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2013-06 ORDINANCE NO. 2013-06 AN ORDINANCE TO PROVIDE FOR THE GRANT BY THE CITY OF FAIRFAX, VIRGINIA, TO A PERSON OR PERSONS, OR TO A CORPORATION, ITS SUCCESSORS AND ASSIGNS, HEREAFTER TO BE ASCERTAINED IN THE MODE PRESCRIBED BY LAW, OF THE HEREIN RIGHT, FOR THE TERM AND UPON THE CONDITIONS STATED, TO USE AS A PROVIDER OF RETAIL ELECTRIC SERVIC1S THE PUBLIC RIGHTS-OF-WAY, AS DEFINED HEREIN, OF THE CITY, AND TO ACQUIRE, CONSTRUCT, INSTALL, OPERATE, MAINTAIN, AND USE, AND TO THE EXTENT NOW CONSTRUCTED OR INSTALLED TO OPERATE, MAINTAIN, AND USE, POLES, TOWERS, STRUCTURES, ATTACHMENTS, WIRES, CABLES, CONDUITS, DUCTWAYS, MANHOLES, HANDHOLES, METERS, APPLIANCES, AND OTHER EQUIPMENT NECESSARY OR USEFUL IN THE DISTRIBUTION, TRANSMISSION, OR SALE OF ELECTRICITY IN, OVER, ALONG, ON, AND UNDER THE PUBLIC RIGHTS-OF-WAY OF THE CITY, FOR THE PURPOSE OF DISTRIBUTING, TRANSMITTING, AND SELLING ELECTRICITY AT ANY NOW EXIST OR CORPORATE LIMITS OF THE CITY AS THE SAME MAY HEREAFTER BE EXTENDED OR ALTERED. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FAIRFAX, VIRGINIA: Article I. That there shall be granted in the mode prescribed by law for franchise grants and upon the conditions hereinafter specified, the rights and privileges in, over, along, on, and under the Public Rights-of-Way of the City of Fairfax, Virginia embodied in the following draft of an ordinance entitled: AN ORDINANCE To grant to [INSERT NAME OF GRANTEE], a public service corporation} doing business in the Commonwealth of Virginia as [INSERT NAME OF GRANTEE], its successors and assigns, the right, for the term and upon the conditions herein stated, to use as a provider of retail electric services the Public Rights-of-Way of the City of Fairfax, Virginia, and to acquire, construct, install, operate, maintain, and use, and to the extent now constructed or installed to operate, maintain, and use, poles, towers, structures, attachments, wires, cables, conduits, ductways, manholes, handholes, meters, appliances, and other equipment necessary or useful in the distribution, transmission, or sale of electricity in, over, along, on, and under the Public Rights-of-Way of the City, for the purpose of distributing, transmitting, and selling electricity at any point within the corporate limits of the City as the same now exist or may hereafter be extended or altered. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FAIRFAX, VIRGINIA: 1. Grant of Franchise. That the right is hereby granted unto [INSERT NAME OF GRANTEE], a public service corporation doing business in the Commonwealth of Virginia as [INSERT NAME OF GRANTEE], hereinafter referred to as the "Grantee," its successors and assigns, for the term and subject to the conditions and limitations hereinafter stated, to use as a provider of retail electric services the Public Rights-of-Way of the City of Fairfax, Virginia, hereinafter referred to as the "City," and to acquire, construct, install, operate, maintain, and use, and to the extent now constructed or installed to operate, maintain, and use, poles, towers, structures, attachments, wires, cables, conduits, ductways, manholes, handholes, meters, appliances, and other equipment necessary or useful in the distribution, transmission, or sale of electricity, hereinafter referred to as "Facilities," in, over, along, on, and under the Public Rights- of-Way of the City, for the purpose of distributing, transmitting, and selling electricity at any point within the corporate limits of the City as the same now exist or may hereafter be extended or altered;provided that such right to sell electricity shall extend only to such areas of the City as 1 are now or may hereafter be allotted to the Grantee for service by authority of a certificate of public convenience and necessity issued by the State Corporation Commission in accordance with law. All Facilities shall remain the property of Grantee. Grantee shall have the rights to inspect, rebuild, remove, repair, maintain, improve, alter, modify, replace, and relocate the Facilities, and to make such changes, alterations, substitutions, additions to or extensions',of the Facilities as Grantee may from time to time deem advisable in its sole and absolute discretion, except as otherwise provided in this Ordinance. 