CITY COMMISSION AGENDA ITEM

Department:	City Attorney’s Office		Commission Meeting Date:  February 21, 2017
Staff Contact:	Randall F. Larkin
Recommendations/Options/Action Requested:
Authorize the City Manager to execute a Video Service Provider’s Agreement with RG Fiber, LLC.
Executive Summary:		On January 24, 2017, under the Video Competition Act of 2006, codified as amended at K.S.A. 12-2021 et seq., the Kansas Corporation Commission issued to RG Fiber, LLC, an “Order Granting Video Service Authorization,” granting RG Fiber the right to operate as a Video Service Provider in the City. In essence, through that Order, the State has issued to RG Fiber a franchise (the right to use the City’s Rights of Way, subject to certain limitations) to operate as a Video Service Provider in the City. On January 31, 2017, RG Fiber gave notice to the City that, in accordance with the “Order Granting Video Service Authorization,” it would commence operating as a Video Service Provider in the City on or after March 1, 2017. Accordingly, City Staff and RG Fiber negotiated a Video Service Provider’s Agreement, which would govern the rights and obligations of the parties related to RG Fiber’s use of the City’s Rights of Way. Under the Agreement, the City would receive 5% of RG Fiber’s “Gross Revenues” as a Video Service Provider as well as Right of Way Permit fees, while RG Fiber would receive, in accordance with the “Order Granting Video Service Authorization,”  the right to use the City’s Rights of Way for the purpose of providing Video Service. RG Fiber would also be obligated to use the City’s Rights of Way in compliance with all local laws and regulations.
Strategic Goal Area:		Not applicable.
Fiscal Impact (Amount/Source):		The City will receive five percent (5%) of RG Fiber’s gross revenue as a Video Service Provider in exchange for its use of the City’s Rights of Way to provide Video Service.
Attachments:		Video Service Provider Agreement Exhibit A

Reviewed By: (for CMO use only)

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