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HomeMy WebLinkAboutOrdinance No. 20396 -'="~= COUNCIL ORDINANCE NUMBER 20396 COUNCIL BILL NUMBER 4957 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. 20182. ADOPTED: October 22, 2007 PASSED: 8:0 REJECTED: OPPOSED: ABSENT: EFFECTIVE: November 23, 2007 ORDINANCE NO. 20396 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. 20182. The City Council of the City of Eugene finds that: A. ORS 190.010 provides that a unit of local government may enter into a written agreement with any other unit or units of local government for the performance of any function that a party to the agreement has authority to perform. B. Pursuant to that authority, the City of Eugene previously entered into an Intergovernmental Agreement with other units of local government for formation of the Fiber South Consortium, as authorized by Ordinance No. 20182 adopted by the City Council and approved by the Mayor on December 6, 1999. C. Some units of local government entered into an Intergovernmental Agreement for the formation of the Regional Fiber Consortium. D. The Regional Fiber Consortium and Fiber South Consortium have operated jointly with respect to most matters, because of common interests and objectives. E. The members of each of the two consortia have met and conferred and developed a consensus that for reasons of efficiency and economy the purposes of the consortia would be best served by merging the two into one consortium. F. The City of Eugene continues to support the formation of an entity by way of an intergovernmental agreement for the purpose of mutual assistance in achieving the common goal of better and more advanced telecommunications services in the area. NOW THEREFORE, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Based on the above findings, the City Council approves and ratifies the creation of an intergovernmental entity, to be known as the Regional Fiber Consortium, by an intergovernmental agreement, a copy of which dated September 2007 is attached as Exhibit A hereto, entered into by and between the City and other units of local government pursuant to the provisions ofORS 190.003 et seq. Ordinance - I Section 2. The effective date of such intergovernmental agreement shall be the date after the adoption of this Ordinance upon which the intergovernmental agreement is signed by and for the City of Eugene pursuant to the authorization of this ordinance. Section 3. The public purposes for which the Regional Fiber Consortium shall be created shall be: 3.1 To assume ownership and control of fiber optic cable obtained by the Consortium, or by any member government, that the government, in its discretion, deems it is appropriate to contribute to the Consortium; 3.2 To work to develop a fiber optic system, or components thereof, that best serves the public interest in an efficient manner; 3.3 To provide a forum for communication and consultation among members and to provide an opportunity for a cooperative and equitable sharing of information regarding the potential for broadband development; 3.4 To operate as an independent entity, taking appropriate actions to facilitate the development of improved telecommunications within the region for the benefit of residents of the region; 3.5 To acquire such additional tangible and intangible assets as are deemed necessary to fulfill the other purposes of the Consortium; and 3.6 To combine the assets of the Regional Fiber Consortium and the Fiber South Consortium, and thereafter operate in the interests of both Consortia, using those assets to make the greatest possible advances to telecommunications services within the region comprised by the jurisdictional territories of the members of the former Fiber South Consortium and the Regional Fiber Consortium. Section 4. The powers, duties and functions of the Regional Fiber Consortium shall be: 4.1 Plan for fiber optic system development for the Consortium. 4.2 Direct and manage the use of a fiber optic system or systems obtained by the Consortium or its members for the Consortium. 4.3 Carry out further responsibilities and functions approved by the Consortium governing body to fulfill the purposes of the Consortium. Section 5. The City Manager is hereby authorized and directed to evidence this ratification of the creation of the Regional Fiber Consortium by executing, on behalf of the City of Eugene, a copy of an INTERGOVERNMENTAL AGREEMENT TO ESTABLISH A REGIONAL FIBER CONSORTIUM FOR THE OWNERSHIP AND OPERATION OF A Ordinance - 2 FIBER OPTIC SYSTEM, a copy of which dated September 2007 is attached as Exhibit A hereto. Section 6. Ordinance No. 20182 passed by the City Council and approved by the Mayor on December 6, 1999 is hereby repealed. Passed by the City Council this Approved by the Mayor this Z 'I day OfOctobe~2007. -~ ~aYo~ Ordinance - 3 EXHIBIT A to ORDINANCE NO. 20396 Sept 07 