2. Public Rights-of-Way. As used in this Ordinance, the term "Public Rights-of-Way" means the streets, alleys, roads,bridges, sidewalks,lanes, courts, ways, and boulevards, including utility easements, waterways, or other public places used as public rights-of-way, as the same now or may hereafter exist, which are under the jurisdiction or control of the City. The term "Public Rights-of-Way" does not include (a) private property and private easements and (b) buildings, parks, signs, fences, tanks, poles, lines, fixtures, facilities, and other tangible property or appurtenances of the City. 3. Permits; Location of Facilities. (a) From and after the date on which this Ordinance shall become effective, the Facilities in, over, along, on, and under the Public Rights-of-Way authorized by this Ordinance to be located and constructed shall be located at reasonably suitable and convenient points. The Grantee shall file with the Director of Public Works of the City plans showing the location of proposed additional or relocated Facilities, and obtain a permit therefor from the City prior to their construction in, over, along, on, and under the Public Rights-of--Way. Except as provided in Section 3(b), any work performed by Grantee without a permit from the City in, over, along, on, and under the Public Rights-of-Way is a violation of this Ordinance. Except where approval of the State Corporation Commission is required by law, the location of the proposed Facilities shall be subject to review by the City Manager or his designee with the right on the part of the Grantee to appeal from his decision to the City Council, and the decision of the Council on such appeal shall be subject to judicial review. (b) During an Emergency Situation, the Grantee may perform all reasonable work to restore service and alter its Facilities to ensure the safety of all citizens of the City, and need not file plans with the Director of Public Works of the City or obtain a permit before commencing the work; provided, however, that the Grantee shall notify the Director of Public Works of the City of any such work within a reasonable time after such work is completed and 96 hours shall be presumed to be a reasonable time. In providing such notice, the (Grantee shall describe the location and nature of all such work. As used in this Section 3(b), an "Emergency Situation" is an event that is beyond the ability of the Grantee to control 4nd that creates an imminent threat of danger to public safety or interruption of electric service. This includes, but is not necessarily limited to, severe weather conditions, strikes, labor disturbances, war or acts of war, insurrection, riots, act of public enemy, fire, flood, or other acts of God. 4. Removal and Relocation of Facilities. (a) Whenever the City shall determine that it is necessary in connection with repair, maintenance, relocation, or improvement of the Public Rights-of-Way, provided that a principal purpose of such repair, maintenance, relocation, or improvement of the Public Rights-of-Way is to preserve or enhance the public's use of the Public Rights-of-Way for transportation (in any mode) and/or to preserve or enhance the safety of the Public Rights-of- Way, the City may require by written notification that any Facilities of Grantee be removed or relocated. Within thirty (30) days after receipt of notification unless the City Manager for good cause extends such time, Grantee shall submit to the City Manager a design plan and work schedule for removing or relocating the Facilities to such place as shall be mutually agreeable with the City Manager or his designee and Grantee. Grantee shall complete the removal or relocation within a reasonable period of time after submitting its design plan and work schedule to the City Manager, and ninety (90) days shall be presumed to be a reasonable period of time. Grantee shall, with respect to its Facilities located in, over, along, on, and under the Public Rights-of-Way, bear all costs of relocation and removal and shall install any new or additional Facilities on a Like-for-Like or Better basis. As used in this Section 4, "Like-for-Like" means the installation or relocation of Facilities in a like or similar manner of construction when compared to previously installed Facilities. For example, placement of Facilities above-ground using aerial construction in locations where existing Facilities are constructed above ground (aerial-to-aerial), or the placement of Facilities underground in locations where existing Facilities are constructed underground, are "Like-for-Like"; in the case of underground Facilities, conduit installations are to be replaced by conduit, and direct burial installations (where permitted) are to be replaced by direct burial. As used in this 2 Section 4, "Better" Facilities include Facilities which the Grantee, in its discretion, favors over Like-for-Like Facilities. For example, as a general matter the City prefers underground Facilities to overhead Facilities. If the Grantee decides that it would also prefer to place certain overhead Facilities underground, its work will be performed on a "Better" basis. As another example, if the Grantee decides to replace existing poles with poles that are more aesthetically pleasing, its work will be performed on a"Better"basis. (b) In the event that the City specifically requests that the Grantee install