Section 1.

(a)      There is hereby granted to Sedgwick County Electric Cooperative Association, Inc., (“Company”) the non-exclusive right, privilege, and franchise to construct, maintain, extend, operate, reconstruct, and replace facilities for its electric utility system in, through, and along the Right-of-Way of the City of Goddard (“City”) for the provision of electric utility services to the City, the inhabitants thereof, and persons and corporations beyond the limits thereof, for the full term of this franchise under the terms and conditions herein set forth.

(b)     This franchise does not authorize the Company to use its existing facilities, or to construct new facilities, in order to provide cable television service, telecommunications service, network access service, internet access service, leased fiber optic services, video programming service, or any other telecommunications or telephony service to existing or potential customers, and such services are not permitted under this franchise.

Section 2.

(a)      The term of this franchise shall be for a period of ten (10) years from the effective date hereof

(b)     Upon written notice given by the City at least ninety (90) days prior to the anniversary of the effective date of this franchise ordinance, the rate of compensation to be paid to the City hereunder pursuant to Section 3 shall be reopened and renegotiated, provided, however, no such renegotiation shall be effective until the fifth anniversary of the effective date of the ordinance.

Section 3.           In consideration of and as compensation for the franchise and privilege hereby granted, and in lieu of all occupation and license taxes, grantee shall make a written report to the governing body of the city, on or before the 15th day of February and August, respectively, in each year, of all its gross receipts during the preceding six months’ periods ending December 31st and June 30th , respectively, derived from and after the date this franchise is effective, from consumers from the sale of electric energy used within the corporate boundaries of the city during such periods, and shall pay to the city, at the times of making such reports, an amount, equal to five percent (5%) of such gross receipts of the grantee during such preceding six months’ period. The governing body of the city shall have access and the right to examine, at all reasonable times, all books, receipts, files, records and documents of the grantee necessary to verify the correctness of such semi-annual statement and to correct the same, if found to be erroneous. If such statement of gross receipts be incorrect, then such payment shall be made upon such corrected statement.

Section 4.

(a)      Subordinate to City use. The Company’s use of Right-of-Way shall in all matters be subordinate to the City’s use of the Right-of-Way for any public purpose. The Company shall coordinate the installation of its facilities in the Right-of-Way in a manner that minimizes adverse impact on public projects, as reasonably determined by the City. Where installation is not otherwise regulated, the facilities shall be placed with adequate clearance from such public projects so as not to conflict with such public projects.

(b)     Restoration. All earth, materials, sidewalks, paving, crossings, utilities, public projects, or improvements of any kind located within the Right-of-Way that are damaged or removed by the Company in its activities under this franchise shall be fully repaired or replaced promptly by the Company at its sole expense and to the reasonable satisfaction of the City in accordance with the ordinances and regulations of the City pertaining thereto.

Section 5.           The Company shall hold and save the City, its officers, employees, agents, and authorized contractors, harmless from and against all claims, damages, expense, liability, and costs including attorney fees, to the extent occasioned in any manner by the Company’s occupancy of Right-of-Way, except to the extent that such were caused by the negligence or intentional conduct of the City, its officers, employees, agents, or authorized contractors. In the event a claim shall be made or an action shall be instituted against the City growing out of such occupancy of the Right-of-Way by Facilities of the Company, then upon notice by the City to the Company, the Company will assume responsibility for the defense of such actions at the cost of the Company, subject to the option of the City to appear in and defend, at its own cost, any such case. However, the Company shall have no duty to defend any such action to the extent that such action has resulted from the negligence or intentional conduct of the City, its officers, employees, agents, or authorized contractors.

Section 6.           Grantee, its successors and assigns, shall furnish and install for its patrons reliable meters and shall keep same in repair without cost to the patrons. All meters used by the grantee, its successors and assigns, shall at all reasonable times be subject to inspection by the city, and the city shall have the right to test the meters, or cause the same to be tested by the grantee, its successors and assigns, at all reasonable times.

Section 7.           Grantee, its successors and assigns, shall at all times make extensions of its lines in compliance with such rules, regulations and orders as may be authorized or permitted, from time to time, by such regulatory body, municipal or otherwise as may be vested by law with regulatory authority over such matters. In ordering such extensions, the regulatory body shall give due consideration to the elements of cost of installation and income.

Section 8.           This franchise shall be assignable only in accordance with the laws of the State of Kansas, as the same may exist at the time when any assignment is made, provided, however, that the franchise may be assigned by the Company without action by the City to any entity which succeeds to all or substantially all of the electric utility business of the Company. Provided, however, in the event that the Company is no longer required to obtain the approval of the Kansas Corporation Commission for an assignment, such assignment shall be subject to the consent of the City, successor, the Company shall be released from all obligations which are assumed in writing by such successor and the assignee shall have executed an assumption of the franchise being assigned.

Section 9.           Except in Emergencies, all notices by either the City or the Company to the other shall be made by either depositing such notice in the U.S. Mail, Certified Mail, return receipt requested, or by facsimile. Any notice served by Certified Mail, return receipt requested, shall be deemed delivered five (5) calendar days after the date of such deposit in the U.S. Mail unless otherwise provided. Any notice given by facsimile is deemed received the next business day. Emergency notices shall be provided by telephone, with written notice immediately following by facsimile. All notices shall be addressed to the City as follows:

City Clerk

P.O. Box 667

Goddard, Kansas 67052

Notice to Company shall be addressed to the Company as follows:

The Sedgwick County Electric Cooperative Association, Attn: Alan Henning

P.O. Box 220

Cheney, Kansas 67025-0220

Notice shall be given as required by the terms of this ordinance and for all Emergencies. Notice shall be provided to the above-named addresses unless directed otherwise in writing by City or Company.

Section 10.         This ordinance shall take effect and be in force after the expiration of 60 days from the date of its final passage and following its publication once a week for two consecutive weeks immediately after its final passage, in the official paper of the city, which publication is hereby directed, and thereupon the franchise grant embodied herein, pursuant to Kansas Statutes Annotated 12-824 and 12-2001, shall become effective upon its acceptance by the grantee, which acceptance shall be evidenced in writing, duly acknowledged before some officer authorized by law to administer oaths, and filed with the city clerk within 30 days after the ordinance becomes finally effective.