Energy Conservation, Generation, and Storage Assessment City of Pinole
75 D. Funding Sources
D.1 Self-Generation Incentive Program (SGIP)
Description
The SGIP is a California Public Utilities Commission (CPUC) program that offers rebates for installing energy storage technology at your facility. These storage technologies include battery storage systems that can function in the event of a power outage. Currently, the rebate is 15 to 20% of the average battery cost and is open to all PG&E customers.
SGIP may cover the full cost of the battery up to $1,000 kWh of battery storage if you:
• Live in Tier 2 or Tier 3 High Fire-Threat Districts (HFTD), or • Have experienced more than two Public Safety Power Shutoffs (PSPS) • And meet one of the following:
o Use life-support equipment.
o Meet income eligibility standards.
o Rely on an electric well pump for water.
o Have incentives reserved in the income-qualified solar programs (SASH or DAC-SASH) Eligible Measures
The following recommended measures would be eligible for this program:
C.1 Senior Center Microgrid
0 Wastewater Treatment Plant Microgrid
Application Process
Pinole can apply for an SGIP incentive through an eligible installer. The list of eligible installers can be found here:
sgip-installers-2020.pdf (ca.gov)
To get more information on the program and eligibility requirements Pinole can work with its account representative or the SGIP team here:
Email: [email protected]
Customer Service Center: 415-973-6436
Pinole can also set up an account with the SGIP here:
https://www.selfgenca.com/register/
Energy Conservation, Generation, and Storage Assessment City of Pinole
76 D.2 MCE’s Commercial Efficiency Market program
Description
MCE Community Choice Energy is a not-for-profit energy aggregator that serves communities in Contra Costa, Marin, Solano, and Napa counties, including Pinole. They operate energy programs funded by rate payers in the region. Their Commercial Efficiency Market program offers incentives for implementing long-term energy efficiency measures. Incentives are tied to the calculated kWh for a project. These incentives are tied to projects when buildings are going above and beyond the energy codes, so some of the maintenance related measures will not be eligible. Incentives are available for the following measures:
• Building Envelope
• Chillers
• HVAC
• Lighting
• Process
• Water Heating
Eligible Measures
The following recommended measures would be eligible for this program:
C.5 Demand Control Ventilation
C.6 Duct Air Temp and Hot Water Reset
C.11 Fire Station Garage AHU Rehab and DCV
C.14 Pool Pump VFD Controls
Application Process
To apply and get more information on the program and eligibility requirements, Pinole can register here:
Commercial - FLEXMARKET (demandflexmarket.com)
Projects must be registered with MCE to check eligibility and calculate eligible savings. Once a project is approved, MCE provides 20% of the incentive money upfront to aid in the execution of the project.
Energy Conservation, Generation, and Storage Assessment City of Pinole
77 D.3 MCE’s Peak FLEXMarket Program
Description
MCE also provides incentives for projects that can reduce a building’s power demand on days when the grid is strained. This corresponds to the hottest days of the year and frees up grid capacity to provide the cooling needed to California utility customers.
Eligible Measures
The following recommended measures would be eligible for this program:
C.4 Energy Dashboard and Demand Management
Application Process
To apply and get more information on the program and eligibility requirements, Pinole can register here:
Commercial - FLEXMARKET (demandflexmarket.com)
Projects must be registered with MCE to check eligibility and calculate eligible savings. The incentive is paid out when demand curtailment occurs. No money is paid upfront, but demand response incentives can be paid for years to come.
Energy Conservation, Generation, and Storage Assessment City of Pinole
78 D.4 Inflation Reduction Act (IRA) Direct Pay Tax Credits Description
The Inflation Reduction Act extends many of the law’s tax incentives to entities that generally do not benefit from income tax credits, such as state, local, and Tribal governments and other tax-exempt entities. Specifically, these entities can elect to receive some of the Inflation Reduction Act’s tax credits in the form of direct payments. The act also makes certain tax credits transferable. In these cases, taxpayers that are generally ineligible for direct payment of credits may transfer all or a portion of certain credits to an unrelated party in exchange for cash.
Details on each tax credit can be found on the IRS website here: Publication 5817-G (6-2023) (irs.gov).
