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232860v1 <br />10 <br />d.Grantee shall have the authority to use Streets for the distribution of <br />Grantee’s System. The City may require all developers of future subdivisions <br />to allow and accommodate the construction of the System as part of any <br />provisions for utilities to serve such subdivisions. <br />e. <br />f.The Grantee specifically agrees to comply with the lawful provisions of the <br />City Code and applicable regulations of the City. Subject to the police power <br />exception below, in the event of a conflict between A) the lawful provisions <br />of the City Code or applicable regulations of the City and B) this Franchise, <br />the express provisions of the City Code shall govern. Su bject to express <br />federal and state preemption, the material terms and conditions contained in <br />this Franchise may not be unilaterally altered by the City through subsequent <br />amendments to the City Code, ordinances or any regulation of City, except in <br />the lawful exercise of City' s police power. Grantee acknowledges that the <br />City may modify its regulatory policies by lawful exercise of the City' s <br />police powers throughout the term of this Franchise. Grantee agrees to <br />comply wit h such lawful modifications to th e City Code; however, Grantee <br />reserves any rights it may have to challenge such modifications to the City <br />Code whether arising in contract or at law. The City reserves all of its rights <br />and defenses to such challenges wheth er arising in contract or at law. <br />g.Nothing in this Franchise shall (A) abrogate the right of the City to perform <br />any public works or public improvements of any description, (B) be <br />construed as a waiver of any codes or ordinances promulgated by the City, or <br />(C) be construed as a waiver or release of the rights of the City in and to the <br />Streets. <br />h.This Franchise complies with the Minnesota franchise standards set forth in <br />Minnesota Statutes Section 238.084. The City and the Grantee shall conform <br />to Minnesota laws promulgated subsequent to the date of this Franchise. The <br />City and the Grantee shall conform to federal laws and regulations as they <br />become effective. <br />(2)Franchise Term. <br />a.This Franchise shall be in effect for a period of ten (10) years from the date of <br />acceptance by Grantee, unless renewed, revoked, or terminated sooner as <br />herein provided (“Initial Term”). The Initial Term shall be extended for an <br />additional five (5) years if Grantee has substantially complied with the <br />material terms and conditions of this Franchise. Grantee shall pro vide written <br />notice to City at least twelve (12) months prior to the end of the Initial Term <br />indicating its compliance with the material terms and conditions of this <br />Franchise. City shall respond within six (6) months of su ch notice from <br />Grantee by either granting the five (5) year extension or stating in writing any <br />75