DRAFT: INTERGOVERNMENTAL AGREEMENT TO ESTABLISH A REGIONAL FIBER CONSORTIUM FOR THE OWNERSHIP AND OPERATION OF A FIBER OPTIC SYSTEM AN AGREEMENT, entered into by and between some or all of the following: the Cities of Oakridge, Westfir, Lowell, Springfield, Coburg, Klamath Falls, Merrill, Bandon, Myrtle Point, Coquille, Coos Bay, North Bend, Reedsport, Roseburg, Sutherlin, Y oneall a, Drain, Cottage Grove, Creswell, Eugene, Veneta and Florence, all of which are Oregon municipal corporations, and Lane County, Klamath County; Coos County and Lincoln County all of which are political subdivisions of the State of Oregon. RECITALS WHEREAS,ORS 190.010 provides that units of local government may enter into agreements for the performance of any or all functions and activities that a party to the agreements, its officers or agents, have authority to perform; and WHEREAS Regional Fiber Consortium and Fiber South Consortium have developed a close working relationship, including joint control of fiber assets so that it makes operational and fiscal sense to merge the two entities, with Regional Fiber Consortium becoming the successor to both entities. AGREEMENT N ow therefore it is agreed: Section 1. MERGER Fiber South Consortium is by this agreement, merged with and subsumed into the Regional Fiber Consortium. All the assets, property and liabilities of Fiber South Consortium are by the effect of this agreement, absorbed by and become the possession of Regional Fiber Consortium. Section 2. GENERAL PURPOSE To form a joint entity (hereafter the Regional Fiber Consortium, or "the Consortium") consisting of representatives from certain units of local government to carry out the following purposes: A. To assume ownership and control of fiber optic cable obtained by the Consortium, or by any member government, that the government, in its discretion, deems it is appropriate to contribute to the Consortium; B. To work to develop a fiber optic system, or components thereof, that best serves the public interest in an efficient manner; Intergovernmental Agreement for Regional Fiber Consortium Page 1 Section 3. EXHIBIT A to ORDINANCE NO. 20396 C. To provide a forum for communication and consultation among members and to provide an opportunity for a cooperative and equitable sharing of information regarding the potential for broadband development; D. To operate as an independent entity, taking appropriate actions to facilitate the development of improved telecommunications within the region for the benefit of residents of the region E. To acquire such additional tangible and intangible assets as are deemed necessary to fulfill the other purposes of the Consortium; and F. To combine the assets of the Regional Fiber Consortium and the Fiber South Consortium, and thereafter operate in the interests of both Consortia, using those assets to make the greatest possible advances to telecommunications services within the region comprised by the jurisdictional territories of the members of the former Fiber South Consortium and the Regional Fiber Consortium. MEMBERSHIP A. Membership in the Consortium is, subject to the approval of the then existing members of the Consortium, open to any local government and other governmental entities with a contribution to make to the fulfillment of the purposes of the Consortium. The addition of a new member shall not be considered an amendment to this intergovernmental agreement. The addition of an additional member may be accomplished by the new member taking the actions necessary under ORS 190 and signing a copy of this agreement, after approval of the additional membership by a majority vote of the member representatives then forming the Consortium. The signature of the then chair of the Consortium on an amendment adding a new member shall be an indication that the new member of the Consortium has been accepted. B. Membership by an entity not listed in the initial paragraph of this intergovernmental agreement shall be subject to the approval of the Executive Board of the Consortium. The Board of the Consortium shall consider any application for membership and may approve the application whenever the additional membership will further contribute to the efficient achievement of the purposes of the Consortium. Such approval shall be a prerequisite for the adoption of any necessary ordinances. The governing body of any local government may attain membership by adopting an ordinance enacting the intergovernmental agreement. Any other entity may obtain membership in the Consortium when such membership is consistent with applicable law and is initiated pursuant to such applicable law. C. A member of the Consortium may withdraw from membership at any time by a reversal of the process of joining the Consortium. It is in the interests of the members, including the withdrawing member, that any assets acquired by the Consortium