HomeMy WebLinkAboutCC Resolution 9365 (League of CA Cities Tenants)RESOLUTION NO. 9365
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ADOPTING THE TENETS OF THE LEAGUE OF
CALIFORNIA CITIES TELECOMMUNICATIONS POLICY
WHEREAS, the City of San Rafael recognizes the importance of the emerging
National Information Infrastructure, also referred to as the Information
Superhighway; and
WHEREAS, the City believes that development of this new infrastructure raises
important social, economic and public service policy questions; and
WHEREAS, the City believes that development of this infrastructure will involve the
use of the public right-of-way, resulting in traffic disruption, noise and
air pollution, and reduced street pavement life; and
WHEREAS, the City believes that local governments should have a voice in the
development of this infrastructure; and
WHEREAS, the City believes that local governments need to protect the public
rights -of way, receive compensation for the use of the street by private
companies and receive a fair allocation of services, resources and
bandwidth from companies developing this new infrastructure; and
WHEREAS, the League of California Cities has adopted a Telecommunications Policy,
attached as Exhibit 1; and
WHEREAS, the City fully supports and endorses the efforts of the League of
California Cities to preserve and protect the rights of cities and to
address their concerns with respect to this new infrastructure;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael as
follows:
1. The City of San Rafael supports and endorses the League of California Cities
Telecommunications Policy.
2. The City of San Rafael agrees with the tenets set forth in the League of
California Cities Telecommunications Policy and adopts the following tenets as
policy for the City of San Rafael:
a. Access to advanced telecommunications services must be available to
all residents, as well as the commercial, education and government
sectors.
b. There should be an open, competitive marketplace for
telecommunications.
C. Local governments must have a role in the regulatory structure to
preserve their local authority over matters of local impact.
d. Local governments must be compensated for use of public rights-of-way
and negative impact on local infrastructure.
e. Local governments should help safeguard residents against market
inequities in the advanced telecommunications marketplace by
maximizing their ability to utilize and facilitate access to
telecommunications resources, including the option of becoming
providers.
URIGIrN'AL A36
RESOLUTION NO.
Page Two
f. Local governments should be allocated adequate spectrum capacity for
public safety, emergency services, public works and other public use.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Cleric is directed to
transmit this resolution to the National League of Cities, the League of California
Cities, to state and federal elected officials representing the City of San Rafael, and
to Mayors and City Councils within Marin County.
I, JEANNE M. LEONCINI, Cleric of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular
meeting of the City Council of said City held on Monday, the 5th day of June, 1995,
by the following vote to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Phillips, Zappetini &
Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Rf . w
J NNE M. LEOkINI, City Cleric
EXHIBIT 1
3ti, won
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MEMIk
MEMO
League of
California Cities
Teleconu-nunications
12
Policy
As adopted April, 1994
Executive Summary
The 1990s will witness the rapid development and deployment of advanced
telecommunications services. The telecommunications industry is developing digital
technology to enhance its traditional delivery system --copper wire for voice, coaxial cable
for video --to support a host of new services. 'These industries are also developing high
speed/high capacity networks, commonly refetred to as broadband netivorks, that are
capable of integrating voice, data, video services along a single wire. The development
of advanced telecommunications infrastructure, often referred to as the injornration
superhighway, promises to increase competition and to stimulate economic development
as new products and services are introduced into the tel econtmuiii cations marketplace.
California cities can look forward to using these innovative technologies to enhance
public services and streamline government operations.
While the information superhighway presents considerable opportunities, it also carries
an element of uncertainty and risk, and has significant fiscal and policy implications for
cities. For example, under current law, cable operators are subject to municipal
franchise agreements, which include local control over rates and customer service
standards, as well as franchise fees. Telephone companies, on the other hand, are
exempt from these franchise provisions. As advanced telecommunications technology
makes telephone service less discernable from cable service, cities' franchising authority
may be in jeopardy.
The telecommunications industry is already leveraging to take advantage of the changes
in the marketplace. Regional telephone companies are merging with cable TV
companies in order to circumvent the existing "cross -ownership" ban which prohibits
telephone companies from providing video services, and cable operators from providing
telephone service. In California, Pacific Bell has filed suit to challenge this ban as it
deploys a $16 billion plan to wire residential areas in the state with broadband capacity.
