Ordinance 1119
QWEST CORPORATION FRANCHISE

ORDINANCE 1119

AN ORDINANCE GRANTING TO QWEST CORPORATION, HEREINAFTER REFERRED TO AS “GRANTEE,” ITS SUCCESSORS AND ASSIGNS, THE RIGHT AND PRIVILEGE TO DO A GENERAL COMMUNICATIONS BUSINESS AND TO PLACE, ERECT, LAY, MAINTAIN, AND OPERATE IN, UPON, OVER, AND UNDER THE STREETS, ALLEYS, AVENUES, THOROUGHFARES, UTILITY EASEMENTS AND PUBLIC HIGHWAYS, PLACES AND GROUNDS WITHIN THE ENTIRE CITY OF JUNCTION CITY, POLES, WIRES, AND OTHER APPLIANCES AND CONDUCTORS FOR ALL TELEPHONE AND OTHER COMMUNICATIONS PURPOSES.

THE CITY OF JUNCTION CITY ORDAINS AS FOLLOWS:

Section 1. Purpose. The purpose of this agreement is to determine terms and conditions upon which Grantee may be permitted to occupy the streets, highways or other public property within the City, pursuant to the power of the City of Junction City under its Charter and ORS 221.505 through ORS 221.515, except as to matters regulated by state or federal authorities or as governed by City of Junction City Ordinance No. 1086, the general ordinance governing franchises within the City. The parties hereby recognize Ordinance No. 1086 and its applicability to this franchise between the parties, except where specifically stated otherwise, below.

Section 2. Parties. Parties to this agreement are the City of Junction City, an Oregon municipal corporation situated in the county of Lane, sometimes referred to herein as “the City” and Qwest Corporation, a Colorado corporation, sometimes referred to herein as “Grantee.”

Section 3. Grantee Right to Occupy Public Property. Subject to the other terms and conditions set forth in this document, and subject to any applicable ordinances and regulations of the City, except as expressly exempted herein, the City hereby grants to Grantee, the right, privilege and franchise to occupy the streets, highways or other public property within the entire City and as may come within the jurisdiction of the City during the terms of this agreement, for the purpose of furnishing the products and services utilized in providing telephone and other communications products and services. This grant includes the, right to erect, construct, place, replace, reconstruct, lay, maintain and operate poles, wires, switching equipment, amplifying equipment, fixtures, facilities, appliances, structures and other devices including, but not limited to, electronic, optical, mechanical and pneumatic devices customarily associated with Grantee’s function and purpose of serving as a common carrier of information for communications purposes.

Section 4. Term of Grant. The rights, privileges, and franchise herein granted shall continue to be in force for the period of three (3) years from and after the date this Ordinance becomes effective, with an option to renew for four (4) additional three (3) year terms, per the renewal provisions of Section 20 of Ordinance No. 1086.

Section 5. Compensation. In consideration of the rights, privileges and nonexclusive franchise herein granted, Grantee, its successors and assigns agree to pay to the City a sum equal to seven percent (7%) of its gross revenues derived from exchange access services, as defined in ORS 401.710, within the corporate limits of the City, less net uncollectibles. Payment of this franchise fee shall be made on a quarterly basis.

Section 6. Construction Permits. Prior to the commencement of construction upon, over, under or across any of the streets, highways, or other public property within the jurisdiction of the City, the Grantee shall obtain a construction permit as required by Section 29 of Ordinance No. 1086.

Section 7. City Improvements. Nothing in this agreement shall be construed to prevent or impair the City from grading, constructing, paving, altering, improving, sewering, repairing or maintaining any of the streets, highways or other public property within the jurisdiction of the City which are occupied by fixtures, facilities, appliances or structures of Grantee, but all such work or improvements by the City shall be done in such a manner and by such means as to prevent or minimize impairment of use of said fixtures, facilities, appliances, or structures by Grantee.

Section 8. Relocation or Removal of Grantee’s Facilities. Grantee shall remove or relocate its facilities within the public rights of way as prescribed in Section 36 of Ordinance No. 1086.

Section 9. Unauthorized Facilities. Facilities shall not be considered unauthorized one year after the expiration or termination of Grantee’s franchise, if City is negotiating renewal of the franchise.

Section 10. Grantee’s Records. Grantee shall keep accurate records of account for the purpose of determining the amounts due to the City under the provisions of this agreement. Such books of account shall be open to inspection by the City, its attorney or other authorized agent at any time during Grantee’s business hours upon ten (10) days’ written notice from City. City shall not be permitted to copy or reproduce any of Grantee’s records without the prior express written permission of Grantee. This provision supersedes Grantee’s obligations under Section 40 of Ordinance No. 1086.

Section 11. Leased Capacity. Grantee shall have the right, without prior City approval, to offer or provide capacity or bandwidth to another telecommunications provider for resale or service to end-user customers; provided that the Grantee shall notify City that such lease or agreement has been granted to a customer or lessee.

Section 12. Assignment or Transfer of Franchise. Grantee shall comply with Section 22 of Ordinance No. 1086.

Section 13. Insurance. Grantee is self-insured and shall provide evidence thereof, subject to review and acceptance, to City. If approved, Grantee shall not be required to secure and maintain the insurance as specified in Section 44 of Ordinance No. 1086.

Section 14. Performance Surety. Not withstanding Section 46 of Ordinance No. 1086, no bond or other surety shall be required of Grantee at the inception of the Franchise. In the event Grantee is required by the City to obtain a bond or other surety in the future, in an amount not to exceed $100,000, the City agrees to give Grantee at least 60 days’ advance written notice stating the specific reasons for such requirement.

Section 15. Registration. Grantee shall register and apply for future franchises with City, pursuant to Sections 5-13 of Ordinance No. 1086.

Section 16. Franchise not Exclusive. The franchise granted herein by City to Grantee is nonexclusive.

Section 17. Termination. The parties may terminate this franchise pursuant to Section 23 of Ordinance No. 1086.

Section 18. Acceptance. This Ordinance shall, if accepted by Grantee, take effect and be in force thirty (30) days from and after its passage and approval. Said Grantee shall, within thirty (30) days of the passage and approval of this Ordinance, file with the Recorder of the City of Junction City its written acceptance of all the terms and conditions of the Ordinance.

Section 19. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance.

READ for its first reading this 9th day of September 2003.

READ for its second reading by title only this 14th day of October 2003.

Passed by the Council this 14th day of October 2003 with 6 voting for and 0 voting against.

Approved by the Mayor this 14th day of October 2003.

APPROVED:

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Jon Edwards, Mayor

ATTEST:

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Barbara Scott, City Recorder

APPROVED AS TO FORM:

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City Attorney