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