COMMENTS ON BEHALF OF OKLAHOMA PUBLIC SCHOOL DISTRICTS

ILE BEFORE THE CORPORATION COMMISSIJJ OF cd.q2o11 IN THE MATTER OF A PERMANENT RULEMAKING OF THE OKLAHOMA CORPORATION COMMISSION AMENDING OAC 165:59, OKLAHOMA UNIVERSAL SERVICE COURT CLERK'S OFFICE - OKC CORPORATION COMMISSION OF OKLAHOMA CAUSE NO. RM 201400006 COMMENTS ON BEHALF OF OKLAHOMA PUBLIC SCHOOL DISTRICTS Introduction: Greg Kasbaum, Executive Director, Oklahoma Technology Association representing school districts across the state in their endeavor to integrate instructional technology and Cohn Webb,, Noble Public Schools, on behalf the representatives of the Oklahoma public school districts listed in Appendix A of this document, submits these comments on the proposed rules dated November 12, 2014. We appreciate the opportunity to provide input to ensure that any rule changes will continue to support the goals of Special Universal Service in providing affordable access to online resources critical to the education of students in Oklahoma's Public Schools. We believe that this is in the public interest. Section 1. We hold that the Public Utilities Division of the Corporation Commission has not been given the statutory authority to adjudicate the selection process by which schools acquire internet and wide-area-network services. Title 17 O.S. Sec 139.09 (C)(4) states: Each public school building wherein classrooms are contained and each public library in the state shall, upon written request, receive one access line, free of charge, with the ability to connect to an Internet service provider at 1.5Mbps, in the most economically efficient manner for the carrier, or an equivalent dollar credit to be applied by the public school or public library toward similar services provided by the same carrier, for the purpose of accessing the Internet. While 1.5 Mbps is woefully inadequate bandwidth for many public schools in Oklahoma, the OUSF credit provides funding for the purpose of providing the technology necessary for classroom instruction. This is a vital public interest. Reducing this credit in whole or in part would be financially devastating for many school districts and would significantly negatively impact instruction. Furthermore, we believe that the statute states that the service is to be provided "in the most economically efficient manner for the carrier." Therefore, the Corporation Commission does Oklahoma Corporation Commission - Cause No. RM 201400006 Page 1

not have statutory authority to reduce the funding requested below the T-1 credit for the requesting service provider based on another service provider's bid who is not providing the service. There is not a provision in the statute that will allow for using the pricing of a different provider in determination of the T-1 credit. Recommendation: The statute shall remain unaltered. Schools shall receive, free of charge, a 1.5Mbps connection to an internet service provider or an equivalent dollar credit to be applied by the public school or public library. Section 2. Should the Public Utilities Division be imbued with the authority to oversee the selection process by which schools acquire Internet access and wide-area-network services using OUSF funds, several factors other than bid cost may impact bid selection and should be considered. The standard of "reasonableness" is, at best, ambiguous. School districts need a degree of continuity and certainty regarding the application and certification process. For "reasonableness" to be undefined provides no guidance for a school district to conduct a fair and open competitive bidding process for provider selection. Recommendation: The following factors shall be utilized to determine the "reasonableness" of the provider selection. These factors include but are not limited to: Price of service (primary factor) Quality of service Quality of support Equipment cost Installation cost Human resource cost to district Interruption of network functionality Qualifications of service provider Prior experience with service provider Section 3. The application and certification process currently practiced by the Public Utilities Division does not conform to accepted standards of public school accounting or requirements by the Federal E-rate Program. The application for Federal E-rate funds begins approximately nine months before the beginning of the fiscal year. Thus, schools must have an application/approval process for OUSF that provides for certification or adjustments that conform to that schedule. Failure to do so risks eligibility for Federal E-rate funds for schools. Denial of Federal E-rate Oklahoma Corporation Commission - Cause No. RM 201400006 Page 2