as a result of a withdrawing member's earlier participation in the Intergovernmental Agreement for Regional Fiber Consortium Page 2 EXHIBIT A to ORDINANCE NO. 20396 development and operation of the Consortium be retained by the Consortium and used with the maximum degree of flexibility to advance the interests of the region, including the interests of the withdrawing member. Withdrawing members and the Consortium should, therefore, make arrangements, formal or informal, to cooperate in the continued protection of those assets for the Consortium's continued use. Section 4. EXECUTIVE BOARD OF THE CONSORTIUM A. The governing body of the Consortium shall be the Executive Board, selected from members representatives in a manner to maintain geographic representation of the breadth of the Consortium. Service on the Executive Board shall be voluntary, the Executive Board membership shall be selected by the existing Executive Committee or Executive Board. A member may withdraw from the Executive Board at any time without thereby withdrawing from membership of the Consortium. The Executive Board shall consist of nine members, or fewer if insufficient members are wiling to serve. The Executive Board may not take action if there are fewer than five members serving on the Executive Board, except that an Executive Board with fewer than five members may take action to appoint new members of the Executive Board. Any time there is a vacancy on the Executive Board, the Board shall seek to appoint additional members to achieve the geographical balance and the optimal number of nine serving Board members. B. The Executive Board should be balanced for geographical representation by having one member serving on the Board from the Klamath County area (Klamath County, Klamath Falls and Merrill); two members from the Coos County area (Coos County, Bandon, Coos Bay, Coquille, Myrtle Point and North Bend; two members from the Douglas and Lincoln County areas (Drain, Reedsport, Roseburg, Sutherlin, Y oncalla and Lincoln County) and four members from the Lane County area (Lane County, Coburg, Cottage Grove, Creswell, Eugene, Florence, Lowell, Oakridge, Springfield, Veneta and Westfir). If insufficient members are willing to serve on the Executive Board from an area to achieve this geographic balance, the Executive Board may appoint willing members from another area. C. An appointment to the Executive Board shall be for a one year term, ending in June of each calendar year. Members serving on the Executive Board may serve more than one term consecutively. If members from a particular region who are not serving express an interest in serving on the Executive Board, the Board should give special consideration to their request at the time of the next selection of Board members. D. All member representatives shall receive notice of every Executive Board meeting and shall be entitled to attend the meeting and participate fully in the discussion of matters before the Executive Board. Section 5. FUNCTIONS The basic functions of the Consortium are: Intergovernmental Agreement for Regional Fiber Consortium Page 3 Section 6. EXHIBIT A to ORDINANCE NO. 20396 A. Plan for fiber optic system development for the Consortium. B. Direct and manage the use of a fiber optic system or systems obtained by the Consortium or its members for the Consortium. C. Carry out further responsibilities and functions approved by the Consortium governing body to fulfill the purposes of the Consortium. AUTHORITY A. Consortium Authority. Except as provided in Article B of this section, the Consortium shall have authority to act in the interests of the region created by membership in the Consortium to oversee and direct the operation of any Consortium fiber optic system created or enhanced pursuant to the right of way permit agreements, or other similar means of acquisition by the Consortium or its members for the Consortium, and such other responsibilities as may be assigned by the members. The Consortium shall have authority to carry out all functions and duties possessed by the members, either as reserved in the right of way agreements or as otherwise provided by law for the purposes of improving telecommunications services in the area, subject to the specific provisions of this agreement. B. Powers Retained by Governing Bodies of Members. In the following areas members reserve the authority to act on their own behalf. Each member agrees to make a good faith effort to weigh the impact of such actions on the overall operation and continuity of the Consortium's work, and each member agrees to take no action in those areas without prior notice to the Consortium. The matters subject to this retained authority are: 1. Revocation, termination, extension, amendment or renewal of a right- of-way permit, license or franchise for any actions within the member's right of way that might affect the Consortium's assets or operations. 