Facilities that are more expensive than Like-for-Like Facilities, the City shall bear the cost of relocation or removal, but only by the amount by which the cost of the more expensive Facilities exceeds the cost of Like-for-Like Facilities. (c) If Grantee does not complete removal or relocation within the period of time required by Section 4(a), then the City may, after giving at least fifteen (15) days' written notice to Grantee, take such actions at Grantee's expense as are necessary to effect such removal or relocation. In the event the City effects the removal or relocation of any Facilities pursuant to this Section 4, the City shall not be liable to the Grantee for any damages incurred by Grantee that result from such removal or relocation, unless such damages are the result of negligence or recklessness or willful misconduct on the part of the City or its agents, contractors, or employees. In addition, in the event the City effects the removal or relocation of any Facilities pursuant to this Section 4, Grantee shall indemnify the City for, and hold the City harmless from, any and all losses, damages, judgments, liabilities, costs, and expenses arising from or based upon the claims of third parties who allege personal injury, property damage, or other loss caused, in whole or in part, by the removal or relocation; provided, that Grantee shall not be required to indemnify and hold the City harmless to the extent that the loss incurred by a third party is caused by negligence or recklessness or willful misconduct on the part of the City or its agents, contractors, or employees. 5. Tree Trimming. (a) In the design, location, construction, installation, improvement, maintenance, repair, and use of Facilities herein authorized, Grantee shall at all times have the right to keep the Facilities clear of all trees, stumps, roots, and undergrowth, and to trim or fell any trees which, in the Grantee's reasonable opinion, may endanger the safe or proper operation of the Facilities, which shall include any tree which if falling or being felled could come within ten feet of any of Grantee's Facilities. Grantee's work shall be consistent with the Best Management Practices, Utility Pruning of Trees, published by the International Society of Arboriculture, 2011, as the same may be revised from time to time. Grantee shall avoid unnecessary damage to the shade trees in and along the Public Rights-of-Way and other public property of the City and shall not cut or otherwise injure such trees to any greater extent than is reasonably necessary in the construction, maintenance, and operation of Grantee's Facilities as herein authorized and provided. Grantee shall not perform any non-emergency trimming, maintenance, or removal of trees without providing the City's Right-of-Way Supervisor with reasonable advance notice of such activity, including a list of those Public Rights-of-Way or areas of the City where tree trimming, maintenance, or removal activities are scheduled to take place. Grantee shall provide reasonable advance notice, either in person or in writing, to residents along the routes of any such work. Where in the opinion of the City's Right-of-Way Supervisor or his designee the trimming will badly disfigure a particular tree, then upon written notice from the City's Right-of-Way Supervisor or his designee Grantee shall cause such tree to be removed and will allow the City at its election and expense to replace such tree with one appropriate for the location. (b) The City shall not install any new trees in, under, along, or in proximity to Grantee's Facilities within the City's Public Rights-of-Way unless and until it has consulted with and obtained approval of Grantee's Manager — Distribution Forestry (or his or her designee) concerning such installation. Grantee's approval will not be unreasonably withheld, conditioned, or delayed. 6. Restoration and Protection of City Property. In the event Grantee shall injure or otherwise cause damage to any pavement, sidewalk, sewer, water, or other pipe or works of the City, or any other property of the City, Grantee shall immediately notify the Director of Public Works of the City and promptly repair or replace the same at its own cost and expense. In the event Grantee has not completed the repair or replacement work identified in a notice provided by the City within thirty (30) days of the date of the damage,the City may undertake the repair or replacement work, and Grantee shall thereafter reimburse the City for any and all costs incurred by the City in performing the work. In the event the City undertakes repair or replacement work pursuant to this Section 6, the City shall not be liable for any damages incurred by Grantee that result from such work. In addition, in the event the City undertakes repair or replacement work 3 pursuant to this Section 6, the Grantee shall indemnify the City for, and hold the City harmless from, any and all losses, damages, judgments, liabilities, costs, and expenses arising from or based upon the claims of third parties who allege personal injury, property damage, or other loss caused, in whole or in part, by the work; provided, that Grantee shall not be required to indemnify and hold the City harmless to the extent that the loss incurred by a third party is caused by negligence or recklessness or willful misconduct on the part of the City or its agents, contractors, or employees. 