funds would be catastrophic for most public schools. Operating in such a manner is not in the public interest. A denial or reduction of funding by OUSF that occurs after the E-rate funding process has concluded jeopardizes E-rate funding and may result in a demand for return of funds from a school district by the E-rate program. Oklahoma taxpayers pay into the Federal Universal Services Fund which supports the E-rate program, and Oklahoma's taxpayers rightly expect Oklahoma public schools to pursue E-rate funding where qualified. Any action taken by the Public Utilities Division that jeopardizes E-rate funding eligibility is not in the public interest. Title 61 O.S. Section 136 regarding Public Building and Public Works, Public Competitive Bidding Act of 1974, states the following: 136. Conflicts with Federal Rules and Regulations - Laws Governing In the event any provision of this act conflicts with or is inconsistent in any manner with the rules and regulations of any agency of the United States Government, which is providing all or any portion of the funds used to finance any public construction contract, the rules and regulations of said agency of the United States Government shall supersede and take precedence over such portion or portions of this act in conflict or inconsistent therewith, it being the intent of the Legislature to secure all of the benefits available to the people of the State of Oklahoma from federally assisted programs. Even though the OUSF is under a separate Title of Oklahoma law, we believe the Corporation Commission's recommended rule changes to impose a standard different than the competitive bidding requirements of the FCC's E-rate program is inconsistent with the public interest of Oklahomans to secure all of the benefits available to the people of the State of Oklahoma from federally assisted programs. Recommendation: Align OUSF application and certification process with the bidding requirements and timeline utilized by the Federal E-rate Program. Certification by the Public Utilities Division shall be for a five year period providing that: A. School District Building Count remains the same or less. Districts will submit in writing any changes in building count. B. Price deferential for service increases no more than 20% for similar service. Conclusion: It is imperative that Oklahoma public schools provide the best possible learning environment for all students. That endeavor includes providing access to technology tools and applications designed to enhance the teaching and learning process. The scarcity of instructional technology funding is a growing challenge in Oklahoma. OUSF funding is indispensible in providing for the Oklahoma Corporation Commission - Cause No. RM 201400006 Page 3

education of children in Oklahoma Public Schools. We acknowledge the hard work and attention the Oklahoma Corporation Commission has given to the Oklahoma Universal Services Fund and understand the desire to protect the funding from misuse. The overwhelming majority of public schools do not engage in practices that are intended to misuse the fund. We appreciate your consideration and stand ready to participate in developing measurable safeguards to ensure the proper use and preservation of the fund. Respectfully Submitted, d--, g <~ 4 ~ z ze Cohn Webb, M.Ed. Director, Technology Noble Public Schools P0 Box 499, Noble, OK 73068 405.872.7800 G-tCjaum.Ed. Executive ector - Oklahoma Technology Association P.O. Box 852076, Yukon, OK 73085 405.201.7368 Oklahoma Corporation Commission - Cause No. RM 201400006 Page 4

APPENDIX A: OKLAHOMA CORPORATION COMMISSION, CAUSE NO. RM 201400006 SCHOOL DISTRICTS IN SUPPORT OF COMMENTS SUBMITTED BY COhN WEBB Geromy Schrick Executive Mustang Public Schools Mustang, Ok Sean McDaniel Mustang Public Schools Mustang, OK Richard Wolff Kingston Public Schools Kingston, OK Eric Hilemari Executive Director, IT Services Oklahoma City Public Schools Oklahoma City, OK Cory Boggs Executive Director, IT Services Putnam City Schools 5401 NW 40th, Oklahoma City Danny Chronister Pawhuska Public Schools Pawhuska Ok Robert Clark Claremore Public Schools Claremore, OK Randy Witham Henryetta Public Schools Henryetta, OK Dr. Robert Romines Moore Public Schools Moore OK. Tony Chauncey Elk City Public Schools Elk City, OK Brian Sibert Green Country Technology Center Okmulgee, OK Dee Benson Guthrie Public Schools Guthrie, OK 73044 Kyle Reynolds Woodward Public Schools Woodward, OK Jun Kim Moore Public Schools Moore OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 5

Joe Slitzker Director of Business and Information Technology Sapulpa Public Schools Sapulpa, OK Kevin Burr Sapulpa Public Schools Sapulpa, OK Mandy Godfrey Chief Information Officer Deer Creek Schools Edmond, OK Todd Garrison Lone Grove Public Schools Lone Grove, OK Eric Sizemore Director of Instructional Technology Sallisaw Public Schools Sallisaw, OK Scott Farmer Sallisaw Public Schools Sallisaw, OK Kellie Clark Catoosa Public Schools Catoosa, OK. Jason Baxter Lone Grove Public Schools Lone Grove, OK Wesley Scott Chouteau-Mazie Public Schools Chouteau, Ok Joshua Jauert Wyandotte Public Schools Wyandotte, OK Jason Johnson Director of Instructional Programs Pryor Public Schools Pryor, Oklahoma Daryl McDaniel Western Heights Public Schools Oklahoma City, Oklahoma Sharon Lakey District Technology Coordinator Mannford Public Schools Mannford, OK Edward Aycock Lone Star Public School Sapulpa, OK Judy Bingham Adair Public Schools Adair, OK Corey White District Technology Coordinator Hobart Public Schools Hobart, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 6

