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Council reaffirms open-access position, asks city attorneys to engage with FCC inquiry
Summary
The council adopted a substitute resolution reaffirming support for "open access" on cable infrastructure and asked the city attorney and CLA to participate in the FCC notice of inquiry; members debated legal risks to franchise-fee revenue and potential offsets via utility-user taxes.
The Los Angeles City Council adopted a substitute resolution reaffirming the city’s prior position in favor of open access to cable infrastructure and directed city attorneys to file or prepare comments for the Federal Communications Commission’s notice of inquiry into broadband policy.
Councilman Padilla, who carried the item, said the object was to reaffirm a previous council policy and to ensure Los Angeles’ position is represented as the FCC develops national policy: "The city of Los Angeles should be involved in promoting our position," he said, urging colleagues to support the substitute resolution (9d).
City attorney representatives warned of unsettled legal terrain. Ed Perez, speaking for the city attorney’s office, summarized legal developments and potential fiscal implications: federal appellate decisions have classified Internet-over-cable services as a telecommunications service in some rulings, which could place them beyond city franchise jurisdiction. Perez told the council that, if broadband services were finally classified as telecommunications services, the city could lose the ability to impose a 5% franchise fee on Internet service and estimated a possible annual fiscal exposure on the order of $10–15 million (he characterized the number as an estimate).
Councilmembers discussed possible offsets through the utility users tax and legislative approaches. One speaker urged adding companion motions to continue study of fiscal remedies and to receive related committee reports; another emphasized urgency because of FCC scheduling and the upcoming Thanksgiving holiday. Councilmember Pacheco and others also pressed for continued committee research into how new entrants and competitive systems would affect franchise fees and utility-user tax revenues.
After debate and a series of linked amendments and receiving-and-filing motions for related reports, the council voted to adopt the substitute resolution and receive related items as filed; the clerk announced the tabulation in favor. The council’s action places Los Angeles on record advocating open-access principles as the FCC proceeds.
