of the following events:

(a)   Change in federal, state, or local law, regulation, or order which materially affects any rights or obligations of either the City or Provider, including, but not limited to, the scope of the grant to the Provider or the compensation to be received by the City.

(b)   Change in the structure or operation of the water or wastewater industry which materially affects any rights or obligations of either the City or Provider, including, but not limited to, the scope of the grant to the Provider or the compensation to be received by the City.

(c)   Any other material and unintended change or shift in the economic benefit to the City or the Provider relied upon and anticipated upon entering into this franchise.

SECTION 6. The franchise is granted pursuant to the provisions of K.S.A. 12-2001 and amendments thereto.

SECTION 7. Any and all ordinances or parts of ordinances in conflict with the terms hereof are hereby repealed or considered as having no effect as of the first cycle of the monthly billing cycle as referenced in Section 3 of this ordinance.

(11-09-2009)