City Council Packet - 11/17/1992
CITY OF TIGARD j
OREGON
AGENDA
y
j
• STUDY SESSION (6:30 PM)
1. Roll Cali and Call to Order
2. Discussion Items
( 2.1 Tualatin Valley Fire and Rescue Quarterly Report
2.2 Franchise Update: Electric Lightwrave, PGE, GTE
2.3 Recreation Vehicle (R19 Parking Update
2.4 Update on Solid Waste
2.5 Americans With Disabilities Act
3. Administra&e Review Ablate
4. Non-Agenda Items
5. Executive Session. The Tigard City Council will go into Executive Session under the provisions
of ORS 192.660 (1) (d), (e), & (h) to discuss labor relations, real property transactions, current
and pending litigation issues.
6. Adjournment
ccalllZ D2
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COUNCIL AGENDA - NOVEMBER 17, 1992 - PAGE 1
IN:
Council Agenda Item
1
T I G A R D C I T Y C O U N C I L
MEETING MINUTES - NOVEMBER 17, 1992
• Meeting was called to order at 6:30 p.m. by Council President
Schwartz.
1. ROLL CALL
Council Present: Mayor Jerry Edwards; Councilors Judy
Fessler, Valerie Johnson, Joe Kasten, and John Schwartz.
Staff Present: Patrick Reilly, City Administrator; Dick
Bewersdorff, Senior Planner; Loreen Edin, Acting Public Works
Director (arrived at 6:53 p.m.); Ken Elliott, Legal Council;
Wayne Lowry, Finance Director; Ed Murphy, Community +
Development Director (arrived at 6:55 p.m.); Liz Newton,
Community Relations Coordinator; and Catherine Wheatley, City
Recorder.
2. DISCUSSION ITEMS
2.1 Tualatin Valley Fire and Rescue Quarterly Report
Jeff Johnson of the Fire District reviewed the quarterly
report (July-August 1992).
Highlights included:
• New Tigard Fire Station next to Tigard Water
District and disposition of old Fire District
currently under consideration for a community
center.
• Enhanced 9-1-1 due to come online in early
December
• Telesquirts in service (fire engines with
hydraulic ladders).
• "Rescue 9-1-1" Taping to air in 193 (re-
enactment of incident involving an employee at
Oregon Glass Company in Wilsonville that had
approximately 4,000 pounds of glass fall upon
him.)
• For-profit training conducted in Saudi Arabia
2.2 Franchise Update
Electric Lightwave, Inc. representatives Earl Kanske and
J.D. Dancer were present and asked Council to consider
allowing them to use portions of the City right-of-way
(see packet for material distributed for council review).
ELI's intent is to construct a portion of their fiber
CITY COUNCIL MEETING MINUTES - NOVEMBER 17, 1992 - PAGE 1
i
• l
optic telecommunications network witaiii, t1he city limits
to serve future commercial customers in Tigard. Council
agreed to consider a franchise agreement; a proposal will
be submitted for formal consideration.
Finance Director Wayne Lowry advised that staff has been
negotiating with PGE and GTE to renew their franchise
agreements. Most changes to the agreements have been
tentatively agreed to by the City and each utility.
Formal consideration for the agreements is scheduled for
the December 8, 1992, Council meeting.
i
2.3 Recreational Vehicle (RV) Parking Update
Council continued their discussion with staff on
this issue; the Council had participated in a F
workshop on October 20, 1992. (See November 10,
1992, memorandum from Patrick Reilly to Council
which has been filed with the packet material for
this meeting.)
Elements of the discussion included the following:
• Councilor-elect Hawley said the City should
not be an arena for resolving disputes with
feuding neighbors. She said the Code should
be silent. She also noted her concerns with a
complaint-driven code. t
• Senior Planner Bewersdorff reviewed t his
findings with regard to other cities (see
aforementioned November 10, 1992 memorandum r
for details concerning other cities).
• Senior Planner Bewersdorff reviewed the
"visual clearance" language. This language is
restrictive and, in most instances, would
disallow RV parking in driveways.
Motion by Councilor Johnson, seconded by Councilor
\ Fessler to initiate a hearing process on the "RV
ordinance" based upon the following ideas:
• The code language on RV's will be
repealed;
• RV parking be allowed in the front yard
but may not be parked in a visual
clearance area;
CITY COUNCIL MEETING MINUTES - NOVEMBER 17, 1992 - PAGE 2
• The vehicle or unit must have current
state license plates or registration and
must be kept in mobile condition; and
• The RV cannot be used as an alternative
dwelling unit on an ongoing basis.
The motion passed by a unanimous vote of Council
present.
On-street RV and large vehicle parking language
will also be considered at the same time as the
above.
2.4 Solid Waste Update
Acting Public Works Director (PW Director) Loreen
Mum= Edin updated Council on efforts by staff and
haulers to address automated curbside collection,
consideration of a curbside yard debris pick up
service (this will be required by Metro by July 1,
1994), and service standards and efficiencies.
Council noted their appreciation of the report by
PW Direcotr Edin that the haulers have been doing a
good job of marketing their services and responding
to complaints.
The haulers have been required to file a financial
report for the last several years with the city of
Tigard. This year, based on Tigard's procedure,
the County Wasteshed program is developing a
financial reporting method. to derive needed
information and to provide uniformity throughout
the County.
PW Director Edin advised that at the last rate
hearing, council directed staff to work toward more
efficiencies. In the last four months, haulers
have been implementing:
• automated curbside pickup of containers (not
recyclables)
• goal to have all areas automated in the next
18 months
• offering curbside yard debris pickup (Metro
will require this by July 1, 1994; it is
expected that rates will increase)
• service standards are being reviewed; i.e.,
convenient office hours, ice and snow day
contingency plans, response to complaints.
CITY COUNCIL MEETING MINUTES - NOVEMBER 17, 1992 PAGE 3
PW Director Edin noted that Steve Lawrance and
Shirley Huffman will be leaving the Washington
County Wasteshed Steering Committee. They have
been valuable, influential members representing the
region at Metro on solid waste issues.
PW Director Edin reported that there will be no
local hazardous waste recycling depot. Metro has
decided they will not be sponsoring a mobile unite
as was previously planned. Two sites exist for
disposal of hazardous waste: one in Portland and
one in Oregon City.
PW Director Edin advised that Council asked for a
review of whether or not to consider an amendment
to the franchise-term renewal language of the solid
waste ordinance. If the Council does nothing, then
the solid waste franchise agreements will
automatically renew for 10 years on January 1,
1993.
After discussion, Council decided to review the
length of term of the franchise agreements at their
December 15, 1992 meeting.
2.5 Americans with Disabilities Act (ADA)
Acting Public Works Director Loreen Edin updated
Council on the City's efforts to comply with
provisions of ADA. She referred to a self-
evaluation process recently completed.
There was discussion on grievance process for
disability accommodation issues:
• For employees - it is proposed that a
grievances follow a procedure similar to Union
grievance of personnel issues process.
• For citizens - Council decided that grievances
would be reviewed by staff with appeal to
hearings officer. If the complainant
disagrees with the hearings officer decision,
they can appeal to the City Council.
Council was advised that ADA compliance costs for
the Chamber of Commerce building are estimated to
be $10,000. The TCYS building will require
approximately $5,000.
CITY COUNCIL MEETING MINUTES - NOVEMBER 17, 1992 - PAGE 4
F
1! INS
NNNA
3. ADMINISTRATIVE REVIEW/UPDATE
• Unified Sewerage Agency and City of Tigard will hold a
meeting Thursday night to answer questions about the role
of the City and USA with regard to sewage treatment and
billing. The meeting will be at the Senior Center from
7 to 8:30 p.m.
• Washington County Cooperative Library Service - the last
opportunity for input with regard to a new levy proposal
will be next Tuesday. The role and scope of WCCLS is to
be reviewed in detail.
• Councilor Fessler distributed material entitled "FCC
Action in Local Telephone Competition Dockets Means New
Responsibilities and New Opportunities for Local
Jurisdictions." This will be considered at the next MACC
board meeting. Councilor Fessler noted this was timely
given the presentation earlier in the meeting from
Electric Lightwave, Inc.
• Councilor Schwartz distributed, for Council's
information, a Letter to the Editor (The Oregonian).
This letter was in response to a recent article published
concerning Council meetings. Councilor Fessler said she
had a differing viewpoint and would like to discuss the
issue further with Council.
4. ADJOURNMENT: 8:55 p.m.
Attest: Catherine Wheatley, City corder
ems, City of Tigard
uncil President
Date :
=0117.92
CITY COUNCIL MEETING MINUTES - NOVEMBER 17, 1992 - PAGE 5
COMMUNITY NEWSPAPERS, INC. Legal
P.O. BOX 370 PHONE (503) 684-0360 Notice TT 7393
B EA1ff RTON, OREGON 97075
G ~.l~gal otlce Advertising The following meeting highlights are published for-your iriformituonFPull
EL egg agendas may be obtained i roni :the City, Recorder, 25:9.W HaPI -
0 Boulevard, Tigard, Oregon 97223;or by calling 63c3171
s City of Ti and a 0 Tearsheet
®
PO Box 23397 ~\OPRC~ CITY COUNCIIi S7'UI~X)TII~Iar
Tigard, OR 97223 OF ® 13 Duplicate At'. NOV
I992
EMBER 17,
o ® TIOARD CIT . HAIL : TOWN HALL
.13125 S W HALL BOUI EVARD, 1GA.RD, OREGON
:Study Meetuig Clown Hall Confeience) (6-3i) P.M )
•Discussion items.
AFFIDAVIT OF PUBLICATION ata iii ' 4i y_tiiiandResciii*arterly
-TULV
STATE OF OREGON, tric Lightwave Fra~ichise
COUNTY OF WASHINGTON, Elec
on Vehicle (A:V) Parking Update.
1, Judith Koehler Recreati
being first duly sworn, depose and say that t am the Advertising
Director, or his principal cleric, of the Tigard Times Update on Solid Waste ;
a newspaper of general circulation as defined in ORS 193.010
in the Americans With Dis$biiities Act
and 193.020; Published at Tigard
aforesaid coy+nty and state; that thQ
City Council Stisdy Meeting e i ocal;ContrdctReview 'Boar,
a printed copy of which is hereto annexed, was published in the a Ezectitrve Session The Tigard City Council may go unto Executive Ses=
entire issue of said newspaper for OnQ successive and Sion .under, the, Provisions of ORS 10166Q (1) (0, (e),;&(H) to discuss:
consecutive in the following issues: labor relatio>as, real,property 1ransacuons, current and pfnding licigatioa "
issues.
