Telecommunications Report City of Richmond

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1 November 11, 1996 Telecommunications Report City of Richmond The City of Richmond's Telecommunications Task Force 1 has been charged with (1) reviewing the City's telecommunications infrastructure, available telecommunications services and telecommunications regulatory structure, and (2) making recommendations for improvements in the foregoing. This Interim Report from the Task Force reviews the status of this project and makes a number of recommendations. The Task Force's efforts are being undertaken against a backdrop of major federal, state and local initiatives involving telecommunications.? At the federal level, the Congress passed the Telecommunications Act of 1996, which, among other things, sought to stimulate competition in telecommunications and remove and prevent barriers to entry that might be imposed by local jurisdictions and discriminatory treatment of similarly-situated providers.? At the state level, in Opportunity Virginia (the Commonwealth's strategic plan for future jobs and prosperity in Virginia), the Governor identified capitalizing on Virginia's technological infrastructure as one of five broad policy objectives that must be pursued in partnership with the private sector in order to compete in the 21st century. Opportunity Virginia has targeted $12 million in a public/private partnership for the Richmond area.? At the local level, in January 1995, the Richmond City Council adopted A New Direction, A Mission, Vision, and Plan for Richmond, which included the recommendation to "develop a strategy to fully capitalize on the fiber-optic infrastructure of the City as a tool to enhance development." 1 The Task Force consists of representatives of the Department of Information Technology, the Department of Public Works, the Department of Public Utilities and others.

2 THE CITY'S TELECOMMUNICATIONS GOALS This section of the report summarizes the goals and policies the Telecommunications Task Force believes the City should pursue in the telecommunications area and identifies the methods to accomplish the goals. It also identifies the resources needed and initiatives the City already has that further these goals and policies. document: Six telecommunication goals are being recommended and will be discussed in this 1. Use telecommunications to foster economic development; 2. Use current and proposed networks constructed by the private and public sector; 3. Identify and promote telecommunications projects of value to the city; 4. Encourage coordinated telecommunications infrastructure development; 5. Regulate and manage public rights-of-way and other City property; and, 6. Promote State-of-the-Art Telecommunications Goal 1: Use Telecommunications to Foster Economic Development Economic development is a key goal for the City of Richmond. First-class telecommunications infrastructure and services will be necessary to spur this economic development. Advanced telecommunications facilities will serve existing users and promote new ones in the Richmond area and will service existing commercial areas, as well as potential development areas. Creating the City's regulatory strategy and telecommunications initiatives to promote economic development will have an important effect on the City's success in competing for economic development within its region and beyond. New areas of economic development, such as the flood protected area south of the river, will need to be served by the same state-ofthe-art fiber optic network as the existing fiber optic network downtown. Developments, such as the Virginia Biotech Research Park will not be able to compete for new businesses without the infrastructure, connecting it to MCV and other medical facilities throughout the world, that has capacity and speed. Implementation We recommend that, through our telecommunications franchise ordinance, the telecommunication providers be requested to provide the infrastructure to accommodate our economic development goals. Our experience to date has been that the private sector has been willing to serve new corporate clients throughout the City. It is also recommended that all

3 telecommunication franchise holders be encouraged to install state-of-the-art equipment or upgrade existing equipment so that it becomes state-of-the-art. This will keep our entire City networked with adequate access for our existing and future business community. Goal 2: Use Current and Proposed Networks Constructed by the Private and Public Sector There is a substantial amount of existing telecommunications infrastructure in the City, both infrastructure built and used by the private sector and infrastructure built and used by the public sector. It is recommended that this infrastructure serve as a platform for additional telecommunications services to the City and the public at large. Chesapeake and Potomac Telephone Company, a subsidiary of Bell Atlantic, which operates the local telephone system, and Continental Cablevision, the City's cable television operator, own the majority of the private infrastructure. There are also competitive access providers (CAP), which provide links between local businesses and long distance carriers. Metropolitan Fiber Systems, which is installing a fiber optic telecommunications system pursuant to a master plan approved by City Council; MCI; and Alternet (an affiliate of Continental Cablevision) are either constructing or leasing fiber and operating as a CAP. Our assessment is that these companies and others will continue to expand the infrastructure without the investment of public funds. It is our goal that all sectors of the City are served by state-of-the-art facilities. Both Bell Atlantic and Continental Cablevision have networks serving the entire Richmond community. Bell Atlantic will be providing full range of telecommunication services to all residential and businesses in the City and it is likely that they will be continually upgrading their facilities. Continental Cablevision is in the final stages of its upgrade of the entire system. In addition as other telecommunication providers are granted the authority to use the City s rights of way, we will endeavor to require that facilities be provided in all segments of the City. However, we recommend that this issue can be raised in the near future, as a condition of the franchise, in order to guarantee that the City is equally served. Some of the most developed telecommunication infrastructure exists in the education community. The area's universities and hospitals have created their own sophisticated networks, permitting database access and separate location interconnection.

