1 STAFF REPORT
DAT
E: September 13, 2022
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Jim Compton, Assistant General Manager, Operational Technology BY: Daniel Lippert, Manager, Telecommunications
S
UBJECT: Adoption of a Resolution to Authorize Burbank Water and Power to Accept a Grant Award from the U nited States Economic Development Administration in the amount of $85,000 for the American Rescue Plan Act Economic Adjustment Assistance Technical Assistance Program
RECOMMENDATION
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURBANK
AUTHORIZING THE ACCEPTANCE OF A GRANT FROM THE UNITED STATES ECONOMIC DEVELOPMENT ADMINISTRATION FOR THE 2022 TECHNICAL ASSISTANCE PROGRAM: BURBANK MASS MARKET BROADBAND FEASIBILITY
STUDY, AND AUTHORIZING THE BURBANK GENERAL MANAGER, AS DESIGNEE OF THE CITY MANAGER, TO ACCEPT A GRANT AGREEMENT (Attachment 1).
BACKGROUND
Burbank Water and Power (BWP) continuously monitors and researches available grant opportunities to supplement its revenue sources, make internal projects and customer programs more cost-effective, and reduce the impact of costs on customers’ bills.
BW
P identified a grant opportunity from the United States Economic Development Administration (EDA) that will provide funding for a study on the feasibility of providing broadband services to residents and businesses citywide.
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taff frequently receives inquiries from members of the public expressing interest in the availability of broadband services and whether BWP can deliver such service s as an alternative to those offered by the national providers. Performing a formal feasibility study will provide the necessary guidance as to whether it is in the best interests of the city to undertake such a large capital program as would be required to offer service on a large- scale residential and mass market commercial basis.
WATER AND
POWER
2 DISCUSSION
BWP operates an extensive fiber -optic network connecting utility and city buildings, in addition to providing broadband service throughout the Burbank Unified School District .
Additionally, BWP’s ONEBurbank ( Optical Network Enterprise) program provides dedicated internet access (DIA) service, ultra-high speed point-to-point data transfer, dark fiber leasing and other related services to approximately 200 commercial customers.
These are premium enterprise- grade services with a high degree of symmetric speeds and reliability guaranteed by service level agreements (SLA). The ONEBurbank program has been very successful with a high level of customer satisfaction and is self-supporting.
City staff is frequently asked whether BWP’s fiber program can be expanded to provide residential and mass market commercial broadband service in addition to the ONEBurbank services currently offered. With the rise of work-from-home practices and the ever-increasing need for internet access in people’s daily lives, having reliable, affordable, high-speed internet access increasingly seems more like a necessity rather than a luxury and helps to bridge the digital divide.
From a technical standpoint, BWP is capable of providing broadband services to all customers in Burbank, however , there are large financial investments, significant operational costs, formidable competition involved in undertaking such a large new capital program, and a risk that there will not be a sufficient return on investment . A feasibility study would allow BWP to better define the expected capital investments , operating expenses, pricing, and market penetration for these new services.
The EDA offers a technical assistance grant program that provides funding for engineering and feasibility studies. BWP applied for and was awarded a grant through this program to cover a portion of the costs involved in conducting a broadband feasibility study.
FISCAL IMPACT
The funding request for this grant is $170,000 with a required local match of 50% of total project costs. BWP will receive $85,000 in grant funding from the EDA. BWP’s match of $85,000 will be funded from approved fiscal year 2022-2023 funds which will be sourced from the BWP Operational Technology Division’s cost centers 496.PS81A.15022.24437.0000 and 496.PS45A.15042.22359.0000 (2301373-01).
CONCLUSION
Staff recommends that the City Council approve the resolution to accept a grant award from the U.S. Economic Development Administration for the American Rescue Plan Act Economic Adjustment Assistance Technical Assistance Program, and authorize the BWP General Manager, or their designee, to accept grant agreements.
ATTACHMENTS
Attachment 1 – Resolution