November 12; 1992 T177393 - Publish November 12, °1992 - -
Subscribed and swor o before me this 12th day of November, 1992
Notary Public for Oregon
My Commissio ires:
AFFIDAVIT
Elm
AJART'.ERLYREPORT
Tualatin Valley Fire and Rescue
City of Tigard
July r A ugust 1992
Total Response (district wide) City of Ta"gard
4,127 Total Runs 560 Incidents Inside City Limits
Fire Calls - 53 (9.4%)
Medical Calls - 295 (52.6%)
Hazardous Condition - 15 (3%)
Public Assistance - 197(35%)
Engine 221: Rescue221:
Fires - 54 Fire - 15
Medical - 175 Medical - 225
Programs and Events Haz. Cond. - 13 Haz. Cond. - 1
Public Assist - 144 Public Assist - 100
Tigard Fire Station Mutual Aid - 11 Mutual Aid - 4
Enhanced 9-1-1 Total: 386' Total: 351'
Telesquirts in service
"Rescue 9-1-1" Taping (to air in '93) *All responses, including outside city
Fire and Rescue Training in Saudi Arabia
NO. 1 CAUSE OF FIRES IN U. S.
IS HEATING EQUIPMENT
1. Clean and inspect woodstoves and chimneys each year before ~Pvp't1Pi V,q~~~
using. J
2. Burn only dry, seasoned wood (less chance of creosote build-
up).
3. Always use a tight-fitting fireplace screen. C7
4. Keep combustibles at least 3 feet away from woodstoves, RES J~
chimneys, space heaters, etc.
5. Check smoke detectors monthly to insure they are working!
'61N V TUALATIN VALLEY FIRE AND RESCUE
20665 S.W. Blanton Street, Aloha, Oregon 97007 (503) 649-8577
Jeff Johnson, Director of Community Services
Karen Eubanks, Public Information Specialist
RELEASE-IMMEDIATE
R92-043
NEWS IZELE
"RESCUE 94-1 " COMES TO TOWN
On Friday, September 11 through Sunday, September 13, "Rescue 9-1-1" will be in town
filming an incident that Tualatin Valley Fire and Rescue responded to on December 23, 1991.
The incident to be re-enacted involves an employee at Oregon Glass Company in Wilsonville
that had approximately 4,000 pounds of glass fall upon him.
"We decided to submit the incident to "Rescue 9-1-1" because of the extraordinary circumstances
involved in this incident," stated Karen Eubanks, Public Information Specialist. "In addition to
being buried beneath the huge mound of glass, Craig was not breathing and had no pulse when
our paramedics arrived." She added, "But thanks to Craig's co-workers who immediately began
removing the millions of pieces of glass and the excellent pre-hospital care administered by the
paramedics and firefighters, Craig Hoffman is here today and doing well."
The show will involve the actual members who responded that morning including Paramedics
Tom Duthie and Gene Ditter, Lieutenant Dennis Katz, Engineer Rich Millhouse, Firefighter
Scott Teitsworth, and Dispatchers Bill Boyle (now a firefighter with TVF&R) and Kelly
C McKnight. Buck Ambulance, LifeFlight and WCCCA will also be involved in the filming.
N% -i , .
FORM 3AIA
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do things adva-aced techniq The Saudi pro) officials curTee si Yjnixer
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Center sends the two tt d e hroug centeT
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met to teach poring U~Versity a
team q5 students rota fighting Petro State yang the nod to ` ~
teams to Saudt Arabia this sum classes. ateraals and before gi adaptabilitY
and rescue teohniQUeS received instruction in Rescue. impressed with our materi dous fireTlghting They du is bu ldings m
confined They were ess to translate teaching
HN FpYSTON chenlica fires in gh ne rescues in willingness department enlisted t spud es
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d.
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from battalion chief wit~at many ds rile
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the team weeks wont be the last- e otiations w y A
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turn doft
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of instructors w el The dep and above exp as a sep Hess, Rust said, bed a formal
~ week from , ent personn over set up 199E "The surprise. fle descri bs and guests ate around a
other group
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ization. " Saudis to be very efg e cis fees received „ he said.
g of the for our own p anding the training p o tries, Arabia,
found the Southwest c Os ins Call for exp valdous emerging this
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~ 11'l.?1'1.ff CIVIC ASSOCIATION
10650 S.W. Summerfield Drive
Tigard, Oregon 97223
620-0131
November 12, 1992
Tigard City Council
P.O. Box 23397
Tigard, Oregon 97223
Dear Council Members:
Our Summerfield Liaison representative, John Benneth, has informed us
you are considering a possible easing of restrictions on storing boats,
trailers and RVs on residential property.
We understand the four options you are considering are:
1) make no change in the ordinance
2) reduce the present 20' setback to 10'
3) permit front yard storage without any setback if no side
yard storage is feasible
4) remove all restrictions
This was discussed at our Board meeting Tuesday, November 10, and they
wish to go on record as unanimously supporting no change in the ordinance.
Will you please make this decision a part of your records on this matter.
Sincerely,
Charlotte Tice
Administrator
CT:FB
-X-he nn ct .
C MEMORANDUM
CITY OF TIGARD, OREGON
TO: Pat Reilly, City Administrator
FROM: Wayne Lowry, Finance Director
DATE: November 6, 1992
SUBJECT: Franchise Negotiations
We have been negotiating with both PGE and GTE to renew their franchise ordinances.
Most changes to the franchise agreements have been tentatively agreed to by the City
and by each utility. Most language that is still being discussed has to do with
review and approval of work in the right-of-way.
The following items have been included in the current drafts:
PGE
Twenty year agreement with ability for City to renegotiate franchise fee every five
years if certain circumstances exist.
Franchise fee of 3-1/2% with the City option to levy a privilege tax in addition to
the franchise fee at any time during the franchise.
Language to ensure that work done in the right-of-way is properly approved, traffic
is properly controlled, and that City facilities are restored to an acceptable
standard.
GTE
Twenty year agreement with ability of City to unilaterally change franchise fee with
one year notice to company.
Franchise fee of 5%.
Language to ensure that work done in the right-of-way is properly approved, traffic
is properly controlled, and that City facilities are restored to an acceptable
standard.
h: 1ogin\a1icelwayneVrandtr.cc
Y
-75
46:m .2 , z
MEMORANDUM
CITY OF TIGARD, OREGON
TO: Pat Reilly, City Administrator
FROM: Wayne Lowry, Finance Director
DATE: November 6, 1992
a
SUBJECT: Electric Lightwave Inc. Franchise Proposal
Electric Lightwave Inc. (ELI) has approached the City of Tigard about allowing them to
use portions of the City right-of-way. ELI's intent is to construct a portion of their fiber
optic telecommunications network within the city limits to serve future commercial
customers in Tigard.
C ELI has entered into franchise agreements with the City of Portland, Beaverton and
Gresham for the installation of similar facilities in those cities. They are now requesting
to enter into a franchise agreement with the City of Tigard.
ELI has submitted materials for review by the Council to better understand who they are
and the service they will provide. A representative of ELI will be present at the study
session to make a presentation to the City Council.
If the City Council wishes to proceed with the intent of granting a franchise to ELI; staff
will begin the franchise negotiation process which will conclude with Council consideration
of a franchise agreement tentatively scheduled for the agenda of December 8, 1992.
h:Uogin\alice\wayne\elifranc.cc
',rti
111011 1 !1 111
PAGE 12 LN/ WEEK OF OCTOBER 26,1992 THE BUSINESS JOURNAL
Q&A _
C
John Warta
Electric Lightwave CEO sees opening in FCC decision
recent decision by the Federal Com- I think there will be a lot of entrants into
munications Commission (FCC) the market and then some consolidations,
has quietly changed the way tale' ,x 1v. y s{a ~ ~ By having a chokes the but I think there'll be lots of choices for
phone companies will provide local consumers.
service in the future. rates and prices and
The recent FCC decision will force local f { y,-`'E terms and services will The Business Journal: Have we basically
telephone companies, within highly spe- gotten to the point where we've hit the end
cific technical guidelines, to gradually become much more of monopoly telephone service?
open their central switching office equip- e t. `k s N~t'~ com ttttVe to the Warta: I sure hope so. In my opinion. I
men[ to use by any company wishing to think that's good. Consumers want a
compete with them in markets served by consumer. Exactly like choice, and ti's hard to have a choice if
telephone companies with more than 5100 you have a monopoly provider.
million in annual revcnues. That includes What's happened In There will probably always be some
Portland. long-disitance." communities where monopoly service
John Warta, president and chief execu- does make some sense in that it's very
rive officer of Vancouver, Wash.-based hard to have two companies compete in
Electric Lightwave Inc. applaudstite FCC smaller communities. In some of those
decision. Warta says competition for local choice, the rates and prices and terms and Warta; When we talk about digital we're communities, I think there should be a
telephone service will bring major price services will become much more compel- talking about the ability to move tratumls. single company that provides both tele-
and technological benefits to business and tive to the consumer. Exactly like what's sions using digital techniques. In the past phone and cable television service to On
residential users. Electric Lightwave at, happened in long-distance. we've used primarily analog service. Digi. - some efficiencies of scale,
ready ha: its own fiber-optic cable act- The Business Journal: How soon do you tai is the tame kind of signal that's used in I think the FCC took to heart some of
works in Purttand and Seattle that con- think the general marketplace is going to computer technology today. It enables our comments. We specifically suggested to a long-d
Comm istance provtder~ 6rypassing the lo- start to see these changes-especially the vcry accu to rate Inflections. changes In to the FCC that only a certain size tele-
Cal"telco"Intheprocess. slower-moving residential market? very accurately .portrayed. phoaecompanyshouldhavecompetition.
