Item 5: Ordinance on Fiber-Optic System

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: 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 22, 2007 Agenda Item Number: 5 Department: Central Services Staff Contact: Pam Berrian www.eugene-or.gov Contact Telephone Number: 682-5590 ISSUE STATEMENT The proposed ordinance would amend a 1999 intergovernmental agreement establishing a regional fiber consortium for the ownership and operation 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 Chapter 190 authorizes local governments to create intergovernmental entities which when formed, can act as a single governmental body, but it requires that the agreements creating such entities be approved by the elected bodies of the member jurisdictions. BACKGROUND The City Council was informed in 1999 of a proposed site-specific 20-year franchise agreement with Williams Communications for use of the public-way for a backbone fiber optic facility that would offer no services to Eugene residents. Eugene was just one of many cities in Oregon along a planned intra- state route. Williams Communications, and cities, discussed the efficacy of waiving rights-of-way (ROW) use franchise fees (in Eugene’s case, 66 feet of rights-of-way along High Street) in exchange for the 20-year use of dark fiber. Cities reached tentative agreement with Williams and proposed to organize as a single intergovernmental entity to manage the fiber asset. Eugene’s efforts were aimed at assisting the provision of services to its non-urban counterparts by joining the consortium and giving up the $2 per year fee on just 66 feet of public ROW to complete William’s intra-Oregon route agreement. 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 which acts as a single governmental entity managing a joint asset. The City Council requested that councilors receive copies of the meeting agendas, which they have. Fiber South staffing is provided by the Lane Council of Governments. When a similar fiber backbone was built from Klamath Falls through Springfield, cities along that route formed an ORS chapter 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. F:\CMO\2007 Council Agendas\M071022\S0710225.DOC