7. Use of Grantee Facilities by the City. Grantee shall, when so requested by the City Manager, allow its poles and other overhead structures to be used by the City, free of rental or similar charge, for the purpose of placing thereon any traffic lighting, cable for traffic lighting, signs, fire and police alarms, telephone wires, and other appliances which may be necessary for the exclusive use of the police or fire department of the City; provided that the City shall follow all practices and procedures of Grantee with respect to attachment of facilities to Grantee's property, including but not limited to obtaining all necessary permits from the Grantee; and provided further that such use by the City shall not interfere with the proper use of said poles and other overhead structures by Grantee. The location and character of the City's traffic lighting, cable for traffic lighting, signs, fire and police alarms, telephone wires, and other appliances shall be subject to the approval of Grantee. The City shall indemnify and save harmless Grantee from any and all loss, damage, cost, or expense to or which may be incurred by the Grantee, or to which it may be subjected by reason of, or as a result of, the use of said poles and other overhead structures by the City as provided herein. 8. Use of Grantee Facilities by Third Parties. Prior to allowing any third party to place any facilities or equipment on or otherwise use Grantee's Facilities located in the Public Rights-of- Way, Grantee shall in its agreement with the third party require that the third party obtain all legally required authority and consent from the City to occupy and use the Public Rights-of-Way. 9. Indemnification. Grantee agrees and binds itself, by the acceptance of this Ordinance, to indemnify, keep, and hold the City free and harmless from liability on account of injury or damage to persons or property growing out of the construction, improvement, maintenance, repair, and operation of its Facilities, and in the event that suit shall be brought against the City, either independently or jointly with the Grantee on account thereof, the Grantee, upon written notice to it by the City, will defend the City in any such suit at the cost of the Grantee, and, in the event of a final judgment being obtained against the City, either independently or jointly with the Grantee, the Grantee will pay such judgment, with all costs, and hold the City harmless therefrom; but nothing contained herein shall be construed to render the Grantee liable for the acts or omissions of the City or its agents or employees or of any other person or corporation. 10. Protection of Property of Other Utility Services. The Grantee shall take all prudent action to avoid damage or injury to pipes, cables, fixtures, and installations of other utility services, particularly those installations whose disruption can cause hazards or danger to persons or property. In the event such damage or injury occurs, the Grantee shall immediately notify such other affected utility and the City Manager or his designee and shall cooperate and contribute its capabilities to the extent necessary to remove any hazards and repair any damage. 11. Service. The rights and privileges set forth herein are granted and conferred upon the Grantee upon the express condition and understanding on the part of the Grantee that it will render to the public in the City within the territory served by the Grantee, at all times during the term of this Ordinance, reasonably adequate electric service, and that it will maintain its Facilities located within the City in good order throughout the term of this grant, and the Grantee by accepting this Ordinance expressly agrees that the State Corporation Commission shall have jurisdiction,to the full extent and in the manner now or hereafter during the life of this Ordinance provided by law, to require the Grantee to render reasonably adequate electric service and to maintain its Facilities in good order throughout the term of this grant. 