Ord 2291 - Telecommunications
COUNCIL BILL NO. 2318
ORDINANCE NO. 2291
AN ORDINANCE GRANTING A TELECOMMUNICATIONS FRANCHISE TO DATA
VISION COMMUNICATIONS, A DIVISION OF GERVAIS TELEPHONE TO OCCUpy
CERTAIN RIGHTS-OF-WAY WITHIN THE CITY OF WOODBURN.
WHEREAS, the City regulates the placement of telecommunications facilities within City
rights-of-way pursuant to Ordinance No. 2284, which governs the construction and franchising
of telecommunications utilities operating within the City and desiring to occupy City rights-of-
way; and
WHEREAS, the City received a request from Data Vision Communications, a division of
Gervais Telephone, to place telecommunications facilities in certain rights-of-way within the
City in order to provide service within the City, which facility locations are shown on the
attached Exhibit "A"; and
WHEREAS, the City has reviewed the request and application filed by Data Vision
Communications and finds that the company has the requisite authority to provide these services
from the Federal Communications Commission ("FCC") and that the level of impact on the
City's rights-of-way will be acceptable, and the City Council therefore desires to issue a
franchise; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WOODBURN
ORDAINS AS FOLLOWS:
Section 1. Franchise Grant.
A. Subject to the terms and conditions contained herein, the City of Woodburn does
hereby grant to Data Vision Communications, a division of Gervais Telephone
(hereinafter "Grantee") a telecommunications franchise to locate its facilities
within the rights-of-way of the City, as shown on Exhibit "A" and described in
Grantee's application for a franchise.
B. Such grant is subject to all of the laws and ordinances of the City of Woodburn
and the State of Oregon.
C. The scope of this grant allows the installation of facilities by Grantee in the City's
rights-of-way as depicted in Exhibit "A". Such facilities shall be used by Grantee
to provide telecommunications services consistent with the authority granted by
the FCC. In the event either the location of Grantee's facilities or the nature of
the services provided is proposed for modification, Grantee shall be required to
obtain an additional or revised franchise from the City.
Page 1 - COUNCIL BILL NO. 2318
ORDINANCE NO. 2291
Section 2. Construction Standards.
A. The construction standards of the City of Woodburn, as well as any other
applicable construction standards in existence at the time of this franchise grant or
hereafter enacted, shall apply to all work performed by the Grantee in City rights-
of-way.
B. The Grantee's facilities shall not interfere in any way with any of the City's
communications or other public and city-permitted facilities, including other
franchised facilities, either as installed or during operation. The Grantee will
compensate the provider of power directly for the cost of power consumed in
support of Grantee's facilities, and shall hold the City completely harmless from
any power cost.
C. The Grantee shall locate below the surface of the ground all wiring and physical
improvements within City rights-of-way, unless it is physically impossible to do
so. Placement of any improvements above ground, or on poles shall only be with
the prior review and approval of the City.
D. Where permission is granted by the City to locate Grantee's facilities upon poles,
Grantee shall independently obtain prior written approval from the owner and/or
operator of the poles on which its facilities shall be placed. Upon request,
Grantee shall provide copies of such written approvals for City review.
E. Where permission is granted by the City to locate Grantee's facilities upon poles,
Grantee shall undertake all wiring and physical improvements required by the
owner of each pole to which its facilities are to be attached. In the case of City-
owned poled or fixtures, such work shall be performed subject to the approval of
the City Engineer or his designee.
Section 3. Franchise Fee. The franchise fee payable to the City shall be 7% (seven percent) of
the Grantee's gross revenues earned within the corporate limits of the City. In the event no
revenues are earned, but Grantee is actually occupying City rights-of-way, Grantee shall pay a
minimum annual franchise fee of $1 ,000. Franchise fees shall be payable quarterly, on or before
April 30, July 31, October 31 and January 31, for the preceding calendar quarter. Such payment
made by the Grantee will be accepted by the City of Woodburn from the Grantee, as also in
payment of any license, privilege or occupation tax or fee for revenue or regulation, or any
permit or inspection fees or similar charges for street openings, installations, construction or for
any other purpose now or hereafter to be imposed by the City of Woodburn upon the Grantee
during the term of this franchise. Payments made more than ten calendar days beyond the due
date shall bear interest at the rate of 9% per annum.
