July 8, 1999

To:Policy and Finance Committee

From:Chief Administrative Officer

Subject:Coordination of Telecommunications Matters: First Report from the Council- Established Telecommunications Steering Committee

 Purpose:

Council established the Telecommunications Steering Committee in January 1999, to develop a corporate-wide and strategic City approach to telecom issues. In accordance with its mandate, the Telecommunications Steering Committee has identified a number of telecom matters requiring City-wide coordination. This report is recommending a series of inter-related activities necessary to develop comprehensive policy respecting the use of the municipality's rights-of-way and other property.

Funding Sources, Financial Implications and Impact Statement:

There are no immediate or direct expenditures arising from the recommendations of this report. The matters being addressed in this report, however, have significant financial implications for the City since they will effect its ability to develop more comprehensive principles, policy and procedures respecting the use of its property and assets by telecommunications providers.

Recommendations:

It is recommended that:

this report be considered with the report from the City Solicitor and the Commissioner of Works and Emergency Services titled, "Vancouver v. Ledcor: CRTC Hearing - City of Toronto Support of FCM Position";

the aforementioned report be adopted subject to its Recommendation (1) being amended as follows:

"City Council authorize the City Solicitor, the Commissioner of Works and Emergency Services, the Chair of the Telecommunications Steering Committee and the Chief Administrative Officer as required, to participate as members of the Telecommunications Sub-Committee of the Federation of Canadian Municipalities (FCM) in the instruction of its legal counsel with respect to the Public Notice Proceedings expected to be commenced before the CRTC this summer";

the City of Toronto contribute its fair-share portion of funds to the FCM Rights-of-Way Legal Defense Fund and that Council authorize the release of such funds pending confirmation of the appropriate level of contribution with FCM by the Mayor and the Chair of the Steering Committee;

on an interim basis, all departments, agencies, boards, commissions and special purpose bodies of the City submit requests for telecom approvals or agreements not previously approved by the Council, through the CAO and the Steering Committee for coordinated recommendations until such time that the Council adopts a City wide telecom strategy and that the CAO is to so advise all concerned Commissioners, agencies, boards, commissions and special purpose bodies;

Council authorize the Steering Committee to act on its behalf respecting all telecom matters during the summer break of Standing Committee and Council meetings subject to confirmation by Council at its meeting of September 28 to 30, 1999;

all departments, agencies, boards, commissions, and special purpose bodies of the City be requested to provide an inventory of:

duct work, trunk and cable-lines, above and below ground telecom towers, and other installations within their purview to approve for access or placement, or otherwise manage, approve, maintain, or operate;

ownership (City-owned, externally owned, partnerships, or other arrangements, for example)of all such infrastructure, facilities, or installations;

the infrastructure, facilities, or installations located within the City's ROW and identification of the street locations;

the amount of any rental/leasing, permit, percentage of revenue, or other compensation, collected; and

the terms of any existing agreements, access and permit approval conditions and so on;

Council request the Commissioners of Works and Emergency Services and Corporate Services, to request all telecom, cable, telephone and other companies having an agreement with the City to identify the type and location of their above and below ground installations on public rights-of-way and other City property and that the Steering Committee be updated by the Commissioners as replies are forthcoming;

the report from the Region of Ottawa-Carleton respecting a format for negotiating with telecom companies be obtained by CAO staff to inform the work of staff and the Steering Committee;

staff report to the Steering Committee on the merits of a Model Agreement for Multiple Crossings Access;

the Office of the CAO arrange a minimum half-day Strategy Session as early in September as possible following the summer session break of Council, for the Steering Committee to identify its role and task priorities, review information gathered from Departments and assess all City wide interests and the future directions required;

consideration of the report on a Municipal Access Agreement be deferred until such time as the Steering Committee has held its Strategy Session;

all agreements include the provision to supply the City with technical information on all the applicant's above and below ground telecom installations, cabling, structures, conduits and ducts owned by the applicant, or its third-parties using the systems of the applicants, that cross or use City rights-of-ways or other City property;

all agreements include the requirement that the City be notified of any contemplated third-party use of the public right-of-way or of the system, its installations and infrastructure (including, for example, cable, wire, or conduit ) in the public right-of-way, such that the agreement will be subject to re-negotiation;

all agreements be required to make available for the use of the City, extra fibre optic wires if and when installed, and space inside the installed conduit for the City to use if it chooses to install fibre optic wiring;

the Steering Committee seek comments on the matter of the correspondence from R.V. Anderson Associates Limited respecting an application from Ledcor Communications Limited, with the City of Vancouver;

the City of Toronto also seek comments on the R.V. Anderson Associates Limited correspondence from the FCM Sub-Committee on Telecommunications at their meeting in Calgary during August;

