HomeMy WebLinkAbout2003-07-08 - AGENDA REPORTS - TELECOM INFRASTRUCTURE INVEST (2)Agenda Item: — SO
CITYOF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Michael P. Murphy
DATE: July 8, 2003
SUBJECT: TELECOMMUNICATIONS INVESTMENT IN LOCAL
INFRASTURCTURE
DEPARTMENT: City Manager
RECOMMENDED ACTION
City Council adopt resolution encouraging the California Public Utilities Commission to adopt
policies encouraging telecommunications companies to make infrastructure investments in
California and transmit copies of the resolution to the Public Utilities Commission.
1:7��1KfftZ�l�l►1�7
In 1996, Congress passed and the President signed into law, the Telecommunications Act of
1996. This act was designed to open the telecommunications market to increased competition,
ultimately benefiting consumers. In the intervening years, the Federal Communications
Commission and California Public Utilities Commission have successfully created an
environment leading to increased telecommunications competition in California.
A key component of telecommunications services is the investment in and maintenance of the
telecommunications infrastructure network. At the time the market was opened to additional
service providers, commitments were made to maintain and enhance the telecommunications
infrastructure in California. Unfortunately, the telecommunications infrastructure investment has
not occurred at the expected levels. The California Public Utilities Commission will be looking
at this issue over the summer and is anticipated to provide direction to service providers
regarding their levels of investment in the state's telecommunications infrastructure.
By way of example, SBC (formerly Pacific Bell) provided $18 million in telecommunications
infrastructure investment in Santa Clarita two years ago versus approximately $3 million this
year. During the year 2002, approximately 3,000 of California's SBC employees lost their jobs.
Adapted: so,-- �3-/0
At the present time, approximately 400 Santa Clarita residents are employed by SBC. As part of
any economic recovery in California, telecommunications companies will need to enhance their
infrastructure investment and promote employment in their industry.
The California Public Utilities Commission will be addressing this issue during the summer.
The Santa Clarita Valley Chamber of Commerce has requested that the City of Santa Clarita
adopt a resolution urging the Public Utilities Commission (PUC) to adopt policies which
promote investment by telecommunications providers in the system's infrastructure. Failure by
telecommunications service providers to invest in the infrastructure will result in increased
pressure on the existing network and may at some point, limit local economic expansion.
ALTERNATIVE ACTIONS
1. Not adopt resolution to the Public Utilities Commission.
2. Other action as determined by the City Council.
FISCAL IMPACT
Implementation of the recommended action will not result in any increased costs to the City of
Santa Clarita, as all communications with appropriate state agencies are contained within the
approved City budget for FY 03/04.
ATTACHMENTS
Resolution