The Avalon City Council on Oct. 6 gave directed staff to send a letter to the California Public Utilities Commission about the importance of broadband infrastructure to Islanders. The goal is to preserve funding for a project to support broadband on the Island. The PUC is currently looking at rescinding a grant for the project.
Council members also discussed having at least one member of the PUC visit Catalina.
Background
According to the staff report by City Manager David Maistros, on Dec. 18, 2025, the PUC awarded a grant of more than $37.571 million for installing undersea cables to provide highspeed broadband service to Avalon.
“The approved Project contemplated service of up to 10 Gbps and represented a significant public investment Avalon’s broadband infrastructure,” Maistros wrote.
“On August 6, 2026, the City received notice that the Communications Division of the CPUC prepared Draft Resolution T-17934 proposing to rescind and terminate the $37,571,833 Federal Funding Account (“FFA”),” Maistros wrote.
“At the September 1st, 2026, council meeting, the council directed staff to send a letter to the CPUC which asked that if the Draft Resolution was adopted, the funding allocated for the project remain available,” Maistros wrote.
The hearing on the draft resolution to take back the money was scheduled for Sept. 17 but then continued to Oct. 18, according to Maistros’ report.
“During the September 22, 2026 City Council Meeting, a member of the City Council requested placing this item on the next council agenda to consider sending an invitation to the CPUC to visit the island to experience the issues regarding broadband/internet connectivity and how the lack of reliable high-speed fiber impact residents and critical institutions such as the hospital, school and safety forces,” Maistros wrote.
“As such a letter should have council approval, the consideration of sending a letter is now presented,” Maistros wrote.
“Staff recommends City Council provide direction if an additional letter should be sent as well as the content of the letter. Any communication should be considered in light of, and consistent with , the prior correspondence to the CPUC in which the City took no position on the Draft Resolution and asked that if the Draft Resolution was adopted, that the subject funds remain available for the use in Avalon as the City supports a broadband cable project for its residents,” Maistros wrote.