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HomeMy WebLinkAboutAgenda Report - April 20, 2022 C-18CITY OF iJ C A L I F O R N I A AGENDA ITEM C IM/ ? COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Ratifying Submittal of Broadband Infrastructure Project as Project Nomination for the 2022 San Joaquin Council of Governments' One Voice Trip MEETING DATE: April 20, 2022 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt a resolution ratifying the submittal of the Broadband Infrastructure Project as a project nomination for the 2022 San Joaquin Council of Governments' One Voice trip. BACKGROUND INFORMATION: The San Joaquin Council of Governments (SJCOG) is again developing regional priorities in preparation for the annual "One Voice" lobbying trip to Washington, D.C. The One Voice trip is an opportunity for all jurisdictions in the county to work cooperatively to secure Federal funds. On February 17, 2021, City Council accepted the City of Lodi Broadband Feasibility Study completed by Magellan Advisors, LLC. The results of the Study included a phased implementation approach as follows: Phase 1 includes upgrading the existing fiber backbone to support the City's growing needs across many departments and applications. The City of Lodi currently owns and maintains approximately 20 miles of fiber used to support communications for public safety, data collection for utility billing, utility operation software platforms, as well as citywide data and communication efforts. The existing fiber backbone is reaching the end of its useful life and additional fiber will be needed over the next 10 years to support existing and build upon future City and utility connectivity needs as well as enable,a platform for possible opportunities benefitting Lodi residents and businesses. Phase I will include completing a full engineering design of the fiber backbone rebuild to identify all requirements and constraints; allocating funding for the upgrade; and developing a Request for Proposals to select a construction contractor for the rebuild. The new fiber backbone would be dimensioned with extra capacity that could be used to support potential future broadband services in Lodi. Phase 2 entails Lodi developing a public-private partnership with a broadband provider that is aligned with the City's goals and leveraging the fiber backbone to bring new fiber connectivity to residential and/or business communities. The City would issue Requests for Proposals (RFPs) to solicit potential broadband partners and negotiate long-term agreements to provide services over the municipal infrastructure. This would give the City a detailed understanding of the provider landscape and allow Lodi to select a partner that is best aligned with the City's interests. Phase 3 focuses on deployment of new fiber directly around the backbone, in cost-effective and incremental ways. Within 1,500 feet of the backbone, the City could reach nearly 10,000 homes and businesses, creating an opportunity to build additional fiber into these areas with a lower cost structure than without the fiber backbone. APPROVED: Steve SchwabaUer Stephen Schwabauer, City Manager \\cvcfilv02\pubwks$\WP\OneVoice\2022\4-20-22 COUNCIL COMM to Nominate Broadband Project for One Voice V1 MP.doc 4/4/2022 Adopt Resolution Ratifying Submittal of Broadband Infrastructure Project as Project Nomination for the 2022 San Joaquin Council of Governments' One Voice Trip April 20, 2022 Page 2 Phase 4 considers a broader deployment of fiber to all homes and businesses within the City, building on the prior Phases' successes. This phase could bring fiber broadband services to more neighborhoods, business districts or the entire City, based on the community's need. To do so would require significant capital investment by the City and is estimated at approximately $45 million. Phase 1 of the Broadband Infrastructure Project, is estimated to cost approximately $1,000,000, and is currently being funded utilizing the American Rescue Plan Act of 2021 (ARPA). On September 1, 2021, the Lodi City Council approved a contract in the amount of $299,000 for turnkey fiber design, project and construction management. This work is the foundation for completing the first phase of this multi -phase project. The One Voice request, submitted to SJCOG on April 4, 2022 includes the total estimated request of $44 million, which represents the total estimated project cost less the Phase 1 costs funded by the ARPA. FISCAL IMPACT: The City of Lodi Broadband Infrastructure Project could eventually leverage the City's network to cost-effectively provide fiber -based internet services, either directly or through partnerships with private broadband providers. FUNDING AVAILABLE: Not applicable, LL_LLQ Charles E. Swimley, Jr. Public Works Director