File #: K-1718-13    Version: 1 Name: AT&T U-Verse
Type: Contract Status: Passed
File created: 7/5/2017 In control: City Council
On agenda: 7/11/2017 Final action: 7/11/2017
Title: CONTRACT K-1718-13: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SOUTHWESTERN BELL TELEPHONE COMPANY, D/B/A AT&T OKLAHOMA FOR THE PROVISION OF INTERNET PROTOCOL ENABLED VIDEO SERVICES AND THE PAYMENT OF A PROVIDER FEE TO THE CITY FOR A PERIOD OF FIVE YEARS.
Attachments: 1. Text File ATT.pdf, 2. K-1718-13

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CONTRACT K-1718-13: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SOUTHWESTERN BELL TELEPHONE COMPANY, D/B/A AT&T OKLAHOMA FOR THE PROVISION OF INTERNET PROTOCOL ENABLED VIDEO SERVICES AND THE PAYMENT OF A PROVIDER FEE TO THE CITY FOR A PERIOD OF FIVE YEARS.

 

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BACKGROUND: In 2007, AT&T approached the City of Norman about a new service it had developed called U-Verse. U-Verse is an Internet Protocol (IP) based service that is offered over existing telephone network facilities. The service includes high speed internet access, IP-video features with more than 300 channels, video on demand, digital video recorders, and parental controls, in addition to other features. Unlike a traditional cable service provider, AT&T already has access to the public rights-of-way via its statewide franchise for telephone service. Since expanding into the IP service market, AT&T has been willing to negotiate a fee with cities that is similar to a franchise fee even though it already has access to public rights-of-way. The original contract (K-0708-47) was for a five (5) year period and provided that AT&T would pay to the City a fee equal to five percent (5%) of its gross revenues generated by these services (equal to the franchise fee paid by cable companies to operate in the public rights-of-way). Additionally, AT&T agreed to provide capacity for six (6) “streams” or “channels” for noncommercial educational and governmental programming should the City provide content in a compatible format.

 

Upon the expiration of the initial contract, Council approved Contract K-1213-128 in 2012 which continued the provider fee and the option for six (6) “streams” or “channels” for noncommercial educational and governmental programming. Contract K-1213-128 expires on July 24, 2017. The provider fee remitted to the City as a result of this contract in FYE 2017 was $364,107.68.

 

DESCRIPTION:  Contract K-1718-13 with AT&T contains the same terms as the 2007 and 2012 contract. AT&T will continue to pay a fee equal to 5% of its gross revenues to the City. AT&T will also continue to provide six (6) “streams” or “channels” for noncommercial educational and governmental programming.  The term of the new contract is also five (5) years.

 

RECOMMENDATIONStaff recommends approval of Contract K-1718-13.