Page 2 - COUNCIL BILL NO. 2318
ORDINANCE NO. 2291
Section 4. Term. The term of this franchise shall be five (5) years. This franchise shall be
subject to one automatic renewal on the same terms and conditions for an additional period of
five (5) years unless notice is given by either party 180 days in advance of the expiration of the
franchise of it's intention to terminate or re-negotiate the franchise. This franchise shall be
effective upon the date of Grantee's written acceptance of this grant.
Section 5. Acceptance. The grant of franchise herein is conditioned upon Grantee's acceptance
of all terms and conditions hereof in writing in a form acceptable to the City.
Approved as to form: 7J. ~ ~ 6 -<<? - 'Z 0 ~ I
N. Robert Shields, City Attorney Date
Approved: 'Q.. ~~"-4 -(\ - ~
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Passed by the Council June 11, 2001
Submitted to the Mayor June 12, 2001
Approved by the Mayor June 12, 2001
Filed in the Office of the Recorder June 12, 2001
ATTEST:-L11~ ~ I~
Mary Tennant, City Recorder
City of Woodburn, Oregon
Page 3 - COUNCIL BILL NO. 2318
ORDINANCE NO. 2291
EXHIBIT "A"
Data Vision Communications Page 1 of 3
a division of Gervais Telephone Company IRH~(C~OW~[Q)
NOV 2 ? 2000
November 27, 2000
John Brown, City Administrator
City of Woodburn
270 Montgomery Street
Woodburn, OR 97071
Dear Mr. Brown:
With this letter DataVision Communications, a division of Gervais Telephone Company,
is applying for a franchise to provide telecommunications services within the city of
Woodburn. DataVision Communications proposes to provide intraexchange (local
exchange) switched service, i.e., local dial tone, and nonswitched private line service
(dedicated transmission service) in the Woodburn exchange. DataVision
Communications will operate as a facilities based provider of the above services.
On February 2,2000, the Public Utility Commission of Oregon granted Gervais
Telephone Company, using a separate division, Data Vision Communications, a
Certificate of Authority to provide competitive telecommunications service in the state of
Oregon (order #00-051). DataVision Communications complies with all laws and rules of
that order. I have attached a copy of the order.
Gervais Telephone Company has been in the telecommunications business since 1914
and offers a full range of services from local dial tone to high speed internet service via
digital subscriber line (DSL) technology. It is the local exchange carrier for the city of
Gervais and surrounding areas, has a local presence in the community, and has been an
active participant in community affairs. Gervais Telephone is proud of its excellent
service and low rates and will offer similar high quality service to its customers in
Woodburn.
We believe our entry into the competitive telecommunications business in Woodburn will
be in the best public interest and look forward to working with the Woodburn
community. Thank you for considering this request.
Sincerely,
~U~_~
~~H~~
General Manager
489 Third St., P.O. Box 269, Gervais, OR 97026
(503) 792-3611
EXHIBIT IIA"
Data Vision Communications Page 2 of 3
a division of Gervais Telephone Company
January 17, 2001
John Brown, City Administrator
City of Woodburn
270 Montgomery Street
Woodburn, OR 97071
Re: telecommunications franchise
Dear Mr. Brown:
I have listed below the information you requested to process our application for a
telecommunications franchise.
Identity of Applicant: The applicant is DataVision Communications, a division of Gervais
Telephone Company. DataVision Communications and Gervais Telephone Company have no
other affiliates. Gervais Telephone Company is a cooperative corporation, which has furnished
telecommunications to customers in the Woodburn (Woodburn addresses outside of the city
limits), Gervais and Salem areas since 1914.