Central switches are the pathwaythe tel. Warta: I think we're looking at a course The dtptal signal is much clearer, much The Business Journal: The final ruling
cos-the companies most people think of of time that will probably be two, three, cleaner and much more cost effective. I was only for areas with telephone compa-
s "the local phone company"-use to four years. We've looked at what hap' thank also It's a matter of economics. nies that have more than $100 million to
:nd and receive calls. By giving competi. pened with AT&T, for example, as a mod. Were seeing over million people now revenues.
tors access, the FCC has likely brought el to see how long everybody in the coun- with cellular phone service. Warta: Right. In this.area, that's U S
about a far more dramatic upheaval than try had to wait before everybody got a The Business Journal: And cellular's West and OTB'arid'Pacific Telecom. It
the mid-1980s breakup of AT&T into re- choice. I think there's still some smaller been available since when? tends to protect-the smaller; independent
gional Bell operating companies such as telephone exchanges in the United States [Flans: Since 1984.83. That's when we telephone companies that primarily serve
US West Inc. and GTE Northwest Inc. that are just now moving to equal access saw the initial roll out of fairly substantial rural areas. But It also gives them some
Such access opens local telephone service for their long-distance service. I think cellular opportunities. Cellular's grown choice now because they can gain the same
to new competitors like those already seen what we've seen is gradual change over a very, very rapidly. And then the new en- access to the same services by connecting
in long-distance services. period of almost seven, eight Years. tram is the PCN-the personal communi- their independcnt telephone networks to
Those new kids in town trying to com- I think changes in the local service envi- cation network-phone. companies like Electric Lightwave as op-
pete with the telcos are known as comped. ronment are going to happen a little more The Business Journal: Which works posed to connecting to U S War to gain
five access providers (CAPS). And some rapidly because of technology and because access to AT&T or Sprint of MCI.
of those CAPS have already -likncd a toe- of the multiple local players. I thank the much like assort-range version of cellular
hold in the marketplace-like Warta's cable TV companies s are positioned very that connects into local hard-wired ser• The Business Journal: Do you think that
Electric Lightwave. well to get into the residential telephone vice. eventually we'll end up with competitive
The Business Journal's Anita Marks re- business. Warta: Exactly. The PCN phone is slow- services in virtually any geographic loca-
centlY met with Warta to discuss what The Business Journal: powered, low-range phone compared to Iton just because the technology will make
Just because of it possible? Cellular Is basically radio, and
changes consumers will likely see from the the lines they have running to houses al. cellular. Cellular can operate several miles it can lake you just about anywhere.
FCCdecision. ready? in distance (between transmitting stations).
The Business Journal: What is the typi. PCN phones can work up to two miles Warta: And there's satellite cellular now,
Warta: They can use the coax cables they from an antenna or a repeater site that is as well. I think what we're seeing is that
cal telephone user-whether business or have running to houses today. There are connected into a fiber-optic cable or when costs in rural areas do go up-if they
residential-going to see as a result of all ways of using that coax system to provide some other form of wire transmission go up-there will be competitive options
these regulatory changes? telephone service. 1 know a number of the medium. that will go to those markets as well.
Warta: I think long-term, all these cable companies have been doing experi- The FCC is also working on that tech- The Business Journal: That sounds very
changes mean that they will finally have a ments using the coax system to provide nology and trying to determine how the encouraging, but how do you deal with a
choice in who provides their telephone set- telephone service while people are watch- rules will be played out. They're trying to lot or the fear you get when people hear
vice at a local level. • Ing TV on the same cable. determine how many competitors there the word "deregulation?," There have
The Business Journal: Muchlike long. The Business Journal: In tact, haven't should be per market. How they award been some fairly unhappy American ex-
distance service is now. some of the larger telephone companies the rights to serve those markets, what periences. I don't know if many people
Warta: Exactly. I think what we're seeing been trying to get into cable? they're going to charge for an entry fee. are really very happy with the results of
is there are enough technology changes Warta: Oh, yes. I think that's all pan of PCN Is going to be a great opportunity. airline deregulation, for example.
and enough regulatory changes that mean what's going on-the dynamics of the Warta: I think consumers always like to
that customers will have a choice of pick. market. The telcos now have the ability to blame deregulation for a lot of things. But
I Ing cellular service or an alternate local provide video transport, and have the at the same time, I sure see a lot of people
telephone company like Electric Light. ability to provide video programming. at the airport flying planes today. As
C wave. Surveys that we've seen have indi- That's beginning to erode cable TV's mar. much as the consumer likes to complain
;ated when business and residential cus. ket. Pay-per-view might be available now about deregulation and how their plane
tomers have been asked, "Would you stay from both the cable and the telco. I think was delayed, they forget to mention that
with your current phone company, given long-term that will help control cable ft's $300 cheaper than it was five years h
the choice of a second one?", we've seen rates. ago.
numbers as high as 40 to 50 percent which Cable is only one competitive threat. I s There are problems. There's always go-
say they'd change to a minute to an alter- think another is cellular. We're seeing tl, Ing to be problems when a monopoly ser-
nate phone company. rates for cellular decline considerably. vice Is deregulated or opened up. There's
What that means is not necessarily that The Business Journal: Haven't there going to be confusionin the marketplace.
the existing phone company is doing a bad been some technology changes in cellular I think the pace et which things are dere-
job; what that means is that consumers that have helped that? gulated and how the consumers are edu-
want a choice in who they deal with on an Warta: What we're seeing is a movement tared is going to be critical. Hopefully, the
ongoing basis. They'd like to have the federal government has learned a little bit
feeling that they have some opportunity to toward digital cellular. more about how to deregulate a specific
pick and choose. Choice is the key thing The Business Journal: Which means market from the trials and tribulations of
that we're trying to offer. By having a what? the put.
i ELI? The ELI "Ring'" Network
THE LOGICAL CHOICE IN SAFEGUARDS THROUGH ALTERNATIVE ROUTING
TELECON04UNIICATIONS. An important feature of each ELI regional network is that it does not fo
Electric Lightwave, Inc. (ELI) routes of the local phone company nor typically share any of its area co,
builds and operates all-digital, complete alternative strategy for information maffic using dedicated and
fiber-optic networks. We offer tele- bundles of fiber optic cable.
communications user; the latest in
high speed voice, data, and video THE KEY IS IN THE RING. In addition to unique placement, of
transmission services. These custom the ELI network unbeatable. Our network put your company on a strat
ring networks may be used as pri- optic ring. Every "bit and byte" you transmit simultaneously travels both 1
mary, alternative, or back-up com- the ring on its way to its ultimate destination. So in the unlikely event c
munications systems. fiber in one direction, the information travels around the ring in the op
the break.
Medicsr Facility
r. i
' CATSCAN ' - -P -1XC Carrier e~ ~
P6X; ~
;CPC_ s
r
A,
Hospital F~> ~
Clinic
.i
r
C
ELI's network provides point to point private C
line service as well as special access service to
long distance carriers. t....
II Two way ded
I R ,
E~
r` By contrast, the local phone companies are typically built in a "star" fon
is connected via a single line to a central switch. However, if that single
ered, all access to the phone switch is broken off... and you will have a v
This unique advantage of our cable formation makes our networks %ul
Extensive planning and engineering goes into
each of our customer sites and Touting.
WE DON'T WANT TO Remote Data/Vidca
DE EVERYTHING TO ' Sitc EVERYONE. FM 1 '
switc 7-
ELI has targeted several mid-to- Facili -
la -Size cities in which to build
of dh capacity, all-digital, fiber-
=
optic networks. We offer our net- - _ - - - - ® _
work in areas with high levels of A
telecommunications activity. This .4
allows us to serve those users who Branch - ELI .4
can benefit the most from ELI's ctwork
flexible networks. ELI supports a myriad of applications
® e
Evil
We The ELI
do g® or
CHOICE IN SAFEGUARDS THROUGH ALTERNATIVE RounNG.
CATIONS. An important feature of each ELI regional nerk is that it does not follow the established
Inc. (ELI) routes of the local phone company nor typically share any of its area conduits. We offer a
all-digital, complete alternative strategy for information riaffic using dedicated and highly secure
We offer tele- bundles of fiber optic cable.
rs the latest in
ta, and video THE KEY IS IN THE RING. In addition to unique placement, our ring design makes
These custom the ELI network unbeatable. Our network puts your company on a strategically placed fiber
used as pri- optic ring. Every "bit and byte" you transmit simtdraneously travels both directions around
r back-up com- the ring on its way to its ultimate destination. So in the unlikely event of a break in the
fiber in one direction, the information travcLr around the ring in the opposite direction of
the break. j
MedicM Facility
CA'I'S'CA1V ~ v
- - `IXCCarrier
,PBX;
Cam=
Hospiul
clinic -
ii
Symbols
i.ightwav
® Express
LI's network provides point to point private ® cGroopaciry
ming
sertwe as well as special access serwce to
ng distance carriers.
Tvo Bray dedicated fiber pairs.
I ~ O ~J , a
By contrast, the local phone companies are tygically built in a "star" formation. A customer
is connected via a single line to a central switc . However, if that single line becomes sev-
ered, all access to the phone switch is broken e~ff... and you will have a very quiet office.
This unique advantage of our cable formations; makes our networks "fault tolerant"
Extensive planning and engineering goes into
each of our customer sites and routing.
TO P-Oft a t:/trdro Corporate
G TO
Switc
Pauli
eral mid-to- F cili
hick to build
11-digital, fiber-
offer our net-
high levels of `-_'m - - - > 4 -
q
activity. This -
ose users who Branch - - -
st from ELI's ELI ® .
etwork
ELI supports a m~ of applications
BUM
j ;
Why Choose ELI?
EXPERIENCE. ;
The management team at ELI
consists of what one might call _
"state-of-the-art, old timers" in
the business. They collectively
have more than 80 years experi-
i
ence in the management and ;
operation of information, optics,
and telecommunications net-
works and are widely respected Always ready w sere our customers!
leaders in the industry.
STABILITY.
Although ELI is a relatively new
telecommunications company, it is
part of Citizens Utilities, a 50-year-
old utility family with an impressive
history of growth each year for the
t-. past 45 years. Citizens is the only
• ; ..:.,t;t>:~•~: triple-A rated utility company in the
U.S. They currently serve over 250
cities and communities in 14 states.
LOCAL PRESENCE.
ELI city managers, installation tech-
nicians, and engineers all reside and
' work in the cities ELI serves with its
Customer service is our commitment. regional area fiber optic networks. In
this way, they can respond to your
immediate needs.
SERVICE.
While most information carriers promise great service - our service rep-
resentatives deliver. ELI's best service feature is the product design; our
rings versus their stars. This guarantees more specialized attention and so-
phisticated service capabilities to our customers. Our clients include fi-
nancial institutions, government agencies, office buildings, medical facili-
ties, educational organizations, and local and long distance telephone
carriers in each city ELI serves.
LET ELI PROVIDE YOU SOME GOOD NEVIS.... .
