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SECTION 2. ADOPTION OF FRANCHISE. <br />2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the <br />date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, <br />power and other purposes for public and private use within and through the limits of the City as its <br />boundaries now exist or as they may be extended in the future. For these purposes, Company may <br />construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Ways <br />and Public Grounds of City subject to the provisions of this ordinance. Company may do all <br />reasonable things necessary or customary to accomplish these purposes, subject, however, to such <br />reasonable regulations as may be imposed by the City pursuant to ordinance and to the further <br />provisions of this franchise agreement. <br />2.2 Effective Date. This franchise agreement shall be in force and effect from and after <br />the later of 30 days after its publication or its acceptance by Company. <br />2.3 Service and Rates. The service to be provided and the rates to be charged by Company <br />for electric service in City are subject to the jurisdiction of the Commission. The area within the City <br />in which Company may provide electric service is subject to the provisions of Minnesota Statutes, <br />Section 216B.40. <br />2.4 Publication Expense. The expense of publication of this ordinance will be paid by the <br />City and reimbursed to City by Company. <br />2.5 Dispute Resolution. If either party asserts that the other party is in default in the <br />performance of any obligation hereunder, the complaining party shall notify the other party of the <br />default and the desired remedy. The notification shall be written. Representatives of the parties must <br />promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not <br />resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate <br />further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator <br />is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the <br />selected mediator, either party may commence an action in District Court to interpret and enforce this <br />franchise or for such other relief as may be permitted by law or equity for breach of contract, or either <br />party may take any other action permitted by law. <br />SECTION 3. LOCATION, OTHER REGULATIONS. <br />3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained <br />so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways so <br />as not to disrupt normal operation of any City Utility System previously installed therein. Electric <br />Facilities shall be located on Public Grounds as determined by the City. Company's construction, <br />reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to <br />permits if required by separate ordinance and to other reasonable regulations of the City to the extent <br />not inconsistent with the terms of this franchise agreement. Company may abandon underground <br />Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or <br />concrete encased conduit interfering with a City improvement project, but only to the extent such <br />conduit is uncovered by excavation as part of the City improvement project. <br />2 <br />