HomeMy WebLinkAboutStaff Report 147-10TO:
FROM:
DATE:
HONORABLE CITY COUNCIL
CITY MANAGER
FEBRUARY 22, 2010
REPORT TYPE: ACTION
SUBJECT:
2
DEPARTMENT: UTILITIES
CMR: 147:10
Request for Direction to (1) Prepare Response to Google's Fiber for
Communities Request for Information; and (2) Discontinue Work for
the Submission of a Federal Stimulus Grant Application Under the
National Telecommunications and Information Administration
Broadband Technology Opportunities Program
RECOMMENDATION
Staff recommends that Council:
1. Direct staff to prepare a response to Google's Request for Information (RFI), announced
on February 10, 2010, for their Fiber to Communities plan.
2. Direct staff to discontinue work on the preparation of a federal stimulus grant application
under the National Telecommunication and Information Administration's Broadband
Technology Opportunities Program.
BACKGROUND
The City has been working over the course of the last several years to expand access to its
broadband optical fiber infrastructure. Recently, economic conditions have made potential
partnerships with telecommunications companies seem more remote. At Council's direction,
staff has recently pursued federal funding through the stimulus package. The most recent effort
was applying for funds through the National Telecommunications and Information
Administration (NTIA) Broadband Technology Opportunities Program.
On February 10, 2010, Google announced their "Fiber to Communities Initiative." Google is
seeking interested communities to partner with local jurisdictions to launch and test ultra high
speed broadband networks in one or more locations nationally. Google's announcement presents
a real and exciting opportunity for the City to realize its long anticipated goal of universal high-
speed broadband access.
Google's selection criteria align with factors in Palo Alto. They are seeking proposals that will
garner high levels of community support. Palo Alto has long standing policies supporting
greater access to the City's existing fiber network. Google is also seeking communities where
there are high Internet user rates to ensure that initial investments will generate the maximum
impact on the community. Palo Alto is ideally situated to partner with Google in meeting these
stated goals.
CMR: 147:10 Page 1 of 2
Factors why Palo Alto should respond to Google's request:
1. The City already has significant fiber optic infrastructure in place.
2. The City operates all its own utilities, which includes rights -of -way and utility pole
attachment agreements. The City Utilities Department has the ability and experience to
build and operate services that connect residences and businesses to the fiber optic
backbone.
3. The Palo Alto Internet Exchange (PAIX) hosts over 70 Internet service providers in
downtown Palo Alto, and the City has a presence in PAIX to facilitate connections to the
Internet.
4. For over a year the City worked to develop a fiber -to -the -home plan with a commercial
partner prospect. While an agreement was not reached, many issues were sorted through
legally and politically to make the City much better prepared to act more quickly and
effectively the next time an opportunity emerged.
5. The City's Fiber Optic Fund Reserve currently totals approximately $6.4 million and
grows about $2 million a year.
6. The City is populated by innovators, entrepreneurs, professors and students, all of whom
are good candidates to use a 1 gigabit per second network.
7. Stanford University and Stanford hospitals and clinics could be invited to participate in
ways comfortable and acceptable to all parties.
DISCUSSION
Because of this recent announcement, staff requests Council direction to focus on the potential
collaboration with Google. Given limited staff resources, staff would seek engineering support
already approved by Council (CMR: 130:10) with Columbia Telecommunications Corporation
(CTC). CTC is willing to provide their services in the preparation of the response to Google's
RFI.
Because of the close alignment between Palo Alto's telecommunications goals with Google's
goals, staff feels strongly that further work on the NTIA grant is not warranted. Review of the
recently issued criteria for this stimulus program further confirms that Palo Alto's chances to be
selected are challenging. The Google proposal is much more aligned with Palo Alto's vision and
efforts to establish a completely connected community.
ATTACHMENT
None.
PREPARED BY:
APPROVED BY:
CITY MANAGER APPROVAL:
JIM FLEMIN
Management Specia ist
TOMM MARSHALL
Assistant Director, Utilities Engineering
RIEF
Director, Utilities Department
JAMS >�EENE
City Mager
CMR: 147:10 Page 2 of 2