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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/28/2015 - BROADBAND STRATEGIC PLANDATE: STAFF: July 28, 2015 Seonah Kendall, Economic Policy & Project Manager Mike Beckstead, Chief Financial Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Broadband Strategic Plan. EXECUTIVE SUMMARY The purpose of this item is to provide City Council an update of the Broadband Strategic Plan project, including work-to-date and next steps pre- and post- November Colorado Senate Bill 05-152 (SB05-152) ballot issue. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does City Council support the updated work plan for the Broadband Strategic Plan project? 2. Does Council have additional questions? BACKGROUND / DISCUSSION At the March 24, 2015 Work Session, City staff presented the Broadband Strategic Plan Update, which included a high-level project scope. As staff began implementing the project plan, the question about Colorado Senate Bill 05-152 (SB-152) continued to emerge as a constraint to developing options. SB-152 refers to a 2005 state law that prohibits local government from having any direct or indirect involvement in providing telecommunication services such as free WiFi hot spots, leveraging city-owned fiber infrastructure and/or partnering with private businesses to provide affordable, high-speed internet services throughout the entire community. Any municipality in the state of Colorado considering providing these services needs local voter approval to set aside the restriction. As the demand for more advanced, reliable and affordable broadband service rises, citizens and the City must define our role. “Next generation” high-speed internet services are becoming an important infrastructure for communities in the 21st century. The City currently has ownership or rights to many miles of underground conduit and fiber that is currently used to support the City’s operations. Some of this fiber could be used to support fiber- optic broadband expansion in the community; however, the City needs to analyze if and how existing resources may be utilized to achieve this goal. SB-152 A voter-approved exemption from SB05-152 would restore the City’s autonomy and ability to evaluate all potential uses and business models for next-generation broadband services in Fort Collins. An exemption supports local choice and options, allowing the City and citizens to make the best decisions based on the needs of our community. It is important to note that voting on this issue would not commit the City to providing broadband services in Fort Collins, nor does it mean that we would have such service available immediately. If Council chooses to refer the ballot measure on August 18, the community will be asked to vote on the SB05-152 exemption on Tuesday, November 3, 2015. Project update Due to support for a ballot initiative, the project timeline presented on March 24, 2015 has been adjusted. July 28, 2015 Page 2 Project to-date  Released Request for Proposal “8108 Broadband Engagement Services.”  Hired Magellan Advisors (Magellan), a leading public sector broadband consultant, is assisting the City in regards to the overall broadband engagement plan and benchmark analysis.  Met with Longmont, Loveland and Estes Park to understand scope of each community’s projects.  Developed educational materials in regard to SB-152 and updated fcgov.com/broadband website. (Attachments 1 and 2).  Created Broadband Public Engagement Plan (Attachment 3).  Hosted Open Houses May 4, 2015 and July 16, 2015.  Identified benchmark communities based on different business model approaches.  Presented to the following organizations/associations and boards and commissions: Fort Collins Area Chamber of Commerce, North Fort Collins Business Association, Energy Board and Economic Advisory Commission, Board and Commission “Super Meeting” scheduled for July 29. Staff is recommending the following changes to the project timeline: Timeframe Key Activities Present to August 18, 2015  Community engagement and education about SB-152 o Super Boards & Commissions meeting on July 29, 2015 o South Fort Collins Business Association presentation on August 11, 2015 o Open House August 12, 2015 at Council Tree Library o Fort Collins Area Chamber of Commerce Local Legislatives Affairs Committee August 14, 2015 o New West Fest booth August 14-16, 2015 August - November 2015  Case studies and benchmarking work with Magellan and staff  Market analysis  Possible release of RFP 2 - Feasibility Study November 3, 2015  Election November 4, 2015 (If Voter Disapproval)  Status Quo  Review internal City policies and procedures  Community engagement November 4, 2015 - Summer 2016 (If Voter Approval)  Community engagement and needs assessment  Feasibility analysis based on community engagement  Formation of a Citizen Advisory Committee  Recommendation to City Council The benchmarking, case studies and market analysis is an important precursor to any feasibility study. The documentation of 15-20 communities’ different approaches to the implementation of broadband creates a knowledge base for the benchmarking and case studies. Communities selected represent similar demographics such as university town, population and market. Case studies allow