The following tax incentives are now eligible for direct pay:
• Clean Electricity Production Tax Credit
• Clean Electricity Investment Tax Credit
• Low-Income Communities Bonus Credit
• Credit for Qualified Commercial Clean Vehicles
Eligible Measures
The following recommended measures would be eligible for this program:
C.1 Senior Center Microgrid
0 Wastewater Treatment Plant Microgrid
C.3 Electric Vehicle Charging Stations
Application Process
To take advantage of this incentive, Pinole will need to register a project with the IRS. This can be done by an authorized representative of the City of Pinole on the IRS’s online portal here:
Register for elective payment or transfer of credits | Internal Revenue Service (irs.gov) Once a project is registered and completed, Pinole will include the credit on its tax filling in the following year.
Pinole can receive the full value of the credit because the IRS treats the elective payment amount as a tax payment.
The IRS then counts it as overpayment on the return and refunds it to the entity.
Energy Conservation, Generation, and Storage Assessment City of Pinole
79 D.5 Energy Conservation Assistance Act (ECAA) Low-Interest Loan Program Description
The ECAA program provides 1% interest loans for eligible energy projects up to $3 million. Projects with proven energy or demand cost savings or both are eligible. Examples of projects include:
• Lighting system upgrades.
• Pumps and motors.
• Streetlights and LED traffic signals.
• Energy management systems and equipment controls.
• Building insulation.
• Energy generation including renewable and combined-heat-and-power projects. • Heating, ventilation, and air-conditioning equipment. • Water and wastewater treatment equipment.
• Load-shifting projects, such as thermal energy storage. • Energy storage systems.
• Electric vehicle charging infrastructure used to power public fleets.
Eligible Measures
All of the capital projects identified in this study are eligible for this program.
Application Process
To apply for a loan, Pinole must submit:
- A completed and signed Loan Application.
- A completed Summary of Measures in Loan Request.
- A Governing Body Resolution.
- California Environmental Quality Act (CEQA) Compliance Documentation. - Documentation of Applicant’s Authority.
- Utility Billing Data. The applicant must electronically submit 12 months of recent baseline utility data records from electric and natural gas utilities unless the information on utility usage and rate schedules is included in the feasibility study or energy audit report. - Feasibility Study or energy audit report.
All forms are located on the California Energy Commission’s website here:
PON-22-002 - Energy Conservation Assistance Act (ECAA) Low-Interest Loan Program
Energy Conservation, Generation, and Storage Assessment City of Pinole
80 D.6 Climate Pollution Reduction Grant (CPRG)
Description
The CPRG program provides $5 billion in grants to states, local governments, tribes, and territories to develop and implement ambitious plans for reducing greenhouse gas emissions and other harmful air pollution. Authorized under Section 60114 of the Inflation Reduction Act, this two-phase program provides $250 million for noncompetitive planning grants, and approximately $4.6 billion for competitive implementation grants.
The program is designed to enable states, municipalities, tribes, and territories to achieve the following goals:
• Implement ambitious measures that will achieve significant cumulative GHG reductions by 2030 and beyond.
• Pursue measures that will achieve substantial community benefits (such as reduction of criteria air pollutants (CAPs) and hazardous air pollutants (HAPs), particularly in lowincome and disadvantaged communities.
• Complement other funding sources to maximize these GHG reductions and community benefits. • Pursue innovative policies and programs that are replicable and can be “scaled up” across multiple jurisdictions.
Program details are described on the Environmental Protection Agencies website here:
cprg-general-competition-correction.pdf (epa.gov)
Eligible Measures
The following recommended measures would be eligible for this program:
C.1 Senior Center Microgrid
0 Wastewater Treatment Plant Microgrid
C.3 Electric Vehicle Charging Stations
Application Process
To begin the application process under this grant announcement, Pinole would go to Grants.gov and click the “Search Grants” tab. Search the opportunity number associated with this opportunity (EPA-ROAR-CPRGI-23-07).
Once the opportunity has been selected, click the red “Apply” button at the top of the “View Grant Opportunity” page.
The electronic submission of applications to this funding opportunity must be made by an official representative of the City of Pinole who has been registered and authorized by the organization to sign applications for federal financial assistance. Contact Grants.gov for assistance at 1-800-518-4726 or [email protected].
Energy Conservation, Generation, and Storage Assessment City of Pinole
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CITY COUNCIL
REPORT 12.B.
DATE: AUGUST 20, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: RECEIVE A REPORT ON MUNICIPAL BROADBAND FEASIBILITY STUDY REPORT (CIP# IN2102)
RECOMMENDATION
Receive a report on Municipal Broadband Feasibility Study and provide directions on next steps.
BACKGROUND
Over the past 20 years, communications, entertainment, and the internet have seamlessly merged into a unified media platform. This convergence is supported by the significant growth of network infrastructure capacity, delivered through broadband connections to the internet.
