AN ORDINANCE GRANTING BUTLER RURAL ELECTRIC COOPERATIVE ASSOCIATION, INC., A KANSAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC, LIGHT, HEAT AND POWER FRANCHISE, PRESCRIBING THE TERMS AND CONDITIONS THEREOF, AND RELATING THERETO, AND REPEALING ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT WITH OR CONFLICTING WITH THE TERMS THEREOF.

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF ROSE HILL, KANSAS

Section 1. That in consideration of the benefits to be derived by the City of Rose Hill, Kansas, and its inhabitants, there is hereby granted to Butler Rural Electric Cooperative Association, Inc., hereinafter designated as “Grantee,” said Grantee being a Kansas corporation, the right, privilege and authority for a period of twenty (20) years from the effective date of this ordinance, to occupy and use the present and future streets, avenues, alleys and other public places of said City, for the placing and maintaining of electric distribution and transmission lines, together with all necessary and desirable appurtenances, including underground conduits, poles, towers, ground level transformers, wires, and other appurtenances, necessary to carry on the business of selling and distributing electricity to the City of Rose Hill, Kansas, its inhabitants, and persons and corporations beyond the limits thereof; and through said City and beyond the limits thereof; to obtain said electricity from any source available; and to do all things necessary or proper to carry on said business of selling and distributing electricity for light, heat, power and other purposes.

Section 2. As further consideration for the granting of this franchise, and in lieu of any City occupation, license or revenue taxes, the Grantee shall pay to the City during the term of this franchise five percent (5%) of its gross revenues from the sale of electric energy to all customers served within the corporate limits of said City, such payments to be made monthly for the preceding monthly period.

Section 3. That the Grantee, its successors and assigns, in the construction, maintenance, and operation of its electric transmission, distribution, shall use all reasonable and proper precaution to avoid damage or injury to persons or property, and shall hold and save harmless the City of Rose Hill, Kansas, from any and all damages, injury and expense caused by the sole negligence of said Grantee, its successors and assigns or its or their agents or servants.

Section 4. At the option of either the City or the Grantee and upon written notice given by one to the other sent at least (90) days before the fifth, tenth, or fifteenth anniversary of this franchise, the rate of compensation hereunder may be renegotiated. Any new rate of compensation that results from such renegotiation shall be effective on and after the fifth, tenth, or fifteenth anniversary of this franchise.

Section 5. That any and all ordinances in conflict with the terms hereof are hereby repealed.

Section 6. That 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, publication as required by law, and acceptance by Grantee,

Section 7. This franchise is granted pursuant to the provisions of K.S.A. 12-2001.

(12-07-2015)