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<br />Council Chamber <br />Eugene, Oregon <br />April 10, 1972 <br /> <br />Regular meeting of the Common Council of the city of Eugene, Oregon was called to order by <br />Council President Fred Mohr in the absence of Mayor Anderson, at 7:30 p.m. on April 10, 1972 in <br />the CouhcilCharnber with the following other councilmen present: Mrs. Beal ; Messrs .' McDonald, <br />Teague, Williams, Hershner, and Bradshaw. Mrs. Campbell was absent. <br /> <br />. <br /> <br />I - PUBLIC HEARINGS <br />A. Vacation alley oetween 7th and 8th Avenues from Olive Street 'east 160 feet (ERA/Jacobs) <br />Brooks Dickerman, manager for Pacific Northwest Bell, asked the Council to stipulate in <br />the vacation of this alley that the telephone company will be reirnbursedfor the cost of <br />moving its cables. He said the cost should be passed on to the private business to which <br />the property will be sold through the Eugene Renewal Agency. Mr. Dickerman contends the <br />vacation is for the benefit of that private business rather than the general public. He <br />cited other instances wherein the telephone company has moved its facilities: at its own <br />expense, saying that in those instances it was for public need. Mr. Dickerman also men- <br />tioned vacation of an alley adjacent to the Register-Guard building where cost of moving <br />phone company cables was paid by the Guard. <br /> <br />Joe Richards, attorney for the Eugene Renewal Agency, said the matter involves a legal <br />question. He referred to opinion issued by the City Attorney's office stating that ERA <br />is clearly acting as a governmental; agency and in accordance with an agreement with the <br />, City for expansion of existing retail operations in the renewal area. He said there is no <br />way to pass the cost on to private business since the property is already sold. Hesaid <br />the Renewal Agency has no funds for this cost and that grant funds will not pay for cost <br />of moving privately-owned utilities. He asked that the alley be vacated with no reim- <br />bursement to the telephone company. <br /> <br />.' <br /> <br />Mr. Dickerman said Pacific Northwest Bell is not asking that the Renewal Agency or the <br />City pay the cost of moving the cable; they are suggesting the work be paid for directly <br />by the business benefitting from the vacation. <br /> <br />Manager commented that the ~'~egister-Guard agreed to pay the cost of moving facilities in <br />vacation of the"plley adjacent to its property because they petitioned the vacation of <br />that alley for building expansion. He said franchise agreements do provide that privately- <br />owned public utilities will move at their own cost any facilities in order to accom- <br />modate public projects. One of the obligations of privately-owned facilities for use of <br />public right-of-way is to move its facilities when requested, and there are no franchise <br />requirements for appeal of costs. Manager said the question is whether in fact this is of <br />benefit to the public or to a private business. He said that while retention of an easement <br />would serve the purpose for public utilities, because of encroacnrrt~nt ft would impose <br />limitations on use of the land which might not be suitable for the project. <br /> <br />- <br />City Attorney said his office had correspondence from Pacific Northwest Bell's general <br />attorney, also from Mr. Richards and the Renewal Agency office, after which Les Swanson, <br />assistant city attorney, gave the opinion that the transaction involving the alley vaca- . <br />tion is a governmental function in which the Renewal Agency is engaged, and not proprietary. : '.=- <br />He said that opin~~n stands. I <br /> <br />Councilman Williams questioned the constitutionality with regard to the vacation of the <br />alley and the lack of compensation for movement of utilities. Cpnsiderable discussion <br />followed, the City Attorny explaining that in the matter under discussion there is no con- <br />stitutional issue. He explained the provisions of a franchise constitute prior agreement. <br /> <br />Mr. Mohr commented that by casting a "no" vote on motion for second reading of the vacat- <br />ing ordinance, the item could be held over giving an opportunity to explore the issues <br />put forth. Manager said that procedure is available although it would delay progress on <br />the renewal project. He reviewed again the conditions of the franchise agreement between <br />the City and Pacific Northwest Bell whereby for a certain percentage of their gross revenues <br />, they have the right to use the pUblic right-of-way, but if the public good requires in- <br />stallations to be moved, they will do so at'their expense. <br /> <br />Mr. Dickerman said the franchise agreement does not delineate that they will or will not be <br />compensated for moving cables. <br /> <br />Councilman McDonald asked the name of the private business to whom the property will revert <br />and was told it will go to the Renewal Agency and be sold to Maurie Jacobs. <br /> <br />. <br /> <br />David Hunt, executive director of the Eugene Renewal Agency, explained that vacation of the <br />alley was designated in the original renewal plan, and that Mr. Jacobs owns the abutting <br />property and plans to expand his furniture business. Mr. Hunt said the Agency would pay <br />the cost of moving the utilities but Federal regulations do not allow payment for reloca- <br />tion of privately-owned utilities unless State or local law permits. Cost cannot be <br />added to the cost of the land since that would add to the cost of the renewal project. He <br /> <br />d'/ <br /> <br />4/1 n /7? _ 1 <br />