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should this be an appropriate use of the telecom tax, the tax revenue be dedicated to a master plan <br />for undergrounding. Mike Sullivan, Division Manager for the Neighborhoods, Housing, and <br />Community Development Division of the Planning and Development Department, responded that <br />there was communication fiber on the poles that were scheduled to be moved and utilities <br />undergrounded. He stressed that the primary function of the poles was electric and not <br />telecommunications. He related the staff position that it made sense to share between the two <br />sources, but it was possible to use only one source or the other. <br /> <br />Councilor Bettman commented that she would be more comfortable with the project if a master <br />plan had been developed and a revenue source identified for undergrounding utilities. She felt <br />that the money was being diverted from the General Fund for something that was a non-essential <br />service. She said she would oppose the motion. She stressed that the project was slated to cost <br />$276,000 and would pay to underground utilities for only five city blocks. <br /> <br />City Manager Taylor stated that the cost to the City was "as low as it will ever be." He stressed <br />that there was equal participation from the Eugene Water & Electric Board (EWEB) and Lane <br />Transit District (LTD) and that this represented a one-time opportunity to accomplish this project, <br />which was consistent with the guidelines both for the district and for the City that directed the <br />City to attempt to do so wherever possible. <br /> <br />Councilor Pap~ asked staff to justify the use of urban renewal funds. City Manager Taylor <br />responded that this was an opportunity to underground utilities in a manner that was consistent <br />with the urban renewal area and consistent with participation of other agencies. He noted that the <br />original motion had been to utilize urban renewal funds alone. Councilor Pap~ questioned why <br />the funding was not solely being taken from the telecom tax fund. City Manager Taylor felt that <br />taking the entire $92,000 from the telecom tax fund would dilute the fund so that it could not be <br />invested in cost-saving activities that were a higher priority than the project under consideration. <br /> <br />Councilor Nathanson stated that a reason not to take all of the money out of the <br />telecommunications fund was that there was an intended purpose for the fund, that of providing <br />for the delivery oftelecommunica- tions services in Eugene. She felt there was an argument to be <br />made that use of the fund to underground utilities that deliver telecommunications services was <br />appropriate, but that, as the utilities in question were also related to the delivery of electricity, it <br />was appropriate to charge some of the cost elsewhere in order to stay true to the purpose for the <br />fund. Regarding the master plan for undergrounding, she stated that the memorandum of <br />understanding (MOU) between EWEB and the City was to take advantage of opportunities to <br />underground utilities. She added that the council had supported the MOU and that the opening of <br />this portion of Franklin Boulevard represented such an opportunity. <br /> <br />Councilor Taylor reiterated that council had agreed to underground utilities when the opportunity <br />presented itself. She thought it appropriate to utilize urban renewal funds, adding that the funds <br />in question could only be used in this area. She stated that this was the right time and the right <br />money and opined that the funding should come entirely from the urban renewal fund. <br /> <br />MINUTES--Eugene City Council August 11, 2003 Page 11 <br /> Regular Meeting <br /> <br /> <br />