Broadband is a high-speed internet connection that allows video streaming and similar dataintensive applications. Broadband can be delivered through fiber optic cables placed above or below our streets and through wireless radio transmission by commercial service providers such as Verizon, Comcast, AT&T, Sonic, and others.
Access to affordable and reliable broadband is essential for our communities and is key to promoting equality. Today, we depend on broadband for education, workforce development, economic growth, healthcare, and public safety. According to the Public Policy Institute of California, 95% of Californians have internet access at home. However, those without broadband infrastructure face a significant disadvantage, experiencing what is known as the digital divide.
On April 11, 2023 City staff released a Request for Proposals (RFP) soliciting consultant proposals to complete a Broadband Opportunities Assessment. On June 20, 2023, a contract was awarded to CSW/ST2 to complete a broadband opportunities assessment. The scope for this study included Broadband Trends and Technology Review, Existing Service and Infrastructure Analysis, Gap Analysis, Public Assets Analysis, Enhancement Options, and Recommended Next Steps.
REVIEW AND ANALYSIS
Each year, the California Public Utilities Commission (CPUC) collects data to provide California residents and local agencies with information on broadband services. This data is presented in the California Interactive Broadband Map, which can be found at https://broadbandforall.cdt.ca.gov/interactive-broadband-map/. Based upon the most recent version of the map, Pinole is fortunate to have various internet service providers including
AT&T and Comcast as well as Sonic which is currently deploying in the City that offer wired internet connections to households.
To understand the current status of broadband connectivity within the community, CSW/ST2 completed an in-person meeting at the Pinole Senior Center as well as conducted an online survey. The study assessed five general factors: available assets, current state of the market, available funding, infrastructure requirements including a conceptual design, and estimated costs and potential revenue.
The attached Broadband assessment report provides further details.
FISCAL IMPACT
There is no fiscal impact to receive this report.
ATTACHMENTS
A. Municipal Broadband Assessment Report
CSWST2 | 121 Park Place, Richmond, CA 94801
City of Pinole
BROADBAND ASSESSMENT
June 2024 (Version 2.1)
DRAFT DOCUMENT – INTERNAL REVIEW ONLY
THIS PAGE IS INTENTIONALLY BLANK
PREPARED BY:
Robert Stevens, PE, TE
121 Park Place,
Richmond, CA 94801
Summary of Version Changes.
Not a public release document. This is a draft document for internal review only.
TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................................... 1 WHAT IS BROADBAND INTERNET? ............................................................................................................ 1 STATUS OF BROADBAND IN PINOLE.......................................................................................................... 4 OUTREACH .............................................................................................................................................. 8 MUNICIPAL NETWORK ........................................................................................................................... 16 RECOMMENDATIONS............................................................................................................................. 20 CONCLUSION........................................................................................................................................ 22
LIST OF FIGURES
Figure 1 Fiber optic cable serves as the backbone for broadband communications........ Error! Bookmark not defined.
Figure 2 The relationship between throughput, bandwidth and Latency ........... Error! Bookmark not defined.
Figure 3 Typical 5G wireless antenna ............................................................ Error! Bookmark not defined.
Figure 4 Broadband Availability in Pinole ....................................................... Error! Bookmark not defined.
Figure 5 Pinole Wireline Broadband Capacity ................................................. Error! Bookmark not defined.
Figure 6 T-Mobile S22 Predicted Download Speed ...................................................................................... 5 Figure 7 CASF Priority Eligible Locations.................................................................................................... 6 Figure 8 Results of Online survey for users with less than 51 Mbps of access............................................... 7 Figure 9 Pinole Senior Center August 17, 2023................................................ Error! Bookmark not defined.
Figure 10 Survey Flyer................................................................................... Error! Bookmark not defined.
Figure 11 Age range of survey respondents.................................................... Error! Bookmark not defined.
Figure 12 Survey Questions .......................................................................... Error! Bookmark not defined.
Figure 13 Locations of survey respondents by street....................................... Error! Bookmark not defined.
Figure 14 Communications and entertainment services used at home............ Error! Bookmark not defined.
Figure 15 Left. Wired Service Provided - Right. Wireless Service Providers ...... Error! Bookmark not defined.
Figure 16 Survey respondent internet speed test results................................. Error! Bookmark not defined.
Figure 17 Survey respondent internet uses. ................................................... Error! Bookmark not defined.
Figure 18 Cost of internet access................................................................... Error! Bookmark not defined.
