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CONTRACT K-1415-131: AN AGREEMENT AND REVOCABLE UTILITY INSTALLATION PERMIT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND CHICKASAW TELECOMMUNICATIONS SERVICES, INC., A/K/A CTSI TO ALLOW INSTALLATION OF CONDUITS AND A FIBER OPTIC CABLE TO PROVIDE TELECOMMUNICATIONS SERVICES ALONG JOHN SAXON BOULEVARD FROM SOUTH OF HIIGHWAY 9 TO 2600 JOHN SAXON BOULEVARD FOR A PERIOD OF FIVE YEARS.
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BACKGROUND: The Public Works Department received an application from the Chickasaw Nation Industries for the installation of fiber optics conduit along John Saxon Boulevard beginning south of State Highway 9 and terminating at 2600 John Saxon Boulevard. Chickasaw Telecommunications Services, Inc. (CTSI) proposed to install the fiber optics conduit on behalf of Chickasaw Nation Industries. The Application set forth the terms and conditions of the permit and provides the location of the installation.
The Public Works Department and other appropriate departments has reviewed and approved the plans. Normally, the Public Works Department accepts, reviews, and approves these applications. However, due to the magnitude of this project, City Staff has asked Council to approve a contract, Contract K-1415-131 between the City of Norman and CTSI for the installation of the conduit for fiber.
DISCUSSION: The Contract provides that if CTSI were to enter the conduit with fiber, or leases, rents or sells the capacity for any revenue generating purpose, CTSI would be assessed a three percent (3%) fee in lieu of a franchise fee. This fee is applicable if and when CTSI generates revenue with respect to the use of this conduit. The Contract is valid for a five year term.
CTSI has provided agreements they have entered into with other cities across Oklahoma, including Duncan, Ada, and Durant. In addition, the City of Norman has previously entered into a similar agreement with CTSI for fiber conduit to serve the Norman Regional Hospital. That Agreement has expired and CTSI and City Staff are working on a renewal agreement to bring forward to Council.
Under the terms of the Contract, CTSI will indemnify the City from any and all damages or claims as a result of the installation or operation of the fiber and conduit. In addition, the Contract can only be assigned upon written consent of the City. The Contract is revocable at any time with thirty days' notice.
RECOMMENDATION: If Council wishes to allow CTSI to install fiber and conduit from south of State Highway 9 to 2600 John Saxon Boulevard, Staff recommends that Council approve K-1415-131.