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CC SR 20200204 H - Cox Communications Town Hall Meeting CITY COUNCIL MEETING DATE: 02/04/2020 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to authorize Staff to participate in and contribute City resources to a Cox Communications town hall meeting with the cities of Palos Verdes Estates and Rolling Hills Estates RECOMMENDED COUNCIL ACTION: (1) Authorize Staff to participate in and contribute in-kind City resources to a Cox Communications town hall meeting. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Kit Fox, AICP, Interim Deputy City Manager REVIEWED BY: Same as above APPROVED BY: Ara Mihranian, AICP, Interim City Manager BACKGROUND AND DISCUSSION: In 1998, the City Council adopted Ordinance No. 339, the City’s Telecommunications Regulatory Ordinance, which was codified as Chapter 13.12 of the Rancho Palos Verdes Municipal Code (RPVMC). The ordinance established regulations for cable television systems, open video systems, and other telecommunications services and systems, including procedures for granting local franchise agreements. RPVMC Section 13.12.310(C) provided the authority for the City to enact an ordinance to establish monetary penalties for a video provider’s material breach of customer service standards set forth in the Cable Television and Video Customer Service and Information Act and the Video Customer Service Act, although this authority has been superseded by more- recent legislation discussed below. Under the terms of the City’s previous local franchise agreement with Cox Communications (Cox), the City Council did not feel the need to enact such an ordinance since the agreement generally provided the City with the necessary leverage to ensure that Cox dealt with residents’ customer service issues appropriately. 1 In 2006, this all began to change with the enactment of the Digital Infrastructure and Video Competition Act (DIVCA). DIVCA shifted franchise agreement authority from local agencies to the California Public Utilities Commission (CPUC), but obliged local agencies to retain responsibility for enforcing customer service standards. Since the City’s franchise agreement with Cox expired in October 2015, Staff has received anecdotal reports that Cox does not address residents’ customer service complaints timely.1 From time to time, Staff has reached out to Cox’s Government Affairs Division, which has advised that the City retains the option to adopt an ordinance to impose monetary penalties for material breaches of Cox’s customer service standards under DIVCA. In 2017, Staff presented a proposal to the City Council to initiate a video provider customer service standards ordinance. As proposed at that time, the ordinance would have constituted a complete overhaul of RPVMC Chapter 13.12. The City Council authorized Staff to initiate the ordinance in May 2017, and reviewed a draft in October 2017. However, due to concerns about the cost and staffing demands associated with implementing and enforcing the ordinance, it was tabled in 2018. Recently, the City was approached by elected officials and Staff from other Peninsula cities about convening a “town hall meeting” with Cox. Cox has tentatively agreed to host a "pop-up"-type open house, which would include booths representing product marketing, construction, field operations/network operations, customer care, public affairs, and Cox business services. The Peninsula cities are exploring the availability of Hesse Park, the Peninsula Center Library, or a school site as a venue. The open house is expected to occur in late February or early March, and will be scheduled to avoid conflicts with Peninsula cities’ city council meetings. Ideally, there would be at least two sessions offered — one late afternoon and one early evening — so as to accommodate the greatest number of residents’ schedules. Based upon the scope of the proposed open house described above, Staff anticipates that the City’s contributions of in-kind resources to this event would consist of Staff time and (possibly) the use of Hesse Park, if available. Once the date, times and location of the open house are confirmed, Staff would also promote the event to residents using the City’s website and social media outlets. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Do not authorize Staff to participate in and contribute City resources to a Cox Communications town hall meeting. 1 Resident complaints about video service providers have not been limited to Cox. There was also a substantial spike in customer service complaints in early 2016 when Frontier Communications took over the former Verizon FiOS service. Staff has also received sporadic reports of customer service issues and lack of access to AT&T’s U-Verse service on the east side of the City. Neither Verizon (formerly GTE) nor AT&T (formerly Pacific Bell) ever had franchise agreements for video service with the City. 2