11-F
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to authorize the City Manager to purchase customer premise equipment (“CPE”) from International Communications Corporation (dba: ICC Networking/ICCN) in accordance with AFN 904.
DATE: January 24, 2022
EXECUTIVE SUMMARY
In April 2021, ICCN was selected by City Council to develop and carry out a citywide wireless network program with an initial focus on connecting the City’s downtown and public facilities; and eventually expanding to the City as a whole. As part of the Master Right of Way Agreement with ICCN approved on August 23, 2021, the City had the option to jointly purchase in-home customer premise equipment (CPE) with ICCN to allow qualifying households to extend the free city network into their premises. The City would contribute $100 per unit per household and ICCN would contribute $150 per unit, per household.
On December 9, 2021, the City Council allocated $1,000,000 in American Rescue Plan Act (ARPA) funds to the purchase of in-home CPE to be available to low- and moderate-income households as defined by federal regulations.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to purchase CPEs from ICCN in an amount not to exceed $1,000,000 in two installments: $250,000 in fiscal year 2021-22 and $750,000 in fiscal year 2022-23. Any delivery of the CPEs must be secured by a surety in a form approved by the City Attorney; and
2) Approve a budget amendment to establish the allocation for Account No. 920-44104- 8020-COR by $250,000 in fiscal year 2021-22 and $750,000 in fiscal year 2022-23; or
3) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
$1,000,000 in ARPA funds to purchase in-home CPEs from ICCN for the low- and moderate- income households as permitted by federal regulations.
Staff Report – Purchase Order with ICC Networks for In-Home Wireless January 24, 2022
DISCUSSION
In April 2021, ICCN was selected to by City Council to develop and carry out a citywide wireless network program with an initial focus on connecting the City’s downtown and public facilities; and eventually expanding to the City as a whole. As part of the Master Right of Way Agreement with ICCN, approved on August 23, 2021, the City had the option to jointly purchase in-home customer premise equipment (Equipment) with ICCN to allow qualifying households to extend the free city network into their premises. The City would contribute $100 per unit per household and ICCN would contribute $150 per unit, per household.
On December 9, 2021, the City Council allocated $1,000,000 in American Rescue Plan Act (ARPA) funds to the purchase of 10,000 in-home Equipment units to be available to low- and moderate-income households as defined by the U.S. Treasury in the Final Rule, released in January 2022 and effective on April 1, 2022.
The in-home Equipment, is an eligible expense for ARPA funding under Section 2.4 – Negative Economic Impacts – Household Assistance: Internet Access Programs, and, in conjunction with the Citywide Wireless Network, meets the speed requirements outlined by federal regulations.