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, PRESCRIBEING THE TERMS AND CONDITIONS THEREOF, AND RELATING THERETO, AND REPEALING ORDINANCES OR PARTS OF ORDINANCES INCOSISTENT WITH OR CONFLICTING WITH THE TERMS THEREOF.

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LEON, KANSAS:

Section 1. That in consideration of the benefits to be derived by the City of Leon, 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 Leon Kansas, its inhabitants, and person 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 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 my 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 the point the end product does not normally reach the ultimate customer, and which have connected load of 50 kW or more.

Section 3. That the Grantee its successors and assigns, in the construction, maintenance, and operation of its electrical transmission, distribution, shall use all reasonable and proper precaution to avoid damage or injury to person or property, and shall hold and save harmless the City of Leon, 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.

(09-05-2006)