CC Minutes - 06/25/01 Work Session

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The council was also joined for the item by EWEB Commissioner Peter Bartel, EWEB General Manger Randy Berggren, Project Manager Debra Wright, and consultant Dale Smith. Mr. Bartel reported that the draft Telecommunications Plan for MetroNet Service was the culmination of 14 months of work that followed the voters' approval of a charter resolution authorizing EWEB to provide telecommunications capability and service. EWEB had been gathering data, doing market surveys, and developing a business pro forma for a universal build-out. He commended the staff assisting the effort. Mr. Bartel said the report in The Register-Guard that EWEB would not pursue telecommunications was inaccurate; however, EWEB had decided against a universal build- out in the first three years, and would instead stage that effort by constructing MetroNet. He said that EWEB commissioners believed the plan was consistent with adopted development objectives: 1) that the system be or provide for an economically viable system, 2) that it support EWEB's core energy and water business; 3) that it is publicly owned and managed; 4) that it provide universal service; 5) that it will have advanced telecommunications capability; 6) that it will have capacity to provide for multiple providers; 7) that it will have capacity for utility applications; and 8) that it will have minimal construction impacts. Mr. Bartel called attention to the joint resolution of March 2, 2000, and suggested it be modified to allow EWEB to fund MetroNet's construction and implementation. Ms. Wright provided the council with a presentation regarding the status ofEWEB's MetroNet Project. Mr. Berggren reported that, since the scheduling of the build-out would be influenced by the direct service providers, the schedule for build-out was not firm at this time. He asked the council to direct City staff to prepare a joint resolution for its consideration, and for that resolution to allow EWEB to use the funding for which it had already received authorization and to give it the ability to negotiate short-term financing without a community vote, with the option of using the electric utility for credit. He anticipated the most that would be at risk beyond the authorized funding was $1.2 million. Ms. Wright anticipated that under the short-term debt scenario, the revenue generated by the MetroNet system would begin to support the universal build-out in year six. Ms. Wright reviewed next steps in the process, which included a public hearing followed by action by the board. She hoped the council would receive a draft of the joint resolution in July, with detailed design work to begin in August. Mayor Torrey solicited council comments and questions. Mr. Meisner said that the EWEB recommendation for no public vote bypassed Section 4 of the March 2000 joint resolution, which stated that EWEB shall not incur future indebtedness for MINUTES--Eugene City Council June 25, 2001 Page 8 Work Session