News Releases

10/6/2015 - Ordinance No. 15-10802 Westar Energy Franchise
ORDINANCE NO. 15-10802


    WHEREAS, pursuant to Ordinance No. 05-10292 (the “Franchise”), which was passed and approved by the Governing Body on July 11, 2005, Westar Energy, Inc. (the “Company”) was granted a non-exclusive contract franchise to construct, maintain, and operate its facilities in the public right-of-way for the purpose of supplying electric energy within the City of Salina, Kansas;   

    WHEREAS, pursuant to Section 4 of the Franchise, the Company agreed to pay the City of Salina (“City”) a franchise fee equal to five percent (5%) of the Company’s gross receipts received from the distribution of electric energy within the City of Salina, Kansas; pursuant to Section 3 of the Franchise, the City may change the franchise fee percentage rate, to be effective January 1, 2016, by providing sixty (60) days’ advance written notice to the Company; and

    WHEREAS, the Governing Body wishes to amend Section 4 of the Franchise to change the franchise fee percentage rate to six percent (6%), to be effective January 1, 2016, SO NOW THEREFORE,
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:

Section 1.  Section 4 of the Franchise is amended to provide as follows:

Section 4. Compensation to the City.

a.    In consideration of and as compensation for the franchise hereby granted to the Company by the City, the Company shall make an accounting to the City of all electric energy that has been distributed on a monthly basis. The Company shall pay the City:

A sum equal to six percent (6%) of the Gross Receipts received from the Distribution of electric energy; and

The above sum shall be adjusted for uncollectible receivables and for uncollectible receivables which are later collected.

b.    Payment of the compensation above shall commence on January 1, 2016. Prior to January 1, 2016, payments shall continue to be calculated and be paid in the manner previously provided in the Franchise. Such payments shall be made to the City under procedures, which are mutually agreed to by the Company and the City within thirty (30) days of the last day of the month to which such accounting shall apply.

c.    In the event the accounting rendered to the City by the Company is found to be incorrect, then payment shall be made on the corrected amount, it being agreed that the City may accept any amount offered by the Company, but the acceptance thereof by the City shall not be deemed a settlement of such item if the amount is in dispute or later found to be incorrect. The Company agrees that all of its books, records, documents, contracts and agreements as may be reasonably necessary for an effective compliance review of this Ordinance shall upon reasonable notice and at all reasonable times be opened to the inspection and examination of the officers of the City and its duly authorized agents, auditor, and employees for the purpose of verifying said accounting. Notwithstanding the obligation herein, the Company shall have the right to require the reasonable protection of proprietary information of the Company.

Section 2.  Repealer.  Existing Section 4 of the Franchise is repealed.

Section 3.  Effective.  This ordinance shall take effect and be in full force from and after January 1, 2016, following its adoption and publication by the following summary once in the official city newspaper:  

Ordinance No. 15-10802 Summary
On September 21, 2015, the City Commission passed Ordinance No. 15-10802.  The ordinance amends Ordinance No. 05-10292 to amend Westar Energy, Inc.’s existing electric franchise for purposes of increasing the franchise fee to an amount equal to six percent (6.0%) of Westar Energy, Inc.’s gross receipts received from the distribution of electric energy within the City of Salina, Kansas.  A complete copy of the ordinance is available at or in the office of the city clerk, 300 W. Ash Street, free of charge.  This summary is certified by the city attorney.

Section 4.  Notice to Company.  The City Clerk is directed to mail a copy of this ordinance to the Company in the manner and at the address provided in Section 14 of the Franchise within five (5) days following its adoption.

                                Introduced:    September 21, 2015
                                Adopted:     October 5, 2015

                                Jon R. Blanchard, Mayor

Shandi Wicks, CMC, City Clerk

Certification of Publication Summary:

Greg A. Bengtson, City Attorney