Description of Services: DataVision Communications offers a full line of telecommunications
service including, 1) intraexchange (local exchange) switched service; i.e., local dial tone;
including a full range of custom calling features and voice mail; and, 2) non-switched private line
(dedicated transmission service), such as dedicated 56Kbs, Digital Subscriber Line (DSL), and T-
1 circuits.
A detailed list of services currently offered is shown in attachment A. In addition, DataVision
Communications will be able to offer other advanced services as they are developed and demand
develops, including other higher speed dedicated and switched digital services, e.g., digital video
data and video on demand.
Description of Transmission Medium: To provide service, DataVision Communications will
construct its own facilities. We currently have no plans to lease other carriers' services. The
transmission medium will be fiber optic cable to the neighborhoods with distribution to homes on
copper pairs (telephone cables). DataVision Communication's provision of fiber optic based
service will not only provide the highest quality, most reliable telephone service, but also will allow
us to immediately offer high speed DSL internet connections.
Engineering Plans and Network Map: Preliminary engineering plans are included in attachment
B. All facilities are planned underground.
Preliminary Construction Schedule and Dates: Our preliminary construction dates are to
follow the construction of the Montebello subdivision, placing plastic pipe in the developer's open
utility ditches as the development is built. We will extend the fiber into the subdivision from the
south and pull in the copper distribution cables in 1 sl quarter 2001. We will then pull in the drop
wires to homes as the homes are built. The completion of our construction will thus coincide with
the completion of the subdivision. We will initiate the construction of the connection to the fiber
south of the city limits immediately upon approval of this franchise.
489 Third St., P.O. Box 269, Gervais, OR 97026
(503) 792-3611
Data Vision Communications
a division of Gervais Telephone Company
EXHIBIT IIAII
Page 3 of 3
Financials: Gervais Telephone Company's is in a strong financial position, having a very good
debt to equity ratio and cash position, indicating financial capacity to build and operate the
planned projects. Financial statements are included in attachment C.
Technical Qualifications, Experience and Expertise: Gervais Telephone Company is the
franchised local exchange carrier for the City of Gervais and surrounding areas. Its borders
extend to Mt. Angel and Monitor to the east, Verizon (GTE) in Salem to the south, St. Paul to the
west, and Owest (US West) in Woodburn to the north. Founded in 1914, Gervais Telephone
Company is a cooperative corporation that prides itself on service. Our customers are our
owners. Our response time on repairs is averaging 4 hours, and on new orders one day -
among the best in the state. We have an excellent record with the OPUC. We offer our
customers the latest services at prices that are, across the board, less expensive than the larger
telephone companies.
We have offered DSL service in the Gervais area for over a year. We have a Nortel
digital switch in place with standby power (batteries and generator). During the recent
November, 2000 wind storm, only three customers lost service; and they were restored the next
day. Gervais Telephone Company is a member of the Oregon Telecommunications Association,
the National Telephone Cooperation Association, the United States Telephone Association and
other professional groups. We comply with all applicable OPUC and FCC regulations.
Governmental Approvals: Gervais Telephone Company's Certificate of Authority (UM248) is
included as attachment D. Its Articles of Incorporation are included as attachment E. DataVision
Communications' Certificate of Authority (OPUC Order 00-051) is included as attachment F.
Video Service: DataVision Communications does not intend to provide cable TV service, video
dial tone service or other video programming service at this time.
Existing Facilities: DataVision Communications does not intend to lease any existing
telecommunications facilities at this time. We had some plastic pipe placed in the open utility
ditches in the Montebello subdivision phase 1. There is no cable or fiber in the pipe. That pipe
is shown on attachment B.
Thank you for considering this request. Please contact me if there are any questions.
Sincerely,
~J2-~
~;h~ R. Hoffma~nO b .
General Manager
attachments
489 Third St., P.O. Box 269, Gervais, OR 97026
(503) 792-3611