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

Section 1. That in consideration of the benefits to be derived by the City of Towanda, Kansas. and its inhabitants, there is hereby granted to Butler Rural Electric Cooperative Association, Inc., hereinafter designated as grantee, the grantee being a Kansas corporation, the right, privilege and authority for a period of 10 years from the effective date of this ordinance, to occupy and use the present and future streets, avenues, alleys and other public places of the 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 Towanda, Kansas, its inhabitants, and persons and corporations beyond the limits thereof; 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 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 three percent of its gross revenues from the sale of electric energy to all customers served within the corporate limits of the city, such payments to be made yearly for the preceding yearly 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 Towanda, Kansas, from any and all damages, injury and expense caused by the sole negligence of the grantee, its successors and assigns or its or their agents or servants.

Section 4. That within 60 days from and after the passage and approval of the ordinance, the grantee shall file with the city clerk of the City of Towanda, Kansas, its unconditioned written acceptance of this ordinance.

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.

(7-31-2002)