HomeMy WebLinkAbout2003-10-14 City Council (3)City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER
DATE:OCTOBER 14, 2003 CMR:451:03
SUBJECT:
DEPARTMENT: UTILITIES
APPROVAL OF CONTINUATION OF THE FIBER TO THE HOME
TRIAL
REPORT IN BRIEF
RECOMMENDATION
Staff recommends that Council approve the continuation of the Fiber to the Home
(FTTH) trial until such time as the study of a FTTH citywide build out is officially
terminated, or until the trial is incorporated into a Citywide build out.
BACKGROUND
The FTTH trial has been
operating costs by approximately $1300/month, therefore the project is
positive. The project was built to demonstrate the following:
¯That Utilities could build and operate a FTTH system
¯To test services which can be offered over an FTTH system
operating for two years. The fees from participants exceeds
cash flow
To provide the community with opportunities to experience an FTTH
system
To evaluate customer acceptance of FTTH products and services, and
To test FTTH equipment that is available in the market.
All of these are ongoing functions of the FTTH trial.
CMR:451:03-Page 1 of 3
DISCUSSION
The FTTH trial is a key educational and research resource which is operating on a cash
flow positive basis. Until a decision is made to either continue researching a Citywide
build-out of FTTH or to abandon it, the trial continues to benefit the community in the
following ways:
1.Offers the community an opportunity to learn first hand about FTTH through
the demonstration sites.
2.Continues to provide staff a test environment to research new equipment and
construction techniques.
3. Gives staff a knowledgeable customer base to query regarding FTTH products
and services.
4. Preserves the investment in the trial infrastructure. This can be inte~ated into a
Citywide build out, should that occur.
5. Generates approximately $1300/month in net revenue.
These benefits are particularly important if the decision is made to continue the FTTH
build-out study. The study report is anticipated to come to Council later this year, or
early next year.
RESOURCE IMPACT
The project generates a net of $1300 per month after contracted services are paid.
POLICY IMPLICATIONS
The staff recommendation does not represent any change to existing City policies, but
does support the Utilities Strategic Plan Strategy No.4: Deliver products and services for
competitive markets and Objective No.l: Enhance customer satisfaction by delivering
valued products and services. The FTTH trial was listed in the Strategic Implementation
Plan as a key initiative.
TIMELINE
Services to continue in place until a determination is made about an FTTH build out.
CMR:451:03 Page 2 of 3
ENVIRONMENTAL REVIEW
A mitigated negative declaration for the City’s fiber optic infrastructure project was
approved by the Director of Planning and Community Environment on November 25,
1996. FTTH Trial is a continuation of that project.
PREPARED BY:
~mmunications
DEPARTMENT HEAD:
of Utilities
CITY MANAGER APPROVAL:
City Manager