Melissa Price (Apr 6, 202210:36 PDT) Jeff Berkheimer Electric Utility Director San Joaquin One Voice' Project Request City of Lodi Broadband Infrastructure Project Requesting Entity: (please include address) City of Lodi City Manager's Office 221 West Pine Street Lodi, CA 95240 Lobbyist/Governmental Affairs Representative: 9th District, Congressman Jerry McNerney Proiect Title: City of Lodi Broadband Infrastructure Project Proiect Summary: In March 2020, the Lodi City Council approved a Professional Services Agreement with Magellan Advisors, LLC, of Denver, CO to perform a comprehensive Broadband Feasibility Study. The purpose of the Study was to evaluate the opportunities to expand Lodi's existing fiber-optic network to meet the City's growing needs for fiber connectivity as well as consider what additional future opportunities the fiber expansion could yield for the City in terms of enhancing local broadband services for residents and businesses. On February 17, 2021, City Council accepted the City of Lodi Broadband Feasibility Study completed by Magellan Advisors, LLC. The results of the Study, including recommendations regarding a phased implementation approach, were presented to the City Council on January 19, 2021 with final acceptance of the Study by the City Council on February 17, 2021. The Project phases are illustrated and described in more detail below: Recommended Future (Optional) Future (Optional) Future (Optional) Fiber backbone rebuild to support Based on market research and Build fiber where immediate Expand fiber to greater "no risk" City use cases and funding opportunities, opportunities for broadband commercial and residential business needs. Size new fiber to determine whether to partner exist areas allow for expansion and future with a provider to deliver broadband offerings or broadband services partnerships 1 2022 Project Request Form Phase I will include upgrading the existing fiber backbone to support the City's growing needs across many departments and applications. The City of Lodi currently owns and maintains approximately 20 miles of fiber used to support communications for public safety, data collection for utility billing, utility operation software platforms, as well as citywide data and communication efforts. The existing fiber backbone is reaching the end of its useful life and additional fiber will be needed over the next 10 years to support existing and build upon future City and utility connectivity needs as well as enable a platform for possible opportunities benefitting Lodi residents and businesses. Phase I will include completing a full engineering design of the fiber backbone rebuild to identify all requirements and constraints; allocating funding for the upgrade; and developing a Request for Proposals to select a construction contractor for the rebuild. The new fiber backbone would be dimensioned with extra capacity that could be used to support potential future broadband services in Lodi. Phase II entails Lodi developing a public-private partnership with a broadband provider that is aligned with the City's goals and leveraging the fiber backbone to bring new fiber connectivity to residential and/or business communities. The City would issue Requests for Proposals (RFPs) to solicit potential broadband partners and negotiate long-term agreements to provide services over the municipal infrastructure. This would give the City a detailed understanding of the provider landscape and allow Lodi to select a partner that is best aligned with the City's interests. Phase III focuses on deployment of new fiber directly around the backbone, in cost-effective and incremental ways. Within 1,500 feet of the backbone, the City could reach nearly 10,000 homes and businesses, creating an opportunity to build additional fiber into these areas with a lower cost structure than without the fiber backbone. Phase IV considers a broader deployment of fiber to all homes and businesses within the City, building on the prior Phases' successes. This phase could bring fiber broadband services to more neighborhoods, business districts or the entire City, based on the community's need. To do so would require significant capital investment by the City; however, it could utilize the same broadband public-private partnership model whereby the City finances the plant, the partner provides the service and revenues are shared to ensure the City's investment and debt service are repaid while the provider achieves its required rate of return. Over 3,000 cities throughout the country own some form of municipal fiber and have used it for decades to support their communities. These networks are becoming increasingly important to cope with the rapid growth in connected devices, from utility assets, to streetlights, to traffic signals, to