§ 2. Adoption of Franchise.

2.1. Grant of Franchise. The City hereby grants the Company, for a period of ten (10) years, as further described in Section 11.3, from the date this Ordinance is passed and approved by the City, but not before January 1, 2015, the right to import, manufacture, distribute, and sell Gas Energy for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future, and also the right to transport Gas Energy through the limits of the City for use outside of the City limits. For these purposes, Company may construct, operate, repair, and maintain Gas Facilities in, on, over, under and across the Public Way and Public Ground, subject to the provisions of this Ordinance. The use of the Public Way and Public Ground by the Company and the regulation of the same by the City shall be consistent with state law and (a) shall be subject to reasonable regulations by the City Council, including, but not limited to, other applicable ordinances and permit procedures; (b) shall be consistent with the use of the Public Way for proper purposes by the public, by the City, by the public utilities, and others; and (c) shall be consistent with the use of Public Ground by the City and the public for the public purposes for which they are used and intended.

2.2. Option to Extend. Provided both parties agree, the term described in Section 2.1 may be extended up to two (2), five (5) year extension periods.

2.3. Other Authority. This Ordinance is intended to cover only the right of the Company to the use of the Public Way and the Public Ground for the purposes set for in Section 2.1. In all other respects this Ordinance is not intended in any way to affect or modify or surrender any powers now held by the City, or which may be hereafter granted to the City by the State Legislature, or to affect the powers of the State Legislature in dealing with the Company in authorizing taxation of the Company or its properties, in the regulation of its rates and charges, or in otherwise regulating or controlling the Company and its properties in all ways consistent with the Constitution of the United States and the Constitution of the State of Minnesota.

2.4. Not Exclusive. This Franchise is not exclusive.

2.5. Effective Date. This Franchise shall be in force and effect from and after the passage of this Ordinance and publication as required by law and upon the Company's duly authorized acceptance as executed within sixty (60) days after passage and publication of this Ordinance. The City, by Council resolution, may revoke this Franchise if Company does not file a written acceptance with the City within sixty (60) days after publication.

2.6. Annual Franchise Performance and Planning Meeting; Annual Reporting. Company and City shall meet annually to discuss items of concern or interest related to this Franchise, including, but not limited to, collaborative infrastructure planning, vegetation management, and reliability performance. Company shall annually provide to City reporting information on service reliability, infrastructure investments, capital improvements, customer usage and program participation, and other measures, as may be beneficial and mutually agreeable, the exact format and content of which shall be mutually agreed to by the City and Company.

2.7. Service and Rates. The terms and conditions of service and the rates to be charged by Company for Gas Energy in City are subject to the exclusive jurisdiction of the Commission.

2.8. Publication Expense. The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company.

2.9. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party in writing of the default and the desired remedy. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within thirty (30) days after first meeting with the selected mediator, either party may commence an action in Hennepin County District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law.

(2014-Or-083, § 1, 10-17-14, eff. 1-1-15)