AN ORDINANCE, GRANTING TO THE KANSAS POWER AND LIGHT COMPANY, (ALSO KNOWN AS KPL GAS SERVICE), A KANSAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, PRESCRIBING THE TERMS THEREOF AND RELATING THERETO, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT WITH OR IN CONFLICT WITH THE TERMS HEREOF.

Section 1. That in consideration of the benefits to be derived by the City of Hillsboro, Kansas, and its inhabitants, there is hereby granted to the Kansas Power and Light Company, a Kansas corporation, hereinafter sometimes designated as “company,” the company being a corporation operating a system for the transmission of electric current between two or more incorporated cities in the State of Kansas, into and through which it has built transmission lines, the right, privilege, and authority for a period of 20 years from the effective date of this ordinance, to occupy and use the several streets, avenues, alleys, bridges, parks, parkings and public places within the following described area of the City: Northwest 1/4 of Section 35, Township 19 South, Range 2 East, Marion County, Kansas, and such other areas as hereafter specifically agreed upon in writing by the city and the company for the placing and maintaining of equipment and property necessary to carry on the business of selling and distributing electricity for all purposes to the area of the city and its inhabitants, 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 in the city.

Section 2. As further consideration for the granting of this franchise, and in lieu of any city occupation, license or revenue taxes, the company shall pay to the city during the term of this franchise 3% of its gross revenue from retail sales of electric energy within the corporate limits of the city, such payment to be made monthly for the preceding monthly period.

Section 3. That the Company, its successors and assigns, in the construction, maintenance, and operation of its electric transmission, distribution and street lighting system, 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 Hillsboro, Kansas, from any and all damage, injury and expense caused by the sole negligence of said Company, its successors and assigns or its or their agents or servants.

Section 4. That within 10 days from and after the passage and approval of this ordinance, Company shall file the same with the State Corporation Commission for the Commission’s approval.

Section 5. That within 60 days from and after the approval of this ordinance by the State Corporation Commission, company shall file with the city clerk of the B-1 City of Hillsboro, Kansas, its unconditional written acceptance of this ordinance. The ordinance shall become effective and be in force and shall be and become a binding contract between the parties hereto, their successor and assigns, from and after its passage, approval and publication as required by law, and acceptance by the company.

Section 6. That this ordinance, when accepted as above provided, shall constitute the entire agreement between the city and company relating to this franchise and the same shall supersede and cancel any prior understandings, agreements, or representations regarding the subject matter hereof, or involved in negotiations pertaining thereto, whether oral or written.

Section 7. This franchise is granted pursuant to the provisions of K.S.A. 12-824.

Section 8. That any and all ordinances or part of ordinances in conflict with the terms hereof are hereby repealed.

Section 9. Should the State Corporation Commission take any action with respect to this franchise ordinance, which would or may preclude The Kansas Power and Light Company from recovering from its customers any cost provided for hereunder, the parties hereto shall renegotiate this ordinance in accordance with the corporation commission’s ruling.

(09-18-90)