Ledcor Communications Limited be informed that it is the intention of the Steering Committee to work with them to resolve their matter of application for access to the public rights-of-way in a timely fashion;

the representatives of R.V. Anderson Associates Limited and Ledcor Communications Limited be requested to meet with the staff and Chair of the Steering Committee and with the Chairman of the FCM Sub-Committee on Telecommunications at the earliest possible opportunity in September following the summer recess of the Council;

in the interim, Ledcor Communications Limited be requested to provide staff with complete technical details of each proposed crossing including maps and technical drawings for review by staff and presentation to the Steering Committee at their next meeting;

Ledcor Communications Limited be requested to refrain from any installations or activity related to their application to the City until these matters have been reviewed by the Steering Committee as outlined in the preceding recommendations;

the City Clerk provide Secretariat support to the Steering Committee given its significant workload and its requirement to report to Council through the Policy and Finance Committee; and

the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference:

In January 1999, Council approved the report from the Chief Administrative Officer (CAO) titled, "Comments on Suggested Amendments to the Report: Feasibility of Establishing a Telecommunications Authority and Related Matters Respecting Rights-of-Way Access and Use".

The report recommended a coordinated inter-departmental approach on telecommunications by the City, a structure to deal with operational matters in the short-term and a strategic approach to future telecom network matters internal to the City and with external organizations. Accordingly, Council directed the CAO to establish an inter-departmental Working Group given the Corporate-wide and strategic nature of telecom issues.

In addition, Council established a five-member Telecommunications Steering Committee to oversee the staff Working Group. Councillor John Adams chairs the Steering Committee with the other members being Councillors Davis, Fotinos, Moscoe and Silva. Reporting of the Steering Committee is through the Policy and Finance Standing Committee to Council.

Comments:

The Steering Committee recognizes that enabling access to municipal rights-of-way by telecom providers for network development/expansion is only one aspect of City responsibility and that the future emphasis must be far more strategic. Specifically, external demand, as well as potential financial gain by the City, must be planned for and dealt with in the context of a City telecommunications plan. Such a plan requires the City to define and integrate its own telecom and other interests and its own possible uses of its rights-of-way, for example.

Issues Considered To-Date:

The Steering Committee has considered a number of legislative, operating and financial matters specific to telecom initiatives. The meetings have been well attended by the Inter-Departmental Working Group with representatives from Legal, Planning, Buildings, Information Technology, Real Estate, Works, Economic Development, Finance, Transportation and the Office of the CAO.

(a)Additional City Representation Respecting FCM Telecommunications Initiatives:

The Steering Committee is closely following the initiatives of the Federation of Canadian Municipalities (FCM) respecting telecommunications matters. The federal Telecommunications Act was enacted in 1993 without consultation with municipalities. Jurisdictional authority for the regulation of telecom providers by a municipality does not exist beyond that already in place to permit access (upon such terms and conditions as may be agreed to) and construction in its rights-of-ways. In response to operating concerns of its members, FCM developed a series of five principles in the mid-nineties respecting the use of public rights-of-way by telecom and other companies. The fifth principle supports the right of municipalities to receive full recovery of administrative and other justifiable costs associated with the access to and use of, public rights-of- way (ROW).

In recent years, provincial legislation appears to restrict the ability of Ontarian municipalities to realize the fifth FCM principle. This is similar to nation-wide occurrences whereby some companies are reluctant to sign agreements with municipalities for the laying of cable or other system-related installations. In this regard, a test case has arisen involving Ledcor and the City of Vancouver applying to the CRTC to resolve their impasse over negotiating a ROW agreement. As explained in the report at the July 20 Policy and Finance Committee from the City Solicitor and the Commissioner of Works and Emergency Services, the CRTC has responded to the applications by opening the hearing to a Public Notice process. This is done when an issue is considered to have national implications that may affect parties other than those immediately involved in the dispute.

The Telecommunications Steering Committee is fully supportive of the approach, role of coordination, representation and actions of FCM on behalf of its members in the pursuit of these matters. To-date, legal staff and Councillor Moscoe who chairs the FCM Sub-Committee on Telecommunications, have carried most of the associated workload on behalf of the City of Toronto. Given the formation and work of the City's Telecom Steering Committee and its Working Group, chaired by staff from the Office of the CAO who provide issues management on matters of corporate-wide interest, the Steering Committee wishes them to have a formal role at FCM.

