Title
Discussion on Broadband Initiative (B)
Explanation
At the City Commission Meeting of March 3, 2022, the City Commission passed the following motion:
Request that the consultants work with city staff on a business plan for the priority one area as a pilot project, with a future option to expand citywide; to use a maximum of $9.6 million in ARPA funds and not to add new debt; to include wireless deployment in the plan; and for Magellan Consultants to work with GRU on the business plan. GRU schedule follow-up item combining broadband with GRU Committee report item.
Since the March meeting, City Staff has reviewed the models used by Magellan advisors.
Fiscal Note
$9.6 million of ARPA funds the pilot. If financial projections are not met, shortfalls must be paid. There are no additional funds available to pay for potential shortfalls. Potential additional legal expenses are unknown.
Strategic Connection:
Goal 1: Equitable Community and Goal 5: Best in Class Neighbor Services
Recommendation
City staff recommend that the City Commission hear from Magellan Advisors about the Broadband Business Model requested via the motion and from City Staff on the remaining implications for the financial, legal and risk mitigation perspectives.