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1775ORDINANCE NO. 1775 (#04 - 2025) AN ORDINANCE AUTHORIZING A FRANCHISE AGREEMENT FOR FIBER OPTIC, DATA MANAGEMENT, DIGITAL INFORMATION SERVICES, AND ELECTRONIC TRANSMISSION COMMUNICATIONS SERVICES WITHIN THE CITY WITH UNITI FIBER LLC; AND, FOR OTHER PURPOSES. Whereas, Uniti Fiber LLC, through it and its subsidiaries, which will, if approved, provide fiber optic and electronic transmission communication services to certain areas of Jacksonville, and is willing to pay a franchise fee for the privilege of providing said services and utilizing the City's public Rights -of -Way. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE, ARKANSAS, THAT: SECTION ONE: Uniti Fiber LLC, (hereinafter designated as Franchisee), their successors or assigns, are hereby granted by City a non-exclusive right to construct, erect, operate, upgrade, and maintain along, across, above, in, over, under, and upon the public utility Rights -of -Way, now laid out, dedicated, and all extensions thereof and additions thereto in the City, for purposes of installation, maintenance, and operation of a fiber optics and communications system for transmission to business and residential customers communications, data, internet, networking services and systems, and telecommunication services, together with subscriber interaction required for the selection and use of such services. SECTION TWO: Franchisee, Uniti Fiber LLC, and its subsidiaries, agrees to pay City a Four and One -Quarter Percent (4.25 %) annual Franchise Fee after installation of their lines and equipment in City Rights of Way becomes effective, anticipated to be March 6, 2025, and throughout the term of the franchise period in exchange for the use and benefit of City's Rights -of - Way for their fiber optics, digital communication, and networking and data management systems. Said payments shall be calculated based on all monies (Gross Revenues) received by Franchisee from its fiber optic communications system for transmission to business and residential customers' communications, data, internet, and networking services and systems, together with subscriber interaction required for the selection and use of such services within the City. Payments of franchise fees shall be made on a quarterly basis and shall be remitted not later than thirty (30) days after the last day of March, June, September, and December throughout the term of this Agreement. SECTION THREE: The term of this franchise shall be for a period up to and including March 6, 2025 Plus 10 Years, together with options to renew said franchise for ten (10) years, at the discretion of City and Franchisee. This franchise may be renewed in accordance with proper procedures in a manner consistent with local, state, and federal law and the Mayor and City Clerk are hereby authorized to execute a Franchise Agreement containing like terms and conditions after approval of the City Attorney as to such form and terms. ORDINANCE NO. 1775 (904 - 2025) Page Two SECTION FOUR: All other terms and conditions as outlined in the parties' Franchise Agreement not specifically modified herein shall continue in full force and effect as if restated herein word for word. SECTION FIVE: Should any section, clause, or provision of this Ordinance or the Franchise Agreement pursuant thereto be declared invalid by a Court of competent jurisdiction, such a ruling shall not affect the validity of the Ordinance as a whole or any part thereof, other than the part so declared invalid. SECTION SIX: This Ordinance shall take effect from after its date of passage, pursuant to and under the authority of applicable law. APPROVED AND ADOPTED /THIS 6TH DAY OF MARCH, 2025. rFFMORE, MAYOR ATTEST: r7SUSANVITT, ITY CLERK APPROVED AS TO FORM: S PHA E FRIEDMAN, CITY ATTORNEY