CC Minutes - 06/09/99 WS - Laserfiche WebLink

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Joint Work Session Board of Commissioners/City Council June 9, 1999 Page 7 TELECOMMUNICATIONS PROJECT Telecommunications Manager Ken Beeson reviewed the vision for EWEB's Telecommunications Project - develop a publically owned and managed broadband high-speed fiber optic telecommunications system throughout Eugene to provide for utility business and operating needs, with capacity for lease by public entities and other private content/service providers. Mr. Beeson explained that Phase I ("Core System") of the project would install approximately 60 miles of 96 fiber cable linking EWEB substations, headquarters and interested agencies. He described the potential of leasing excess "dark cable," and a pilot residential project. He said the cost of the phase was estimated at $7.5 million and that bonding authority of $15 million was in place. He said installation of fiber cable and electronic components of the phase was scheduled for completion by January 2000. Mr. Beeson said Phase II ("Build Out") of the project would begin when the Core System was in place and generated sufficient revenue to cover its costs. He said the phase would create the potential for universal fiber optic service to Eugene residents. He said the cost of the phase was estimated at $70 million. Councilor Farr said he would like to be convinced that the EWEB Telecommunications Project did not constitute unfair competition with private industry providing the same services. Mr. Beeson replied that the EWEB project would provide fiber optic capacity for use by private industry and that it would likely increase services available to residents of Eugene. Councilor Kelly complimented the Board on its forward thinking regarding the Telecommunications Project. He said he believed movement of data would become as significant in the future as transmission of water and electric power. Councilor Nathanson said that she served on the National League of Cities Information and Technology Steering Committee which regularly dealt with issues related to the Telecommunications Project. She stated that the terms of the City-EWEB contract related to the project limited EWEB to development of infrastructure and did not allow it to provide content services. She said she thought of the project as similar to the highway system owned by the public but utilized by private industry.