4 The City's infrastructure has been active in providing ourselves with a state-of-theart telecommunication infrastructure for the transmission of data, video and voice to serve our facilities. These include:? the 80-mile fiber optic Institutional Network which connects all City buildings and schools, being constructed by Continental Cablevision under its cable television franchise, scheduled for completion in 1996;? the campus data network, connecting City offices to form an on-line, real time data system; and? the internal public branch exchange (PBX), capable of supporting analog and digital telephones, as well as data and slow-moving video images. networks: The City also has a direct connection to selected state agencies on the following? Commonwealth Telecommunications Network (CTN) -- This network has applications for the Divisions of Motor Vehicles, Corrections, Social Services, Virginia Employment Commission, Transportation, Supreme Court and the Board of Elections.? Virginia Education and Research Network (VERNet) -- This network connects educational institutions, state agencies, industrial sites and research facilities, and uses CTN and other network resources.? Virginia Criminal Information Network (VCIN) -- This network, owned by the Virginia State Police, serves criminal justice agencies. Implementation Although some communities have chosen to construct the infrastructure, typically in partnership with a telecommunications provider, it is our recommendation to allow the private sector and competition to expand on the already significant, state-of-the-art system. What will be important and what we hope to facilitate through the telecommunication franchise ordinance is the interoperability of the networks. Goal 3: Identify and Promote Telecommunications Projects of Value to the City It is recommended that the City be proactive in identifying and promoting projects that take advantage of the infrastructure and serve our clients, both internally and externally. Any

5 development of the City's telecommunications policies and initiatives must focus on the needs and interests of the City's key constituencies:? Government -- Internal: City government has its own internal telecommunications needs, i.e., communications between and among government agencies.? Government -- External: The City's telecommunications policies must take into account and promote communications between the government and big business, small business, residents and others (including those outside the City, such as businesses that might wish to relocate to the City).? Big Business: Big business needs a friendly telecommunications policy that creates an environment that fosters the development of communications infrastructure and telecommunications services.? Small Business: Small businesses would benefit from learning how to improve the use of telecommunications services in their businesses, and from additional telecommunications services that afford them access to information and resources from government and others.? Residents: The City's residents are a diverse group, both by age and by economics. The City's telecommunications policies must take this into account and provide services to meet their special needs and interests.? Education Community: There are several different education communities that would benefit from and would use telecommunications initiatives, including colleges and secondary schools, both public and private. Implementation There are many initiatives currently underway. The City already has three telecommunications initiatives (the Annie Casey Project, the Richmond Education, Training and Employment Network (RETEN) and the Community Informational Infrastructure Development Partnership) which focus on delivery of government services and access to modern technology and economic tools in the City's East District. The Library has received grant funding to purchase workstations for all branches that will have access to the Internet. A committee of City staff is currently working on the development of a City home page. The continued development of projects will require staff resources and funding for development and maintenance. We have identified a series of initial pilot projects that we recommend pursuing. The pilot projects, described on Attachment A, have been selected based upon their consistency with the above-mentioned goals and policies, and their achievability. There however would need to be a commitment of staff and resources for their success.