surveillance cameras. Cities that maintain these networks are able to accommodate "Smart City" technologies that make them more efficient, reduce costs and increase the value they deliver to their constituents. Within the past 15 years, cities have expanded the use of these networks to enhance local broadband internet services in their communities in order to support the needs of residents, businesses, and community organizations. As high-speed internet access has become essential to support economic development, education, healthcare, and other community functions, the City of Lodi Broadband Infrastructure Project could eventually leverage the City's network to cost - 2 2022 Project Request Form effectively provide fiber -based internet services, either directly or through partnerships with private broadband providers. Total Proiect Cost: Total Project Cost: FY22/23 Request: Local Match: $45,000,000 $44,000,000 $ 1,000,000 (Phase I) Amount Being Requested (if less than total): Funding request in the amount of $44,000,000, along with the proposed local match of $1,000,000. Sources and Amounts of Matching Funds: Local match funds will be provided through the American Rescue Plan Act of 2021 in the amount of $1,000,000. Funding History: In 2021, a Feasibility Study was completed at a cost of $84,800, funded by the City of Lodi's General Fund Capital Improvement Program. On September 1, 2021, the Lodi City Council approved a contract in the amount of $299,000 for turnkey fiber design, project and construction management. This work, funded by the American Rescue Plan Act, is the foundation for completing the first phase of this multi -phase project. Current Proiect Status: The design portion of the contract is expected to be complete by Fall 2021 and Phase 1 construction is anticipated to be complete by Fall 2022. Attachments: N/A 3 2022 Project Request Form RESOLUTION NO. 2022-99 A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING THE SUBMITTAL OF BROADBAND INFRASTRUCTURE PROJECT AS PROJECT NOMINATION FOR SAN JOAQUIN COUNCIL OF GOVERNMENTS' ONE VOICE TRIP WHEREAS, the San Joaquin Council of Governments (SJCOG) is again developing regional priorities in preparation for the annual "One Voice" lobbying trip to Washington, D.C., which presents an opportunity for all jurisdictions in the county to work cooperatively to secure Federal funds; and WHEREAS, on February 17, 2021, City Council accepted the City of Lodi Broadband Feasibility Study completed by Magellan Advisors, LLC, and the results of the Study included a phased implementation approach; and WHEREAS, Phase 1 includes upgrading the City's existing fiber infrastructure to support the City's existing and future needs, as well as adding extra capacity to support potential future broadband services in Lodi; and WHEREAS, Phase 2 entails Lodi developing a public-private partnership with a broadband provider aligned with the City's goals and leveraging the fiber backbone to bring new fiber connectivity to residents and businesses; and WHEREAS, Phase 3 focuses on deployment of new fiber directly around the backbone, in cost-effective and incremental ways; and WHEREAS, Phase 4 considers a broader deployment of fiber to all homes and businesses within the City, building on prior Phases' successes; and WHEREAS, the total estimated cost for the Broadband Infrastructure Project is approximately $45 million; and WHEREAS, Phase 1 is estimated to cost approximately $1 million and funding is currently being requested through the City's Annual Capital Improvement Program budget process for Fiscal Year 2021/22 to be funded by the American Rescue Plan Act of 2021 (ARPA); and WHEREAS, the One Voice request, submitted to SJCOG on April 4, 2022, includes the total estimated request of $44 million, which represents the total estimated project cost less the Phase 1 costs proposed to be funded by the ARPA; and WHEREAS, the City of Lodi Broadband Infrastructure Project could eventually leverage the City's network to cost-effectively provide fiber -based internet services, either directly or through partnerships with private broadband providers. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the submittal of the City of Lodi Broadband Infrastructure Project as a project nomination for the San Joaquin Council of Governments' One Voice trip; and BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the City Manager to submit and/or execute any additional required documents to complete the One Voice submittal for this Project; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: April 20, 2022 I hereby certify that Resolution No. 2022-99 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 20, 2022 by the following votes: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None OLIVIA NASHED City Clerk 2022-99