Ordinance 1294
DOUGLAS FAST NET FRANCHISE
ORDINANCE NO. 1294
AN ORDINANCE ADOPTING FRANCHISE WITH DOUGLAS FAST NET FOR COMMUNICATIONS SERVICES WITHIN THE CITY OF JUNCTION CITY.
WHEREAS, the City of Junction City has jurisdiction and regulatory management over its public rights-of-way; and
WHEREAS, pursuant to federal law, state statutes, and City Charter and local ordinances, the City is authorized to grant a non-exclusive franchise to occupy public rights-of-way; and
WHEREAS, Douglas Fast Net (“Franchisee”) is a telecommunications service provider that desires to construct, operate, and maintain a telecommunications system within City rights-of-way; and
WHEREAS, the City finds that Franchisee has the financial, legal, and technical abilities to provide communications services, facilities, and equipment necessary to meet the future needs of the community, and otherwise meets all requirements of the City’s ordinances; and
WHEREAS, pursuant to applicable law, the City and Franchisee have negotiated a Franchise Agreement with terms agreeable to both parties, as set forth below; and
WHEREAS, the City Council for the City deems that it is in the public interest to now enter into the Franchise Agreement, attached hereto and incorporated herein as Exhibit A, with Franchisee under the terms and conditions contained therein; now, therefore
THE CITY OF JUNCTION CITY ORDAINS AS FOLLOWS:
Section 1. The foregoing recitals are approved and hereby incorporated into this Ordinance.
Section 2. The Franchise Agreement with Douglas Fast Net, attached hereto as Exhibit A, hereby adopted by the City Council. The Mayor is authorized to execute the agreement on behalf of the Council.
Section 3. This Ordinance shall be in full force and effect thirty (30) days after approval, in accordance with the City Charter. The City Recorder shall forward this Ordinance to Franchisee for acceptance.
Read in full for its first reading on the 14th day of April, 2026.
Read by title only, for its second reading this 14th day of April, 2026.
Passed by unanimous vote of the Council this 14th day of April, 2026.
Approved by the Mayor this 14th day of April, 2026.
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ATTEST: |
APPROVED: |
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_______________________ |
___________________________ |
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Kitty Vodrup, City Recorder |
Kenneth Wells, Mayor |
EXHIBIT A
FRANCHISE FOR COMMUNICATIONS SERVICES
DOUGLAS FAST NET
This Franchise Agreement for Communications Services is by and between the City of Junction City, a municipal corporation of the state of Oregon (“City”), and Douglas Fast Net, (“Franchisee”).
SECTION 1. Definitions.
“City” means City of Junction City, Oregon.
“Communications Service” shall mean any service provided for the purpose of transmission of information, including but not limited to, voice, video, or data, without regard to the transmission protocol employed, whether or not the transmission medium is owned by the provider itself. Communications Service includes, but may not be limited to, exchange access services, defined by ORS 403.105, Telecommunications Service, and broadband internet services, whether provided together or separately, by the Franchisee pursuant to this Franchise.
“Grantee” or “Franchisee” means Douglas Fast Net, and its affiliates, successors, or assigns.
“Facilities” means the conduits, cables, poles, wires, fibers, fixtures, underground lines, and appurtenances thereto, including other technical facilities necessary for the purpose of providing Communications Service or Telecommunications Service. For the avoidance of doubt, “Facilities” includes all facilities necessary to provide broadband internet access services.
“Gross Revenues” means any and all revenue derived by the Franchisee for the provision of Communications Service within the City utilizing the Telecommunication System located in the Rights-of-Way. Gross Revenues shall not include municipal, state, or federal fees or taxes imposed by law or regulation directly on Franchisee’s customers and which Franchisee is required to pass through to the entity imposing the fee or tax, and unrecoverable bad debt.
“JCMC” or “Code” shall mean the Junction City Municipal Code.
“Person” means any person, firm, partnership, association, corporation, limited liability company or organization of any kind.
“Public Way” or “Right-of-Way” shall have the meaning as defined under JCMC Section 5.10.010, which is restated herein: “included, but is not limited to, any street, road, bridge, alley, sidewalk, trail, path and utility easement, including the subsurface under and air space over these areas. This definition applies only to the extent of the City’s right or authority to grant a franchise to occupy and use such areas for telecommunications facilities.”