12. Undergrounding. (a) If the City requests that Grantee's Facilities be placed underground and at the City's expense constructs and installs to Grantee's specifications the conduits, ductways, manholes, handholes, and appliances and devices (including but not limited to switches, taps, transformers, and the like) necessary to facilitate the undergrounding of the Grantee's existing or proposed overhead Facilities, the Grantee shall, at its sole expense, design, remove, and relocate such portions of its existing or proposed overhead Facilities underground. The City will obtain or cause to be obtained, without charge to the Grantee, suitable public or private easements as may be required by Grantee for such underground Facilities. The extent of undergrounding that shall be required of the Grantee pursuant to this Section 12(a) annually shall not exceed two hundred (200) circuit feet, and six hundred (600) circuit feet shall be the maximum extent of undergrounding that may be aggregated pursuant to this Section 12(a) by 4 the City and required to be installed by the Grantee in any one year; provided, that the City shall have given advance written notice to the Grantee, which the Grantee shall have received no later than June 30 of the previous calendar year, of the extent and general location of the undergrounding that the City desires to undertake in any calendar year, and the Grantee's annual obligations under this Section 12(a) shall be contingent on such notice. The extent of undergrounding that shall be required of the Grantee pursuant to this Section 12(a) during the twenty (20) year term of this Ordinance shall in all events not exceed three thousand (3,000) circuit feet. (b) The Grantee shall not be responsible for any costs required for relocation of any Facilities that have been placed underground pursuant to Section 12(a) during the term of this Ordinance. (c) Any undergrounding of the Grantee's Facilities requested by the City that is in excess of that required by Section 12(a) will be at the City's expense. In such event, Grantee will openly and fully disclose the cost of such work to the City within sixty (60) days of the City's request. (d) In the event that the Grantee undertakes any undergrounding of its Facilities, without regard to whether the undergrounding will occur pursuant to Section 12(a), Section 12(b), or Section 12(c), the Grantee shall cooperate with the City and other utilities whose facilities are collocated on existing poles or other structures to ensure that those facilities are properly removed and relocated. 13. Damage to Grantee Facilities. Should any person intentionally destroy or damage any of the Facilities of the Grantee, constructed and maintained in accordance with provisions of this Ordinance, within the corporate limits of the City; or tamper with any metering device incident to the Grantee's Facilities or otherwise intentionally prevent such metering device from properly registering, or illegally divert electric service so that it does not pass through the metering device; or unlawfully or maliciously obstruct, tamper with, remove, or injure any part of Grantee's lines or any fixture thereof, or unlawfully or maliciously open, close, displace, tamper with, or injure any switch, switch point, switch lever, signal lever, or signal of Grantee, whereby the life of any person on any canal, railroad, or urban, suburban, or interurban electric railway is put in peril,the City shall, at Grantee's request, reasonably cooperate in any criminal prosecution or other legal action against such individual; provided, however, that Grantee understands and acknowledges that the City Attorney has no authority to prosecute these types of violations of the Virginia Code, and nothing in this Section 13 shall be construed to require such action. 14. Transfer of Franchise. All of the rights and privileges hereby granted to the Grantee may be exercised by any successor or successors or assignee or assignees of the Grantee, but such successor or successors or assignee or assignees shall be subject to all of the provisions, obligations, stipulations, and penalties herein prescribed. The franchise granted herein shall not be assigned or otherwise transferred without the prior written approval of the City, which approval will not be unreasonably withheld. 15. Term. The rights and privileges hereby granted shall continue for the period of twenty (20) years from and after the final passage of this Ordinance, unless the same be sooner voluntarily surrendered by the Grantee, with the consent of the City Council, or unless the same be sooner terminated or forfeited as provided by this Ordinance or other law. Upon the expiration of the term of this grant and upon the termination of the rights hereby granted, by surrender, forfeiture, or otherwise, all of the Facilities of the Grantee in the Public Rights-of-Way shall remain the property of the Grantee and may be removed from the Public Rights-of-Way at the option and at the expense of the Grantee within a reasonable time after the expiration or termination of such rights and privileges. 