Furthermore, the Clinton Administration has stated its intent to remove regulatory
"barriers" at all levels of government in order to streamline the development of advanced
telecommunications services. As these events unfold, the regulatory powers cities enjoy
are becoming increasingly vulnerable, and cities must take steps to ensure that their role
in protecting the interests of their communities is not sacrificed in the interest of
developing the information superhighway.
Principles that Guide League 'Telecommunications Policy
The League of California Cities has developed the following principles that reflect the
interests of cities in the development of telecommunications policy:
Cities must have certain regulatory powers over
telecommunications service providers in order to protect city
infrastructure, ensure open access to telecommunications
League of California Cities
13
Telecommunications Policy
services, protect the privacy of consumers of these services,
and correct the market inequities that will occur when the
advanced telecommunications services market becomes open
- and competitive.
Cities should receive compensation for use of the public
right-of-way from all users of the public right-of-way,
including telecommunications service providers. Cities should
also receive compensation foi the short- and long -terra
negative impacts of installing fiber-optic and other
telecommunications wire in city streets and in the public
right-of-way. Securing these revenues will be especially
important if municipal franchises for cable service are
eliminated due to a softening of the existing regulatory and
franchise powers.
Cities recognize that broadband capacity has considerable
value, in that it can be used both to support city operations
and to streamline delivery of a variety of public services.
Cities should receive an appropriate allocation of all
advanced telecommunications resources, such as bandwidth
on broadband networks, fiber-optic wiring, and spectrum on
the 800 Mhz radio frequency, that operate within their sphere
of influence.
Summary of the Telecommunications Policy Statements
Universal Access
Legislation enacted to facilitate the development of the National Information
Infrastructure, and the California Information Infrastructure, should ensure that access to
advanced telecommunications services is available to all citizens, as well as the
commercial, education, and government sectors.
Kole of City in Regulatory Structure
The League supports efforts to establish an open, competitive marketplace -for
telecommunications services, including the lifting of the cross -ownership ban and a level
playing field for telecommunications service providers. An integral component of this
open marketplace is the symmetrical application of regulations to all telecommunications
service providers, including wireless service providers. 'I7ie League also supports the
preservation of local authority over matters of local impact.
League of California Cities Z Telecom inunicat ions Policy
14
Compensation for Use of Public Rights -of -Way and Negative Impact on Local
Infrastructure
The use of public streets and rights-of-way via the installation of pipes, conduits and
wires to engage in private, for profit enterprise demands a fair payment for the use of
the public's asset. 'Ilse League supports a symmetrical application of right-of-way fees
for all users of the public right-of-way, including telecommurnications service providers.
Cities should also receive compensation for the short- and long-term negative impacts of
installing fiber-optic and other telecommunications wire in city streets and other
locations in the public right-of-way.
Cities as Users/Providers of 'i,eiecommunications Services
The League recognizes that advanced telecommunications resources have considerable
value. Cities should help safeguard citizens against market inequities in the advanced
telecommunications marketplace by maximizing their ability to utilize and facilitate
access to telecommunications resources.
Adequate Spectrum Capacity for Public Safety and Other Public Use
Cities should be allocated adequate spectrum on the 800 Mhz radio frequency for public
safety, emergency services, public works, and other public use.
FCC Certificatinn of Local Franchising Authority
The League encourages cities to certify their local cable -IV franchising authority to
protect the interests of their citizens. Federal and state law should secure the rights of
local franchise authorities to regulate cable service rates if they have received
certification from the FCC.
Privacy
The League supports the protection of privacy and security for consumers of advanced
telecommunications services.