“Telecommunications Code” shall mean JCMC Chapter 5.10 (Telecommunications Franchises), which is incorporated into this Agreement as if set forth fully herein.
“Telecommunications Service” shall have the meaning as defined under JCMC Section 5.10.010.
“Telecommunication System” shall have the meaning as defined under JCMC Section 5.10.010, which refers to “Telecommunications facilities,” which is restated herein: “The plant and equipment, other than customer premises equipment, used by a telecommunications carrier to provide telecommunications services.” In addition, “Telecommunication System” shall include all Facilities that are maintained, operated, or used by Franchisee to provide Communications Service or Telecommunications Service and located in the Rights-of-Way administered and regulated by the City.
SECTION 2. Grant of Franchise. The City hereby grants to Franchisee a non-exclusive right and privilege, subject to all City ordinances, policies, rules and regulations, including but not limited to the City’s Telecommunications Code, to erect, construct, operate, repair, and maintain in, under, upon, along, across, and over the City’s present and future Rights-of-Way, all Facilities necessary for the purpose of providing Communications Services within the City. This Franchise is non-exclusive, and the City reserves the right to grant a similar privilege to any Person at any time during the period of this Franchise. This grant is further subject to all prior rights, interests, agreements, permits, easements, or licenses granted by the City, and to the City’s right to use the Rights-of-Way for any purpose it deems fit, including the same or similar purposes allowed Grantee hereunder. This Franchise does not grant any rights with regard to attaching to or using any City or public property located within the Rights-of-Way (i.e., streetlights or conduit). Such additional use of City property may be granted on an individual basis under a separate arrangement.
SECTION 3. Compliance with Laws, Rules and Regulations. The locations and methods of installation and maintenance of all Grantee’s Facilities shall be subject at all times to regulation by the City (including City’s ordinances and policies on street cuts and use of right-of-way), and all such Facilities shall be so constructed and maintained as to interfere as little as practicable with street or other traffic. All such Facilities shall be installed and at all times maintained by Grantee in accordance with industry standards.
SECTION 4. Incorporation of Municipal Code. This Franchise is granted pursuant to the applicable Telecommunications Code, JCMC Chapter 5.10, and shall be interpreted to include all provisions of the Code, as it now exists and as it may be amended during the term of the Franchise, and all other applicable municipal regulations. It shall be the responsibility of the Franchisee to stay informed of any amendments to applicable provisions of the Code and all related regulations.
The Parties agree that this Franchise contains additional terms, clauses, and obligations beyond those identified or provided for in the Telecommunications Code, and these additional terms, clauses, and obligations are intended to fill in the gaps, where the Telecommunications Code does not provide or impose any express requirement or obligation upon Grantee or the City.
SECTION 5. Term. The term for this Franchise shall be for a period of three (3) years, beginning on the Effective Date identified below in Section 17.
SECTION 6. Conditions on Right-of-Way Occupancy. In addition to the Telecommunications Code, which provides general terms, obligations, and conditions for construction, installation, relocation, and removal of Franchisee’s Facilities, these additional terms and conditions apply:
A. Use. Grantee shall construct, install, maintain and operate its Facilities in designated City rights-of-way to the industry standard and City’s satisfaction, in compliance with all state laws and regulations and City ordinances, rules, policies and regulations; and in a manner so as to cause minimum interference with the proper use of streets, alleys, and other public ways and places, and to cause minimum interference with the rights or reasonable convenience of property owners who adjoin any of the streets, alleys or other public ways or places.
B. Restoration. In case of any disturbance of pavement, sidewalk, driveway or other surfacing by Grantee, Grantee shall, at its own cost and expense and in a manner approved by City, replace and restore all paving, sidewalk, driveway, landscaping or surface of any street or alley disturbed. If Grantee fails to make restoration as required, City may cause the repairs to be made at the expense of Grantee.
