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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
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GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # ]) I~
SEPTEMBER 5, 2000 Res. # 61/1, '38'0'
Date:
Report No.: WD-39-00
By-Law #
Subject:
USE OF MUNICIPAL RIGHTS-OF-WAY
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report WD-39-00 be received; and
2. THAT Clarington's share of the cost to prepare a report suggesting an appropriate form for
agreements between Durham municipalities and the telecommunication companies,
approximately $7,200, be funded from Public Works Capital Budget Account No. 7205-
87000-0260, ''Engineering Design, Capital Works".
REPORT
1.0 BACKGROUND
1.1 In 1993, the Federal Government passed the Telecommunications Act which deregulated
the telecommunication systems in Canada, i.e., removed the monopolies and opened the
field for other companies to supply communications to residential and commercial
properties.
1.2 Sprint and AT&T are among several companies that have been pursuing phone-related
services which were once dominated by Bell Canada. Several cable companies have begun
supplying services as well.
1.3 Many telecommunications companies have been or will be requesting permission from the
municipalities to place cables and hardware on the municipal rights-of-way. Even without
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REPORT NO.: WD-39-00
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the decrease of some road right-of-way widths, it will become more difficult to place all
these new utilities on the boulevards along with the existing utilities presently in place.
1.4 In the past, municipalities received from Bell Canada Gross Receipts Revenue to place their
equipment on municipal rights-of-way. This practice has now been abolished by the
Telecommunications Act.
1.5 As part of their mandate, the Federation of Canadian Municipalities (FCM) has adopted five
principals to guide municipalities through the right-of-way issue. The principles are as
follows:
(1) In pursuance of bona fide municipal pwposes, municipal governments must have
the ability to manage the occupancy and uses of the rights-of-way, including the
estahlislunent of the number, type and location of telecommunications and
broadcasting facilities, while taking into account applicable technical constraints.
(2) Municipal governments must recover all costs associated with occupancy and use of
rights-of-way by telecommunication service providers and broadcasting
undertakings.
(3) Municipal govemments must not be responsible for the costs of relocating
telecommunications and broadcasting facilities if relocation is required for bona fide
municipal pwposes.
(4) Municipal governments must not be liable for losses associated with the disruption
of telecommunications or broadcasting services or with damage to the property of
telecommunications service providers or broadcasting undertakings as a result of
usual municipal activities or the activities of other parties.
(5) Recognizing that rights-of-way have a value, municipal governments must receive
full compensation for the occupancy and use of the municipal rights-of-way by
telecommunications service providers and broadcasting undertakings.
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1.6 It appears that the telecommunication industry has taken exception with Principle Number
5. Leadcor, a telecommunication facilities provider, received approval from the City of
Vancouver to insta1l services. The City of Vancouver approval imposed fees for the use of
the right-of-way. Leadcor has taken the City of Vancouver to the Canadian Radio and
Telecommunications Commission (CRTC) to have fees proposed by the city removed. The
outcome of this decision will affect whether any municipality can charge a fee for the use of
a right-of-way.
2.0 REVIEW
2.1 For the past year, Staffhas been meeting with Regional staff and representatives of all the
municipalities within Durham to discuss events that have been occurring recently regarding
the deregulation of the telecommunications industry and the effect on local municipalities.
2.2 At previous meetings, it was agreed that the Region and its municipalities should attempt to
construct a single agreement form that could be used by all the municipalities. This would
be better for all parties as there would be consistency across the Region and each
Municipality would not have to spend time and resources to write their own agreements.
2.3 In March of this year, the Regional Municipality of Ottawa-Carlton entered into an
agreement with AT&T to place cable along Regional roads. Durham Staff had been
waiting for copy of the final documentation and are now reviewing this document to see
whether this could be adopted for use by Durham and its associated municipalities.
2.4 To date, Leadcor (now known as WFI Urbanlink Limited) has not applied or installed any
services within our jurisdiction, being municipal rights-of-way.
2.5 Regional Staffhas advised us that the Region of York has requested proposals from several
consultants to research all relevant laws and documentation regarding the
telecommunication industry and to prepare a report suggesting an appropriate form for
agreements between York Region and the telecommunication companies; including the
location within the right-of-way.
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2.6 Durham Staff has approached York Staff and requested to be included in the project.
Subject to Council approval, Municipality Staff along with all other Durham municipalities
have agreed to the sharing in the information gained from this report as well as costs. The
total estimated cost of the project is $175,000. The share of the estimated costs to the
Municipality of Clarington would be approximately $7,200 and would be funded from our
Capital Budget Account No. 7205-87000-0260, "Engineering Design, Capital Works".
2.7 Staff has volunteered their time to work with both York and Durham Regional Staff to
ensure the Municipality's input is recognized and that the Municipality will benefit from the
information derived from this committee.
2.8 Staffwill advise Council of the outcome of this meeting and any agreements that have been
made.
3.0 CONCLUSION
3.1 With the present deregulation of the gas industry and the electrical supply industry, it is
important that the Municipality of Clarington has a clear policy regarding the use of
municipally owned road rights-of-way before we experience a possible increase in the
number of requests.
3.2 Our objective is that if these policies could be co-ordinated Region wide and possibly
Province wide, all parties would be more comfortable with consistent processes and
agreements.
Respectfully submitted,
Reviewed by,
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Stephen A. Vokes, P. Eng.,
Director of Public Works
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Franklin Wu,
Chief Administrative Officer
ASC*SA V*ce
28/08/00
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