ORDINANCE No. 177144

*Authorize an Intergovernmental Agreement to review and analyze amounts paid by Qwest Corporation for operating in the public right of way.

The City of Portland ordains:

Section 1.  The Council finds:

1.  Two years ago Portland participated with other Oregon cities in a joint audit of Portland General Electric which netted the City almost $850,000 in one time revenue and $140,000 in additional on-going annual revenue.

2.  Working as a coalition with other municipalities, the cities retained a consultant to conduct the financial review. The cities jointly funded the review. The cities realized savings by aggregating the costs of the review and analysis of PGE’s performance of its franchise obligations.

3.  After the PGE review was completed, the Office of Cable Communications and Franchise Management (OCC/FM) worked with staff from other cities in the Oregon Municipal Audit Revenue Committee (OMARC). OMARC was formed to study and propose, where feasible, joint audits of major utilities.

4.  OMARC has proposed that the cities undertake a review and audit of Qwest and Verizon as the next joint project. Approximately 73 Oregon cities have expressed an interest in participating in this joint audit. A list of these cities is attached as Exhibit A to the original ordinance only.

5.  Under the proposed intergovernmental agreement, the cities of Portland and Hillsboro are designated as the lead agencies for this joint review and audit.

6.  OCC/FM has $40,000 in the current year budget to apply to the $70,000 cost for the City’s participation in the joint audit. An additional $30,000 will be needed from General Fund Contingency for the audit.

NOW, THEREFORE, the Council directs:

a.  The Auditor and the Mayor are authorized and directed to execute, on behalf of the City, an Intergovernmental Agreement, substantially in conformance to Exhibit B, attached to the original ordinance only.

b.  Reapportionment of $30,000 from General Fund Contingency to OCC/FM will be processed as part of the Winter Budget Monitoring Process.

Section 2.  The Council declares that an emergency exists because the public welfare would be served by executing the Intergovernmental Agreement and beginning the joint franchise review and audit without any delay; Therefore, this ordinance shall be in full force and effect from and after its passage by the Council.

Commissioner Leonard          GARY BLACKMER

MBHenry/Bwalters          Auditor of the City of Portland

December 9, 2002          By: /S/ Susan Parsons

                   Deputy

Passed by Council: DEC 18 2002

BACKING SHEET INFORMATION

AGENDA NO. 1494-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177144