;
m
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low
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F ~ ,mot ' ti3S ti't. ~y~~ry]d * 'l
1 F
Y
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FIFE INE 1
PRODUCT DESCRIPTION
This DS1 service provides a clear channel digital private line point-to-point service equivalent to
24 voice-grade channels (DSO's). A DS1 has a transmission speed of 1.544 million bits per second
(Mops). This service can be used to provide dedicated voice, data and video transport to all long
distance carriers or to other locations on a user's network.
USER APPLICATION
Firms likely to benefit from DS1 usage include those with moderate long distance usage, those
with distributed office locations, and those with moderate speed data networking needs. Law
firms, banks, insurance and brokerage houses, information services, data centers, and government
organizations are firms that benefit from this dedicated service.
ILLUSTRATION
ELI HUB
Q_ CUSTOMER CARRIER
DS1 SPAN DS1 SPAN
000 ;
PRIMARY
PROTECTED
FEATURES
V 100% Fiber Optic facilities, providing superior transmission quality.
V Point-to-Point Connectivity.
V Routing independent of local exchange company's network.
V SONET (Synchronous Optical NETwork) based network.
V 1.544 Mbps transmission speed.
sr ARC & RING Service Options.
A. ARC (Alternate Route Connectivity) - Each circuit is protected by a dedicated back-
up circuit. (1:1 back-up electronics)
B. Enhanced RING Service - This option takes advantage of ELI's cable ring network
and offers a geographically separate route as well as electronic redundancy. Should
a fiber cut or other outage occur, a user's traffic is automatically re-routed to the
C intact portion of the ring to terminate at the customers location. This switchover
is accomplished in less than 50 milliseconds.
CONTRACT TERMS
Contracts and pricing based on 1, 3 and 5 year terms.
L~.E.....~' '
FIFE INE 3
PRODUCT DESCRIPTION
This DS3 service is a high capacity transport path equivalent to 672 voice channels or 28
DS1 channels. The transmission speed of DS3 service is 45 million bits per second (Mbps).
High speed data services, mainframe-to-mainframe computer communications, high speed
point-to-point voice connections, and video transport are all supported by DS3 service.
USER APPLICATION
DS3 Service is designed for users with high capacity communications requirements. Types
of users that would benefit from DS3 use include long-distance local exchange carriers,
businesses that need connectivity between branch sites or data centers, medical facilities,
and governmental organizations. The DS3 channel is also used for high speed data and
video services.
C ILLUSTRATION
ELI HUB
CUSTOMER CARRIER
i
DS3 SPAN DS3 SPAN
0000
PRIMARY
PROTECTED
FEATURES
a 100% Fiber Optic facilities, providing superior transmission quality.
a Point-to-Point Connectivity.
V Routing independent of local exchange company's network.
V SONET (Synchronous Optic NETwork) based network.
V 45 Mbps transmission speed.
i
CONTRACT TERMS
I
i
Contracts and pricing based on 1, 3 and 5 year terms.
i
R
.
ELECTRIC...
!L' IBERLI E Z
PRODUCT DESCRIPTION
Nam
This DSO service is equivalent to a single voice line operating at 64 Kilobits per second
(Kbps). It provides dedicated transmission between two points on a users network or for
connection between a users facility and a long distance carrier.
USER APPLICATION
DSOs can be used to connect users with low to moderate long distance usage to their long
distance carriers. DSOs are also used as off-site extensions for firms with multiple locations.
They can support low speed data services.
ILLUSTRATION
CARRIER
CUSTOMERS
(A.6.0) ------I-LLLLLLJO 11%
I
A
B ELI HUS ; CARRIER i
DSO SPANS
c~
DSO'S C o
1------
DS1 SPAN
I
(ELI EOUIPMENT) . CARRIER
i
i
i
PRIMARY
PROTECTED
i
i
FEATURES
1
$ 100% Fiber Optic facilities, providing superior transmission quality.
a Point-to-Point Connectivity.
a Routing independent of local exchange company's network.
V 64 Kbps transmission speed.
i
CONTRACT TERMS ~
1
Contracts and pricing are based on 1, 3 and 5 year terms.
1
ill 'JI
.
C . ® ELECTRIC
DS1 LIGHTHUB SERVICE
PRODUCT DESCRIPTION
ELI'S LightHub DS1 Service breaks a customer's DS1 pipeline into individual DSOs for
transport to various locations on the customer's network. The DS1 is carried from the
customer's location to ELI'S hub where it is broken into individual DSOs and routed to up
to 24 individual locations on ELI's fiber network.
USER APPLICATION
LightHub DS1 service is designed for the customer who has voice or data originating at one
location with multiple destinations, such as carriers or off-site locations on ELI's network.
ILLUSTRATION
DATA CENTER
ELI HUB
F---J In n
CUSTOMER
DSO SPANS 4
D S 1 SPAN CARRIER
n In In
I i
i
CARRIER CARRIER
PRIMARY
;
PROTECTED I
FEATURES
s 100% Fiber Optic facilities, providing superior transmission quality.
a Point-to-Multipoint Connectivity.
Tr Routing independent of local exchange company's network.
it SONET (Synchronous Optical NETwork) based network.
CONTRACT TERMS
C Contracts and pricing based on 1, 3 and 5 year terms.
C ® r>v
DS3 LIGHTHUB SERVICE
PRODUCT DESCRIPTION
LightHub DS3 Service gives a customer high speed connection to multiple locations on
ELI's network from one originating location. A DS3 is carried from the customer's
location to ELI'S hub where it is broken down into as many as 28 individual DS1s for
transport to multiple locations on ELI's fiber network. All hubbed DS3s are groomed
through ELI's DACS IV for efficient bandwidth control. 4
USER APPLICATION
f
LightHub DS3 service is designed for carriers and customers who have a number of DS1
spans originating at a single site and terminating at multiple locations, such as long distance
carriers, or going to multiple off-site locations on ELI'S network. This option offers an
economical and flexible method of allocating network traffic for users requiring large
quantities of bandwidth with multiple termination points.
ILLUSTRATION
DATA CENTER 3
ELI HUB
,
CUSTOMER
DS1 SPANS
D S 3 SPAN CARRIER
'
i_
I CARRIER ;
CARRIER
PRIMARY
PROTECTED
-7=
t
FEATURES
100% Fiber Optic facilities, providing superior transmission quality
Point-to-Multipoint Connectivity
a Routing independent of local exchange company's network
a SONET (Synchronous Optical NETwork) based network.
V DACS (Digital Access Crossconnect System) service.
CONTRACT TERMS
Contracts and pricing based on 1, 3 and 5 year terms
C I s.
LIGHAVE LADY
PRODUCT DESCRIPTION
LIGHTWAVE LAN provides high speed data connections for customers with data processing systems supported
by Local Area Networks (LANs) and multiple office locations. LIGHTWAVE LAN uses the high bandwidth of
fiber optic communications to allow LANs to communicate at native speeds. These speeds can range up to 100
megabits per second (Mops). LIGHTWAVE LAN allows the seamless communication of data in distributed
locations.
USER APPLICATION
LIGHTWAVE LAN customers will use ELI's network to share data from networked computers at multiple
locations. Data can be generated from a mainframe computer to distributed locations, or from networked personal
computers. Examples of companies that could benefit from LIGHTWAVE LAN include:
'a Banks with central data processing and remote data generation facilities.
s Accounting firms with multiple offices within an urban area in which data is generated at one or more sets
of networked PC's.
Law firms with offices in both Portland and Seattle, and with the need to move information back and forth
between locations.
ILLUSTRATION
CUSTOMERS
HEADQUARTERS
ELI HUB CUSTOMERS
DATA CENTER
LIOHTWAVE LAN LIOHTWCVE LAN
LIGHTVAVE LAN MAINFRAWE
NETWORKED ; COMPUTER
COMPUTERS '
CUTOMERS
BRANCH
FEATURES NETWORKED
COMPUTERS
Ir 100% Fiber Optic facilities, providing superior transmission quality.
$ Point-to-Point or Point-to-Multipoint.
Ir Routing independent of local exchange company's network.
it Fiber Distributed Data Interface (FDDI) network.
it High speed capabilities.
Ir Protocol transparent to the users.
s Delivers large data flows to multiple locations.
t CONTRACT TERMS
1
Contract terms reflect the needs of individual clients.
L TE
COLLOCATION
PRODUCT DESCRIPTION
Collocation provides the customer a physical location in an ELI facility for the customer's
equipment.
USER APPLICATION
A user can collocate to make a low-cost direct connection to ELI's facilities and avoid the cost
of routing their traffic from the origination point to the hub.
ILLUSTRATION
CUSTOMERS LOCATION
ELI HUB CUSTOMERS LOCATION
CARRIER
CUSTOMERS
EQUIPMENT
i
ELI
EQUIPMENT
CARRIER
FEATURES
a ELI Maintenance under special agreement.
's 24 hour, 7 day a week access.
$ Battery back-up, UPS (Uninterruptible Power Supply).
g One Channel term access locally.
CONTRACT TERMS
C
Pricing is determined by the amount of space the customer wishes to occupy in ELI's hub and
is based on a 1, 3 and S year term.
i
r
1; ill 1011111
REIM
11 11110; 1
COMMUNICATING
s
Celebrity Golf Raises $10,000
The Oregon and Western Washing- proximately 120children.In 1992,their tournament coordinator Leslie Cole.
ton chapterof Healing die Children was goal is to help 30 children, with abudget 'Thistoumamentsupportsaveryworlh-
the beneficiary of a corporate/celebrity of less than $50,000. while cause, and is asmall way forus to
golf tournament held July 31 at West This is the second year for the benefit give something back to the commu-
Seattie Municipal Golf Course. tournament in Seattle. Proceeds from nity."
The tournament, co-sponsored by last year's tournament paid for For ELI, Healing the Children is a
ICON Communications (ICON) and Anastasiya Ahn, a five-year-old girl perfect fit with the company's mission,
Electric Lightwave, Inc. (ELI),exceeded from the former Soviet Union, to come said President John Warta. "As a com-
the $8,000 goal for Healing the Heal- to Portland for open heart surgery. Her pany, we're committed to providing
ing, which will use the proceeds to bring medical services have been donated by customers with the technology they
children from foreign countries to the Dr. Albert Starr and his surgical team, need to build for the future," he said.
