Economic Recovery Recommendation Report June 2020 Los Angeles County Economic Resiliency Task Force Infrastructure Development and Construction Sector Subcommittee Fran Inman, Chair County of Los Angeles Coronavirus (COVID-19) Economic Resiliency Task Force Infrastructure Development and Construction Sector Recommendation Report Introduction: As Los Angeles County represents a huge, diverse geographic footprint with an incredibly diverse population base, we collectively have the opportunity with the Infrastructure, Development, and Construction sector(s) to provide a robust economic stimulus across our County and beyond. In the face of the COVID-19 crisis, the County must strengthen its commitment to sustainability, equity, and resilience in order to create a pathway for investment in a safe, healthy, and inclusive future. Throughout our nation’s history, a concerted focus on infrastructure investments during an economic downturn has reaped both short-term and long-term benefits. This combined sector represents an enormous opportunity to leverage both public and private investments to provide immediate positive economic impacts for all with good paying jobs, dynamic career pathways, and the pride of playing a part in the development of tangible assets. We appreciate the work of our fellow task force sectors and recognize that each and every one of these sectors has cross-over economic recovery needs relating to infrastructure, development, and construction. Our work group represents a broad base and stands ready to continue our engagement as we recognize that our work will not be complete with this initial report. We hope the focus we have provided with our initial recommendations will be viewed as just the beginning of our bold, inclusive vision. We see this as a long-term opportunity to work more effectively together. We recognize that each area covered in this report is worthy of stand-alone focus. That we combine them here should in no way diminish their importance in terms of our overall economic recovery. Finally, our task force has just begun, and we have attempted to identify and build upon the ongoing work across our region both public and private, across all the key sectors, to identify short term, mid-term, and long-term recommendations. For example, we reached out to SCAG as they have recently updated their regional transportation plan and are in the process of completing their Sustainable Community Strategy. With short notice, they quickly responded and were able to provide some summary statistics/preliminary recommendations, which we have included in Appendix A. Resources of supporting materials reviewed are provided separately. We also recommend consulting with the Los Angeles County Department of Workforce Development, Aging and Community Services (WDACS), which recently implemented the Los Angeles County Works Initiative. We look to collaborate with WDACS in evaluating and recommending appropriate policy solutions for long-term economic recovery, with the goal of fostering inclusive economic development while prioritizing rapid reemployment of the local workforce. Investment in critical infrastructure will allow for job creation and would help revive the economy while modernizing the region’s infrastructure to be more sustainable and resilient. Infrastructure investment will also prepare the Los Angeles region for the 2028 Olympics. County of Los Angeles COVID-19 Economic Resiliency Task Force Sector Recommendation Report Page 1 It’s been reported that modernizing telecommunication infrastructure through construction and induced spending will create about 250,000 jobs in Los Angeles alone. We acknowledge that there is a specific sector force within this Economic Resiliency Task Force that is dedicated to small businesses, but we want to call out our recognition of the ongoing challenges of our small business partners who work in the infrastructure, development, and construction industries. We include in our recommendations below some preliminary suggestions for consideration. We also acknowledge that we cannot lose sight of the fact that our Los Angeles County economy is driven by small businesses. Small businesses have been disproportionately affected by the COVID-19 pandemic. According to the U.S. Small Business Administration, small businesses account for two-thirds of the nation’s new jobs and more than 40 percent of the economic activity. Los Angeles County Economic Development Corporation reported that 93 percent of the County’s businesses are small business. Specific focus was on providing equitable opportunity to local small businesses in the infrastructure industry, while developing a culture of regional collaboration among industry leaders. Infrastructure LA is a regional forum, currently managed by Los Angeles County Public Works, that promotes collaborative engagement and identifies policies and initiatives that improve public and private sector infrastructure investments and can serve as vehicle to advance infrastructure development in the region. Infrastructure LA is currently developing a map and list of regionally significant, multisector infrastructure projects to support expedited delivery and cost efficiency through interagency coordination. To date, the list includes 907 projects in the public works, housing, ports, transportation, utilities, and water/sanitation sectors, with construction costs totaling over $105 billion over the next several years. See Appendix B for the current list of projects. It should be noted that the current extensive list of projects promises significant productivity output and job creation potential, and therefore, will be the main driver of the County’s aggressive efforts to recover the economy throughout the Los Angeles County region. Key Sector Initiatives: Telecommunications Infrastructure Goal: To ensure that Los Angeles County and the incorporated jurisdictions therein encourage the development of the “best in class” telecommunications infrastructure to provide enhanced services and connectivity to its citizens, businesses, governmental agencies, and educational institutions. Background: The County is comprised of 88 incorporated cities each with its own processes and procedures for entitling and approving required permits for the deployment of telecommunications infrastructure. These entitlements range from ministerial encroachment permits for the placement of infrastructure within the public right-of-way, to discretionary Conditional Use Permits (CUP) for a traditional cell site located on private property. The fees for securing these entitlements can range from a few hundred dollars for a ministerial over-the-counter permit to tens of thousands of dollars for a CUP. The result of this “patchwork quilt” of regulations is delays in providing much-needed connectivity to the citizens and businesses throughout the County. County of Los Angeles COVID-19 Economic Resiliency Task Force Sector Framework Page 2 Proposed Solutions: The Federal Communication Commission and Congress have passed several orders and laws that have attempted to streamline the deployment of telecommunications infrastructure. However, these pieces of legislation have included vague language and other issues that has led to years of litigation forcing the courts to try to interpret the intent of the original laws. The result has been years-long delays and increased costs to both local jurisdictions and the telecommunications industry and a lack of connectivity for many communities. The County has a unique opportunity to provide leadership in the deployment of advanced telecommunications networks as it is currently drafting a wireless ordinance that will govern the placement, design, and construction of telecommunications facilities and infrastructure. The new ordinance should clearly delineate the need for these services in all zones (Residential and Open Space as well as Commercial and Industrial) and provide for expedited permit approvals for facilities that meet the code requirements. By doing so, the County can provide certainty to both the public (that the facilities will be designed and constructed to blend in with surrounding land uses) and to the industry (that their projects will receive favorable rulings if they meet these standards). Additionally, many of these networks cross jurisdictional boundaries which exposes the applicants to varied aesthetic, approval, construction, and inspection processes. The proposal by Public Works to initiate the Infrastructure LA program is a great first step towards reviewing and approving these projects at a regional level. The County can provide a framework to batch similarly-designed project applications to expedite the approval process and adoption of new technologies that allow for more efficient and less impactful construction (Microtrenching, directional boring, etc.) techniques. The industry is also exploring the possibility of providing financial assistance to local jurisdictions by front-loading the payment of fees so that these cities have capital available to preserve staff positions that provide plan checking and inspection services. At the State level, the telecommunications industry is working with the Governor’s office, individual legislators, and the Public Utilities Commission on possible bond measures to provide funding to build networks to serve underserved rural and urban communities and school districts. Consideration is being given to tie the receipt of these funds to expedited permit processes to ensure the funding