HomeMy WebLinkAboutStaff Report 3.C 04/17/20063.0
CITY OF PETALUMA, CALIFORNIA April 17, 2006
AGENDA BILL
Agenda Title: Resolution Adopting Principles Regarding Meetine Date: April 17, 2006
Telecommunication Regulations Proposed by State and Federal
Legislators.
Meeting Time: ® 3:00 PM
❑ 7:00 PM
Category (check one): X] Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department: Director: Contact Person: Phone Number:
City Manag I NEC I Michael Bierman 778-4345
Cost of Proposal: n/a Account Number:
Amount Budgeted: Name of Fund:
Attachments to Agenda Packet Item:
1. Resolution and Principles
2. League of California Cities' Talking Points
Summary Statement: Both federal and state legislators are beginning serious debate on a new regulatory
framework for telecommunication services in the 2006 legislative session. The League of California Cities
has proposed that all California cities pass the suggested Resolution and Principles in order to deliver an
articulate and consistent message from all cities. The Principles include revenue protections, rights-of-
way, access, public education and government (PEG) support, and INET services.
Recommended City Council Action/Suggested Motion:
Approve Resolution and Principles.
Reviewed by Admin. Svcs. Dir:
Date:
Today's Date:
Reviewed by City Attorney:
date:
Vl
Revision # and Date Revised
Aimroxed by City Manager:
Date:
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File Code
RESOLUTION OF THE CITY OF PETALUMA ADOPTING PRINCIPLES
REGARDING TELECOMMUNICATIONS SERVICES AND
VITAL CITY INTERESTS
WHEREAS, technological advances in telecommunications services are outpacing the
current state and federal regulatory framework for those services; and
WHEREAS, new telecommunications services will be vital to businesses, households and
the public safety of local communities; and
WHEREAS, Congress and the California state 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's 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, INET services to local schools and E911 and 911
public safety services to local citizens are important services to maintain.
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NOW, THEREFORE, BE IT RESOLVED THAT the City of Petaluma does hereby
adopt the following Principles for federal and state legislators to consider in their debate over a
new telecommunications regulatory framework.
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 all telecommunications service
providers.
• A guarantee that all existing and any new fees/taxes remain with local governments to
support local public services and mitigate impacts on local rights-of-way.
• Oppose any state or federal legislation that would pre-empt or threaten local taxation
authority.
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 aesthetics of equipment placed within it.
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
deployment of telecommunications services that includes a clear plan for the sequencing
of the build -out of these facilities within the entire franchise area.
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.
K
• For cities currently without PEG support revenues, a minimum percentage of required
support needs to be determined.
INSTITUTIONAL OR FIBER NETWORK (INET)
• The authority for interested communities to establish INET services and support for
educational and local government facilities should remain at the local level.
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FI-T --
League of CA Cities Telecomm
Talking Points
The following are suggested talking points developed by the League for city officials to
use when discussing proposed changes in the regulatory laws for telecommunications
services. The year 2006 is expected to be very busy with legislative activity at both the
state and'federal levels. City officials can fully expect, and many have already had
contacts from, industry officials, legislators and congressional representatives as well as
leaders on this issue within their local communities. These talking points are intended to
better focus those discussions and deliver a coherent message from California's cities.
The cities of California support competition for telecommunications services in
cities because it produces more affordable services and improves the Quality of
telecommunications services to city residents.
• Fair and equitable competition among all telecommunications providers will
competitively drive down the consumer's cost for telecommunications services.
• The availability of new technologies to local residents will improve services from
all telecommunications providers.
• Robust telecommunications services will be a necessity for economic
development, public safety and quality education services.
• Competition on a "level playing field" will reduce the consumer's cost for
services, reduce the digital divide for low income families and ensure that
telecommunications providers do not "cherry pick" affluent areas and ignore
lower income areas of the state or a local community.
The revenues from city franchises are necessary to sunport.important city nrourams
includine public safety and transportation proerams.
• Revenues from city franchise fees are a substantial and important resource that
supports public services such as public safety and transportation.
• These revenues have to be maintained in any new regulatory framework for
telecommunications services.
• In California, any revenue loss to local government is very difficult to replace
under constitutional provisions enacted by the voters.
The taxnaver's investment in the nublic's richt-of-wav (PROW) must be protected
with clear citv authoritv over the "time. manner and place" for anv
telecommunications companv to use the PROW for deployment of its eauinment
and services.
• The public right-of-way is first and foremost the taxpayer's investment ih a
transportation system that is vital to a local economy and necessary to mobility.
• The taxpayer's investment in the public right-of-way must be protected in any
new regulatory framework.
