APPENDIX B – FRANCHISE ORDINANCES\ORDINANCE NO. 2004-07 (ELECTRIC FRANCHISE – BUTLER RURAL ELEC COOP)

AN ORDINANCE GRANTING BUTLER RURAL ELECTRIC COOPERATIVE ASSOCIATION, INC., A KANSAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NON-EXCLUSIVE 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 BENTON, KANSAS:

Section 1. That in consideration of the benefits to be derived by the City of Benton, 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 Benton, Kansas, its inhabitants, and persons and corporations beyond the limits thereof which are or may be located within the area certified to Grantee by the Kansas Corporation Commission; 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 residential and commercial customers served within such portion of the corporate limits of said city as may be certified to Grantee by the Kansas Corporation Commission, and zero percent (0%) of its gross revenues from the sale of electric energy to all industrial customers served within such portion of the corporate limits of said city as may be certified to Grantee by the Kansas Corporation Commission. Such payments shall made monthly for the preceding monthly period. As used herein, "industrial customers" means those customers which manufacture or process a product from which point the end product does not normally reach the ultimate consumer and which have a connected load of 50 kW or more.

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 Benton, 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. That within sixty (60) days from and after the passage and approval of said ordinance, said Grantee shall file with the City Clerk of said City of Benton, 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.5.A. 12-2001.