16. Surety Bond. This Ordinance and the rights and privileges hereby granted and conferred shall not become effective unless and until the Grantee shall file with the Clerk of the City its written acceptance thereof, in form satisfactory to the City, and shall enter into a bond in the sum of Fifty Thousand and No/100 Dollars ($50,000.00), with surety satisfactory to the City, conditioned to the effect that the Grantee will construct and maintain, or if constructed, will maintain,the Facilities provided for herein and reasonably necessary for the exercise of the rights and privileges granted in and by this Ordinance, and will maintain the same in good order throughout the term of this grant, and will comply with the terms, provisions, and conditions of this Ordinance in all respects. The bond will be in the form of Exhibit 1 attached hereto. 17. Other Ordinances. The rights and privileges granted herein to use the Public Rights-of- Way are expressly subject to the conditions, limitations, and provisions contained in the general ordinances of the City of Fairfax, Virginia, in force, or that may be hereafter passed by the City, relative to the use of the Public Rights-of-Way so far as they may be applicable to the rights and privileges herein granted, provided such ordinances that may be passed will not place any 5 unreasonable or impracticable burden upon the Grantee. 18. Severability. The sections, paragraphs, sentences, clauses, and phrases contained in this Ordinance are severable, and if any section, paragraph, sentence, clause, or phrase of this Ordinance shall be declared unconstitutional or otherwise invalid by a valid judgment or decree of a court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any of the remaining sections,paragraphs, sentences, clauses, or phrases of this Ordinance. 19. Enforcement and Termination. (a) In the event that the City believes that the Grantee has failed to perform any material obligations under this Ordinance and that such failure is not the result of circumstances beyond the Grantee's control, the City Council may hold a public hearing no less than thirty (30) days after providing written notice thereof to the Grantee. The written notice shall specify the nature of the alleged default. Witnesses shall testify under oath and shall be subject to cross examination. If, at the conclusion of such hearing, the City Council determines that the Grantee is in breach of this Ordinance,the City Clerk shall give written notice thereof to the Grantee, who shall thereupon have two (2) months in which to remedy the condition(s) which were the subject of such determination. In the event that the Grantee fails to remedy such condition(s) within the two-month period, the City Council may terminate this Ordinance and the Grantee shall have no further rights, privileges, or authority hereunder; provided that a decision by the City Council to terminate the Ordinance shall be subject to judicial review. (b) The availability of the remedy specified in Section 19(a) shall not preclude either party from seeking and enforcing a writ of mandamus in the Fairfax Circuit Court pursuant to Section 15.2-2106 of the Code of Virginia, or any successor statute, or from bringing any other suit or action which such party would be entitled to bring at law or in equity, as provided by law. (c) The failure of either party to at any time require performance by the other party of any provision hereof shall in no way affect the rights of such party thereafter to enforce the same. Nor shall the waiver by either party of any breach of any provision hereof be taken as a waiver of any succeeding breach of such provision or of the provision itself. 20. No Joint Venture. Nothing herein shall be deemed to create a joint venture or principal- agent relationship between the parties, and neither party shall be authorized to act toward third persons or the public in any manner which would indicate any such relationship with the other. 21. Entire Agreement. (a) This agreement represents the entire franchise agreement between the parties and supersedes all prior franchise agreements, including course of performance, course of dealing= and usage of trade. (b) Should any provision of this Ordinance require interpretation or construction, it is agreed by the parties that the court interpreting or construing this Ordinance shall not apply a presumption that the provision be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agents prepared the same, it being agreed that the parties hereto and their respective attorneys and agents have fully participated in the preparation of all provisions hereof Article II. That upon approval of this Ordinance by the Council, it shall be the duty of the Clerk to cause to be advertised once a week for two successive weeks, in some newspaper of general circulation in the