AN ORDINANCE, GRANTING TO D.S.&O. RURAL ELECTRIC COOPERATIVE ASSOCIATION, INCORPORATED, A KANSAS CORPORATION, ITS 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.

Section 1. In consideration of the benefits to be derived by the city and its inhabitants, there is hereby granted to D.S.&O. Rural Electric Cooperative Association, Incorporated, a Kansas corporation, hereinafter designated as “company”, the company being a corporation operating a system for the transmission, distribution and sale of electric current within designated territories in the State of Kansas, the right, privilege, and authority for a period of 20 years from the effective date of this ordinance, to occupy and use the several streets, avenues, alleys, bridges, parks, parkings, and public places of the city, for the placing and maintaining of equipment and property necessary to carry on the business of selling and distributing electricity for all purposes to the city and its inhabitants, and through the city and beyond the limits thereof; to obtain the electricity from any source available; and to do all things necessary or proper to carry on the business in the city.

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 three percent of its gross revenue from the sale of electric energy within the corporate limits of the city, such payment to be made monthly for the preceding monthly period, provided that such fee may be renegotiated at the option of the city during the 11th year of this agreement.

Section 3. The company, its successors and assigns, in the construction maintenance and operation of its electric transmission, distribution and street lighting system, shall use all reasonable and proper precaution to avoid damage or injury to persons and 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, or its or their agents or servants.

Section 4. Within 60 days from and after the passage and approval of this ordinance, the company shall file with the city clerk of the city its unconditioned written acceptance of this ordinance.

Section 5. Any and all ordinances or parts of ordinances in conflict with the terms hereof are hereby repealed.

Section 6. This ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successors and assigns, from and after its passage, approval and publication as required by law, and acceptance by the company.

Section 7. This ordinance, when accepted as above provided, shall constitute the entire agreement between the city and the company 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.

Section 8.  This franchise is granted pursuant to the provisions of K.S.A. 12-2001.

Section 9. In the event that the State Corporation Commission takes any action with respect to this franchise ordinance, which would or may preclude the company from recovering its customers any cost provided for hereunder the parties hereto shall renegotiate this ordinance in accordance with the corporation corn mission’s ruling.

(01-08-90)