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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/23/2021 - CONNEXION UPDATEDATE: STAFF: March 23, 2021 Erin Shanley, Broadband Marketing Manager Ginny Sawyer, Policy and Project Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Connexion Update. EXECUTIVE SUMMARY The purpose of this item is to provide Council and the public with an overview and update of the Connexion municipal fiber buildout. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What q uestions does Council have for the Connexion team? BACKGROUND / DISCUSSION The City Connexion team along with its partners Atlantic Engineering Group and OnTrac, continue to build and install fiber to the home service throughout the City. This voter -app roved initiative began in 2018 and is on target to complete the main buildout in 2022. Reliable broadband service for all is extremely important and Connexion is providing this important broadband service while introducing beneficial competition into the market. Since construction began in late 2018, Connexion now has residential, business, and digital equity customers, a 24/7 technical support team, and a majority of the city under design and/or construction. Connexion remains in the tenuous positio n of keeping details regarding the build and customer base at a minimum to ensure competitive stewardship. It is anticipated that by late Q2 2021, Connexion will be able to provide more information with less risk. 2021 UPDATES Anticipated to Actuals There are operational items that are different than outlined in the original 2017 -2018 feasibility and business plan. These elements include product design, partnerships, and infrastructure assumptions. Some of these have been enhancements and opportuni ties while others have been challenges. Staff and the governance structure have allowed Connexion to be nimble and respond in timely and productive ways to all necessary revisions. Initial Inputs Actual 70,000 premises 77,700 premises 72% vacant conduit 48% vacant conduit Operate under normal business hours Provide 24/7, 365 day support Stand -alone staffing Integrated staffing (IT, Light & Power, Customer Service, Billing) Provide internet and phone service Providing Internet, phone, and video service Provide multiple residential internet tiers Providing 1 GB for all with 10 GB available March 23, 2021 Page 2 Build Progress As discussed in previous work sessions, the design -build approach to the project has allowed construction to move quickly and adds an element of schedule uncertainty. Staff continues to message that residents can anticipate service availability within 6-9 months of initial construction. While crews continue to aim for the shorter duration, some neighborhoods have seen longer times between construction and service. Spring and warmer weather will increase construction production. The core downtown area will start to see construction during this time. Staff is working very closely with the Downtown Development Authority to thoroug hly communicate and minimize impacts to businesses. Most Connexion work in the core downtown area will take place in the alleys using existing conduit to further minimize impact to downtown stakeholders. Products and Service Connexion continues to of fer service in new areas every week resulting in healthy new signups. Connexion is also seeing the uptake of video service since its launch in November. Our installation vendor, OnTrac, has continued to add staff to address these increases. The City’s Digital Equity program is offering full 1 -gig service and WIFI at a reduced price of $19.95. Staff are working with local non-profit housing organizations as well as directly notifying those that may qualify to engage customers. Current PILOT funding can support the program in perpetuity. Connexion will continue to update Council and the public through monthly reports (available at fcconnexion.com <file:///L:\AGENDA%202021\0323%20WS\fcconnexion.com>) and quarterly Council work sessions. The present ation will be provided as a read-before memo prior to the meeting.