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CONTRACT K-1718-118: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA AND COXCOM, L.L.C., FOR THE PROVISION OF CABLE TELEVISION SERVICES AND THE PAYMENT OF A FRANCHISE FEE TO THE CITY FOR A PERIOD OF FIVE YEARS.
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BACKGROUND: In 2007, Cox Communications, Inc. ("Cox") contacted the City of Norman to discuss the City of Norman's cable television franchise. Cox initiated this contact based upon the City of Norman's approval of a five (5) year agreement with AT&T, and based upon the fact that Cox's television franchise was set to expire on December 4, 2008.
The 2007 contract (K-0708-136) was for a term of five (5) years and was renewed in 2013 (K-1213-176) for another five (5) year term. Recently, staff and Cox began discussions about the renewal of the 2013 contract. The contract before Council in this item, K-1718-118, if for a new five (5) year term, effective on April 9, 2018, when the prior contact ends.
DESCRIPTION: Contract K-1718-118 is essentially identical to the 2013 contract. The Contract before Council contains the same terms as the AT&T contract (K-1718-13) approved by Council in July 2017. Cox will continue to pay a fee equal to five percent (5%) of applicable gross revenues to the City. Cox will also continue to provide channels for non-commercial educational and governmental programming. The term of the new contract is five (5) years, effective on April 9, 2018. Franchise revenues from cable companies are recorded into the General Fund, Basic Cable account (010-0000-318.10-25).
From a renewal process perspective, these cable contracts have been approved by Council action based on federal law. Although there is an Oklahoma Constitutional provision that seems to indicate approval of a franchise requires the approval of a majority of qualified electors, this provision was pre-empted under federal law.
The United States Congress has the authority to preempt State law under the Supremacy Clause of the United States Constitution...
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