C. Relocation. In addition to the obligations under the Telecommunications Code, the parties agree to the following terms regarding relocation of the Facilities. If the removal or relocation of Facilities is caused directly by an identifiable private development of property and the removal or relocation of Facilities occurs within the area to be developed, or is made for the convenience of a customer, Grantee may charge the expense of removal or relocation to the developer or customer provided it is not contrary to any laws. Grantee shall be solely responsible for enforcing collection from the developer or customer. City may require Grantee to relocate its Facilities. If the removal or relocation of Facilities results from City’s need to provide public Facilities, is a City project, or is otherwise requested by City and is made for the purpose of improving a street to City standards or other improvement for the benefit of the public, Grantee will remove or relocate its Facilities at Grantee’s expense within a reasonable time frame after notification by City. In cases of capital improvement projects undertaken by City, Grantee shall convert existing overhead distribution Facilities to underground at Grantee’s expense if requested to do so by City. City agrees to comply with provisions of applicable law when requiring such conversion. In the event that any electric utilities, cable facilities and telecommunication facilities are reimbursed by the City or any agency thereof for the placement of cable underground or the movement of cable, Grantee shall be reimbursed upon the same terms and conditions as any telecommunications, electrical or other utilities.
A. Placement of Facilities. Grantee shall not place its Facilities where they will interfere with any existing or future City utility, gas, electric or telephone fixture, power, sanitary sewer, storm sewer or water facility. Grantee will consult with City’s Public Works Department prior to placement of Facilities, and will comply with all City ordinances, policies, rules and regulations in connection with its placement of Facilities. Whenever all existing electric utilities, cable facilities and telecommunications facilities are located underground with in a public right of way of the City, Grantee must also locate and relocate its Facilities underground.
B. Temporary Rearrangement of Facilities. Grantee shall, consistent with City policies, ordinances, rules and regulations, arrange to temporarily raise, lower, or otherwise move its Facilities to permit the moving of buildings or other objects if the Person wishing to move the building or other object makes a reasonable arrangement to reimburse Grantee for its expenses in rearranging its Facilities. Nothing contained in this section shall preclude City from requiring Grantee to move its Facilities at its own expense when public convenience requires the move, as described in Subsection C of this section.
SECTION 7. Franchise Fee.
A. In consideration of the rights, privileges, and franchise hereby granted, Grantee shall pay monthly to City the sum of five percent (5%) of Gross Revenue earned from all Communications Services, which shall specifically include any data, voice and video services, provided by Grantee through Grantee’s use of the City Rights-of-Way. Grantee also may at its option deduct uncollectible accounts of customers within the corporate limits of City from these gross revenues.
B. The fee required by this section shall be due and payable within 60 days after the end of each applicable calendar quarter. Any payment not made when due shall bear interest at the rate of 12% per annum, compounded monthly, from the date due until paid.
C. City’s acceptance of any payments due under this section shall not be considered a waiver by City of any breach of this franchise.
D. Grantee agrees and covenants that it will not challenge the validity of the franchise fees under this ordinance as long as they do not exceed the maximum amounts established by applicable statutes.
SECTION 8. Grantee Records and Reports.
A. In addition to Telecommunications Code requirements, Grantee shall keep accurate books of financial accounts at an office within the State of Oregon throughout the term of this franchise. Grantee shall produce all books and records directly concerning its gross revenues and other financial information deemed necessary by City for purposes of calculation of the franchise fee for inspection by City, upon no less than 10 days prior written notice, during normal working hours. City may require periodic reports from Grantee relating to its operation within City. City shall have the right during the term of this franchise or within 180 days thereafter to conduct audits of Grantee’s records. Such audits shall be undertaken by a qualified person or entity selected by City. The cost of any such audit shall be borne by City, unless the results of any such audit reveal an underpayment of more than 5% of the franchise fee for the period audited. In the case of such underpayment, the full cost of such audit shall be paid by Grantee. Grantee shall immediately pay the amount of the underpayment as determined by such audit to City together with 12% per annum interest from the date such payment should have been made to the date the payment is actually made.
B. Any audit information obtained by City under these provisions shall be kept confidential to the maximum extent allowed by Oregon law, except that this obligation shall not prevent the City from introducing audit results in any forum where enforcement of the provisions of this franchise is at issue.
SECTION 9. Permit and Inspection Fees. Nothing in this ordinance shall be construed to limit the right of City to require Grantee to pay reasonable costs incurred by City in connection with the issuance of a franchise or permit, making an inspection, or performing any other service for or in connection with Grantee or its Facilities, whether pursuant to this ordinance or any other ordinance or regulation now in effect or hereafter adopted by City.