Dr. Kent Holbrook Inola Public Schools lnola, OK Danny Way Wilson Public Schools Wilson, Oklahoma Jo Jennings Holdenville Public Schools Holdenville, OK Dawn Mowdy Okmulgee Public Schools Okmulgee, OK Rick Ruckman Copan Public School Copan, OK 74022 Roger Hemphill Haileyville Public Schools Haileyville, OK Jeff Lawrence Tech. Director Lowrey School Tahlequah, OK 74464 Jeff Taylor Pretty Water School Sapulpa, Ok Mark Levings Inola Public Schools Inola, OK 74036 Donna Campo Liberty Public Schools Mounds, OK Michael Blackburn Stratford Public Schools Stratford, OK Bruce Chrz Qua paw Public Schools Quapaw, Oklahoma Dr. Harold Hayes Eldorado Public Schools Eldorado, Oklahoma Bob Myers Information Systems Dir. Frontier Public Schools Red Rock, OK 746351 Troy Rhoads Technology Coordinator Cleveland Public Schools Cleveland, Oklahoma Janet Grigg Director SeeWorth Academy Charter School Oklahoma City, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 7

Rebecca Grotts Classroom Teacher and Technology Director Carney Public Schools Carney, OK Cliff Johnson Latta School Ada, OK Debbie Lynch IT Director Latta School Ada, OK Brian K. Crittenden Santa Fe South Schools Oklahoma City, OK Rusty Carmichael Dean of Students/Tech. Director Grove Elementary School District Shawnee, OK David R. Cobb Seminole Public Schools Seminole, OK Jason L. Midkiff Greenville Schools Marietta, Ok Melinda Fink Osage School Pryor, Ok Robbi Duncan IT Coordinator Osage School Pryor, OK John Cox Peggs School Peggs, OK Steve Duncan IT Director Spavinaw School Spavinaw, OK Christine Midgley Spavinaw School Spavinaw, OK Joey McBride Milburn Public Schools Milburn, OK Terrell Hurst Sharon-Mutual Schools Mutual, OK Susie Overturf Director of Information System Pontotoc Technology Center Ada, OK Tracie Hale Lone Star School Sapulpa, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 8

Mark Abbott Byng School District Ada, Oklahoma Brent Phelps Fox Public Schools Fox, OK Tom MacEntire Silo Public Schools Durant, Ok David Lassiter Pontotoc Technology Center Ada, OK Donna Anderson Silo Public Schools Durant, Ok Wade Stafford Hammon Public Schools Hammon, OK Derald Glover Fort Gibson Schools Fort Gibson, OK Dr. Brian Beagles Sperry Public School Sperry, OK Jason Wicks Fort Gibson Schools Fort Gibson, OK Raymond Cole Wynnewood Public Schools Wynnewood, OK Charlie McMahan Okay Schools Okay, 01< Ryan O'Connor Vian Public Schools Vian, OK Dale Austin Okay Schools Okay, OK Victor Salcedo Vian Public Schools Vian, OK Tracy Sritairat Colbert Public School Colbert, OK Dr. Dixie Swearingen Webbers Falls Public Schools Webbers Falls, OK Terry Simpson Sperry Public School Sperry, OK Kevin Stacy of Schools Oklahoma Union High School South Coffeyville, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 9

Monica Partain Technology Coordinator Calera Public School Calera, OK Stephanie Holt Director of Secondary Education McAlester Public Schools McAlester, Oklahoma Gerald Parks Calera Public School Calera, OK Tony Thomas Sauna Public Schools Salina, OK Rick Hatfield of Schools Ringling Public Schools Ringling, OK Andi Hudson Durant ISD Durant, OK Mike Wood Drummond Public Schools Drummond, OK Larry Bennett cro Durant ISD Durant, OK Craig McVay El Reno Public Schools El Reno, OK Duane Merideth of Schools Durant lsd Durant, OK Jeffery A. Herbel Director of Information Technology Enid Public Schools Enid OK Larry Cochran Faculty & Instructional Dev. Admin. Oklahoma State University-Tulsa Tulsa, Oklahoma Susan Stansberry Associate Professor, Educational Tech Oklahoma State University Stillwater, OK Beth Richert Ed Tech Director Clinton 1-99 Clinton, OK Jeanene Barnett Bristow Bristow, OK Josh Sumrall Coyle Public Schools Coyle, Oklahoma Clayton Edwards Stigler Public Schools Stigler, OK Joe A. McCulley Hennessey Public School Hennessey, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 10