the City to learn from the successes, failures, best practices, goals and obstacles of others. The market analysis is an inward look at the existing broadband conditions/market in Fort Collins such as the documentation of providers, services, prices, gaps, availability, etc. In addition, the market analysis will use GIS mapping to illustrate how the community is currently served. All the described work above sets the groundwork for the analysis in the feasibility study. Thus far, staff has identified the following business models to compare benchmark communities:  Wholesale Provider Business Model (City provides only wholesale transport, aka lit fiber services)  Dark Fiber Only  Emerging Public-Private Partnerships  Retail Provider Business Model (City provides all retail services)  Policy Development  Failed Projects (lessons learned) July 28, 2015 Page 3 It is important to note that the work being done until August 18, 2015 by City staff will focus on SB-152. Voter approval of a ballot measure to set aside the SB-152 restrictions does not commit a city to provide broadband services. A voter-approved exemption from SB-152 would restore the City’s autonomy to evaluate all possibilities for next-generation broadband services in Fort Collins. It supports local choice and options, allowing the community to make the best decisions based on the needs of our citizens. Future work will include public input on the different business models after the election. ATTACHMENTS 1. Broadband Strategic Plan FAQs (PDF) 2. Broadband Info Brochure (PDF) 3. Public Engagement Plan (PDF) 4. Powerpoint presentation (PDF) Broadband Strategic Plan FAQs Broadband Internet Services June 30, 2015 Q: What is broadband? A: Broadband is a term used to describe a wide range of different types of internet services that provide speeds significantly faster than those available through “dial-up”. The Federal Communications Commission’s National Broadband Plan now defines broadband service as providing a minimum of 25 mbps download speeds and 3 megabit upload speeds. Q: What is “Next Generation” Broadband? A: “Next Generation” broadband is capable of providing dramatically faster and higher quality Internet service, 10 to 100 times faster than many of the current broadband services today. Many next generation broadband services offer residential customers Internet speeds of up to 1 Gigabit per second at prices similar to what consumers pay today. The Fort Collins Broadband Strategic Plan is focusing on how next generation broadband services develop in Fort Collins. Q: What’s the difference between broadband and Internet? A: Broadband is the local connection that enables homes and businesses to get to the Internet. In most cases, these connections use copper wires from a local cable or DSL modem; however, next- generation broadband uses fiber-optic cables to connect to the Internet. Fiber-optic broadband can carry much more data and faster so it allows users have greater access to the Internet. Q: Is Next Generation broadband available in Fort Collins? A: Since early 2015, several service providers have announced plans to upgrade their broadband services to make residential Next Generation broadband available in Fort Collins, but have not provided a timeline or information in regard to servicing all community members within the Fort Collins Growth Management Area. Q: Why is Next Generation broadband important to Fort Collins? A: Internet applications are using more and more broadband capacity every day as more information, education and entertainment content is enabled online. Citizens of Fort Collins should have access to everything the Internet has to offer, without being restricted by their local broadband services. It will support citizens’ needs to run their local businesses, ensure their children have the best opportunities to learn through technology and access the wealth of information and entertainment options that the Internet provides. ATTACHMENT 1 Q: How would having Next Generation broadband impact the community? A: Studies on broadband show an important correlation with local economic vitality by improving the performance and cost effectiveness of business services, providing better support for the emerging “creative class,” supporting school technology programs, allowing those that can work from anywhere more options, and generally enhancing the community as a center of innovation. Access to next generation broadband increases development opportunities, allows greater access to training and job searches and promotes more adoption of Internet services by the community. Q: Is the City going to become my Internet provider? A: At this point, the City has no immediate plans to become a provider of Internet, television or other services. However, we will be evaluating all possible options to ensure our citizens receive the services they need. We will be evaluating a range of feasible options that make the most sense for our community and are economically viable. A voter-approved exemption allows the City to move forward with a wide range of options but doesn’t commit the City to any one course of action. Broadband Strategic Plan Project Q: Why is the City looking at broadband? A: The City of Fort Collins, local education institutions, data oriented