Item 3: Ordinance to Establish a Regional Fiber Consortium for the Ownership and Operation of a Fiber Optic System

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Providing for an Intergovernmental Agreement to Establish a Regional Fiber Consortium for the Ownership and Operation of a Fiber Optic System; and Repealing Ordinance No. 20181 Meeting Date: October 15, 2007 Agenda Item Number: 3 Department: Central Services Staff Contact: Pam Berrian www.eugene-or.gov Contact Telephone Number: 682-5590 ISSUE STATEMENT This is a public hearing on a proposed ordinance to amend a 1999 ORS 190 based inter-governmental agreement establishing a regional fiber consortium for the ownership and operations of a fiber optic system. The amendment would formally merge two western Oregon public fiber consortia which have been working together for several years. ORS 190 agreements and related changes must be authorized by the elected bodies of a jurisdiction. BACKGROUND In 1999, the City Council received a memorandum of explanation regarding a proposed site-specific 20-year franchise agreement with Williams Communications for use of the public way for a backbone facility that would offer no services within the city limits of Eugene. Eugene was just one or many cities in Oregon along a planned intra-state route. Williams and cities discussed the efficacy of waiving rights of way use franchise fees (in Eugene’s case, 66 feet of rights of way along High Street) in exchange for the use of dark fiber. Cities reached tentative agreement with Williams and proposed to organize as an ORS 190 organization to manager the fiber asset. While thinking it may be unlikely that the City would make use of the donated dark fiber spanning nine miles within the city limits, staff believed it was in the public interest to participate in this regional development opportunity. The council approved Ordinance 20182 in 1999 and became a voting member of what became the Fiber South Consortium. The Franchise Manager was designated as Eugene’s voting member on the consortium. The City Council requested that they receive a copy of the meeting agendas, which they have. Fiber South staffing is provided by the Lane Council of Governments. A similar event occurred with a fiber backbone intra-state build from Klamath through Springfield and the cities along that route formed an ORS 190 consortium well. Staffing is provided by the City of Springfield. Meetings have been held jointly for some time as private telecommunications providers wishing to lease the one network most often wish to lease both routes. Advantages to Eugene Gained from the Consortium During its formation, the Fiber South Consortium, Eugene was involved in negotiating an agreement for the Eugene area fiber optics construction. This resulted in Eugene getting two bundles of fibers: 96 in one and 12 in another. These bundles provide key connections for the City of Eugene’s internal telecommunications F:\CMO\2007 Council Agendas\M071015\S0710153.doc