SECTION 10. Amendment and Renewal. This Franchise may be amended or renewed in accordance with the applicable provisions of the Code.
SECTION 11. Default; Termination.
A. Default: Time of payment and performance are of the essence in the Franchise. The following shall be events of default:
a. Default in Payments. The failure of Grantee to pay City when due any amounts required by the Franchise and such failure continues for a period of ten (10) days after the first overdue notice.
b. Default in Other Covenants. The failure of Grantee to perform any of the covenants and conditions required herein to be kept and performed by Grantee, and such failure continues for a period of 30 days after notice from City of such failure.
B. Termination or Revocation. Upon the occurrence of an event of default, this Franchise may be revoked or terminated at the option of City, in accordance with the Telecommunications Code.
SECTION 12. Remedies not Exclusive; Waiver. All remedies under this Franchise, including termination, are cumulative, and recovery or enforcement of one is not a bar to the recovery or enforcement of any other remedy. Remedies contained in this ordinance, including termination of the franchise, are not exclusive and City reserves the right to enforce penal provisions of any ordinance and also use any remedy available to City at law or in equity. Failure to enforce any provision of this ordinance shall not be construed as a waiver of a breach of any other term, condition or obligation of this ordinance.
SECTION 13. Notices and Authorized Representatives. Any notice required or permitted under this franchise shall be deemed given when received or when deposited with postage prepaid in the United States Mail as registered or certified mail addressed as follows:
TO CITY:
City of Junction City
Attn: City Administrator
185 W. 8th Avenue
PO Box 250
Junction City, OR 97448
TO GRANTEE:
DFN
2350 NW Aviation Dr
Roseburg, OR 97470
or to such other address as may be specified from time to time by either party in writing.
SECTION 14. Interpretation/Jurisdiction. This Franchise shall be deemed to have been entered into in Lane County, Oregon. Jurisdiction of any dispute shall be in the Circuit Court of the State of Oregon, and venue shall be in Lane County, Oregon. Interpretation of the franchise shall be governed by laws of the State of Oregon.
SECTION 15. Severability. If any section, subsection, sentence, clause or portion of this ordinance is for any reason held invalid or rendered unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity or constitutionality of the remaining portion thereof. If for any reason, the franchise fee is invalidated or amended by the act of any court or governmental agency, then the highest reasonable franchise fee allowed by such court or other governmental agency shall be the franchise fee charged by this ordinance.
SECTION 16. Representation and Warranty of Franchisee. By executing this document, Franchisee represents that it is familiar with all provisions contained herein and the City’s Telecommunications Code, and agrees to be bound by them.
SECTION 17. Franchise Effective Date. Franchisee submitted an application and paid the processing fee. This Franchise shall be made effective on the effective date of the ordinance approving said Franchise (“Effective Date”), provided Franchisee satisfies the acceptance requirements in Section 18.
SECTION 18. Acceptance of Franchise. Franchisee must sign and return this Franchise within 30 days of the Effective Date. If not accepted in time, this Franchise shall become void.
CITY OF JUNCTION CITY
Signature: _____________________
Name: ________________________
Title: __________________________
Date: _________________________
DOUGLAS FAST NET
Signature: ______Todd Way______
Name: ____Todd Way_______
Title: ___CEO______________
Date: ___2/2/2026___________
ACCEPTANCE OF FRANCHISE
Pursuant to Section 18 of the fully executed Franchise Agreement for Communications Service with DFN, by and between the City of Junction City and DFN, DFN hereby unconditionally accepts the Franchise Agreement, with the effective date of __________,that was approved by Ordinance No. 1294 of the City of Junction City.
ACCEPTED this ___ day of _____, 2026.
By: _____________
Signature
By: _____________
Name Printed
Title: ______________
Date: ______________
STATE OF ______________)
) ss.
COUNTY OF ____________)
This Acceptance was signed before me on ____________, 2026, by as ___________of __________.
__________________________
Notary Public for ____________
Name: ____________________
My commission expires on: ________________
Acceptance received by City Recorder on _____________________, 2026.
_____________________________
Name: ________________________
Title: City Recorder