• The deployment of any utility services in the public right-of-way contributes to
the deterioration of the public's investment and therefore must remain be directed
by the local governments in charge of that investment for the public.
• Don't federalize local streets! It results in no accountability to the taxpayer over
their investment.
• Access to the public right-of-way is a privilege granted by the taxpayer's to
telecommunications providers.
Public, education and government (PEG) channels are an important asset to a
communitv and its keV public programs and must be established and maintained at
a reasonable level that meets considerations of size, communitv needs and demands.
• Public, education and government (PEG) channels bring the local democratic
process closer to the public.
• PEG channels are a powerful tool for a community to use to define its goals,
reinforce its cohesiveness and open the democratic dialogue to those who may not
otherwise be able to participate.
• All telecommunications providers should participate in the delivery of PEG
channels to local communities.
• Support of PEG channels by telecommunications providers strengthens the ties
between the telecommunications industry and the local communities.
Local governments should retain the authoritv to provide telecommunications
services to its citizens to ensure access to these services when private sector
telecommunications providers choose not to serve a communitv.
Where private sector telecommunications providers cannot or refuse to provide
services to a community, the appropriate local governing body should retain the
authority to choose provide those services.
Local governments should retain the authority to partner in any manner
appropriate with private sector telecommunications providers to ensure access to
these services by all community residents.
M
From: Amy O'Gorman [aogorman@cacities.org]
Sent: Thursday, April 06, 2006 11:24 PM
To: Amy O'Gorman
Subject: Assembly Speaker Fabian Nunez's introduced telecommunications reform bill to create a new
statewide franchise for cable and video service providers
Importance: Low
Dear Members, North Bay and Redwood Empire Divisions:
Assembly Speaker Fabian Nunez held a press conference today to announce his
telecommunications reform bill, AB 2987. Joining him was Assembly Member Lloyd Levine, the bills
co-author, as well as Allan Zaremberg, president of the CA Chamber of Commerce, and Alice
Huffman, state president of the National Association for the Advancement of Colored People. A
representative from the Communication Workers of America was also present.
Please see below a news release issued by the League this afternoon, as well as an article that
appeared online this evening.
I am told that the bill language will be available for review tomorrow. Please stay tuned for further
details.
Thanks,
Amy
For Immediate Release
April 6, 2006
Contact: Megan Taylor, (916) 658-8228
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League of California Cities Statement
Regarding AB 2987 (Nunez): Cable and Video Service
SACRAMENTO, Calif. - The League of California Cities today issued the following statement
regarding AB 2987 (Nunez), a bill that would create a new statewide franchise for cable and video
service providers:
"The League and California cities strongly support greater competition in the delivery of video and
Internet services. We understand that competition will produce more affordable services and
improve the quality of telecommunications services to city residents.
"We have deep concerns, however, about a number of issues in AB 2987.
'We appreciate the leadership of Assembly Speaker Nunez and Assemblymember Levine in
introducing legislation designed to address the "speed to market" concerns of new video and Internet
providers," said Alex Padilla, President of the League and councilmember in the city of Los Angeles.
"We stand ready to work with these leaders and other legislators to address our concerns and ensure
that Californians are provided the kind of cutting edge telecommunication services that our state
needs."'
League of California Cities Concerns with AB 2987 (Nunez)
Build Out of Telecommunications Services. We are concerned that the build out provisions in AB
2987 will not ensure that video services will be equally available throughout a community. The bill
allows video service providers three years to build out video service, and to self -define the area they
will service. While they are prohibited from discriminating on the basis of income, they could
gerrymander their service area and thereby avoid low income areas. Local governments will not have
the authority to challenge the adequacy of the service area "footprint."
Some areas may only be provided satellite or "another alternative technology" - an option provided in
the bill when the video service provider is not able to physically build out service to all areas of their
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service area footprint. The League is concerned that these alternatives may not be comparable to
service offered in other parts of the service area.
Consumer Protection and Customer Service. The bill effectively preempts local government from
adopting and enforcing customer service standards for those operators who have received a
statewide franchise. This would create a two-tiered customer service standard, with local cable
operators subject to local customer service standards, and new statewide franchisees exempt from
these standards.
Video Services to Libraries and Schools. Currently, most local franchises require cable companies to
provide services to schools and libraries. This bill would eliminate this obligation. As a result,
children and community members who can't afford the services at home will lose access to these
advanced broadband services.
PEG Channels and PEG Support. Local agencies would lose control over the determination of the
number of public, education and government (PEG) channels needed to properly meet a
community's needs.
