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<br /> .~ <br /> M E M 0 RAN 0 U M ) <br /> e <br /> November 25, 1985 <br /> TO: Mayor and City Council <br /> FROM: ASD/Finance <br /> SUBJECT; FRANCHISE AGREEMENT WITH AT&T <br /> Request <br /> Currently, the City does not have a franchise agreement with AT&T, and so we <br /> are in the process of negotiating such an agreement. We are asking you to act <br /> on the proposed AT&T Franchi se Agreement. AT&T has revi ewed the proposed <br /> agreement and has indicated they will accept the terms of the agreement. <br /> Background <br /> With the divestiture of PNB and AT&T, the City continued to have a franchise <br /> agreement with PNB, but not with AT&T. Recently, AT&T has sought approval to <br /> use the public-way to place fiber-optic cable from 10th Avenue and Oak Street <br /> to to Blanton Heights. This use of the public-way gives the City the <br /> opportunity to negotiate a franchise agreement with AT&T. <br /> The authority to create franchise agreements is in the City Charter in Section . <br /> 43. The charter allows us to exact a pencentage of the gross income from the <br /> franchisee. Because it is difficult to determine the gross income generated <br /> by AT&T withi n the Cfty limits, we are proposing that the amount of the <br /> franchise agreement be $1.00 a linear foot for use of the public-way. This <br /> amount was arrived at by comparing the revenue recieved from current franchise <br /> holders to the mil es of line or pipe those franchise holders have in the <br /> public-way. <br /> The City of Eugene will be the first City in Oregon and one of the first cities <br /> in the country to negotiate a franchise agreement with AT&T. We feel that our <br /> proposed agreement is "moderate" both in terms of the franichse holder <br /> requirements and the annual fee charged for the use of the public-way. The <br /> agreement is written so that the City has the opportunity to renegotiate the <br /> agreement within three years if we so desire. <br /> Estimated Revenue <br /> We assume that AT&T will be have about five (5) miles of fiber-optic cable <br /> withi n the ci ty. At a cost of $1.00 per linear foot, that would generate <br /> $26,400 in revenue for the City on an annual basis. <br /> Recommended Action <br /> We propose that the following actions be taken so that the City of Eugene can <br /> enter into a franchise agreement with AT&T. - <br /> 1. November 13 - 21:-- City presents proposed franchise agreement to <br /> AT&T for their comment and negotiate any differences. <br /> 2. November 2_5. - -City Council directs the staff to place a public <br /> notfce'"fn the Regi ster Guard once a week for three consecutive week.s <br />