6 We also recommend the creation of a public/private partnership that could be use to promote telecommunications uses in our community. All providers would be members as well as other corporations and the City. The installation of video surveillance equipment for public safety is an examples of the types of projects that could be developed by the partnership. Goal 4: Encourage Coordinated Telecommunications Infrastructure Development It is important for the City to create a regulatory environment that will promote competition and be conducive to the creation of this new state-of-the-art infrastructure to serve our community. We believe that our policies must welcome telecommunication providers and yet still protect the City. These providers must be encouraged to work together to minimize their impact on our City streets as well as creating an interoperable system to maximize the potential of the infrastructure. Implementation We believe that under the City s purview, the marketplace will lead the development of the telecommunication infrastructure and services. The conditions of franchise can not be so restrictive so that they inhibit infrastructure development but still must protect the City s investments in its rights-of-way. Continued management of the franchise holders will be required to guarantee the proper development. It is recommended that the appropriate resources be budgeted for this management responsibility. Goal 5: Regulate and Manage Public Rights-of-Way and other City Property Current and future telecommunications providers will seek to use the City's valuable rights-of-way to provide their services A key goal will be to manage the use of those rights-of-way in a way that encourages infrastructure development and services to the entire City, as well as efficient use of infrastructure (such as by encouraging the shared use of facilities and recovering unused rights-of-way). 2 The City should receive adequate compensation for use of the rights-of-way. At the same time, however, the City will also have to ensure that the City's regulation of rights-of-way conforms to the limits imposed by applicable law, including the Telecommunications Act of 1996, which prohibits barriers to entry and discriminatory treatment of similarly-situated telecommunications providers. 2 This is in addition to issues that arise from the City as user of telecommunications services and from requests to use City-owned property (such as land or buildings) to site telecommunications equipment.

7 In addition, City properties have the potential to be used by wireless telecommunication providers. The proliferation of towers in the City is unacceptable. The City should develop mechanisms to control the orderly development of towers, consistent with federal law. This land use issue is being investigated by the Department of Community Development.

8 Implementation The telecommunication franchise ordinance should include provisions to compensate the City for the use of its rights-of-way and property by telecommunication providers. The City must also be ready to manage the use of those rights-of-way with the appropriate staffing. The City should amend the zoning ordinance to provide for the orderly the development of towers, consistent with Federal law, and to protect the landscape of our City. Goal 6: Promote State-of-the-Art Telecommunications The City's residents and businesses will be best served by policies that encourage state-of-the-art telecommunications and competition in the City. Improved telecommunications facilities are needed to replace uncoordinated, inadequate existing telecommunications facilities. 3 Among other characteristics, the City hopes to maximize the interconnection of the various networks that will operate in the City and make them interoperable. This will ensure that the services and applications which build on them are able to work together and are made available to a wider universe of users. Implementation Through the ordinance for telecommunication providers, City Council should encourage state-of-the-art facilities and promote the interconnection of the various networks. EXISTING AND PROPOSED REGULATORY ENVIRONMENT With the assistance of the City's special telecommunications counsel, Arnold & Porter of Washington, D.C., the Telecommunications Task Force has been undertaking a comprehensive review of the City's existing telecommunications regulatory structure and the provisions of its ordinances and agreements with telecommunications operators, with a view toward updating them to be consistent with and to implement the City's policies and the constraints of applicable law. Currently, there are a number of different providers or potential providers of telecommunications services in the City that use the public rights-of-way or other public property. 3 Surveys of businesses and residents undertaken by the City staff in the fall of 1995 indicated that most business organizations (with the exception of educational institutions) do not operate extensive networks or have state-of-the-art communications facilities, and have not come to realize the full benefits available from networks.

9 These include providers of local exchange telephone service, competitive access providers and alternative access providers, "broadband" service providers, cable television operators and other providers of video programming services, providers of noncable services (such as data or voice), providers of wireless services (including cellular and personal communications service ("PCS") providers) and power and utility companies. Current providers are subject to different franchising requirements and provisions, and a carefully thought-through structure is needed for these and future providers. The Telecommunications Task Force is considering what a master telecommunications ordinance should look like and what terms and conditions should apply to the various types of telecommunications providers in the City. The Task Force is preparing a draft renewal ordinance for C&P Telephone (to renew C&P's telephone franchise, which expired in 1992). That ordinance would be the first franchise in which the City would seek to implement these updated concepts. The City s action will be guided by and subject to applicable law, including, without limitation, the federal Telecommunications Act of 1996 and regulations implementing that Act. Subject to those limitations, the City intends to exercise the full scope of its municipal powers, including its police power, its contracting authority and its authority over rights-of-way within the City, to promote the public interest and to protect the health, safety, and welfare of its residents. ADDITIONAL RECOMMENDATIONS The Telecommunications Task Force has the following additional recommendations: Administration of Policy - Direction and Implementation A key issue will be how the City will administer its telecommunications policies, including the oversight and enforcement of the major telecommunications ordinances and contracts and monitoring developments. This is to ensure that the City's agencies are kept abreast of legal, technological and business changes and the City's policies are kept up to date. It is also important to appropriately manage the rights-of-way. The Telecommunications Task Force recommends adequate staff be available to manage the telecommunication needs of the City. Consideration of Further Initiatives There are a number of further initiatives which the City should continue to review and which would be the subject of future reports and recommendations. These include the creation of a nonprofit organization to facilitate telecommunications initiatives (the nonprofit could facilitate funding for initiatives, for example), the creation of an advisory committee or ongoing coordinating group consisting of representatives of the business community to advise on issues