United States for medical care. and Emmanuel Hospital, Anastasiya "If we can save children's lives by
Healing the Children is a national returned home to her family on July 19. giving them access to medical technol-
organization founded in Spokane in The two corporate sponsors, both ogy, we're building for everyone's fu-
1979 by Cris Embclton, an adoptive young companies in the telecommuni- ture."
mother whose Korean-born child died cations industry, said they see the tour- I CON and ELI plan to expand the
due to complications ofanearinfection. nament as a way of giving something effort next year to include a tournament
Embelton later learned the problem back to the community. in Portland as well as Seattle. Healing
could have been prevented, if the $5 in "Our company has been in Seattle the Children is a federally registered,
necessary medication had been avail- only two=and-a-half years, yet the com- non-profit organization and contribu-
able and administered at the propertime munity has been very good to us; we've tions are tax-deductible. Healing the
in Korea. Embelton channeled hergnef experienced tremendous growth in this Children can be reached at 14021 127th
into an effort to identify children around short period," said ICON President and Ave. SE, Snohomish, Wash. 98290.
the world who cannot get the medical
care they need, usually because the
medical technology is not available or
their families cannot afford it. Healing
the Children brings children to the U.S.,
arranges medical care to correct their
ailment and then returns them to their
homes.
Nearly all medical care for the chil-
dren is donated by area doctors, nurses,
hospitals and foster families. The orga-
nizationnowhas 13 chapters nationally
and has helped more than 3,000 chil-
drnn. '
The Western Washington/Oregon
chapter.of Ilc~ding the Children was
founded in 1085, and has served ap-
x
C
rx
c_.
Logy ave. Fiberoptic technolo& orbs service interruptions
YContinued from Page Rt When the small company sought raising our residential rates to offset chus says he hopes the 1993 Legisla• or soon will be offering fiberoptic•
Iiberoplic line. When that happens, the Oregon PUC's approval to serve our costs." lure will change that law and the loop competition to Electric Light.
message traffic automatically re- customers between Portland area For that. Electric Lightwave's commission will propose thechange. wave.
verses itself around the still•cot• telephone exchanges, and also from Kamsky has a retort: US West, taking a more circmn- Last year, US West Introduced
netted side of the loop. point to point within the exchanges. "There's been no evidence:' he spect view than GTE, did not oppose what It calls Self-Healing Alternate
"The companies that need us." GTE Northwest formally objected to say's. "that competition like ours Electric Lightwave's request for ex- Route Protection, wills Oregon
says Kamsky, "are companies that both ideas. GTE serves areas west, raises residential rates in the past change-to-exchange service. Health Sciences University as its
rely critically on telephone reliabili- southwest and east or Portland not seven years that these competitive although It also protested the small inaugural customer.
ty." lie mentions hospitals and covered by US West or smaller services have been operating" in the company's bid to serve customers GTE earlier this month also
banks as examples. "independent" companies. United Stales. within a single US West exchange. announced it would build a fiberop -
Kamsky says that his company's "ELI Is an unnecessary, overlay. However, Oregon's Public Utility "There are a bunch of things hap- tic loop between its Hillsboro. Bea•
facilities also can offer customers a ing duplicative network," says GTE Commission did not agree with pening," says C.A. "Chuck" Lenard, verton. Tigard. Tualatin and Staf•
telephone backup to service they spokesman Bob Wayt. "All services GTE's contention. The panel found US West's assistant vice president in ford exchanges - the latter also
currently receive from either US ELI proposes to offer are already that Electric Lightwave's plan to Oregon, "that tell you competition Is serving Wilsonville-by Dec. 31.
West or GTE. available." connect customers between ex• going to be here. Our Intent Is not to "The fiber ring we're putting in
Electric Lightwave thus far has Wayt also raises a specter that changes would be competition in the stop it from happening." now," Wayt says, "is one piece of
constructed two underground loops because Electric Lightwave may public interest. But armorlhalwe'regoingtobe using to
in downtown Portland totaling to grab some of the more lucrative But it also found that a state law But. he adds, state policymakers go to war."
miles and is working on a third loop commercial segment or the Portland barred it from granting Electric still must consider whether to
to businesses east of the Willamette area's telephone business, GTE's Lightwave authority to connect two change the regulators' traditional
River. residential customers might end up customers situated within one way of averagingalelephonernmpa•
Another loop will swing west to paying higher phone bills. exchange if the telephone company ny s costs across all customers -
Beaverton by May and include That is because, he points out, already serving the customers and letting business customers sub-
another hub then. commercial telephone users now', objected to the idea. Thus, the PUC sidize residential service - to deter-
By next year, Electric Lightwave pay higher rates than residential turned Electric Lightwave down on mine rates the company may
spurs will'extend south as far as customers. that request. charge.
Wilsonville and east to Gresham. "If we lose a substantial piece of I believe we would have gone Meanwhile, neither US West nor
The lines will be strung mostly oil our business revenue," Wayt says, farther," says Ron Eachus, PUC GTE Is waiting to find out what any
4 _ existing utility poles outside the "we arc forced to at least consider chairman, "except for the law." Ea• decision on change will be. They are
Portland core, where utilities must
be buried.
Electric Llghlwave's arrival has
not gone unnoticed by the two big-
ger telephone companies.
i
C
i.
i
Seattle, WA
(King Co.)
The Seattle Times
(Cir. D. 233,995)
Lisa Bowersock, a spokeswom-
an for US West, said her company
~~;n clears never argued it should have mo-
nopoly status and did not view the
niling as a setback.
the way for "Competition inevitable," she
said. US West only argues that
rules should be equally applied
local phone among competitors offering simi-
lar service, she said.
Electric Lightwave said the
I n,pVtltlon ruling "opened the door for m-
c® 1 e creased telecommunications com-
petition in Washington."
by b. Casey Corr "The judge's decision is a sig-
Times business reporter nificant step in clarifying the law
in the state of Washington, said
In what is viewed as a signifi- Earl Kam,s'We're ky of Electric
hone Lightwave. clearly very
cant step towards local telephone pleased, but more importantly, it's
riot Court competition, a Judge- King County yesterday Supe de-- our customers who will ultimately
benefit...."
clared that the state Utilities and Dan Waggoner, an attorney
Transportation Commission can- who represented Digital Direct,
not give monopoly status to local said local competition will eventu-
plione companies. ally drive down the cost of phone
According to parties involved in service, initially to larger business-
the case, Jude Robert Lasnik said es, which will be first to use
the UTC can t give sudh status to alternative phone services, but lat-
companies like US West and GTE er to others. That was the pattern
Northwest.
The ruling, which is expected to followed when Ion&-distance ser-
be appealed, was seen as a major vice became competitive, he said.
victory for companies seeking to Ninety percent of phone service
enter the profitable market serving in Washington is provided by US
businesses in Seattle and other West and GTE, with the rest by
major cities. small providers, he said.
Plaintiffs included two compan- Lasnik predicted the matter will
ies seeking to offer local service - eventually be taken to the state
Electric Lt htwave Inc. of Vancou- Supreme Court.
ver, Was . an Digital Direct, the
Seattle-based affiliate of Tele-
Communicatiors Inc., the Denver-
based cable-TV giant.
l ~t
i
Yp
qh0-1mr
Busmess,,fflournai
Serving Greater Portland
WEEK OFMARC112G-29, 1992 PUBLISHED EVERY WEEK VOL?
PAGE 2 WEEK OF MARCH 23, 1992 THE BUSINESS JOURNAL
MC lets Electric Lightwave compete with phone giants
By ANITA MARKS than those offered by local utilities for service to a densely populated location phone numbers with downtown Portland
Telecommunications Upstart Electric comparable services. such as the Portland metro area, utilities prefixes are grouped into what is known
Lightwave inc. has posted an important But telephone utilities say the move will are required by regulatory authorities to as the Downtown Exchange. Inner South-
tegulatory victory in its efforts to compete result in unregulated competitors like charge customers in sparsely populated east, on the other hand, is served by the
with telephone utilities to provide local Electric Lightwave skimming the cream rural areas the same rates. Belmont Exchange. Electric Lightwave
dial tone service in the Portland metro off profitable commercial ratepayers who "Statewide average pricing is a boon to has only been authorized to offer service
area, now subsidize artificially low rates in oth- a lot of our customers, but it puts us at a between-not within-such exchanges.
Electric I.ightvvave, based in Vancou- er areas. As part of their monopoly agree- pricing disadvantage in urban areas," Such connections would allow for either
ver, Wnslt., has been granted authority by menl, telephone utilities are required to Haynes said. "Alternative providers oper- voice or data transmission.
the Utegon Public Utility Commission to use those profitable commercial accounts ate in those dense, urban areas because The PUC order will allow Electric Light-
provide what is known as dedicated inter- to provide cheap, universal service for res. they are profitable." wave to offer its customers dedicated line
exchange services. Such services could al- Idential customers. The PUC decision specifies that any service. Stich service allows communiea-
low no entity like a bank's central office to Myron Katz, one of the three PUC com. connections Electric Lightwave makes tion between predetermined users. It does
link its various branches via Electric Ligh- ntissioners who drafted the decision, lik. must cross exchange boundaries. Ex- not allow customers to dial out on those
twave's fiber optic tclcphone network- ened the change to when long distance ser. changes, in telephone parlance, are groups lines to anyone else.
without going through local telephone vices were first opened to competitive of telephone prefixes. For example, tele- Please turn to page 13
utilities such as U S West or GTE North- providers several years ago. "There is a
west. Placing a call ur anyone outside that certain inevilability to competition in tele-
dedicated hookup would still require go- phone service," Katz said,
ing through file Iocnl telephone utility-a Warta said the ruling is just a first step Electric Lightwave could cut into market
process known ns switching, to offering telephone services on a eom-
Electric i c will be able to pro- g basis. n, but good about the long dominated by big phone companies
vide such xctvicc%iccs t to customers in Clacks- Oregon n decision, but it could have gone b
mas. Multnomah and Washington coup- further," Warta said. continued from page2 phone utilities serving the area-in this
ties. Predictably, representatives of tele- Electric Lightwave may provide only case, U S West and GTE-to provide the
While limited in scope, the March 9 phone utilities are less enthusiastic. point-to-point and point-to-multipoint same services as Electric Lightwave. At
PUC decision manages to crack open (lie The Oregon Independent Telephone services. Point-to-point provides a direct the hearing, Electric Lightwave must be
traditional monopoly on local telephone Association, U S West and GTE all filed link between two locations in different ex- able to demonstrate that those companies
service. For the first time, telephone cus- protests when the matter went before the changes. Point-to-multipoint services al. are unwilling or unable to pt6vide ade-
tottters will have a source other than their PUC for consideration. Neither U S West law for a single office to be linked to nu- quate service.
local telephone utility to provide such set- nor GTE, the two utilities within Electric merous branch offices, but the branch
vice. Supporters consider file decision a Lightwave's service reach, has decided yet offices are not linked to each other. Only
boon to free nmtkct competition in tele- whether to challenge the final decision. locations served by different exchanges
cononunications. "We're reviewing the order for possible can be linked.