businesses, and community leaders recognize the increasing importance of broadband services to the community. The purpose of the Broadband Strategic Plan is to better understand the community’s current and future expectations regarding both residential and business broadband services and to then define a strategy for how those expectations can best be met. Legislative Issues Q: What is SB05-152, and how does it impact how broadband services are provided in a community? A: SB05-152 refers to a 2005 State Law that sets limits on local government involvement in providing broadband services. SB05-152 prohibits local government from having any direct or indirect involvement in providing broadband services, which includes providing free WiFi services in public places, entering into partnerships with private broadband providers to enhance local broadband services or providing any broadband services directly to residents or businesses. Overriding SB05-152 via a local vote allows the City to consider many more options to ensure that Fort Collins receives the broadband services it needs as a community. This ultimately means more choice for residents and businesses in how they receive their broadband services and from what providers. Q: What are the impacts of overturning SB05-152 locally? A: Voter approval of a ballot measure to set aside the SB05-152 restrictions does not commit a city to provide broadband services. A voter-approved exemption from SB-152 would restore the City’s autonomy to evaluate all possibilities for next-generation broadband services in Fort Collins. It supports local choice and options, allowing the community to make the best decisions based on the needs of our citizens. Voters in a number of Colorado communities (Centennial, Boulder, Estes Park, Longmont) have set aside SB05-152 restrictions to restore this local decision-making process. CITY OF FORT COLLINS BROADBAND INTERNET & SB-152 2015 As the demand for more advanced, reliable and affordable broadband service rises, the City must deﬁne its ongoing role. “Next generation” high-speed internet services are becoming important infrastructure for communities in the 21st century. WHAT IS FIBER-OPTIC BROADBAND? As more of daily life is carried out online, the importance of having high-speed, reliable Internet access grows for residents, businesses, schools, healthcare organizations and governments. Fiber-optic broadband is a solution that accommodates current and future needs for Internet access. Fiber-optic broadband provides Internet connectivity to homes and businesses through very small strands of glass instead of the copper wire found in traditional services such as DSL and cable. Fiber-optic broadband uses pulses of light to transmit data at greater speeds and with more reliability. Compared with traditional broadband, ﬁber-optic broadband speeds are typically 10 to 100 times faster, enabling residents and businesses to use more devices and applications simultaneously without slowdowns or connection issues. This means faster, more reliable access to the Internet. DOES THE CITY OWN ANY FIBER RESOURCES IN FORT COLLINS? Yes. The City currently has ownership or rights to many miles of underground conduit and ﬁber that is currently used to support the City’s operations. Some of this ﬁber could be used to support ﬁber-optic broadband expansion in the community; however, the City needs to analyze if and how its current resources may be used to achieve this goal. As the demand for affordable, next-generation broadband increases, the community must deﬁne the role the City plays in how these services develop in Fort Collins. Next-generation broadband has become critical for communities in the 21st century and cities across the country are considering their options to ensure their communities are connected. This information from the City of Fort Collins answers frequent fcgov.com/broadband questions about broadband internet and SB-152. LEARN MORE AT ATTACHMENT 2 UNDERSTANDING COLORADO SENATE BILL 152 Colorado Senate Bill 05-152 (SB-152) is a measure passed by the Colorado Legislature in 2005. Its intent was to limit governments from competing with the private sector. Among other provisions, it requires local governments to secure voter approval before entering into the broadband business. Without such approval, the law limits the ability of Colorado cities to provide a wide spectrum of services, including: HOW WOULD AN EXEMPTION FROM SB-152 BENEFIT FORT COLLINS? A voter-approved exemption from SB-152 would restore the City’s autonomy and ability to evaluate all possibilities for next-generation broadband services in Fort Collins. An exemption supports local choice and options, allowing the City and citizens to make the best decisions based on the needs of our community. Fort Collins is home to Colorado State University and an outstanding public school system that use the Internet for world-class research and business. Fort Collins is also home to a unique blend of big and small technology companies and other innovative, unique businesses. Fort Collins has a tech-savvy culture and a strong economic base with diverse employment opportunities that could beneﬁt from enhanced broadband services. Some of the outcomes could include: Intensiﬁed Innovation by