Terry Newton Salina Public School Salina, Oklahoma Ned Williams Pawnee Public Schools Pawnee, OK 74058 Gayle Castle Blanchard Schools Blanchard, OK Loretta Robinson Miami Public Schools 1023 Miami, OK H T Gee Crescent Public Schools Crescent, OK Floyd Kirk Allen Bowden Schools Tulsa, OK Michelle Tindle McAlester Public Schools McAlester, OK Buddy Wood Elk City Public Schools Elk City, OK Oklahoma Corporation Commission - Cause No. RM 201400006 Page 11

CERTIFICATE OF MAILING On this 3rd day of December 2014, a true and correct copy of the foregoing Initial Comments of the Oklahoma School Districts and the Oklahoma Technology Association was mailed electronically to: Brandy L. Wreath Director, Public Utility Division Oklahoma Corporation Commission P.O. Box 52000 Oklahoma City, OK 73105 b.wreath@occemail.com Elizabeth Cates Deputy General Counsel Oklahoma Corporation Commission P.O. Box 52000 Oklahoma City, OK 73105 e.cates@occemail.com Jerry J. Sanger Tess J. Hager Assistant Attorneys' General Office of the Atttorney General, State of OK 313 NE 21St Street Oklahoma City, OK 73105 tessa.hager@aog.ok.gov Jerry.Sanger@aog.ok.gov John W. Gray General Attorney AT&T Services Inc. 405 N. Broadway, Room 203 Oklahoma City, OK 73102 ig1989@att.com Kimberly Prigmore Assistant General Counsel Oklahoma Corporation Commission P.O. Box 52000 Oklahoma City, OK 73105 k.prigmore@occemail.com Maribeth Snapp Telecommunications Policy Director Oklahoma Corporation Commission P.O. Box 52000 Oklahoma City, OK 73105 rn.snapp@occemail.com Kim Argenbright 2504 N.W. 68th St. Oklahoma City, OK 73116 kim@aktelcolaw.com Marc Edwards Jeffery M. Riles Jr. Philips Murrah, P.C. Corporate Tower I Thirteenth Floor 101 N. Robinson Ave. Oklahoma City, Oklahoma 73102 medwards@phillipsmurrah.com imriles@phillipsmurrah.com Commentes of Oklahoma Public School Districts Oklahoma Corporation Commission - Cause No. RM 2001400006 Page 12

Ron Comingdeer Kendall W. Parrish Ron Comingdeer & Associates 6011 N. Robinson Oklahoma City, OK 73118 huntercomingdeerlaw.com kparrish@comingdeerlaw.com Nancy Thompson P0 Box 18764 Oklahoma City, OK 73154-8764 mthompokc@aol.com Mark Argen bright Maura Shortt Oklahoma Corporation Commission P0 Box 52000 Oklahoma City, OK 73152-2000 rn.argenbright@occemail.com m.shortt@occemail.com Jack G. Clark, Jr. Clark, Stakem, Wood & Patten, PC 101 Park Avenue, Suite 400 Oklahoma City, OK 73102 cclark@cswp-law.com David Jacobson Jacobson & Laasch 212 East Second Street Edmond, OK 73034 jdj788@aol.com J. Fred Gist, Esq. Jennifer H. Castillo Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 100 N. Broadway, Suite 2900 Oklahoma City, OK 73102 fgist@hallestill.com jcastillo@hallestill.com Howard Siegel VP of External & Regulatory Affairs Logix Communications 201 Barton Springs Road, Suite 100 Austin, TX 78704 Howard.SiegelLogixCom.com Cody B. Waddell, Attorney Cody B. Waddell, P.C. 19 N.E. 50th Street Oklahoma City, OK 73105 codwad@aol.com Dallas E. Ferguson Williams Center Tower II Two West 2nd St., Suite TOO Tulsa, OK 74103-3117 dferguson dsda.com Cohn T. Webb Commentes of Oklahoma Public School Districts Oklahoma Corporation Commission - Cause No. RM 2001400006 Page 13