John Warta, president and chief execu. challenges," 'said Tont Borgrord, a The commission would also like to
live officer of Glecitic Lightwave, said he spokesman for GTE. grant authority for dedicated service in-
has begun negotiating with a "number of The reason small companies such as side of an exchange area. But state stat-
latge conuucrcial customers" to provide Electric Lightwave can compete for cus. utes forbid the commission to grant au-
the service now that it has been officially tomers is that they do not have the service thority for such service-known as
authorized, though no deals have been responsibilities inherent to utilities, said intraexchangeservice-without first meet-
reached. Ile said there is "no question" Jim Haynes, a spokesman for U S West. ing certain conditions. "We were con-
Elecfric Lightwave's rates will be lower While it is generally cheaper to provide strained by the construction of the law,"
said Katz.
The commission must first hold a hear-
ing to determine the willingness of tele-
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'I'DUSINESS Fit i-13
APRIL 12, 1992
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❑ The new kid on the block,;:
Electric iightwave Inc., gains} r Y t
ground as an optional phone ~ t
service in the Northwest a~4H,, r
By RICHARD COLEY rtijA t,,.r"•' ` s
Or TheOreeonlenlure Beneath the sheets. of downtown Port- j b as }
land and Seattle. light flashes along help
like Blase Spero at somewhere between 15
million and 811 million data bits per
second.
This. is a telephone compauy'a fiberoptic TROT WA1'RTNEN
message traffic - A computer screen shows a grid of downtown Portland streets on the loft and a slice of Seattle's central busirma dsbk:t on the right.
with a difference. The camputsr eontmis msatoge opsradons for ENatrfo Ugidwave Inc., a Small eompaty that Is epreadlog Its fitasmptle network
The bundled glass
;.~'.j;,•1- strands, often snak- , 10 customers for such service, which will
ing through aban• beatnnextmonth.
dosed gas mains and fY The Wash por-
other underground S Washington rl ma and Trans
ration Commission earlier made a similar
Epping, belong not to .sk• f " i~ ruling. clearing the way for Electric Light,
Portland's principal wave to string its fiberoptlc lines from
telephone provider, Seattle north and east to places like
y US Wesq but to a Everett. Bellevue, Bothell and Redmond. i
recent commualcs• Seattle also 1s served by another comps.,
ttons arrival called f' ny similar to Electric Llghtwave, Digital
WARTA rr
Electric Llghtwave n; f p Direct of Seattle Inc., Dart of llenverbasrtd
Inc. i - cable television giant Tele•Communlca-
The underground lilies completely bons Inc. So far, though, Electric Light,
bypass US West's, and soon will do the i s F wave, one of 35 such "alternative access
same whh GTE Northwest's in Portland's to 3,
peroviders" in the nation, Is the only one In
auorporoted four years s6v and head, Portland area
incorporated thn
Electric Lighlwave's co-founder, presi-
quartered in Vance er. Wash., Electric - dantandchlefexecutive o6lcet,,John War.
Llghty: ave - which quickly became ta, says he spotted the alternative-service
known by its acronym, EIA -began serv-
ing " . y market niche in Portland and Seattle luck
some large business clients In the - in 1988.
e Northweat's Two biggest clUes last year. k "I thought it was appropriate," Warta
In the meantime, the 52cmployee com• says, "that somebody compete with US
pany has received a financing pledge of up r c West and GTE."
to Eio million by Citizens Utilities Co., In Warta had been a senior vice president
exchange for majorityownenhlp. at American Network Inc., a Vancouver-
The Connecticut based corporate parent based long-distance telephone company,
provides water, gas. electricity slid eellu• Tae OrppBNxrLLY ad1tN50ta before it sold out In 1988 to ITT Coto., after
ter telephone utility service in other parts RH Hoffer (sect), Oregon sales manager for Electric Ughtweve loo" and Dayne, Reghen, failing to stay profitable.
of the United States. tmhrJclan for the IMO tolslthoae tmmpmry, examine a Ilboroptfo multiplexer, a piece of Having watched long-distance carriers'
As of lest week. Electric Lightwave's magage•handgng equipment In Eieable lighlwela's downtown Portland hub. The hub rates plunge In the hotly contested nation-
customer list numbered 30, more of them oomm tf Colorless to toyg,~w c,--gam by~g local caul®n wide market, Warta says. he concluded the
inEh same thing could happen with the local
In Seattle. Exxceptcept to t say that It 1t Is le not yet profitable,
t loao business.
the company doss not disclose other boa!- as a "competitive service provider" within Commission, saying that it wanted to telepEiectrlc Lightweve also offero suberrlb•
ness details - such as customers' Identl• state boundaries. They do not regulate its encourage greater competition in local ers something else: a greatly reduced
ties or even its rotes - to keep competitive rates. telephone traffic, decided that Electric . chance for service interruptions.
secrete from the much-larger US West and Recent ratings of both commissions. L[ghtwava could connect customers torsi, Its Oberoptlc lines run in loops, with
GTE, though, have increased Electric Light. d lo two seWtrote telephone axclnanSes - each end ofa loop connected to a date han-
But Earl ILamsky, an Electric Lfghtwave wave's business prospects and officers say ;E d end 11eMerton, for example, or dling juretlon, or hub, In each city,
vice president, says that Ira rates are future growth looks promising. Gresham and Lake Oswego. Such loops, Warta explains, provide
'Yfl0tly"i.than Us West's or GTE's at Until last month in Oregon, Electric That mesas that two or more oOlcesofe connection backups for customers In can
lire moment. Llghtwave could offer only a direct link company located in different telephone ex• an errant digging machine severs e
Because of Electric Llghtwave's non- between customers and Interstate or over. chsngescanbedirectly connected viaElca
tnetla aly status in its service territories, am long-distance carriers, bypssdng the trlc Llghtweve fiberoptles, bypassing the Please sum to
Oregon and Washington utility commis• local service provider. other telephone companies. L16HTWAV&PS:ueR2
alone decide only whether It can operate But In March, the Oregon Public Utility So far, Electric Ltghtweve has signed up
4c Suit au re omen
Pounded Cat. 4. 1B50. Esub)lsaed as a da y Feb. 4,1081. Do Sunday Dap ft estftW ~ vdii1 r oom. a47~ ~ Go.
Dec. 4, 1881. Published day and Suhd3y ty the otagoMan PubASNng Go,
F 1320 S.W. Brozdmy. Pdrthnd, Oregon 97201
FREDA. STICKEL, Prevelert and Put "t
WILLIAM A. HILIIARD. Edaor PATRICK F. STICKEL, General Muapet
PETER THDWSON, Mum9ing Eowr ROBERT M. WMAUER, fif.Wial Page Editor
PATRICK L. MARLTON. Circulation Dindof
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Li ® Fioeroptac technology curbs service interruptions
®Continued from Page R1 When the small company sought raising our residential rates to offset thus says he hopes the 1993 Legisla- or soon will be offering fiberoptic-
fiberopttc line. When that happens, the Oregon PUC's approval to serve our costs." ture will change that law and the loop competition to Electric Light-
message traffic automatically re. customers between Portland area For that, Electric Lightwave's commission will propose the change. wave.
verses itself around the still-con. telephone exchanges, and also from Kamsky has a retort: US West, taking a more circpm• Last year, US West Introduced
netted side of the loop. point to point within the exchanges, "There's been no evidence," he spect view than GTE, did not oppose what It calls Self-Healing Alternate
"The companies that need us;' GTE Northwest formally objected to says, "that competition like ours Electric Lightwave's request for ex- Route Protection, with Oregon
says Kamsky, "are companies that both ideas. GTE serves areas west, raises residential rates in the past change-to-exchange service, Health Sciences University as its
rely critically on telephone reltabili• southwest and east of Portland not seven years that these competitive although it also protested the small inaugural customer.
ty." He mentions hospitals and covered by US West or smaller services have been operating" in the company's bid to serve customers GTE earlier this month also.
banks as examples. '.'independent" companies. United States. within a single US West exchange. announced it would build a ilberop.
Kamsky says that his company's "ELI is an unnecessary, overlay- However, Oregon's Public Utility "There are a bunch of things hap. tic loop between its Hillsboro, Bea•
facilities also can offer customers a ing duplicative network;" says GTE Commission did not agree with pening," says C.A. "Chuck" Lenard, verton, Tigard, Tualatin and Staf-
telephone backup to service they spokesman Bob Wayt. "All services GTE's contention. The panel found US West's assistant vice president in ford exchanges -the latter also
currently receive from either US ELI proposes to offer are already that Electric Lightwave's plan to Oregon, "that tell you competition is serving Wilsonville-by Dec. 31.
West or GTE. available." connect customers between ex- going to be here. Our intent is not to "The fiber ring we're putting in
Electric Lightwave thus far has Wayt also raises a specter that changes would be competition in the stop it from happening." now," Wayt says, "is one piece of
constructed two underground loops because Electric Lightwave may public interest. armor that we're going to be using to
In downtown Portland totaling 10 grab some of the more lucrative But it also found that a state law But, he adds, state pollcymakers go to war."
miles and is working on a third loop commercial segment of the Portland barred It from granting Electric still must consider whether to
to businesses east of the Willamette area's telephone business, GTE's Lightwave authority to connect two change the regulators' traditional
River. residential customers might end up customers situated within one way ofaveraging a telephone compa-
Another loop will swing west to Paying higher phone bills. exchange if the telephone company ny's costs across all customers -
Beaverton by May and include That Is because, he points out, already serving the customers and letting business customers sub.
another hub there. commercial telephone users now objected to the idea. Thus, the PUC sidize residential service - to deter-
By next year, Electric Lightwave pay higher rates than residential turned Electric Lightwave down on mine rates the company may
spurs will extend south as far as customers. that request, charge.
