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City of Tukwila Allan Ekberg,Mayor <br /> Public Works Department-Bob Giberson,Director <br /> INFORMATIONAL MEMORANDUM <br /> TO: Transportation Committee <br /> FROM: Bob Giberson, Public Works Director 4Al <br /> CC: Mayor Ekberg <br /> DATE: April 21, 2017 <br /> SUBJECT: MCImetro Franchise Ordinance <br /> ISSUE <br /> Approval of MCImetro Franchise Ordinance, <br /> BACKGROUND <br /> Headquartered in Ashburn Virginia, MCImetro Access Transmission Services Corporation is a <br /> wholly owned subsidiary of Verizon Communications focused on cable transport. Verizon is the <br /> second largest U.S. telecommunications service provider and has its roots in the breakup of the <br /> Bell System. Verizon was formed in 2000 from a merger between Bell Atlantic and GTE. <br /> MCImetro Access was a subsidiary of MCI Communications formed in 1963. MCI was purchased <br /> by WorldCom in 1997. The new company, MCI WorldCom, was purchased by Verizon in 2005. <br /> MCImetro provides bandwidth infrastructure solutions for the communications industry in the US <br /> and Europe. Specifically, MCImetro provides long haul fiber networks for carriers, financial <br /> service companies, healthcare, government, educational institutions, and other enterprises. <br /> ANALYSIS <br /> The attached Franchise Agreement would allow MCImetro to continue operating and maintaining <br /> its fiber optic system in the City's right-of-way and facilitate future expansion projects. <br /> FINANCIAL IMPACT <br /> Under the terms of the Franchise, MCImetro will pay a $5,000 administrative fee within 30 days of <br /> franchise approval. <br /> RECOMMENDATION <br /> Council is being asked to approve the Ordinance that will grant a Franchise Agreement to <br /> MCImetro Access Transmission Services Corporation and consider this item on the Consent <br /> Agenda at the May 1, 2017 Regular Meeting. <br /> Attachment: Draft Franchise Ordinance <br /> WAPW Eng\PROJECTS\Franchise\Telecom\MCI METRO-VERIZON conduWlmfo Memo MCImetro 042117 gl.docx 31 <br />