TO: City Council DATE: March 11, 2025 DEPARTMENT: Economic Development Department
PREPARED BY: Sarah McCormick, Economic Development Manager PRESENTER: Sarah McCormick, Economic Development Manager AGENDA TITLE: Receive Report and Consider Adoption of City Council Resolution Awarding Construction of Municipal Broadband Utility Project (PWP-00130) to HP Communications, Inc, as the Lowest Responsible Bidder, Authorizing City Manager to Execute Contract Following City Attorney Approval As To Form (Amount Not To Exceed $9,996,165.75), and Finding the Project Exempt from CEQA under 14 CCR 15301(b), 15302(c), 15304(f)
RECOMMENDATION
Adopt City Council Resolution Awarding Construction of Municipal Broadband Utility Project (PWP-00130) to HP Communications Inc., as the Lowest Responsible Bidder and Authorizing City Manager to Execute Contract Following City Attorney Approval As To Form (Amount Not To Exceed $9,996,165.75), and Finding the Project Exempt from CEQA under 14 CCR 15301(b), 15302(c), 15304(f).
BACKGROUND
Broadband deployment is a cornerstone initiative aimed at invigorating economic opportunity, fostering community vibrancy, and bridging the digital divide in Fort Bragg. The project prioritizes the development of affordable, reliable high-speed fiber-optic infrastructure to enhance existing businesses, attract a diversity of new businesses, support online education and healthcare, enable remote work, and connect Fort Bragg globally.
Project construction includes the underground installation of digital infrastructure utilizing horizontal directional drill boring within existing right of way. Conduit and fiber will be placed under sidewalks and alleyways. Vaults, handholes, and flower pots will be installed flush to surfaces.
The network includes a centralized data center at C.V. Starr equipped with core-routing, firewall, maintenance switches, and Optical Line Terminal (OLT) equipment. This data hub connects to fifteen (15) Distribution Areas (DAs), which aggregate fiber locations and distribute connectivity via underground conduit and fiber. From each DA, fiber cable extends to local service terminals (flowerpots), with final underground drops installed upon service requests, ensuring flexibility and responsiveness to user needs.
The City’s last-mile network will connect to the California Middle Mile Initiative, enhancing reliability and redundancy while also ensuring all residents and businesses have access to industry leading speeds.
DISCUSSION AND ANALYSIS
Bids to construct the Municipal Broadband Utility Project were opened on Thursday, February 27, 2025, at 2:00 PM. One timely bid was received from HP Communications, Inc. for a total of $9,996,164.75. The bid received is considered responsive and responsible. Staff recommendation is to accept the proposal by HP Communications, Inc.
FISCAL IMPACT/FUNDING SOURCE
The City of Fort Bragg received $10.3 million of Federal Funding Account Program grant funds, and Congressman Huffman approved $1 million of Community Project Funding to construct this project. Council has directed staff to utilize debt financing and unidentified grant program awards to finance the remaining funds needed for this capital improvement project originally estimated at $14.7 million. UPDATE: Project costs have increased 17%, for a total estimated cost of $17.2 million.
Staff is currently working on due diligence activities to acquire Mendocino Community Network, as well as potential debt financing strategies to close the funding gap. In addition, staff is preparing to apply for California Broadband Equity, Access, and Deployment (BEAD) program grant funds. The grant application window opens on March 25 and ends on April 23, 2025. Nationally, the BEAD Program will provide $42.25 billion. California has been allocated approximately $1.86 billion, which is based on California’s share of unserved locations.
In addition, California was awarded a $70.2 million Digital Equity Capacity Grant by the National Telecommunications and Information Administration (NTIA) to support the California Digital Equity Plan. Staff is tracking digital literacy grant programs in order to bring digital inclusion activities, and training programs, and make equipment available to community members.
ENVIRONMENTAL ANALYSIS:
The City determined the Municipal Broadband Utility Project is exempt under the following California Environmental Quality Act (CEQA) Section(s):
Class 1: CEQA Section 15301 provides examples of existing facilities including (b) existing facilities of both investor and publicly-owned utilities to provide electric power, natural gas, sewerage, or other public utility services”. The proposed project is a public utility service – one of three public utilities provided by the City of Fort Bragg (water, wastewater, broadband).
Class 2: Should replacement or reconstruction of water and/or wastewater utilities be necessary, CEQA Guidelines Section 15302(c) allows for the such work so long as work involves negligible or no expansion of capacity.
Class 4: The primary construction method involves Horizontal Directional Drilling with little impact to street, alley and sidewalk surfaces. Any damaged surfaces will be restored to condition existing prior to the undergrounding. Should minor trenching and backfill be necessary, Section 15304 exempts minor alterations to land including subsection (f) ”minor trenching and backfilling where the surface is restored”.
CEQA Section 15300.2 contains exceptions to Categorical Exemptions, none of which apply to this project because:
a) the project location is within a previously disturbed area (existing street/alley/sidewalk), NOT within a particularly sensitive environment; b) the project has a single scope and contains design considerations to accommodate future unknown needs that will avoid cumulative impacts to street infrastructure and traffic; c) the project involves minor alterations to existing streets, alleys, and sidewalks within existing right-of-way, and within existing disturbed areas; d) the project is not occurring within an officially designated state scenic highway; e) the project will not be deployed on a hazardous waste site. Should the project expand to the former Mill Site, appropriate steps will be taken to ensure authorization and compliance with Department of Toxic Substance Control and Coastal Act requirements. f) the proposed project will be underground and not cause substantial adverse change in the significance of historical resources. The City coordinates with Sherwood Valley Band of Pomo Indians to ensure tribal monitoring during ground disturbing activities.
STRATEGIC PLAN/COUNCIL PRIORITIES/GENERAL PLAN CONSISTENCY GOAL 1: Invigorate Economic Opportunity and Community Vibrancy 1D. Develop and maintain affordable and reliable high-speed fiber-optics infrastructure to support and attract diverse businesses, online education, and remote employment that will connect Fort Bragg to the world.
Construct, manage, and maintain a municipal broadband utility that provides citywide access to underground networks with industry-leading speeds to provide secondary communications during emergencies and support businesses.
COMMUNITY OUTREACH
Action will be taken to ensure the community is aware of construction activities. This will be accomplished with press releases, social media, utility bill inserts, door hangers, announcements at public meetings, posters, and signage.
ATTACHMENTS:
Resolution XXXX-2025
Agreement
NOTIFICATION:
“Notify Me’ subscriber lists: Economic Development Planning; Fort Bragg Downtown Businesses; and Blue Economy HP Communications, Inc.
AGENDA ITEM NO. 8D
CITY COUNCIL STAFF REPORT