Lcaeue of California Cilics 3 Telecommunications Policy
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League of California Cities
Teleco>< muuications Policy
Table of Contents
Pagc
Foreword..........................................................ii
Background........................................................ 1
Telecommunications Policy at the Federal Level ....................... 1
Telecommunications Policy at the State Level ......................... 2
Telecommunications Policy at the Local Level ......................... 2
"A Telecommunications Framework for Cities" ......................... 3
Policy Statements ......................... I .......................... 4
Universal Access ............................................... 4
Role of the City in Regulatory Structure ............................. 5
Compensation for Use of Public Rights -of -Way
and Negative Impact on Local Infrastructure .......................... 5
Cities as Users/Providers of Telecommunications Services ................ G
Adequate Spectrum Capacity for Public Safety and Other Public Use ........ 7
FCC Certification of Local Franchising Authority ....................... 7
Privacy..................................r .................... 8
League of California Cities i Telecommunications Policy
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Foreword
Rarely a day goes by that one does not hear some reference to the so called "information
superhighway". The rapid development of advanced telecommunications resources, such
as fiber optic networks that will carry voice, video and data signals, carries the promise
of new economic prosperity and new tools for streamlijdng the delivery of both public
and private services. While California cities can look forward to enjoying these benefits
in the near future, we must also be mindful of the impact of the emergence of this
spawning industry both on cities, and on the citizens they serve. To this end, the League
of California Cities has developed a comprehensive telecommunications policy that will
help cities define their roles as user, provider, regulator, and consumer advocate on the
information superhighway.
The policies outlined in this report are a product of the knowledge, experience and
values of several dozen city officials who make up the League's Telecommunications
Task Force. A primary objective of the Telecommunications Task Force has been to
increase city officials' awareness of the relevance of telecommunications policy in the
business of local goverrunent. Tile 'Task Force has spent the past five years addressing
telecommunications issues as they relate to cities. Over the years, their work has
included educational forums, pilot projects for telecommuting and facilities sharing, and
a comprehensive report entitled A Telecommunications Framework for Cities which was
developed by the Institute for Local Self Govermnent and adopted by resolution at the
League Annual Conference in 1991.
The policy statements contained in this report are the latest work product in a continuing
effort to develop meaningful resources for cities to use in dealing with the complex and
ever-changing arena of advanced telecommunications. Cities should use these policies to
guide their discussions and negotiations with telecommunications providers who wish to
do business in their city.
While these policies cover a wide range of tel econununications issues, the League is
mindful that this is a "living" document that will change and evolve continuously to
reflect the evolution of the advanced telecommunications industry. The League invites
cities to share ideas and concerns regarding it's telecommunications policy. Input from
the telecommunications industry, our partners in the development of a California
Information Infrastructure, is also welcome. Most important, the League urges cities to
participate in the work of the Telecomtnunications Task Force so that we can expand
both the scope and the depth of these policies.
League of California Cities
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Telecommunications Policy
Background
'Telecommunications Policy at the Federal Level
The National Information. Infraitnicture - The Clinton Administration, under the direction
of Vice President Al Gore, is promoting the development of the National Information
Infrastructure (NII). According to its advocates, the NII will be all integrated network
system that will "ultimately connect the nation's businesses, residences, schools, health
care facilities, and other public information and social service providers through a
broadband, interactive, telecommunications and irtformation network." Citing the need
for a new policy framework to streamline the development of the NII, Vice President
Gore outlined a legislative agenda that will create a "flexible, adaptable approach" to the
telecommunications industry. The Adnririistration's initiatives reflect the following
objectives:
Increase competition and private investment in
communications by removing unnecessary regulations and
artificial barriers to participation by private firms in all
communications markets. For example, the Administration
proposes to permit cable companies and others to provide
local telephone service;
Secure open access to the network for consumers and service
providers. For example, the legislation requires all local
telephone companies, upon reasonable request, to
interconnect their networks with the facilities of competing
providers on nondiscriminatory terms;
Preserve and advance universal service for all Americans
across all sectors of society. Because full and productive
participation in American society will increasingly depend on
access to information, the Administration is committed to
promoting the availability of information resources to all
people at affordable prices;
Develop a new regulatory framework that is flexible and fair
by allowing the FCC to reduce regulation for
telecommunications carriers that lack market power.
