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ATTACHMENT B Central Services Information Services City of Eugene 1 O0 West 10th, Suite 450 MEMORANDUM Eugene, Oregon 97401 (541) 682-5070 www.ci.eugene.or.us Date: July 15, 2004 To: Mayor Torrey and City Council From: Pam Berrian, Franchise Manager, 682-5590 Subject: Telecom Program 2% Telecom Tax Project Update Last December, the Oregon Supreme Court ruled in favor of the last of the four challenges to Eugene's Or- dinance 20083, telecommunications rights of way managements, compensation, and taxation. The City Council levies the fee and tax on the carrier operating in Eugene via owned or leased facilities and dedicates the proceeds of the tax to new City telecommunications technology projects of community benefit. In some cases, the business uses the public way for their cables and wires and pays compensation to the City for that private commercial use of public property---those fees are allocated to the General Fund for public purposes as approved each year in a public process. If the telecommunications or cable carrier choose to itemize and pass on the fee and tax as an expense to the end user, under case law it is lawful if the charge is clearly identified. One portion of Ordinance 20083 established a 2% telecom tax on all telecom business providers using (owned or leased) telecom facilities to provide defined services. The tax supports franchise program man- agement and new City telecom related projects of community benefit. Last spring, the city council received a brief memorandum about our project planning process. Below is an update on FY 05 approved projects. Additional information about the program is at: www.ci.eugene.or.us/telecom. Process and Projects After Eugene prevailed in three of the four challenges, full implementation of Ordinance 20083 began. Arrears tax collection fi.om telecommunications and cable carriers commenced. From funds collected, re- payments were made to the General Fund which supported the program during litigation and the Risk Fund was repaid the cost of the litigation. Program staff reviewed telecommunicates related unmet needs identi- fied in existing City documents: the Capital Improvement Program, Multi-Year Financial Plan, ISD City Telecom Plan, and others. In addition,.Department Executive Managers were asked to submit proposals. A recap of FY 04 projects and a list of the majority of approved FY 05 projects are listed below. FY 04: #1 Wireless Public Safety Telecommunications/Mobile Data Computers (MDCs): Police, Fire and Emergency Medical Service (EMA) vehicles are connected to the City network via a wireless communica- tion system. The goal is to provide each patrol officer, firefighter and paramedic a "mobile office" to con- duct their duties and prepare reports via remote access and allowing users access to information from the AIRS system as well as other City and regional databases. /t2, 3, 4, Fiber Path Construction to Eugene Office Sites: High Street Connector; LRCS Community Ctrs/branch libraries); Roosevelt PW Maint Yard: Fiber installation makes possible internal connec-