AN ORDINANCE ACCEPTING A TELECOMMUNICATIONS FRANCHISE CONTRACT BETWEEN UNITED TELEPHONE COMPANY D/B/A SPRINT AND THE CITY OF BALDWIN CITY, KANSAS.

Section 1. United Telephone Company, doing business as Sprint, a corporation organized under the laws of the State of Delaware, with a license to do business in the State of Kansas, and its successors and assigns, and the City of Baldwin City hereby enter into a Telecommunications Franchise Contract pursuant to K.S.A. 12-2001 and 17-1902.

Section 2. The Telecommunications Franchise Contract shall be effective upon final passage and publication of this ordinance, pursuant to applicable law, and shall continue for a term of 10 years from its effective date.

Section 3. Compensation for the Telecommunications Franchise Contract shall be established pursuant to K.S.A. 12-2001(j).

(a)      Pursuant to K.S.A. 12-2001(j)(2), the city requires Sprint to collect and remit to it a fee of three percent of gross receipts as defined by K.S.A. 12- 2001(c)(6).

(b)     The compensation to the city shall be remitted quarterly before the end of the months of April (for the first quarter), July (for the second quarter), October (for the third quarter), and January (for the fourth quarter).

(c)      The city agrees the compensation pursuant to K.S.A. 12-2001(j) shall be in lieu of any general or special license tax, occupation tax, or any other such tax for the term of this ordinance.

Section 4. Nothing herein shall affect any prior or existing rights of Sprint to maintain a telecommunications company within the city.

Section 5. This Telecommunications Franchise Contract is not exclusive, and it does not permit Sprint to attach equipment (specifically distribution lines) to city property (specifically utility poles) without express authorization.

Section 6. All ordinances, agreements, or parts of ordinances and agreements, in conflict with this ordinance are hereby repealed.

Section 7. If this Telecommunications Franchise Contract expires and the city and Sprint are engaged in good faith negotiations intended to result in the passage of such a subsequent ordinance acknowledging a Telecommunications Franchise Contract, the terms of this ordinance shall apply until the effective date of the subsequent ordinance.

Section 8. If any portion of this ordinance for any reason is held to be invalid, such portion shall be considered severed from the remainder of this ordinance and said remainder shall remain in full force and effect.

(11-17-03)