ORDINANCE No. 179058

* Transfer agreement for selection of long distance services at public pay telephones from Qwest Corporation to FSH Communications, LLC and terminate agreement with Qwest Corporation. (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  On December 16, 1993, the City Council authorized an agreement with American Telephone and Telegraph ("AT&T") to provide long distance service from pay phones located on the streets. AT&T terminated this agreement in 2003.

2.  On August 27, 2003, City Council authorized an agreement for selection of long distance services at public pay telephones to be provided by Qwest Corporation. Ordinance No.177812.

3.  On August 6, 2004, Qwest notified the City that Qwest had entered into an agreement to sell its public pay phone services to FSH Communications, LLC, a Delaware corporation licensed to do business in the state of Oregon. Qwest indicated that this sale is scheduled to become effective August 23, 2004.

4.  Qwest Corporation and FSH Communications LLC. have asked the City to consent to the assignment of the pay phone long distance services agreement to FSH Communications LLC..

5.  The proposed assignment of contractual responsibilities has been reviewed by the staff of the Office of Cable Communications and Franchise Management. Staff recommends that the Council authorize the proposed transfer of the Qwest Corporation agreement to FSH Communications, LLC.

NOW, THEREFORE, the Council directs:

a.  The Mayor and Auditor are authorized to sign an agreement with FSH Communications LLC for the selection of long-distance operator services at public payphones, in place of Qwest Corporation. The agreement with FSH Communications LLC shall be substantially similar to that attached to this Ordinance as Exhibit A.

b.  Qwest Corporation has provided the City with written notice that the actual transfer of the agreement for selection of long distance services at public pay telephones occurred upon closing of the sale transaction, August 23, 2004. FSH Communications, LLC has undertaken responsibility for performing, complying with and assuming all of Qwest Corporation's covenants, duties, obligations and liabilities under the agreement for selection of long distance services at public pay telephones that arise after the effective date of the assignment. The City may request additional documentation for clarification of any questions regarding assumption of the agreement obligations and responsibilities for future performance of such obligations.

c.  Upon the execution of the agreement authorized in subsection a, the City releases and discharges Qwest Corporation., from any further obligations or liabilities under the agreement for selection of long distance services at public pay telephones that was otherwise to have been provided by Qwest Corporation under Ordinance No.177812.

Section 2. The Council determines that an emergency exists because there should be no interruption in the designation of long-distance providers for public pay phones, harming the public welfare: Therefore this ordinance shall be in full force and effect from and after its passage by the Council.

Mayor Tom Potter

Author: S Sloan /B Walters

Date Filed: February 10, 2005

BACKING SHEET INFORMATION

AGENDA NO. 102-2005

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 179058