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 Approving City Council Resolution Approving OMNIA Partners Cooperative Purchasing Agreement for Municipal Broadband Utility Project, PWP-000130, Authorizing City Manager to Execute Contract (Amount Not to Exceed $1,190,313.31); and Finding the Project Exempt from CEQA under 14 CCR 15301(b), 15302(c), 15304(f)
RECOMMENDATION
Adopt City Council Resolution Approving OMNIA Partners Cooperative Purchasing Agreement for Municipal Broadband Utility Project, Public Works Project No. 130, Authorizing City Manager to Execute Contract (Amount Not to Exceed $1,190,313.31), 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.
The City’s 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
The construction window for the Municipal Broadband Utility Project is constrained due to the use of American Rescue Plan Act (ARPA) funds that expire in December 2026. Given the short construction window and supply chain timelines, California Public Utility Commission (CPUC) staff recommended the City purchase major construction materials, so that when a Contractor is secured, work can immediately commence.
Fort Bragg Municipal Code (FBMC) Section 3.20.030 (F) allows for exemptions to the City’s standard purchasing procedures if:
Contracts for which other public agencies have gone through a competitive bidding process and are able to have the bid prices they received extended to the City. These “cooperative purchasing” or “piggyback purchasing” agreements (including, but not limited to, CCOP State Department of General Services, U.S. General Services Administration, any county, and state cooperative purchasing pools) in which the City is eligible to participate may be used in lieu of any bidding requirement under this chapter.
Graybar Industries is a leading distributor of data communication products, an MMBI logistics provider, and is part of the OMNIA Public Sector Program. OMNIA is the largest cooperative purchasing organization dedicated to public sector procurement. Contracts available through OMNIA provide a mechanism to reduce procurement time, while also ensuring consistent and competitive pricing.
Graybar has a 26-year history with OMNIA as a supplier for Communication/Data needs. The lead public agency the City would be piggybacking from is the City of Kansas City, Missouri – Contract No. EV2370. Please see attached quote for product details and costs (Att. 2 – Graybar Quote).
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 currently preparing to apply for California Broadband Equity, Access, and Deployment (BEAD) program grant funds. The grant application window opens in March 25 and ends 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 implement digital inclusion activities, training programs, and to make equipment available to community members.
EVIRONMENTAL 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 communication during emergencies and support businesses.
ATTACHMENTS:
Resolution XXXX-2025
Graybar Quote
NOTIFICATION:
“Notify Me’ subscriber lists: Economic Development Planning; Fort Bragg Downtown Businesses; and Blue Economy Sergio Velasqez, OMNIA Partners Public Sector
Chris Alben, Graybar Representative
AGENDA ITEM NO. 8B
CITY COUNCIL STAFF REPORT