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HomeMy WebLinkAboutStaff Report 271-06City of Palo Alto City Manager’s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER 6 DEPARTMENT: ADMINISTRATIVE SERVICES JUNE 19, 2006 CMR: 271:06 APPROVAL OF RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ON BEHALF OF THE JOINT POWERS AND ITSELF FOR TELECOMMUNICATIONS SERVICES AND VITAL CITY INTERESTS RECOMMENDATION Staff recommends that Council adopt the attached resolution for Telecommunications Services and Vital City Interests on behalf of the City of Palo Alto and the Joint Powers. The resolution is for Congress and the California legislature to consider in their debate over a new telecommunications regulatory framework. BACKGROUND Technological advances have made it possible for telecommunications providers to expand the range of services they can offer consumers. New technology and applications promise to bring telecommunications services that will revolutionize our lives and the way we do business. These changes will be good for consumers, expanding their choices. It also means greater competition among telecommunications providers, which usually leads to lower prices and better customer service. However, as this revolution in communications technology unfolds, traditional methods of categorizing telecommunications services for regulatory and taxing purposes are outdated. As a resuJt, tremendous pressure has been placed on government to modify state and federal laws affecting the telecommunications industry. In the near furore, Congress is expected to beg~ debates over a major rewrite of the 1996 Telecommunications Act. In California, reform efforts now focus on the creation of a new statewide franchise for cable and video service providers. The introduction of a new regulatory framework for telecommunications services could have a profound impact on Palo Alto and the other Joint Powers communities. (The City of Palo Alto is a party to a Joint Exercise of Powers Agreement by and between the Cities of Palo Alto, East Palo Alto and Menlo Park, the Town of Atherton, and the Counties of San Mateo and Santa Clara, collectively, "Joint Powers" or "JPA". Palo Alto was appointed to administer the cable franchise process on behalf of the Joint Powers.) Among other things, it could affect the Joint Powers ability to maintain its current or an equivalent telecommunications revenue stream, control local rights-of- CMR:271:06 Page 1 of 3 way, maintain public access stations and programming, and ensure that all telecommunications services are available to all residents. As this debate unfolds, it is vital for Palo Alto, on behalf of the Joint Powers, to provide legislators with information regarding its needs and interests. DISCUSSION Traditional franchising at the local level has served the valuable purpose of tailoring service to unique local conditions. The continued involvement of local government in any new federal or state regulatory scheme is crucial. Therefore, staff recommends that Council adopt a telecommunications resolution for Congress and the California legislature to consider that preserves local involvement and oversight and includes the following: Revenue Protection. Revenues from telecommunications providers support public services such as public safety and transportation and are used to mitigate impacts on local rights-of- way. Any furore changes should be revenue-neutral for local governments. Local Rights-of-Way Control. Local governments have the authority to regulate telecommunications companies that use local rights-of-way to construct their infrastructure, including the appearance and aesthetics of equipment placed within it. Numerous safety issues could arise if the rights-of way is not properly managed and overcrowded. To protect the public’s investment, the control of public rights-of-way should remain local. Access. All residents should have access to all available telecommunications services. New entrants should be subject to build-out schedules that establish a reasonable timeframe for the deployTnent of service to the entire community, regardless of income levels. Telecommunications providers should not be allowed to pick and choose the neighborhoods they will serve. This type of redlining widens the digital divide that separates low income residents and smaller businesses from the telecommunications services they need to function effectively in society today. Community Access Programming and Support. Public, education and govelnment (PEG) channels are important assets in a community that permit the televising of community events, government deliberations and educational oppommities. These stations provide a window through which all community members can share ideas and participate in critical decision- making. The number of public-access stations and funding for PEG facilities should be maintained. Institutional or Fiber Network (I-Net). The Joint Powers are in the process of establishing an institutional network (I-NET) that will connect 70 schools, libraries, and government facilities, delivering data, video and voice service. Any new regulatory scheme should require the maintenance of the current I-NET service and permit local communities to adopt I-NETs in the furore. Public Safety Services. Video providers should provide a local emergency notification service, allowing a local agency to notify citizens of critical information during emergencies. Customer Service Protection. At the present time, local governments have the ability to CMR:271:06 Page 2 of 3 adopt and enforce customer standards for cable television service. Local governments should continue to have the ability to establish