Wilsonville and east to Gresham.. "If we lose a substantial piece of "I believe we would have gone Meanwhile, neither US West nor
The lines will be strung mostly on our business revenue," Wayt says, farther." says Ron Eachus, PUC GTE is waiting to find out what any
existing utility poles outside the "we are forced to at least consider chairman, "except for the law." Ea- decision on change will be. They are
Portland core, where utilities must
be buried.
Electric Lightwave's arrival has
not gone unnoticed by the two big.
ger telephone companies.
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Presentation
10
Ci t ~f Ti ar°d
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By
Electric Lightwave, Inc.
Nov-ember 17, 1992
a ~ ~ . s ■ ■ e ■ Electric Lighfwave, Inc.
Confidential
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• ~i 9 telecomn'
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Confidential
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SynchronJOUS
and management
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standard for nets t signal
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Mississippi
~t~~Ve, Inc.
® Electric L19 Confidential
MEMORANDUM
OEM
maws C
CITY OF TIGARD, OREGON
I
TO: Mayor and City C nc
FROM: Patrick Reilly
DATE: November 10, 1992
SUBJECT: RV Parking
History
In July, 1991, storage of recreational vehicles, trailers, campers I
and boats in front yards became an issue due to a number of
complaints. After studying the issue and meeting with all NPO's,
NPO 5 initiated a request to delete the prohibition of front yard
storage from the development code. A summary of the results of the
NPO meetings is provided in the attached July 17, 1991 memo from
Liz Newton.
In December, 1991 the Planning Commission recommended unanimously
against repeal of code section 18.96.060 A. which prohibits the
storage of such vehicles and units in the required front yard
setback. In February, 1992, the City Council held a public hearing
on the proposed repeal and also voted unanimously against repealing
the code section. Minutes of the December 2, 1991 Planning
Commission meeting and the February 11, 1992 City Council meeting
are also attached.
I
In late June, 1992, Councilor John Schwartz and Dick Bewersdorff
met with Rick Perkins and a local representative of the Good Sam
Club (a national RV owners club) as a result of a request to the
Council. After that meeting, staff prepared a summary of what
other cities across the country do to regulate RV's and other
similar units. This was reviewed by the Council on October 20,
1992 who requested an additional workshop on the issues involved.
Other Cities
Most of the material provided for the October 20 meeting came from
excerpts of ordinances from around the country. Additional
information was requested from local jurisdictions. This included:
Hillsboro - Police controls RV parking on the streets,
blocking sidewalks and clear vision areas; There are no other
regulations controlling RV's.
Gresham - Only in the 5,000 and 7,000 square foot low density
zones are recreational vehicles mentioned. They must be
parked on a hard surface such as compacted gravel, concrete,
I
asphalt, or similar durable surface and are only restricted
from parking in the clear vision triangle of corner lots.
Wilsonville - Has no regulations regarding RV's
Lake Oswego - Not allowed in public right of way, nothing
addresses aesthetics; There are no regulations addressing RV's
on private property.
Washington County - Has no limits on storage of such units in
residential zones unless the number exceeds five which is a
code violation.
Options
There are a number of possible ways to proceed. These include:
1. Do not repeal ordinance section 18.96.060 A. This would
mean that RV's, etc. would still be restricted from being
parked in the required front yard setback.
2. Repeal the ordinance section that restricts parking in
the required front yard setback. Clear vision standards
(18.102.050) can still regulate the parking of RV's, etc.
that would block the vision of vehicles backing out of
adjacent driveways. Parking on a public street, living
or sleeping in an RV or the connection to water or sewer
services would be regulated by other code provisions.
3. Modify the existing ordinance for clarity, health and
safety but allow RV's, etc. t6 be parked in the front
yard. Possible code language:
Boats, trailers, campers, camper bodies, house trailers,
recreational vehicles or commercial vehicles in excess of
3/4 ton capacity are allowed to be stored in a required
front, side or rear yard setback in a residential zone
but may not:
a. be parked in a visual clearance area;
b. be used for sleeping purposes for over 72 consecutive
hours;
c. be connected to water or sewer services;
4. Modify the existing ordinance for clarity, health and
safety as in # 3 above with the added limitations:
Boats, trailers, campers .
d. Only one such vehicle or unit may be parked in the
front yard. Said vehicle or unit must be parked at
C least 10 feet back from the outside edge of the
sidewalk, face of the curb if there is no sidewalk,
or from the edge of the paved surface of the street
if there is no curb or sidewalk.
e. Front yard storage or parking shall be hard surface
or graveled.
f. The vehicle or unit must have current state license
plates or registration and must be kept in mobile
condition.
5. Modify the existing ordinance to prohibit storage in the
required front yard setback unless there are physical
characteristics of the lot, landscaping or the lack of
reasonable access the side or rear yard which would
preclude such storage. Possible code language:
Boats, trailers, campers, camper bodies, house trailers,
recreational vehicles, or commercial vehicles in excess
of 3/4 ton capacity shall not be stored in a required
front yard in a residential zone unless due to physical
characteristics of the lot, building or landscaping,
space is not available in the side yard or there is not
reasonable access to either the side or rear yard. A lot
shall be deemed to have reasonable access to the side or
rear yard if terrain permits and access can be had
without substantial damage to existing trees or
landscaping. A corner lot shall normally be deemed to
AW, have reasonable access to the rear yard. A fence is not
deemed to prevent reasonable access.
Recommendation
There appears to be no community consensus on the need for
aesthetic control relative to RV's etc. Public safety can be
controlled by existing visual clearance regulations and
subdivisions that wish to control parking can do so through
protective covenants and restrictions. It is, therefore,
recommended that option #2, to repeal the code section altogether,
be chosen.
C
MEN=
MEMORANDUM
\ CITY OF TIGARD, OREGON
TO: Dick Bewersdorff, Senior Planner ~
FROM: Liz Newton, Community Relations Coordinator !A C ~
3
DATE: July 17, 1991
SUBJECT: NPO Comments on RV Storage Ordinance
On Wednesday, July 10, 1991, 1 facilitated a discussion with NPO's 1/2, 4 & 8 to
discuss the NPO 5 proposal regarding RV storage.
f By a vote of 13 - 2, the members present favored some regulation of RV storage
in front yards. Six people favored leaving the ordinance as is, 5 favored some
modification to regulate front yard storage.
I
Suggestions for regulation of front.yard storage included the following:
o Prohibiting front yard storage except in cases of hardship.
o Allow front yard storage as long as vision clearance requirements
are met.
o Allow front yard storage as long as the vehicle is behind a legal
fence.
' o Allow front yard storage where there is a minimum of 50' frontage.
Most of the people in attendance felt that the 7500' minimum proposed by NPO f5
~n: I
is discriminatory. There were concerns raised about pie shaped lots that may meet
the 7500 minimum but may not have room in the front to store an RV or smaller
lots with front yards that are adequate.
There were some concerns raised regarding the city's current 'enforcement by
r complaint' policy. Some felt that if ordinances can not be actively enforced the-
should be repealed.
The biggest concern expressed was that if RV storage is permitted in the front
yard vision clearance provisions must be met.
i
I
5.3 ZONE ORDINANCE AMENDMENT ZOA 91-0005 FRONT YARD STORAGE (ALL NPO'S) A
proposal to delete section 18.96.060 (A) of the City of Tigard Community
Development Code which prohibits front yard storage in a residential
C zone. Section 18.96.060 Storage in Front Yard (A States: Boats, i
trailers, campers, camper bodies, house trailers, recreation vehicles,
or commercial vehicles in excess of 3/4 ton capacity shall not be stored
in a required-front yard in a residential zone. LOCATION: Citywide
APPLICABLE APPROVAL CRITERIA: Community Development Code Section
18.22.040 and 18.96.060.
o Senior Planner Richard Bewersdorff explained the applicant, NPO #5, was
seeking to do away with the rule prohibiting storage of items in the
front yard. He explained that this is an issue of community values
revolving around aesthetics. He.discussed the C .C & R's set up-in
developments to deal with this issue.
APPLICANT'S PRESENTATION
o Craig Hopkins, Chair of NPO #5, spoke representing the NPO. He said
that this section of the Code was complaint driven, and therefore tended
to be unevenly enforced. He described a specific incident where there
was some animosity between two neighbors, and this resulted in a
complaint being -Fil-6,1,x- He suggested removing this section from the Code
because it is too difficult to enforce.
o Discussion followed pertaining to C C & R's. President Fyre expressed
concern, as this was the only method of dealing with problems of this
nature and many communities did not have C C & R's set up.
o Commissioner Barber inquired of Mr. Hopkins whether the NPO would be in
favor of keeping this section of the Code if there were enough code
enforcement officers. Mr. Hopkins advised that the NPO would look
favorably if the Code were consistently enforced.
o There was discussion about the term "required front yard" and Senior
Planner provided definition and clarification.
OPPONENTS
o Bill Gross, 3019 SW Hampshire, spoke on behalf of NPO #7 opposing the
proposed elimination of this section of the Code, as it would tend to
have a detrimental effect on the appearance of neighborhoods. He stated
that NPO members do not believe that C C & R's are the best method to
deal with yard clutter problems. He advised that the NPO finds that the
policy is sound, whether or not the policing is difficult.- He said
there was no basis for the proposal to allow larger yards to have more
clutter.
In response to a question from Commission Saporta regarding any middle
ground which could be taken, Mr. Gross stated that the consensus of the
NPO membership was that the Code ought to be retained as is.
PLANNING COMMISSION MINUTES - DECEMBER 2, 1991 PAGE 5
REBUTTAL
o Craig Hopkins spoke again about the possibility for misuse of the Code.
He described the loss incurred by the person who was cited in the i.
particular instance which occurred in his neighborhood. He suggested
there were other avenues to deal with nuisances. ~i
PUBLIC HEARING CLOSED
o Commissioner Boone did not favor rejecting the code, because maintaining
the community is important.
o Commissioner Saporta said, while the specific incident Mr. Hopkins spoke
of was unfortunate, this. bras no..basi s for altering.the Code. He said he
would consider a modification to the requirements; but since the
applicant did'not favor this, he would vote to leave the Code as is. '
o Commissioner Moore agreed with Commissioner Saporta. He described the C
C & R's in his neighborhood, whicft he chose specifically for its
maintenance benefits. He noted that storage is a self-imposed problem.
He favored keeping the Code as is.
o Commissioner Castile commented he would-prefer to arrive at some
compromise that would allow for some amount of limited storage. Since
there was no compromise currently available, he favored keeping the Code.
o Commissioner Barber advised she did not like to see uneven enforcement.