The Steering Committee, therefore, recommends adoption of the report from the City Solicitor and the Commissioner of Works and Emergency Services titled, "Vancouver v. Ledcor: CRTC Hearing - City of Toronto Support of FCM Position", subject to amending the membership of the FCM Sub-Committee on Telecommunications, as follows:

"that Council authorize the City Solicitor and the Commissioner of Works and Emergency Services, the Chair of the Telecommunications Steering Committee and the Chief Administrative Officer as required, to participate as members of the Telecommunications Sub-Committee of the Federation of Canadian Municipalities (FCM) in the instruction of its legal counsel with respect to the Public Notice Proceedings expected to be commenced before the CRTC this summer."

City Financial Support to the Legal Defense Fund of FCM:

In 1997, the member municipalities of FCM pledged to establish a ROW Legal Defense Fund in anticipation of the need to pursue the rights of municipalities through legal means respecting access to and use of public ROW by companies. A per capita formula was developed to cover regional governments and their constituent municipalities, and other local municipalities. At the time of calculation, East York, Etobicoke, Toronto, North York, Scarborough and York, were the constituent municipalities of the Municipality of Metropolitan Toronto. Based on a $.01 per capita contribution for the regional government, the calculated share of the Municipality of Metropolitan Toronto was $22,758.00 which was issued to FCM in May 1997. The share for the constituent municipalities based on their population at the time and $.02 per capita, was calculated to be approximately $45,000.00.

The City of Toronto is about to receive a letter and invoice from FCM for the portion of contribution remaining from the former constituent municipalities. The CAO and Finance departments are confirming that no cheques were issued for the FCM ROW Legal Defense Fund apart from that of the former Municipality of Metropolitan Toronto.

Given the imminent CRTC Hearing process and the amount of legal counsel being engaged by FCM, the Steering Committee is recommending that the City of Toronto contribute its fair-share portion of funds to the FCM Rights-of-Way Legal Defense Fund. Given the current population of the City of Toronto and the change in government structure as at 1998, the Steering Committee is also recommending that Council authorize the release of such funds pending confirmation of the appropriate level of contribution. The Chair of the Steering Committee and the Mayor will work with FCM in this regard.

Formal Steering Committee Authority to Coordinate Telecom Agreements and Applications for the Use of City ROW:

The Telecommunications Steering Committee has considered a number of matters related to the form of Agreements appropriate between the City and external organizations applying for consent to use public ROW for the installation of telecom and related equipment, infrastructure, pipes, ducts, conduit, cable and so on. Current Agreements in place with the City contain conditions that protect its interests including provisions allowing for City access to and use of the space and infrastructure if determined necessary by the City. The Steering Committee is strengthening the terms and conditions of all types of Agreements ranging from comprehensive Municipal Access Agreements for telecom carriers, to the more straightforward encroachment type of agreement involving the City's ROW.

In this regard, a Corporate-wide approach is required to coordinate and consider all applications for the use of public ROW and related matters. The Steering Committee is, therefore, recommending that on an interim basis, all departments, agencies, boards, commissions and special purpose bodies of the City submit requests for telecom approvals or agreements not previously approved by the Council, through the CAO and the Steering Committee for coordinated recommendations. It is also recommending that this be until such time that the Council adopts a City wide telecom strategy and that the CAO is to so advise all concerned Commissioners, agencies, boards, commissions and special purpose bodies.

Similarly, the Steering Committee is aware that demands for the use of public ROW by telecom and other organizations wishing to establish or enhance systems are increasing. In addition, the activities of FCM and the CRTC with regard to the access and use of ROW is better-known within the private sector companies than within certain affected City areas of operations. The Steering Committee is, therefore, recommending that Council authorize the Steering Committee to act on its behalf respecting all telecom matters during the summer break of Standing Committee and Council meetings subject to confirmation by Council at its meeting of September 28 to 30, 1999.

 (d)Operational and Policy Considerations:

The Steering Committee has had before it for consideration application requests from Ledcor and from Ryerson Polytechnic University for access to and use of the ROW of the City. The Steering Committee has also considered a report from staff proposing a standard Municipal Access Agreement (MAA) for the protection of the City and its rights to be reimbursed for expenses and use of public ROW.

In its considerations, the Steering Committee took into account several of the principles and terms and conditions recommended by staff in its MAA report draft. There are many inter-related and complex issues involved in telecom matters. For example, the provision of telecom project and issue management needs to occur across departmental lines. Second, the matters require consideration in a forum lacking any single operating area bias and/or domination. Third, strategic and objective recommendations must be developed in a timely fashion, but in a manner whereby all the information necessary to do so is available. Fourth, interim policy serving the needs of the City and external organizations wishing to access ROW must be established.