10 relevant to business and how to create an environment that will foster economic development, and the consideration of how telecommunications providers might be asked to assist in funding telecommunications initiatives in the City. All of these require resources. It is recommended that revenues generated by the use of City rights-of-way and property be used to fund the administration of the franchises and initiatives.

11 Description of Attachment A

12 Initial Telecommunications Pilot Projects Recommended by the Telecommunications Task Force

13 Pilot Project No Expanding City Government Information Available to Citizens Via Computer The City government already makes a substantial amount of information available to members of the public who come to City government offices for that information. The information includes information about government programs and benefits, and the City generally. Much of this information is available only in hard copy at central locations and is not retrievable by computer or available at remote locations. Summary. The Telecommunications Task Force recommends that a concerted effort be undertaken to catalog the information made available by the City government and then make it available via computer. This project would involve the following steps: (i) identify the information currently made available by the City to the public, by questionnaires and other inquiries to the various City agencies; (ii) format the information and transfer it to a database that could be made available via computer, through the Internet, Institutional Network or other network, and establish a process for updating the database; (iii) test the newly-established system for security; and (iv) add new locations at government offices around the City that could access the databases. Schedule/Budget. The Telecommunications Task Force believes that the cataloging of information and establishment of the database, as well as a budget for equipment, personnel and ongoing maintenance, could be accomplished by January 1998 and that the services could be available to City residents by mid-1998 at various locations on the Institutional Network. A budget and staffing report for the project will be developed in the next several months. Pilot Project No Development of Interactive Telecommunications Services One of the recent advancements in telecommunications services is the development of interactive networks. The Telecommunications Task Force recommends that the City undertake a pilot project that will permit its citizens to use an interactive network, available at remote locations around the City, to communicate with the City government. There are a number of City administrative processes that require citizens to make a trip downtown to fill out forms, apply for permits, etc. Summary. There are a number of possible interactive projects, including enabling citizens to register children for summer programs or to register for health services or other government benefits. Another possible project would be to make records of City Council meetings or other public proceedings or initiatives (such as proposed budgets) available via computer, with the opportunity for citizens to provide comments. This would enhance the democratic process in the City.

14 Among the issues to be considered are how to staff the remote locations, how to fund future equipment purchases and maintenance, and whether federal and state officials would want to be involved in such a project. Schedule/Budget. The Telecommunications Task Force recommends that an interactivity project be designed by January 1998, and that the project be implemented during The design phase of the project would involve considering the technical feasibility of the project, as well as what information and services should be in or not in the project and the legal and other issues that might arise as a result, and the format of the project. For example, having information returned electronically to the City could raise a number of administrative issues for the City staff, including issues of confirming receipt and security. A budget and staffing report for the project will be developed in the next several months. Pilot Project No Public Relations Outreach Plan One of the important functions that telecommunications can serve in today's environment, which includes the Internet and the World Wide Web, is making information about Richmond and its resources and possibilities available to a wide audience both inside and outside the City. Summary. The Telecommunications Task Force recommends that a public relations plan be developed that would make recommendations for getting the word out as to how the City has taken the lead in making telecommunications technology and services available in Richmond. This plan would consider issues such as the most advantageous way to disseminate information on the Internet about key subjects such as tourism and economic development. The development of a Richmond World Wide Web site would be a focus of this plan. Schedule/Budget. The Telecommunications Task Force recommends that a public relations plan be developed over the next six months. A committee of City staff has been formed to work with a consultant in the development of a home page for the City of Richmond. We are now online. The budgets and schedules for adding departments and interactive uses would be submitted as a part of the budget process this year.

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