Fremont City Council Meeting: 09/03/24 07:00 PM
3300 Capitol Avenue Div/Dept: Information Technology Services Fremont, CA 94538 Category: Grants
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5232) DOC ID: 5232
Updated: 8/28/2024 8:23 AM by Susan Gauthier Page 1
LAST MILE FEDERAL FUNDING ACCOUNT (FFA) GRANT FUNDS - Accept and Appropriate the Last Mile Federal Funding Account (FFA) Grant Funds in the amount of $7,690,056.20 for the City of Fremont Last Mile Broadband Project.
Contact Persons:
Name: Jeremy Huynh Sanford Taylor
Title: Management Analyst II IT Director
Div/Dept: Information Technology Services Information Technology Services Phone: (510) 494-4847 510-494-4802
E-Mail: [email protected] [email protected]
Executive Summary: Staff seek City Council approval to accept a grant award obligated by the State of California Public Utilities Commission (CPUC) to the City of Fremont in the amount of $7,690,056.20, to authorize the City Manager or her designee to execute all necessary agreements and documents in connection with the grant award with the CPUC, to appropriate and use the funds for the Last Mile Broadband Project deployment, and provide broadband services to unserved and underserved constituents in the City of Fremont.
BACKGROUND: On July 20, 2021, Governor Gavin Newsom signed into law Senate Bill 156, which included a $2 billion Federal Funding Account grant program, funded through the federal American Rescue Plan Act of 2021 (Public Law No. 117-2) and administered by the California Public Utilities Commission (CPUC) for last-mile broadband infrastructure projects to connect unserved and underserved Californians.
On April 22, 2022, the CPUC issued rulemaking 20-09-001, adopting rules for the Federal Funding Account grant program; creating a framework for public agencies and broadband service companies to apply for the grant program.
DISCUSSION/ANALYSIS: On July 19, 2022, the City adopted a Citywide Fiber Optic Master Plan. The plan identifies several areas containing unserved or underserved households and businesses within the City limits.
Staff identified the Last Mile Federal Funding Account (FFA) Grant program as a potential funding source for the City broadband infrastructure project to serve unserved or underserved households in the City. In addition, on July 7, 2023, the CPUC awarded the City the Local Agency Technical Assistance Grant (LATA) for up to $500,000 to reimburse the cost of developing the Citywide Fiber Optic Master Plan, engineering services for drafting construction plans, and engineering services for the City Last Mile Broadband Project.
In partnership with Learn Design Apply (LDA) and Entrust Solutions Group (Entrust), City staff submitted an application on September 28, 2023, for a total of $7,690,056.20 in requested funding.
On July 24, 2024, the CPUC notified the City of its intent to award grant funding in the amount of $7,690,056.20. Funds allocated by the CPUC shall be available for expenditure until December 31, 2026.
Council Staff Report (ID # 5232) Meeting of September 3, 2024 Updated: 8/28/2024 8:23 AM by Susan Gauthier Page 2
The FFA grant funding will enable the City to construct a Fiber-to-the-Premises (FTTP) network to connect unserved households, businesses, and anchor institutions. In the project design, Staff prioritizes unserved and underserved locations to provide affordable, reliable broadband to the most vulnerable groups within the community, small businesses, and those most impacted by the digital divide.
In total, Staff anticipates 514 new passings to unserved locations. Subscribers to this new network will have access to affordable broadband tiers ranging from 50 Mbps to 10 Gbps provided by the City’s ISP partner.
Staff recognizes that within such a diverse and densely populated region, the network developed as part of this project is one step among many to close the digital divide and continue our transformation into a Smart City. By focusing on unserved and underserved locations in emerging communities and small businesses, Staff seeks to prioritize those with the greatest need; however, the intent of the Citywide Fiber Optic Master Plan is to provide robust broadband connectivity across the City. Infrastructure delivered through this portion of the plan will enable future projects, such as Traffic Signal Modernization and further business service opportunities.
Construction for this project is estimated to be completed within 18 to 24 months.
Staff estimates the project timeline to be as follows:
• Design Engineering – Q1 2025
• CEQA Review (exempt) – Q1 2025
• Permitting – Q1 & Q2 2025
• Construction bid – Q2 2025
• Staking & Preconstruction – Q3 2025
• Backbone construction – Q4 2025, Q1 & Q2 2026
• Splicing and network connections – Q3 2026
• Grant funded service drop installation – Q4 2026
• Network Launch – Q4 2026
FISCAL IMPACT: Staff recommends that the City Council accept the Last Mile Federal Funding Account (FFA) Grant award for the City of Fremont Last Mile Broadband Project of $7,690,056.20 and recognize and appropriate the Last Mile Federal Funding Account (FFA) Grant revenue in the Federal Capital Grants Fund, PWC9118-522.
ENVIRONMENTAL REVIEW: The recommended action related to accepting and appropriating the State of California Public Utilities Commission grant award is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5) and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
Subsequent planning for the City of Fremont Last Mile Broadband Project will include a community outreach process and preparation of an environmental clearance in accordance with CEQA guidelines.
Council Staff Report (ID # 5232) Meeting of September 3, 2024 Updated: 8/28/2024 8:23 AM by Susan Gauthier Page 3
ATTACHMENTS: None.
RECOMMENDATIONS:
1. Accept the Last Mile Federal Funding Account Grant funding in the amount of $7,690,056.20.
2. Appropriate $7,690,056.20, as well as any additional supplemental funding, in the Federal Capital Grants Fund, PWC9118-522.
3. Authorize the City Manager or her designee to execute all necessary agreements and documents in connection with the grant award.