1992 Cable Act - In addition to establishing benchmark rate regulations for cable TV
service, the 1992 Cable Act strengthened local governments' role in regulating cable
television by outlining local franchise authority over cable service. The Act allows local
governments to certify franchising authority with the FCC and, based on approval of
certification, to regulate basic cable service rates in their area. Local franchise
authorities may also establish and enforce customer service standards and constriction
schedules.
League of California Cities
Telecommunications Policy
Telecommunications Policy at the State Level
Califonria PUC Report - A November, 1993 report from the California Public Utilities
Commission entitled "Enhancing California's Competitive Strength: A Strategy for
Telecommunications Infrastructure," makes the following findings:
Public networks should be linked in an integrated,
interoperable infrastructure
Universal access is a key component of the infrastructure that
includes affordable applications, low cost customer
equipment, education and training programs. Universal
service should be transformed from a subsidized monopolistic
model to a competitive, multi -provider model.
Competitive forces should drive the infrastructure and
ininimize the potential for publicly -funded infrastructure.
All telecommunications markets should be open arid
regulatory process should be streamlined. 1 -lie report
specifies a three-year time frame in which to eliminate cross -
domain barriers. The report also places the bulk of
regulatory authority with the PUC.
The state should create "open competition zones" to assess
the impact of open competition in the telecommunications
market.
Telecommunications Policy at the Local Level
City Efforts to Comply with (lie Cable Act - As stated previously, the 1992 Cable Act
outlines specific regulatory roles for local governments. A key issue facing local
governments is that cities must obtain certification from the FCC in order to secure
regulatory authority of basic cable service rates. For many cities, the rate review analysis
required as part of lire certification process has been complex and difficult to complete.
To date, approximately half of the cities in California that could certify have done so.
While federal and state officials continue to urge cities to certify, the recent statellielits
regarding removing regulatory barriers to a competitive telecommunications market raise
an important question: Does it make sense for cities to obtain FCC certification if the
regulatory powers the certification process seeks to establish are going to be eliminated
or significantly reduced to open the telecommunications marketplace?
League of California Cities 2 Telecommunications Policy
i9
"A Telecommunications Framework for Cities"
This report, presented by the Telecommunications Task Force in 1991, outlines
telecommunications issues and trends, and provides options available to cities acting as
telecommunications user, consumer and policy -maker. A Telecommunications Frante►vork
for Cities prepared by the Institute for Local Self Government makes the following
observations:
Effective use of telecommunications can increase efficiency
and provide new solutions to city problems.
• Cities' current investment in telecommunications is significant
and will grow, but lack of coordination among city
departments results in inefficient use of these resources and a
lack of planning for future needs.
Municipal governments are dependent now on transportation
and communications to conduct the public business while the
community depends on the same combination to access vital
services and information. This reliance of communications
will increase as city governments and citizens alike are forced
to find alternatives to automobile travel.
Many cities are unprepared to utilize the full potential of
available telecommunications technologies effectively:
Current uses are concentrated in a few departments. There
are few central resources for planning and implementing new
applications.
Consumer decisions are often motivated by mistake
avoidance rather than meeting the needs created by new
applications. Development programs are inhibited by the
lack of knowledge about total telecommunications costs,
invested capital, and physical plant.
Local tele CUlnnlniriCation5 policies beyond the cable
television franchise are rare, and cable television policy in
many cities fails to address community needs.
Federal and state legislatures and regulatory agencies are
changing the rules governing telecommunications markets to
create competition and spur innovation. These changes will
affect pricing and impact long-standing public policy, such as
universal phone service. Cities lack a coherent,
comprehensive position on the role of cities in a competitive
telecommunications marketplace.
