Memorandum

City of Lawrence

Legal Services Department

TO:	David L. Corliss, City Manager Toni Ramirez Wheeler, Director of Legal Services Diane Stoddard, Assistant City Manager
From:	John Jay Miller, Staff Attorney
Date:	July 30, 2009
RE:	Video Service Provider Agreement for Community Wireless Communications, Co.

On July 20, 2009, Community Wireless Communications, Co. delivered notice to the City of Lawrence, Kansas, that the Kansas Corporation Commission granted Community Wireless authorization to provide video service to the City.  Previously, Community Wireless sent notice to the City of their intent to provide video service within the City’s jurisdiction. 

The KCC’s Order Approving Application For Video Service Authorization was approved on July 17, 2009 and is attached.  The authorization is to provide video service within the current corporate boundaries of the City of Lawrence, Kansas with a complete build out of its service by June 14, 2014. 

In 2006 the Kansas Legislature passed the Video Competition Act, K.S.A. 2008 Supp. 12-2021 et seq. Pursuant to the Act, after July 1, 2006, an entity seeking to provide cable service or video service that is not currently franchised as a cable operator in Kansas is required to have a state issued video service authorization to offer video services in Kansas.  The Kansas Corporation Commission grants the video service authorization.  The video service authorization is subject to applicable City right-of-way ordinances.

No municipality may require a video service provider to obtain a separate franchise to provide video service or impose any other franchise or service requirements or conditions on video service providers.  The Act requires a video service provider to provide notice to a municipality before providing video service in the municipality’s jurisdiction and for the video service provider to execute an agreement in the form set out in the statute and to file it with the city clerk. Upon execution, the agreement will be effective immediately. 

Attached is the Video Service Provider Agreement between the City and Community Wireless. 

The Act provides that a video service provider shall pay a video service provider fee to the municipality upon the municipality’s written request, expressed as a percentage of gross revenues not to exceed five percent.  The five percent fee is the same amount currently received by the City for the World Company’s cable franchise. 

Attached is a draft letter from the City requesting Community Wireless to pay a video service provider fee equal to five percent (5%) of the gross revenues received for the services provided within the corporate limits of the City.  

Staff recommends the Commission authorize the City Manager to execute a Video Service Provider Agreement with Community Wireless Communications, Co. and authorize the City Manager to send a written request to Community Wireless Communications, Co. to pay a video service provider fee equal to five percent (5%) of the gross revenues received for the services provided within the corporate limits of the City.  

Action Request

Authorize City Manager to execute a Video Service Provider Agreement with Community Wireless Communications, Co. and authorize the City Manager to send a written request to Community Wireless Communications, Co. to pay a video service provider fee equal to five percent (5%) of the gross revenues received for the services provided within the corporate limits of the City.