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1748ORDINANCE NO. 1748 (#01 - 2024) AN ORDINANCE AUTHORIZING A FRANCHISE AGREEMENT FOR FIBER OPTIC CABLE, DATA MANAGEMENT, DIGITAL INFORMATION SERVICES, AND ELECTRONIC TRANSMISSION COMMUNICATIONS SERVICES WITHIN THE CITY WITH CONNECT2FIRST; AND, FOR OTHER PURPOSES. Whereas, Connect2First, LLC provides fiber optic cable 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: Connect2First, 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 cable and communications system for transmission to business and residential customers cable, 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, 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 effective January 1, 2024, 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, cable, 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 optics cable and communications system for transmission to business and residential customers' cable, 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 December 31, 2034, together with options to renew said franchise for twenty (20) years, at the discretion of City and Franchisee. This franchise may be renewed in accordance with proper procedures as contained in 47 USC § 546, which is incorporated herein by reference, 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. 1748 (#01 - 2024) 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 15TH DAY OF FEBRUARY, 2024. CITY OF JACKSONVILLE, ARKANSAS By: EFF ELMORE, MAYOR ATTEST: SUS L. DAVIT ,CITY CLERK - Ilk APPROVED AS TO FORM:vz- l� ST NIE FRIEDMAN, CITY ATTORNEY