Item C: Telecommunications Tax Fund

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ATTACHMENT A THE TELECOMMUNICATIONS ACT OF 1996 - WHAT IT MEANT TO EUGENE, OREGON Historical Development of Ordinance 20083 (1997) From Threats to Opportunities Upon the passage of the Federal Telecommunications Act of 1996 (the Act), the largest overhaul of the nation’s telecommunication laws since 1934, the Eugene City council began study of the National League of Cities Local Officials Guide: The Telecommunications Act of 1996, What it Means to Local Governments. The Guide was prepared to ensure, to the best extent possible, that local government re- sponses to the Act could withstand legal scrutiny. A copy has been placed in the council office. Eugene’s need for a comprehensive telecommunications plan was driven by two key events. First was the passage of the Act which established a host of new rules and criteria for local government’s manage- ment of the public rights-of-way (ROW), established provisions barring local governments from being ‘barriers to entry”, cited level playing field standards, and much more in a comprehensive but somewhat inadequately defined bill. Second, the sweeping changes in the telecommunications industry meant Eugene had to prepare itself for new providers entering our market and increased placement of telecom- munications towers and other infrastructure in the public ROW and other areas of the community. It was clear that Eugene’s Municipal Code needed immediate updating. The city council formed a Telecommunications Committee consisting of three city councilors and two citizens (the Chair of the Planning Commission and the Chair of the Budget Committee). The Committee conducted a year-long series of public meetings, hearings, and outreach to telecommunications and cable providers. Study, Public Involvement, and Council Action 1996-97 Process ?Forums were conducted for both the public and the telecommunications industry to provide input to the plan. Providers from both the wire line and wireless industry participated in the forums. ? Consultants reported on the telecommunications needs of the community and legal ramifications of the Act. Their reports emphasized the importance of the use of telecommunications technology by the public sector to improve all of its services to the community, especially public safety. The committee also discussed the ramifications of being on the wrong side of the digital divide and the value of telecommunications investments in our community and within the City organization. These discussions led to the recommendation for a 2% dedicated business privilege tax (called a registration fee in the ordinance). ?A Wireless Siting Study was completed which led to an update of the City's land use regulations. An innovative tiered approach uses co-location incentives for providers, enabling the wireless in- dustry to serve the Eugene region while minimizing the impact of towers. ?A national expert was employed to assist the committee in the development of telecommunica- tions vision and policies. These policies became the foundation for the City’s ordinances.