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<br />County. The consortium represents a community of more than 200,000 people that has the economic <br />advantage that no one city, such as Eugene, can offer. The neighboring consortium, with which staff is <br />proposing to merge, includes eight cities and three counties. The governing body of each jurisdiction <br />wishing to be a member of the consortium is taking action similar to approve its membership. <br /> <br />It is necessary to approve the new legal entity by ordinance, because the entity will continue to own <br />property and enter into contracts. This is the aspect that differentiates this action from other <br />intergovernmental agreements and requires an ordinance under ORS chapter 190. Under terms of the <br />agreement, the entity is not authorized to create new obligations for the City. The City’s actions remain <br />voluntary. Specifically, if there is a financial obligation, it will only apply to Eugene if Eugene agrees to <br />the obligation beforehand. <br /> <br /> <br />COUNCIL OPTIONS <br /> <br />1. Approve the merger ordinance. <br />2. Postpone the item. <br />3. Take no action. Should other jurisdictions pass ordinances agreeing to a merged consortium, opting <br /> out may have the effect of not being a party to the decisions of the consortium until the year 2019 – <br /> the sunset date for no-cost use of the facilities. Eugene would then lose free access to the Williams <br /> fiber within its city limits and the ROW use fee waiver would be rescinded, reaping Eugene an <br /> annual fee of $132 a year. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br /> <br />The City Manager recommends adoption of the ordinance merging the two consortia into one entity <br />acting as a single governmental unit, managing the fiber asset. <br /> <br />Staff has no recommendation regarding the consortium representative. Given the current council <br />workload, council may find it appropriate to continue to opt for City Manager/designee representation. <br /> <br />The council can at any time, appoint one of its members as the representative. <br /> <br /> <br />SUGGESTED MOTION <br /> <br />Move to approve an ordinance providing for an intergovernmental agreement to establish a regional <br />fiber consortium for the ownership and operation of a fiber optic system; and repealing Ordinance No. <br />20181. <br /> <br /> <br />ATTACHMENTS <br /> <br />A. Draft Ordinance, including the related draft Intergovernmental Agreement, authorizing Eugene <br /> participation in a merged ORS 190 organization <br /> <br /> <br />FOR MORE INFORMATION <br /> <br />Staff Contact: Pam Berrian, Franchise Manager <br />Telephone: 682-5590 <br /> <br />Staff E-Mail: pam.c.berrian@ci.eugene.or.us <br /> F:\CMO\2007 Council Agendas\M071022\S0710225.DOC <br />