She suggested there should be more than one code enforcement officer.
There was discussion about current resources in this area. She favored
keeping the regulation but with modifications to make it more
understandable.
0 President Fyre commented that having limited enforcement ability was not
He f
justification for eliminating the regulations. no lavored o..,..... keerni..n.~n the
3
Code as is.
Commissioner Moore moved and Commissioner Saporta seconded to make a
recommendation to City Council against repealing the City Code Section
18.96.06 (A). Motion passed unanimously by Commissioners present.
6. OTHER
o Senior Planner Bewersdorff advised that City Council had upheld the
! Planning Commission's recommendation and study concerning Note 2 on the
study areas on the Transportation Plan Map.
PLANNING COMMISSION MINUTES - DECEMBER 2, 1991 PAGE 6
NINE=
November 16, 1992
The Oregonian
Attn: Letter to the Editor
1320 SW Broadway
Portland, OR 97201
To the Editor:
I am appalled by the article written by Robin Franzen in the Metro Section of the
Oregonian on November 11, 1992 by attempting to discredit the Tigard City Council by {
inferring that the Council conducts "legally sneaky" business behind closed doors.
In a conversation with Robin prior to this article, she indicated to me that Pat Biggs, who
is on the Tigard/Tualatin School Board, brought this up. This was prior to the November 3rd
election. I personally feel that Ms. Biggs was making a political statement as she has strong
resentment against Mr. Kastin, who was running for re-election, as it was his daughter that took
on the School District in court and won regarding the First Amendment Act in which the School
District tried to suppress what the school newspaper could print. I feel this is a get-even, cheap
i
shot. Now that the election is over, I feel forced to speak out.
Another thing I mentioned to Robin and asked her to print also pointed out that in the
past the Tigard Council had complained numerous times to the Oregonian that the City did not
receive proper newspaper coverage by their reporters not attending City meetings, and the City
wanted the coverage to keep people informed of the activities of the City. Since there has been
a change in reporters assigned to the City, the coverage has improved. Normally, unless there
is a hotly contested issue before the Council, there generally is no more than a half-dozen people
nrovpnt anA thw arg- thara fnr arrww4ric is lies anti An not want to ,it hniirc .wwitfi_no for dhe;;
on the agenda to come up; these work sessions help to speed up the process. b
Over the last six years I have been on the City Council, community involvement has been
a top priority of the Council, and this year the City is looking at restructuring the City's boards
and committees to further enhance citizen information and participation. Further, in the past six
years, I have never been made aware or have had citizen complaints about any Council study
sessions not being open. If the press, which attends the work sessions, finds us in violation of
any open meeting laws, it should be brought to the publics attention. They should also report
the activities of these meetings in the papers to help us keep the 30,000 plus residents of Tigard
informed who do not attend Council meetings or work sessions. It is the press' job to report
the news, and not to create it.
Insulted,
i
John Schwartz
City Councilor
15900 SW 76th
Tigard, Oregon
620-5963
gg~gg; 1111
s .
1
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i
1
ISM
September 29, 1992
QC E ' 2 10,92 1),s4, bw$e~6
POW1,1141CAp0¢tS COMMISSION ~ COwV~ Gt L
FCC ACTION IN LOCAL TELEPHONE COMPETITION DOCKETS Cc>"A . G toe- .
MEANS NEW RESPON BI ATIES
AND NEW OPPORTUNI OR LOCAL JURISDICTIONS GG
ru r 11'\~JY
~V
Taking action in its so-called "expanded r~'t'~ Oar
interconnection" proceedings, the Federal Communications t
e-vi 61
Commission at its September meeting paved the way for
greater competition in the provision of telephone
lUgp~.
service at the local level. The Commission ordered
traditional local. telephone companies, also known as
local exchange carriers, or LECs, to allow competitive
access providers (as well as other third parties) to
interconnect their facilities with LEC central offices.
Today's action has implications for local Jurisdictions
in their dual roles as regulators, and as users of
telecommunications.
Competitive access providers CAPS now
operate in several major metropolitan areas and some
smaller'communities as well. Using fiber optic cables
strung on poles or in underground conduits, they offer
business customers in downtown business districts,
industrial areas and research parks an alternative means
of connecting local corporate locations, or linking
i
53
1200 New Hampshire Avenue, NW, Washington, DC 20036 (202) 872-6700 Telecopier. (202) 872-6720
i
2 -
those locations to the local facilities of a long
distance carrier. They market their services as
E
providing customers with a number of advantages over
the local telephone company, including:
° Better service;
Lower prices;
i
° The ability to carry large volumes of data
(and at faster rates);
{
Greater clarity; and
Backup capability (redundancy) in the event
of a natural disaster, or an outage.
To date, the majority of CAPs have been able to
provide only limited services to business customers.
A major obstacle to CAPs providing broader local service
has been their inability to interconnect their lines
cost-effectively at local telephone company central
offices and thus to provide service to locations beyond
the reach of their own fiber optic facilities.
By mandating that-LECs allow such expanded _
interconnection, the Commission has considerably widened
opportunities for entry and expansion by CAPS in local
markets.
What are the implications for local jurisdictions?
/ Larger cities may now see.multiple CAPs seeking to build
l/ fiber facilities and provide services. Smaller communities,
where market entry may not have been viable in the past,
54
i
may now begin to see CAPs exploring entry into their
markets as well,
Local jurisdictions have a natural interest in
/ use of their rights-of-way, as well 'as the revenue
V derived from such use. In many metropolitan areas, CAPS
are using the public rights-of-way and public lands to
install fiber optic communications networks. Local
jurisdictions such as Detroit, New York City, and others
now regulate OAPs as local telecommunications service
providers and impose franchise fees accordingly. It is
important that all local jurisdictions anticipate how
they will deal with CAPS entering their respective
markets and seeking to use public rights-of-way.
It is also important to note that several cable
television companies have purchased OAPs or have entered
into joint ventures and other arrangements with them to
provide local telephone service, sometimes over joint
facilities. Examples include Continental in Boston.,.
Comcast in Philadelphia, Mile Hip Cable in Denver, and
both Cox and TCI (having together purchased Teleport,
the largest of the CAPs). These developments could
affect the cable television franchising and regulatory
responsibilities of local jurisdictions, as well as the
ability of such jurisdictions to anticipate and respond
to CAPS locating in their area.
55
f
moons=
11
4 - "
As users of telecommunications services, local
governments stand to benefit from the many advantages
competition engenders. With two or more competitors
in the local market, local jurisdictions should see
improved facilities, choices in routing for reliability
purposes, new network management and service options,
and the advent of competitive pricing. Moreover, from
an economic development standpoint, better facilities
and services and lower prices in downtown business
districts are likely to attract businesses that might
otherwise choose to locate in suburban office, research
or industrial parks.
As the Federal Communications commission
continues work on its expanded interconnection
proceedings, local jurisdictions will also need to
monitor events at the state regulator la'val. ir'ew York
recently became the first state where regulators
required the local telephone company to interconnect
with CAPS for a wide range of services, and other state
regulatory commissions are considering similar action.
Such actions will likely foster, but could frustrate,
new competitive options developing in your community.
Attached are two press releases related to the
FCC's recent action. The text of the Commission's
decision will be released within the next 30 days.
56
EXECUTIVE SUMMARY
ARNOLD & PORTER REPORT
"FCC ACTION IN LOCAL TELEPHONE COMPETITION DOCKETS
MEANS NEW RESPONSIDILITIES
AND OPPORTUNITIES FOR LOCAL JURISDICTIONS'°
Attached is an executive summary of a report by Arnold & Porter, a Washington D.C. law
firm (the firm serves as NATOA's Federal Advisor) titled, "FCC Action in Local Telephone
Competition Dockets Means New Responsibilities and Opportunities for Local Jurisdictions."
We feel this information may be of interest to our member jurisdictions, and also that
potential roles may exist for MACC in this area.
Summary
In September 1992, the Federal Communications Commission (FCC) ordered local exchange
carriers (LECs), such as U.S. West and GTE, to allow competitive access providers (OAPs)
and other parties to interconnect their facilities with LEC central offices. CAPS build fiber
optic cable networks in business and downtown areas to provide corporations, business
A centers, and other users with alternative access to telecommunications services. CAPS
typically offer alternate access to long distance carriers, as well as specialized services not
/ generally available from telephone companies, such as ultra high-speed data services at a low
cost with excellent reliability and clarity. The MACGColumbia PCN provides similar
services in our area.
The FCC's decision opens the door for OAPs to expand their services in metropolitan; as
well as some suburban, areas. As a result, we expect that the Portland Metro area, and
much of the MACC franchise area, will be prime targets for CAPs. Indeed, Vancouver
based Electric Lightwave has been franchised in Porrtand for some time and has recently
expanded its efforts to obtain franchises in Washington County. It is expected that the FCC
decision will open even more opportunities for this company.
Important Implications for Local Jurisdictions
The FCC decision has many implications for local governments, as CAPs seek to expand
their entry into a greater number of markets. Since CAPS frequently use existing public-
rights-of-way, opportunities exist for local governments to franchise CAPs and to generate
revenue by imposing franchise fees. Many larger cities have developed ordinances to
franchise CAPS in anticipation of the FCC decision. It is important for local governments to
be prepared for requests from CAPS to use their rights-of-way.
Cable companies may also play an important role with CAPs. Many companies have
purchased CAPs or have developed joint ventures with them (i.e., TCI, Continental Cable,
C - etc.). As cable companies expand their use of fiber optics (i.e., Columbia's recent
construction of fiber legs in the MACC area) their relationship with CAPs will probably
51
- r.
Ex. Summary: Report on CAPs
November 18, 1992 Commission Meeting
Page 2
increase; cable may soon be developing revenue streams that are not related to residential
cable TV service. Columbia has already shared with staff, [heir plans to use fiber as a basis
for additional revenue. generation through non-traditional cable uses (i.e., ' telephone by-pass,
business data, etc.). The PCN also serves as an excellent company test bed for such
services.
In Conclusion
It is important that jurisdictions monitor the activity of CAPs and cable operators in their
area to ensure they remain ahead of the technology and franchise curves (MACC currently
monitors Columbia's activity in these areas). As the lines between cable, telcos, and CAPs
blur, MACC's role may need to change; MACC may also play an important role, especially
for our smaller jurisdictions, in sorting out the players in this new technology explosion.
ABC:lmm
attachment: Arnold & Porter Executive Summary
LECS.DOC
• .L~
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52
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