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Council Communication

Title:	Consideration of a Resolution supporting the Establishment of a Process by the Public Utility Commission to Determine a Regional Extended Area Service Rate for Southern Oregon.
Dept:	Administration
Date:	August 6, 2002
Submitted By:	Greg Scoles, City Administrator
Reviewed By: ........................	Paul Nolte, City Attorney

Synopsis:	This resolution requests that the Public Utility Commission (PUC) establish a process to evaluate the possibility of developing an Extended Area Service (EAS) for Southern Oregon. Approval of the resolution does not obligate the city to supporting the rate established for the EAS once it has been determined.
Recommendation:	Staff recommends the council approve the attached resolution.
Fiscal Impact:	Without knowing what the ultimate EAS rate would be it is difficult to determine the extent of the potential fiscal impact of this action.
Background:	By having a regional EAS the local long distance charges now seen on phone bills for calling Jacksonville, Central Point and others, would be eliminated. Currently Ashland's EAS allows callers in Ashland to call Medford without paying a local long distance charge, but a monthly EAS charge is added to each bill ($2.02) which is not optional by the customer. It is anticipated that if a regional EAS were developed then this flat rate would be increased. It should be noted that while there is no cap on the flat rate that could be established by the PUC the customer will always have the option of paying a measured EAS rate that would be capped at $.08 per minute. Approval of the EAS rate is by the PUC and the council can participate in the hearing process, but has no other approval authority. RVCOG has developed this model resolution for consideration by the cities, which would benefit from a change in the current EAS structure.

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RESOLUTION NO. ________

A RESOLUTION SUPPORTING THE ESTABLISHMENT OF A PROCESS BY THE PUBLIC UTILITY COMMISSION TO DETERMINE A REGIONAL EXTENDED AREA SERVICE RATE FOR SOUTHERN OREGON.

RECITALS:

A. Jackson and Josephine Counties comprise a close-knit community linked by a common geography, a long and shared history, close economic ties, strong political relationships, and good transportation linkages.

B. The proximity of a variety of urban or rural lifestyles, and the resulting diversity of employment and recreational opportunities, requires an efficient and equitable communications system.

C. The existence of an antiquated structure of local long distance telephone service frustrates the economic, political, and cultural interaction between and within the two counties.

D. Present Public Utility Commission criteria for determining communities of interest are not well suited to evaluating the states more rural areas such as Jackson and Josephine counties.

E. A free and unimpeded exchange of issues of common interest is vital to the future of the people and communities of Southern Oregon.

F. The people of Jackson and Josephine counties deserve to receive adequate telecommunication services at fair and reasonable rates.

THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, RESOLVES:

SECTION 1. That the City of Ashland hereby requests the Public Utility Commission to establish a process to determine a regional Extended Area Service (EAS) rate for Southern Oregon. It is understood that a determination of a regional EAS rate can only proceed in this fashion, and that support for the process at this time does not commit the City of Ashland to accepting the regional EAS rate when it is finally determined.

SECTION 2. This resolution takes effect upon signing by the Mayor.

This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090 duly PASSED and ADOPTED this _____ day of _________________, 2002.

Barbara Christensen, City Recorder

SIGNED and APPROVED this _____ day of _____________________, 2002.

Alan W. DeBoer, Mayor

Reviewed as to form:
Paul Nolte, City Attorney

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