2. Notice concerning the use, management, control, or operation of any part of the Consortium's fiber optic system within the jurisdictional area of the member. All such agreements shall be subject to any applicable ordinances or regulations of the member. Notice can be given through the attendance of a member representative when such an agreement is discussed or approved. In the absence of a member representatives' attendance, notice can be given by electronic or regular mail notice to the member representative. 3. Any action requiring the adoption of any legislation by the governing bodies, the amendment of this agreement, or the granting or denying of any additional right of way permit, license or franchise. Intergovernmental Agreement for Regional Fiber Consortium Page 4 Section 7. EXHIBIT A to ORDINANCE NO. 20396 4. Any decision concerning a change of ownership or control of a system subject to a right of way permit, license or franchise. RULES OF PROCEDURE The Consortium shall adopt rules of procedure. The rules shall: A. B. Section 8. Establish times and places of meetings. Establish a central office for the Consortium, which shall have a mailing address, a telephone, and appropriate records of the Consortium. C. Prescribe officers of the Consortium to be elected by the Executive Board of the Consortium from among its members. D. Provide for the organization and operation of the meetings of the Consortium, wherein each member shall be entitled to select one representative to attend Consortium meetings. E. Provide for the operation of the Consortium through a representative Executive Board of the Consortium, which initially shall consist of nine members, that a quorum for any meeting shall consist of a majority of the members of the Executive Board. The original rules of procedure shall provide that a decision of the Consortium to amend the rules of procedure, may be made only upon the affirmative vote of at least two thirds of the Executive Board of the Consortium. The rules of procedure may provide for meetings to be conducted by telephone or for the attendance of some member's representatives by telephone or other electronic means. CONTRACTS The Consortium is authorized by the members to enter into contracts for: A. Technical and professional services. B. Construction and installation of any facilities necessary to achieve the objectives of this agreement. C. Provision of any form of telecommunications services to the Consortium area, or any part thereof, which is intended to include leases of a portion of the Consortium's assets for the purposes of improving telecommunications servIces. D. The purchase and ownership of real and personal property. Intergovernmental Agreement for Regional Fiber Consortium Page 5 EXHIBIT A to ORDINANCE NO. 20396 The Consortium's contracts shall be valid when signed by the presiding officer of the Consortium, acting pursuant to the authority granted under this agreement and the Consortium rules. Section 9. COST OF OPERATION A. The cost of operation of the Consortium shall be determined by its governing body, and shall not thereby create an obligation of the members. In accordance with and subject to Oregon Law, the Consortium may make expenditures for the purchase of materials, services, supplies and equipment. Expenditures shall not exceed the funds appropriated for the purpose by the Consortium or acquired through the operations of the Consortium. No member shall be obligated for any payments except as previously approved by the member. All obligations of the Consortium shall be subject to prior appropriation of funds. B. Any revenues received in excess of the budgeted cost of operation may be reinvested in the provision of additional services by the Consortium, or held in a reserve account for future needs, or otherwise used as determined by the Consortium. Revenues in excess of operational costs may also be returned to the members when such action is made a part of the Consortium's adopted budget. The Consortium recognizes that some members have made greater contributions to the establishment of the Consortium than other members, when measured in terms of goods and services donated, forbearance in the collection of right-of-way fees, or other financial contributions. This difference in contributions shall have no effect on membership rights, except that it may be reflected in return payments to members, which shall be roughly proportional to the value of each member's contribution. Section 10. TERMINATION The duration of this agreement shall be perpetual. Any member may terminate its participation in the agreement and withdraw from the Consortium upon 90 days written notice of withdrawal to the Consortium and other members. However, expenditures contracted for by the Consortium after the date of notice of intent to withdraw shall not constitute an