ORDINANCE No. 178361

*Terminate the franchise of Global Crossing Local Services, Inc. (Ordinance)

Section 1. The Council finds:

1.  On June 6, 2001, the City Council granted a ten-year franchise to Global Crossing Local Services, Inc. (Global Crossing) for use of the City streets to provide competitive telecommunications services. Ordinance 175650.

2.  As there was a difficulty regarding the filing of the ordinance acceptance, on November 28, 2001, the City Council ratified the grant of the franchise by Ordinance No. 176102.

3.  Following the grant of the franchise, Global Crossing did not build, nor did it ever own, any telecommunications facilities within the City streets.

4.  On January 28, 2002, Global Crossing Local Services, Inc. filed for bankruptcy. Global Crossing's Plan of Reorganization approved by the bankruptcy court on December 26, 2002 authorized rejection of the City's franchise. On December 9, 2003, this bankruptcy plan provision was made effective. To clarify City records, an ordinance terminating the franchise should be passed by the City Council.

NOW, THEREFORE, the Council directs:

a.  Ordinance No. 175650 is terminated and of no further force and effect. Global Crossing Local Services, Inc. is released from any further obligations under the ordinance.

Section 2.  The Council declares an emergency exists because delay in terminating the franchise ordinance could confusion regarding possible remaining rights and obligations under the franchise, possibly resulting in harm to the public welfare; therefore, this ordinance shall be in full force and effect upon its passage by the Council.

               Gary Blackmer

Passed by Council: May 05, 2004        Auditor of the City of Portland

Commissioner Randy Leonard          

DSoloos/BWalters

April XX, 2004              By: /S/ Susan Parsons

                 Deputy

O:/Utility Program/UTILITY FRANCHISES/Global Crossing/ Termination ordinance.doc

BACKING SHEET INFORMATION

AGENDA NO. 448-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178361