Public Rights -of -Way. It is not clear that local communities would retain their full control over access
to local right-of-way. The League believes that the taxpayers' investment in the public right-of-way
must be protected with clear city authority over access to the right-of-way.
Revenues. AB 2987 does not ensure that cities will be "kept whole" in regard to franchise revenues.
While the bill upholds a city's ability to impose a utility user tax, local agencies appear to be
prohibited from imposing other local fees and taxes, such as business license taxes, encroachment
permit fees and building permit fees.
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SCRIPPS HOWARD NEWS SERVICE
Bill would open California cable biz to phone companies
By JIM SANDERS
Sacramento Bee
06 -APR -06
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SACRAMENTO, Calif. -- Assembly Speaker Fabian Nunez unveiled hotly contested legislation
Thursday that he says will give Californians lower cable television prices and more choice.
Nunez's AB 2987 would allow telephone companies to compete directly against cable firms by
obtaining a state -issued franchise rather than negotiating separately with cities and counties.
Battle lines have been forming for weeks over the issue, but details of Nunez's bill were not known
until Thursday.
"It will open the gates for real competition in the local cable market," Nunez said.
"This is the most significant piece of legislation in this area, perhaps, that California has ever seen,"
said Assemblyman Lloyd Levine, D -Van Nuys, a co-author of AB 2987.
Officials of AT&T and Verizon vow to offer phone, video and Internet packages that would enhance
DSL service and provide 300 or more TV channels, including movies on demand.
"It will give us the opportunity to bring lower prices, new services, and higher -quality services to
consumers," said Timothy J. McCallion, Verizon regional president.
But Dennis Mangers, a cable industry spokesman, said AB 2987 would tilt the competitive playing
field to benefit phone companies at the expense of low-income communities.
"They want to be able to come in with less investment and (discriminate) and cream -skim to the most
affluent neighborhoods," said Mangers, president of the California Cable and Telecommunications
Association.
If phone companies enter the field under less stringent conditions than exist for cable firms, the latter
should be allowed to abrogate their existing franchises with local government, Mangers said.
"It's pure theater to suggest that somehow California is trapped in an earlier era and we need the
phone companies to ride in on white horses to save us," he said.
Under Wednesday's version of AB 2987:
Franchisees would be bound not to discriminate, but the state could not dictate how soon they must
provide serve to any given neighborhood.
_ Franchisees need not offer the same form of technology to every household _ they could offer a
fiberoptic system in one area, a satellite -based system in others.
_ Franchisees, like existing cable companies, would have to pay franchise fees to local government,
provide public -access channels and abide by local requirements regarding construction on public
rights-of-way.
—The state Department of Corporations, rather than a local agency, would be charged with
responding to consumer complaints about the adequacy of a franchisee's service.
—To ensure non-discrimination, franchisees would have to submit reports on the demographics of
neighborhoods they serve.
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_ The state could not unilaterally decide claims of discrimination, but a franchisee could be taken to
court by local government, a county district attorney or the state's attorney general.
AT&T and Verizon argue that the existing city -by -city franchising process stifles competition and
innovation because it takes years to negotiate separately with each governing board.
AT&T has pledged up to $1 billion through 2008 to upgrade its fiber-optic system, and Verizon is
committing hundreds of millions annually throughout the decade.
Allan Zaremberg, president of the California Chamber of Commerce, said AB 2987 would benefit the
state economy as well as consumers.
"We're talking about lower prices for consumers through competition, we're talking about investment
in our infrastructure, and we're talking about creation of jobs," he said.
Alice Huffman, state president of the National Association for the Advancement of Colored People,
appeared at Nunez's press conference to say she does not fear that low-income communities would
be sidestepped, partly because demand for cable TV is strong in such neighborhoods.
"I'm convinced that they're going to go where the demand is," she said.
Huffman, after the press conference, said her public affairs firm provides consulting services for
AT&T but that her comments at Thursday's session were strictly on behalf of the NAACP.
The key issue in debate over AB 2987 is what, if any, restrictions should be placed on new
franchisees to ensure that they do not favor affluent neighborhoods in their construction timetable.
"Cities want competition ...(But) we want a level playing field," said P. Anthony Thomas of the
League of California Cities. "In its current form, we don't see in AB 2987 a level playing field."
(Distributed by Scripps -McClatchy Western Service, http://www.shns.com.)
Amy O'Gorman
Regional Public Affairs Manager, North Bay & Redwood Empire Divisions League of California Cities
P.O. Box 623 Sonoma, CA 95476
(707)291-3270
Fax: (707) 939-8703
aogorman@cacities.org <mailto:aogorman@cacities.org>
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