I ramie of Calif unix Cilies 3 Telecommunications Policy
01
Policy Statements
Universal Access
One of the most important policy issues surrounding tel econununications is that of
universal access to telecommunications services. Policy -makers at all levels of
government have expressed concern over the potential for creating a system of
information "haves and have-nots." However, while terms such as open access and
interoperability are used frequently in discussions of the National Information
Infrastructure, a working definition of universal access has not been adopted at any level
of government. The League's definition of universal access is reflected in its policy
statement:
Policy Statement - Legislation enacted to facilitate the development of the National
htfarnation Infrastructure, and the California Infonnation Infrastructure, should
ensure that access to advanced telecommunications services is available to all
citizens, as well as the commercial, education, and goventment sectors. Elements of
universal access should include:
• Open access to consumers as well as service providers
• Connectivity to business and govenuttent, as well as residential
areas
• Unifontt and indiscriminate wirirng of all locations in a business
or residential area
• Affordability of services, equipment and training
• Flexibility of service options and delivery mechanisms to reflect
the needs of individual communities
• Competitive choice in consumer service options
• Fees or charges to find universal service provision
• Ability to send and receive imtfonnation at tran.vnission rates
that are adequate for broadband applications'
• Ability to communicate with any individual on a nettivork
(addressable communications)
IThe League recommends a minimum bandwidth of ten (10) megabytes per second, bi-directionally.
League of California Cities 4 Telecommunications Policy
71
Role of the City in Regulatory Structure
The impetus for removing regulatory barriers to a competitive telecommunications
marketplace is strong. Recent federal and state policy reports suggest that regulatory
authority over service delivery, rates, and customer service standards should be
consolidated either at the federal or state level. While there are sound arguments for
streamlining regulations, the fact remains that telecommunications services will be
delivered locally and the nature and scope of these services will be different from
community to community. The deployment of advanced telecommunications networks
will also have considerable impact on the economic development and vitality of
communities, as wt,ll as an impact on local infrastructure. Hence, the League's policy on
streamlining regulation seeks to preserve cities' ability to secure telecommunications
services that reflect the needs of their communities and to preserve and enhance city
infrastructure.
Policy Statement - The League supports effor7s to establish an operr, competitive
marketplace for telecommunications services, including the lifting of the cross-
olvnership bait and a level playing field for telecommunications service providers. All
integral component of this open markelplace is the syn met cal application of
regulations to all telecommunicatior-s service providers, including wireless service
providers. The League also supparls [lie preservation of local authority over matters
of local impact, including:
• Colistritction standards , perrrnittirrg, scheduling, and cost
recovery
• Customer service standards
• Rate regulation for cities that choose to regulate
• Negative impact on local irufrasfnucture and cost recovery
• City use of teleconrn►nnicatiorns.resources (local PL•G access, I -
Nets)
• Method of installation (pedestals, overhead, under -ground)
Compensation for Use of Public Rights -of -Way and Negative Impact on Local
Infrastructure
Ilie traditional right of franchising includes the power of a city to choose who may enter
the market by granting or withholding a franchise. Franchising powers contain implicit
ZIncludes the provisions of California PUC Rule 20/x, (Undergrounding Program) which would require
telecommunicalions facilities to participate by placing underground all overhead facilities within any undcrground
district legislated by a city.
1 —, _r r',lirnrni'i F;1;rc Telrrrn»municalinn, Pollcv
22
legal barriers to market entry, which some argue are inconsistent with the policy o[ an
open and competitive market. One mechanism that has been proposed to remove the
legal harriers to telecommunications markets, while preserving the regulatory powers
cities need to protect the interests of their communities, is to replace the franchise fee
element of the 1992 Cable Act with a tight -of -way compensation statute. In addition to
compensa lion for use of right -of -Way, cities should receive compensation for the short -
and long -tern] ttegal.ive impacts of installing fiber-optic and other telecommunications
wire, such as street degradation and the increased maintenance costs that occur when
streets are opened.
Policy Statement - Vie use of public streets and tights -of -way via the in.ctallatinn (if
pipes, conduits and mires to engage in private, for profit enterprise rlentmrds a fair
paynrerrt for. Ute 11.5c of the public's ay.vet. Use League supports a synrnre(rical
application of right-of-tvay fees for all users of the public right -of -)spa}; including
releeonurhurrientiotrs service l)roviders. Cities should nlso receive compensation for lite
Awl- and long -tent negative impacts of installing fiber-olVic and other
relecommunications wire in city streets and other locations in the public right-of-way.
