Reporting on Time-Critical Telecommunications Matters

The Policy and Finance Committee reports having concurred with the Recommendations embodied in the following report (September 10, 1999) from the Chief Administrative Officer:

Purpose:

The purpose of this report is to advise the Policy and Finance Committee that several time-critical telecommunications matters have emerged in recent weeks, including several requests for access to the public rights-of-way. The issues have significant policy and financial implications for the City and are taking place in a sensitive legal climate. In order to facilitate successful processes and procedures, direct reporting to the next meeting of Council on September 28, 1999, is required.

   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 by the Steering Committee, however, have significant policy and financial implications for the City since they involve access to and use of City property by telecommunications providers.

Recommendations:

It is recommended that:

(1)the Telecommunications Steering Committee, in consultation with the Chief Administrative Officer and the Inter-Departmental Working Group, report on current time-critical developments directly to the September 28, 1999, meeting of Council; and

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

Council Reference/Background/History:

Council established the Telecommunications Steering Committee in February 1999, to develop a corporate-wide and strategic City approach to telecom issues. In accordance with its mandate, the report from the Steering Committee, that was adopted at the July 1999 meeting of Council, recommended a number of activities to ensure City-wide coordination and the development of a comprehensive policy respecting the use of the municipality's rights-of-way.

Comments and Justification:

In recent weeks, the respective (legal) positions of telecom companies and municipalities have become more refined in anticipation of the imminent Public Notice (of Hearing) process by the CRTC. This process was reported to the July 1999 Council meeting in 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". In summary, an issue has arisen across Canada over the interpretation of the jurisdictional authority of municipalities to seek cost-recovery for the use of its rights-of-way (ROW). This is considered by the CRTC to have sufficient importance to merit national attention and comment by affected parties. City Council has adopted a position in support of the FCM, whom shall be taking part in the proceedings.

The Steering Committee has been contacted by four major telecom providers all of whom are seeking application and permits for access to and the use of the public ROW, to varying degrees and for varying types of systems/installations. Municipal consent is required for such access on such conditions and terms, including cost-recovery, as agreed by the parties and as are necessary to protect both the public interest and the integrity of the ever-decreasing available space in ROW.

Some municipalities have agreed to permit telecom companies access to the ROW for installation/construction on a minimal cost-recovery basis pending the results of the current CRTC proceedings. The Steering Committee shall report on a strategy for responding to applications pending a CRTC decision. For the longer-term, they will also report on a plan to ensure that no unfair advantage is applied to one company over another due to past agreements, or traditional arrangements whereby some incumbent carriers (i.e. Bell Canada) were not subject to such agreements.

Next Steps and Conclusion:

Prior to the September 28, 1999, meeting of the City of Toronto Council, the Steering Committee will be continuing its discussions with Ledcor Industries Inc. and/or their designated representatives with respect to an agreement in accordance with a proposed Municipal Access Agreement (MAA). It is hoped that the outcome of these discussions may result in a mechanism for responding to other applications as well.

The initiatives of the Steering Committee are in conformance with Council approved directives and are being undertaken in consultation with the Chief Administrative Officer and key members of the Inter-Departmental Working Group on Telecommunications. As a result of external factors beyond the control of the City, the resolution of these matters require reporting by the Steering Committee directly to the next meeting of Council on September 28, 1999.