obligation on the part of the member providing notice of withdrawal. Where a member has the right to collect fees for the use of the right of way, and where the Consortium occupies the right of way within the jurisdiction of the member, in the event that a member withdraws from the Consortium, the Consortium shall become responsible for the payment of right of way fees or for franchise fees or other like charges, in the same manner and to the same degree as would be true for any private entity, unless other arrangements are made at the time of withdrawal. Section 11. MEDIATION In the event of a dispute or disagreement regarding the performance, terms or conditions of this agreement, unless otherwise provided, the dispute shall be submitted to mediation. Intergovernmental Agreement for Regional Fiber Consortium Page 6 EXHIBIT A to ORDINANCE NO. 20396 Section 12. INDEMNITY The Consortium, and each of the parties agrees to defend, indemnify and save the other harmless from any claim, liability or damage resulting including attorney fees from any error, omission or act of negligence on the part of the indemnifying party, its officers or employees in the performance of its responsibilities under this agreement. The parties indemnity and hold harmless obligations are subject to the limitations of the Oregon Tort Claims Act and the Oregon Constitution, as applicable. In providing the services specified in this agreement (and any associated services) all the parties are public bodies and maintain their public body status as specified in ORS 30.260. All the parties understand and acknowledge that all parties retain all immunities and privileges granted them by the Oregon Tort Claims Act (ORS 30.260 through 30.295) and any and all other statutory rights granted as a result of their status as local public bodies. Section 13. EFFECTIVE DATE As required by ORS 190.085, prior to becoming effective, each of the parties to the intergovernmental agreement shall enact an ordinance ratifying the creation of the intergovernmental entity, declaring that it is the intent of the governing body enacting the ordinance to create an intergovernmental entity by intergovernmental agreement, specifying the effective date of the agreement, setting forth the public purposes of the intergovernmental entity and describing the powers, duties and functions of the intergovernmental entity. Not later than 30 days after the effective date of the intergovernmental agreement, each member, upon joining, must file with the Secretary of State copies of the enacting ordinance and copies of this intergovernmental agreement. This amended agreement shall become effective for the first and second member of the Consortium upon the adoption of an enacting ordinance by the second member adopting such an enacting ordinance, and shall thereafter become effective for each additional member of the Consortium upon adoption of an enacting ordinance. Section 14. NOTICE Until notice of a change is provided to all then current members of the Consortium, all notice to the Consortium shall be directed to: Milo Mecham Lane Council of Governments 125 E 8th Ave. Eugene, OR 97401 541-6824023 fax 541- 682-2635 Section 15. COUNTERPART SIGNATURES Intergovernmental Agreement for Regional Fiber Consortium Page 7 EXHIBIT A to ORDINANCE NO. 20396 This agreement may be executed in one or more counterparts. The execution of a counterpart agreement by a member will be effective for all members who have previously signed or will thereafter sign the same or a separate counterpart of the agreement. Section 16. DEFINITIONS F or purposes of this agreement the following terms shall mean: A. Member. A local government that has accepted the terms of this intergovernmental agreement and has been accepted as a member of the Consortium. B. Consortium. A local government formed as an organization of governments by an intergovernmental agreement having the power to own property, enter into agreements and such other powers as described in this agreement. C. Right-of-way permit. A permit or license granted by a member government to an entity, such permit allowing the entity to install telecommunications facilities within the public right-of-way within the jurisdiction of a member government. D. Fiber Optic System. A system for telecommunications consisting of the physical fiber optic cable, the electronic systems necessary to communicate signals along the fiber cable, such other equipment to facilitate the introduction and transmission of a communication signal, and a means of connection to the source and destination for a communications signal. SIGNED: THE CITY OF THE CITY OF Signature (Title) Signature (Title) Date Date COUNTY THE CITY OF Signature (Title) Signature (Title) Date Date COUNTY THE CITY OF Signature (Title) Signature (Title) Date Date Intergovernmental Agreement for Regional Fiber Consortium Page 8