Cities as Users/Providers of 'Telecommunications Services
One element of many cable franchise agreements is the development of institutional
networks (I -NETS) that give tttunicipaiities cable 'I V facilities and other
telecommunications resources. Advanced telecommuniealions technology will make
many of these I -NET systems obsolete. However, cities have t11e opportunity to acquire
n Pc►rtion of a hroadb:md network (cornrnonly referred to as band►vid(h), its well as other
advanced telecommunications resources through franchise or other agreements.
Acquiring bandwidth on a broadband network would allow municipalities to develop n
wide range of telecommunications -based applications both for internal use, and for
providing services to their communities. City-hiovided telecommunications services
could also help mitigate market inequities in the telecommunications market. For
example, if the costs of installing and operaling broadband networks prices the access to
these networks beyond the incomes of certain citizen groups, cities could create public
access systems, such as information kiosks or library terminals to facilitate access.
Policy Stntement - The Lengme recognizes that a<Iva,rred telecomnutnication-v
resour-ces have coiuklenable value. Cities should help safeguard citizens agairr_u
market inequities in the advanced telecommunications markerpface by ma.timizing
their ability to utilize and facilirare access to releco mnurlications resources. Strategies
to accomplish these objectives hiclude:
• Negotiate for an appropriate allocation of all advancer(
telecommunications resornrr.es, including bandx.idth ort
broadband networks, fiber-optic iviring, and .sped imi on the
800 Mlrz radio frequenryp (fiat operate within the city's sphere of
influence
League of California Cities G Telecommunications Policy
?3
• Install and operate city -owned broadband nenvorks, acrd/or
fanrl partnerships to install and operate regional broadband
netivorIcs.
• Explore and develop public service applications that employ
advanced telecommunications capabilities, so that these
resources can be put to use as soon as they are available.
• Secure public access to advanced telecommunications nenvorl-s
by way of eristirrg PLG access requirements.
• Identify and inventory rvmsed acrd/or abandoned conduit that
exists in the public right-of-way, in easements, or on property
owned by the city, and develop strategies to leverage the use of
these resources.
Adequate Spectrum Capacity for Public Safely and Other Public Use
During the conversion of city police, fire, emergency and public works radio services to
the 800 Mliz spectrum, not enough spectrum was allocated to cities. As a result, in
metropolitan areas, there has been a deterioration in transmission quality and the ability
for police, fire, and public works departments to broadcast. With the coming of
enhanced wireless, cellular, and personal communications services (PCN/PCS), cities
may lose again if adequate spectrum for these services is riot reserved for city uses.
Policy Statement - Cities should be allocated adequate spectrum on the 800 tutu
radio frequency for public safety, emergency services, public works, and other public
use.
FCC Certification of Local Franchising Authority
As stated previously, the 1992 Cable Act outlines the requirements and procedures for
cities to request certification as local franchising authority in order to regulate basic
cable TV service rates. In the interest of protecting the interests of their citizens, it is
desirable for cities to continue to regulate cable service rates in their communities.
However, for many cities, the rate review analysis required as part of the certification
process has been complex and difficult to complete. Cities must also decide -if it makes
sense to obtain FCC certification if their regulatory powers are going to be preempted by
new federal or state laws.
Policy Statement - The League encourages cities to cerrify their local cable TV
franchising authority to protect the interests of their citizens. Federal and state law
should secure the rights of local franchise authorities to regulate cable service rates if
they have received certification from the FCC.
League or California Cities 7 'telecommunications Policy
Privacy
A fundamental issue surroundbig the development of the National Information
infrastructure (NIT) is the need to assure the privacy and security of its users. While
cities piny not play a primary role in enforcing lases that govern privacy, they can be
active participants in the policy debate.
Policy Stntement - The League supports the following principles (fiat govern the
issues of privacy and security for com niers of advanced teleconimuntcation.r services:
• Protection and reliable identifrcatio►t of the "digital signature"
Ilial identifies the sender and recipient of electronic trartsactiotu
• Transaction security for financial and other personal
trap sacdom
• Cartrol over the sale of subscriber intoe nations
• Freedom of choice In the rise of encilption technology to erasure
privacy and security
League of California Chics
$ [ciccommunicalions Policy
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