City, a descriptive notice of the proposed ordinance, and in addition the Clerk shall,by such advertisement, invite bids for the privileges and rights proposed to be granted by this Ordinance, which bids shall be in writing and shall be delivered to the presiding officer of the City Council in open session at the day and hour of the next regular meeting of the City Council to be held next after such advertisement is completed, which bids shall then be presented to the City Council by the presiding officer to be dealt with and acted upon in the manner prescribed by law for franchise grants. Such advertisement shall expressly reserve the right to reject any and all bids, and the successful bidder shall be required to pay all costs of advertising the franchise in addition to the sum bid by it. Article III. This Ordinance shall be in force from its passage. Passed by the Council of the City of Fairfax, Virginia, on the 23rd day of April, 2013. ClArYC Sak—t—t. Mayor 6 Date ATTEST: 0/// City Clerk Votes Councilman DeMarco Aye Councilman Drummond Aye Councilman Greenfield Aye Councilman Meyer Aye Councilmember Schmidt Aye Councilman Stombres Aye 7 EXHIBIT 1 FRANCHISE BOND KNOW ALL PERSONS BY THESE PRESENTS that we, [INSERT GRANTEE NAME], d/b/a [INSERT GRANTEE NAME], as Principal, and [INSERT NAME OF SURETY], a corporation organized under the laws of the State of[INSERT NAME OF STATE], as Surety, are held and firmly bound unto the City of Fairfax, Virginia as Obligee,in the sum of Fifty Thousand and No/100 Dollars ($50,000.00), for the payment whereof, well and truly to be made, we bind ourselves, our successors, assigns,heirs, executors, and administrators,jointly and severally, firmly by these presents. The condition of the above obligation is such that whereas under the date of , the above-bounden [INSERT NAME OF GRANTEE], did enter into an agreement with the City of Fairfax, Virginia, therein called the City, for the operation of an electric distribution system as referenced in a City Ordinance and amendments. NOW, THEREFORE, the condition of the foregoing obligation is such, that if [INSERT NAME OF GRANTEE] shall faithfully comply with such ordinance according to the terms thereof, and shall well and truly indemnify and save harmless, the City from any pecuniary loss resulting from the breach of any of the terms, covenants, and conditions of such ordinance, then this obligation shall be void, otherwise to remain in full force and effect. PROVIDED, however, that the liability of the Surety hereunder shall in no event exceed the penal sum of this bond as stated above, regardless of the number of years the bond shall continue in force, and THIS obligation may be cancelled by the Surety by giving thirty (30) days' notice in writing of its intention to do so to the City. Witnessed our hands and seals this day of , 2013. [INSERT NAME OF GRANTEE] d/b/a [INSERT NAME OF GRANTEE] By: Principal —Vice President [INSERT NAME OF SURETY] By: Attorney-in-fact 8 TO: THE HONORABLE COUNCIL OF THE CITY OF FAIRFAX, VIRGINIA The undersigned, [INSERT NAME OF GRANTEE], a corporation organized and doing business under the laws of the Commonwealth of Virginia, respectfully offers the sum of Five Thousand and No/100 Dollars ($5,000.00) for the franchise rights proposed to be granted by the ordinance of the Council of the City of Fairfax, Virginia, approved April 23, 2013, entitled: "AN ORDINANCE To provide for the grant by the City of Fairfax, Virginia, to a person or persons, or to a corporation, its successors and assigns, hereafter to be ascertained in the mode prescribed by law, of the right, for the term and upon the conditions herein stated, to use as a provider of retail electric services the Public Rights-of-Way of the City, and to acquire, construct, install, operate, maintain, and use and to the extent now constructed or installed to operate, maintain, and use, poles, towers, structures, attachments, wires, cables, conduits, ductways, manholes, handholes, meters, appliances, and other equipment necessary or useful in the distribution, transmission, or sale of electricity in, over, along, on, and under the Public Rights-of-Way of the City, for the purpose of distributing, transmitting, and selling electricity at any point within the corporate limits of the City as the same now exist or may hereafter be extended or altered." The undersigned herewith encloses its check for the sum of Five Thousand and No/100 Dollars ($5,000.00), payable to the City of Fairfax, Virginia. IN WITNESS WHEREOF, the [INSERT NAME OF GRANTEE] has caused these presents to be signed by its Vice President thereunto duly authorized, and its corporate seal to be hereunto affixed and attested by its Corporate Secretary thereunto duly authorized, this day of , 2013. [INSERT NAME OF GRANTEE] By: Vice President ATTESTED: Corporate Secretary 9