local businesses and entrepreneurs who are already nationally recognized for spurring new startups, ideas and technologies. Better access to high-speed broadband would increase the City’s ability to retain companies that demand this level of service. A More Connected Community, with new avenues for public engagement in local decision-making, new frontiers for digital governance, and new opportunities for connected social spaces and creative networking. Enhanced Efﬁciency and Improved Quality of Life, as Fort Collins residents and businesses would be able to do more, more quickly and with less frustration, leaving more time for enjoying the great outdoors. Inclusive Internet Access, by partnering with local institutions such as CSU, Front Range Community College and the Downtown Business Association to ensure that more citizens are connected and empowered to participate, innovate, and succeed thereby reducing the digital divide. Reductions in Carbon as high-speed Internet empowers employees to work more effectively from home and allows local businesses to support clients worldwide, without having to travel. HOW WOULD THIS IMPACT MY INTERNET ACCESS? The City’s goal is to ensure that our residents, businesses and community anchors are equipped with the Internet services they need, now and in the future. There are many ways that the City can support development of next-generation broadband in our community and we will explore all feasible options to achieve this goal. PUBLIC ENGAGEMENT PLAN PROJECT TITLE: BROADBAND OVERALL PUBLIC INVOLVEMENT LEVEL: COLLABORATE BOTTOM LINE QUESTION: What is the community vision and need regarding broadband? What is the City’s role in achieving the vision and meeting the need? KEY STAKEHOLDERS: - Neighbors/Residents - Business Community - Medical Industry - Education Institutions (CSU, FRCC, PSD) - Development Community - Current and Possible Service Providers - PRPA - Boards and Commissions: EAC, DDA - Citizens TIMELINE: March 2015 - 2016 Phase 1: Involve/Collaborate Timeframe: March-November 2015 Key Messages: (Need to educate public and set stage for informed discussions/visioning)  As the demand for more advanced, reliable and affordable broadband service rises, the City must define its ongoing role in ensuring access is provided.  "Next generation" high-speed internet services are becoming important infrastructure for communities in the 21st century. This demand for service is challenging local communities to develop effective strategies for connecting citizens, businesses and institutions  What are the community needs and desires regarding broadband?  SB05-152 prohibits local government from having any direct or indirect involvement in providing telecommunications services.  Overriding SB05-152 via a local vote allows the City to consider many more options to ensure that Fort Collins receives the broadband services it needs as a community. Tools and Techniques:  Webpage-develop and promote informational webpage to be used throughout project for information, updates, and project tracking.  Board and Commission Super Meeting – July29. Educate, share feedback to date, and provide timeline to ensure B&C feedback prior to Council work sessions/meetings.  Open Houses-July 16 and August 12 to educate citizens on issue and possibilities.  Social media/Online Engagement. PHASE 2: Involve/Collaborate Timeframe: November 2015-April 2016 (Assuming SB-152 Exemption) Key Messages: (Use benchmark and feasibility data to further determine community desires for broadband)  Continue Education and share public feedback to date.  Share Benchmarking and Market Analysis results (form questions based on results.)  We have options as a community…what is desired? ATTACHMENT 3 Tools and Techniques:  Website  Soapbox  Social media/Online Engagement  Follow-up with interested Boards and Commissions  Host Community Issue Forum with Center for Public Deliberation  Stakeholder specific focus groups  Open Houses PHASE 3: Inform and Consult/Involve Timeframe: April 2016-December 2016 Key Messages: (Convey recommended outcome and solicit feedback)  Actions and study results to date.  Highlight recommended option, determine if community supports. Tools and Techniques:  Website  Open Houses – final feedback  Social media/Online Engagement Project Update July 28, 2015 1 ATTACHMENT 4 Overview • Project Changes • SB-152 November 2015 Overview • Project Modified Timeline (assumption of SB-152 Exemption Approval) 2 Original Timeline – March 24, 2015 3 March April May June July August September October November December Phase 1 Gather Benchmark & Market Data Phase 2 Community Engagement Phase 3 Feasibility Study March 24 Council Work Session July 28 Work Session December 8 Recommendation to City Council Current Timeline – July 16th 4 Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Phase 1 - Benchmark/ Case Write-ups Phase 2 – SB152 Comm Engagement Phase 3 Feasibility Study March 24 Council Work Session July 28 Work Session Summer 2016 Recommendation to City Council November 3 Election Ballot Set Start Quiet Period Phase 2 – City Role Comm Engagement City must be silent on issue after referral June 2015 Election November 3 Ballots Mailed October 12-16 Council Meeting: Preferred Date to Refer Ballot Language August 18 