With respect to the priorities involved in telecom matters internal to the City, the Steering Committee is making the following recommendations:

that all departments, agencies, boards, commissions, and special purpose bodies of the City be requested to provide an inventory of:

duct work, trunk and cable-lines, above and below ground telecom towers, and other installations within their purview to approve for access or placement, or otherwise manage, approve, maintain, or operate;

ownership (City-owned, externally owned, partnerships, or other arrangements, for example)of all such infrastructure, facilities, or installations;

the infrastructure, facilities, or installations located within the City's ROW and identification of the street locations;

the amount of any rental/leasing, permit, percentage of revenue, or other compensation, collected; and

the terms of any existing agreements, access and permit approval conditions and so on;

that Council request the Commissioners of Works and Emergency Services and Corporate Services, to request all telecom, cable, telephone and other companies having an agreement with the City to identify the type and location of their above and below ground installations on public rights-of-way and other City property and that the Steering Committee be updated by the Commissioners as replies are forthcoming;

that the report from the Region of Ottawa-Carleton respecting a format for negotiating with telecom companies be obtained by CAO staff to inform the work of staff and the Steering Committee;

that staff report to the Steering Committee on the merits of a Model Agreement for Multiple Crossings Access;

that the Office of the CAO arrange a minimum half-day Strategy Session as early in September as possible following the summer session break of Council, for the Steering Committee to identify its role and task priorities, review information gathered from Departments and assess all City wide interests and the future directions required; and

that consideration of the report on a Municipal Access Agreement be deferred until such time as the Steering Committee has held its Strategy Session.

With respect to the priorities involved with the applications from and relationships with external businesses/parties, the Steering Committee is making the following recommendations:

that all agreements include the provision to supply the City with technical information on all the applicant's above and below ground telecom installations, cabling, structures, conduits and ducts owned by the applicant, or its third-parties using the systems of the applicants, that cross or use City rights-of-ways or other City property;

that all agreements include the requirement that the City be notified of any contemplated third-party use of the public right-of-way or of the system, its installations and infrastructure (including, for example, cable, wire, or conduit ) in the public right-of-way, such that the agreement will be subject to re-negotiation; and

that all agreements be required to make available for the use of the City, extra fibre optic wires if and when installed, and space inside the installed conduit for the City to use if it chooses to install fibre optic wiring.

With respect to the application from Ledcor Communications Limited, the Steering Committee has received an alternate proposal to that originally submitted to the Works and Emergency Services Department. Correspondence has been submitted on behalf of Ledcor by R.V. Anderson Associates Limited, for the installation of conduits and dark fibre cable for specified rail corridor installations crossing City lands. In order to obtain the information necessary to form an agreement with Ledcor, the Steering Committee is recommending the following actions be undertaken:

that the Steering Committee seek comments on the matter of the correspondence from R.V. Anderson Associates Limited with the City of Vancouver;

that the City of Toronto also seek comments on the correspondence from R.V. Anderson Associates Limited from the FCM Sub-Committee on Telecommunications at their meeting in Calgary during August;

that Ledcor Communications Limited be informed that it is the intention of the Steering Committee to work with them to resolve their matter of application for access to the public rights-of-way in a timely fashion;

that representatives of R.V. Anderson Associates Limited and Ledcor Communications Limited be requested to meet with the staff and Chair of the Steering Committee and with the Chairman of the FCM Sub-Committee on Telecommunications at the earliest possible opportunity in September following the summer recess of the Council;

that, in the interim, Ledcor Communications Limited be requested to provide staff with complete technical details of each proposed crossing including maps and technical drawings for review by staff and presentation to the Steering Committee at their next meeting; and

that Ledcor Communications Limited be requested to refrain from any installations or activity related to their application to the City until these matters have been reviewed by the Steering Committee as outlined in the preceding recommendations.

Clerk's Secretariat Support to the Steering Committee:

CAO staff are currently providing roles in each of issues coordination, analysis, direct support to the Chair of the Steering Committee and secretariat support to the Committee (arranging meetings, taking minutes, circulating documents and correspondence and so on). The CAO is also responsible for the Chairing and organizing and follow-through of Steering Committee directives to the staff Inter-Departmental Working Group.

The workload and tasks of the Steering Committee require a significant amount of time and it is felt that staff of the Office of the CAO is best used in the focus on corporate-wide telecom issues management and advising the Steering Committee accordingly.

It is, therefore, recommended that the City Clerk provide Secretariat support to the Steering Committee given its significant workload and its requirement to report to Council through the Policy and Finance Committee.

 Staff Contact:

Laurie McQueen, Office of the CAO

392-8895

Steering Committee:

Councillor John Adams, Chairman

Michael R. Garrett

Chief Administrative Officer