such standards and enforce penalties for failure to meet standards. RESOURCE IMPACT The franchise agreement with Comcast provides Palo Alto with various forms of compensation for use of the public right-of-way. In 2005, Palo Alto received franchise fees in the amount of $503,027 and funding for PEG access services in the amount of $304,295. These revenue streams could be at risk under a new regulatory framework. Regulatory changes could also impact the City’ s ability to collect telephone Utility Users Tax (UUT) and 9-1-1 access fees in the future. POLICY IMPLICATIONS This recommendation does not represent a change to existing policies. APPROVED BY"~--,--/-"7~¯ CD. ~~~or ,Y-EAA~S~/str ativ~..s~ CITY MANAGER APPROVAL:~--’"~~i. ~¢~_ ~ ~/EMIILY HARRISON Assistant City Manager ATTACHMENTS Attachment A: Resolution CMR:271:06 Page 3 of 3 * * * NOT ATTA~ A YET APPROVED*** RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ON BEHALF OF THE JOINT POWERS AND ITSELF FOR TELECOMMUNICATIONS SERVICES AND VITAL CITY INTERESTS WHEREAS,the technological advances in telecommunications services are outpacing the current state and federal regulatory framework for those services; and WHEREAS, the new telecommunications services will be vital to the businesses, households and the public safety of local communities; and WHEREAS, Congress and the California legislature are beginning a serious debate on a new regulatory framework for telecommunications services in the 2006 legislative session; and WHEREAS, financial resources that cities receive under the current regulatory framework for telecommunications services are vital to support local public services such as public safety and transportation; and WHEREAS, the taxpayers have a financial interest to protect in the public right-of-way; and WHEREAS, fair, level playing field competition among telecommunications providers is important to delivering telecommunications services at the best price for our citizens, the consumers; and WHEREAS, telecommunications industry services to a local community such as Public Education and Government (PEG) channels, institutional networks services to local schools and E9!! and 911 public safety services to local citizens are important services to maintain; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: 060612 cs 0072721 ***NOT YET APPROVED*** SECTION i. The Counci! on behalf of the Joint Powers and itself hereby adopts the following principles for Congress and the California legislature to consider in their debates over a new telecommunications regulatory framework. A.REVENUE PROTECTIONS ¯Protect the authority of local governments to collect revenues from telecommunications providers and ensure that any future changes are revenue neutral for local governments. ¯Regulatory fees and/or taxes should apply equitably to al! telecommunications service providers. ¯A guarantee that al! existing and any new fees/taxes remain with local governments to support local public services and mitigate impacts on !ocal rights-of-way. ¯Oppose any state or federa! legislation that would pre-empt or threaten loca! taxation authority. B. RIGHTS-OF-WAY ¯To protect the public’s investment, the control of public rights-of-way must remain local. ¯Local government must retain full control over the time, place and manner for the use of the public right-of-way in providing telecommunications services, including the appearance and aestetics of equipment placed within it. C. ACCESS ¯All local community residents should be provided access to all available telecommunications services. ¯Telecommunications providers should be required to specify a reasonable timeframe for dep!oyment of telecommunications services that includes a clear plan for the sequencing of the build-out of these facilities within the entire franchise area. D.PUBLIC, EDUCATION, AND GOVERNMENT (PEG) SUPPORT The resources required of new entrants should be used to meet PEG support requirements in a balanced manner in~ partnership with incumbent providers. 060612 cs 0072721 2 ***NOT YET APPROVED*** ¯For cities currently without PEG support revenues, a minimum percentage of required support needs to be determined. E.INSTITUTIONAL OR FIBER NETWORK (I-NET) ¯The authority for interested communities to establish INET services and support for educational and !ocal government facilities should remain at the !ocal level. F.PUBLIC SAFETY SERVICES ¯The authority for E-911 and 911 services should remain with !ocal government, including any compensation for the use of the right-of-way. All E-91! and 911 calls made by voice over internet protocol shall be routed to local public safety answering points (PSAPs) ; i.e., local dispatch centers. ¯All video providers must provide local emergency notification service. G. CUSTOMER SERVICE PROTECTION ¯State consumer protection laws should continue to apply as a minimum standard and should be enforced at the local level. Local governments should retain the authority to assess penalties to improve customer service. H. OTHER ISSUES ¯Existing telecommunications providers and new entrants shall adhere to local city policies on public utility undergrounding. SECTION 2. The Council does hereby further RESOLVE that copies of this resolution shall be transmitted to the Senate and Congressional Representatives and all California legislative representatives for the City of Palo Alto as well as all appropriate loca! media outlets. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and the CEQA Guidelines and, therefore,no environment assessment is required. 060612 cs 0072721 ***NOT YET APPROVED*** INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Administrative Services 060612 cs 0072721