July 28 Council Meeting : Second Reading of Ordinance calling Special Election August 18 Public Engagement Begins June Council Meeting : First Reading of Ordinance calling Special Election July 21 SB-152 Timeline – November Election November 2015 Market Analysis Begins Late August Council Work Session: Project Update 6 Core Team – Work to Date • Team visit to Longmont • Review of financials, operations, marketing, customer service, billing system • Seminars & Conferences - 2015 • SeonAh attended Gigabit City Summit, Kansas City, KS – January • Ginny and Andres attended Broadband Communities Summit, Austin, TX – April • Tom and Andres attended Mountain Connect, Vail, CO – June • Other Presentations • Open House: Comcast Franchise Renewal and Broadband – May 4 • Over 40 attended • SeonAh presented to the Energy Board – May 7 • Mike and Jessica presented to the Fort Collins Chamber LLAC – May 8 • Joined Next Century Cities – promotes broadband 7 Core Team – Work to Date • Website Update • http://www.fcgov.com/broadband/ • 1st newsletter “Broadband Update – July 2015” went out on July 8 • Available eNewsletter sign up • Updated contact info to broadband@fcgov.com • Meeting with Loveland’s Broadband Project Team • Mike, Jessica and SeonAh met with Loveland’s team to discuss commonalities, challenges and possible future meetings • Next scheduled meeting is Friday, July 24 • Magellan hired for Benchmarking and Engagement 8 SB-152 Work to Date • Materials produced • Brochure • FAQ updated – modeled after Estes Park • Ads ready to run • Darin’s “In the City” column (http://www.coloradoan.com/story/news/2015/07/13/fort-collins- broadband-vote/29671185/) • Citizen Champion Team in process • Team selection under review – Darin • Team Role – support election as needed during silent period 9 SB-152 Outreach • Boards & Commission Updates • Economic Advisory Commission – July 15 • Super Boards & Commission meeting – July 29 • Other Outreach • Fort Collins Chamber LLAC – August 14 • CSU Lagoon Series – July 1 – August 18 • North Fort Collins Business Association – July 22 • South Fort Collins Business Association – August 11 • New West Fest – August 14 – 16 • SB-152 Engagement Open House meetings scheduled • July 16 & August 12 Potential Ballot Language PROPOSED CITY-INITIATED REFERENDUM SETTING ASIDE LIMITATIONS ON LOCAL GOVERNMENT COMPETITION IN UTILITY AND ENTERTAINMENT SERVICES UNDER TITLE 29, CHAPTER 27 OF THE COLORADO REVISED STATUTES – SB05-152 Without limiting its home rule authority, and in order to restore local authority, shall the City of Fort Collins be authorized to provide, either directly or indirectly with public or private sector partners, high-speed internet services (i.e. “advanced services”), telecommunications services, and cable television services to residents, businesses, schools, libraries, nonprofit entities and other users of such services located within the boundaries of the City of Fort Collins growth management area, as expressly permitted by §§ 29-27-101 to 304 of the Colorado Revised Statutes? 10 11 Upcoming Project Tasks Benchmarking, Case Studies & Market Analysis • Precursors to the feasibility study • Knowledge building about municipal broadband options • Benchmarks for comparison in the feasibility study • Baseline knowledge of Fort Collins’ local broadband environment 12 Upcoming Project Tasks Benchmarking & Case Studies • Knowledge building for Fort Collins team • Document 15-20 cities implementing municipal broadband • Cities similar to Fort Collins – university community, population, market • Case studies: Successes, failures, best practices, goals, obstacles • Financial metrics: Funding, revenue, uptake, profitability, return • Relevant inputs to the feasibility study • Use benchmarks to forecast outcomes in the feasibility study 13 Upcoming Project Tasks Market Analysis • Document existing broadband market in Fort Collins • Use mapping to illustrate how community is served • Document providers, services, pricing, availability • Gaps, types of issues, severity • Review of existing local policy • Groundwork for analysis in the feasibility study 14 Questions and Discussion ARE OTHER COLORADO CITIES EXEMPT FROM SB-152? Voters in nearly a dozen Colorado cities and counties have exempted themselves from SB-152, passing measures that afﬁrm their local choice to decide how broadband services develop in these communities. Exemptions have been approved in Boulder, Longmont and Estes Park. Dozens of other states in the U.S. and many other countries allow and encourage local governments to be actively involved in how broadband develops within their jurisdictions. In the US alone,more than 500 cities and counties have actively used their infrastructure and resources to expand broadband for the beneﬁt of their communities. • Free Internet service in city libraries, parks and community centers (while these services are provided by most governments, they are nonetheless prohibited by the law and could be challenged by existing Internet access providers) • Leveraging government fiber infrastructure and partnering with private businesses to provide affordable and high-speed Internet service throughout the entire community • Directly providing Internet and other broadband services to residents and businesses