Figure 19 Issues with internet service............................................................ Error! Bookmark not defined.
Figure 20 Microtrench .................................................................................. Error! Bookmark not defined.
Figure 21 Directional Bore............................................................................. Error! Bookmark not defined.
Figure 22 Conceptual Municipal Network...................................................... Error! Bookmark not defined.
Figure 23 West County Network .................................................................... Error! Bookmark not defined.
Figure 24 CPUC Low-Cost Internet Plan Portal............................................... Error! Bookmark not defined.
LIST OF TABLES
Table 1. Municipal Network Capital Improvement Cost............................................................................ 18 Table 2 Annual Municipal Network Operating Costs....................................... Error! Bookmark not defined.
City of Pinole Broadband Assessment
CSWST2 | 1
INTRODUCTION
In the late 19th century, Alexander Graham Bell
invented the telephone, enabling long-distance
voice communication. Over the next century,
communications evolved into the smartphones
we use today, offering nearly universal
connectivity and information access. By the mid
to late 20th century, television programming
transitioned to paid cable systems rather than
over-the-air broadcasts. In the 1990s, internet
access became mainstream through services like
AOL.
Over the past 20 years, communications,
entertainment, and the internet have seamlessly
merged into a unified media platform. This
convergence is supported by the significant
growth of network infrastructure capacity,
delivered through broadband connections to the
internet. Broadband is a high-speed internet
connection that allows video streaming and
similar data-intensive applications. Broadband
can be delivered through fiber optic cables as
shown in Figure 1 placed above or below our
streets and through wireless radio transmission
by commercial service providers such as Verizon,
Comcast, AT&T, Sonic, and others.
Access to affordable and reliable broadband is
essential for our communities and is key to
promoting equity. Today, we depend on
broadband for education, workforce
development, economic growth, healthcare, and
public safety. According to the Public Policy
Institute of California, 95% of Californians have
internet access at home. However, those without
broadband infrastructure face a significant
disadvantage, experiencing what is known as the
digital divide.
As the internet has become crucial for
communication, work, education, medical
assistance, and entertainment, it is now
considered a utility, akin to water or electricity.
While the communications industry is regulated,
some advocate for providing internet access over
a publicly owned network to ensure neutrality.
However, the cost and maintenance of such a
network often exceeds the budgets of many
municipalities.
Partnering with commercial providers to subsidize
installation could expand choices. Both Sonic and
Astound are actively expanding their networks in
Bay Area communities, providing broadband
internet access to residences and businesses.
Additionally, Crown Castle has several active
projects constructing fiber optic-based networks
linking wireless sites throughout neighborhoods.
Based on our review of California’s broadband
database, community feedback, and discussions
with internet service providers, we are pleased to
report that Pinole is well-served with high-speed
internet connectivity. This assessment details our
findings and makes recommendations to ensure
Pinole remains at the forefront of technology.
WHAT IS BROADBAND INTERNET?
In basic terms, broadband refers to various highcapacity transmission technologies that transmit data, voice, and video across long distances and
at high speeds. Common mediums of
transmission include coaxial and fiber optic
cables as well as radio waves. We measure the
speed of a network in terms of data rate in the unit
of bits per second (bps). For reference, a
Figure 1 Fiber optic cable serves as the backbone
for broadband communications.
City of Pinole Broadband Assessment
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traditional household telephone line has a
maximum data rate of 56,000 bps.
We evaluate network performance by examining
its bandwidth, throughput, and latency, as shown
in Figure 2. Bandwidth represents the theoretical
maximum capacity of a connection, such as 100
million bits per second (Mbps), indicating a robust
link to the internet. Throughput is the actual rate
of data transfer through the connection, which
can be lower than the bandwidth due to factors
like network congestion. Latency, measured in
milliseconds (ms), is the time it takes for data to
travel across the network. While high latency does
not always reduce throughput, it can significantly
impact real-time communications like voice and
video calls. Additionally, download and upload
speeds in a network link can differ. When they are
the same, the connection is referred to as
symmetrical.
The Federal Communications Commission’s
(FCC) definition of a broadband internet
connection is 25 million bits per second (Mbps) of
download and 3 Mbps of upload. California’s
definition is even lower at only 10/ 1 Mbps of
download/ upload speeds. These standards are
no longer relevant as the demands required by
today’s applications and video conferencing
exceed this value considerably. For a typical
household that includes four people who use the
internet for work, education, video streaming, and
conference calls, requires a connection rate of
about 100 Mbps at a latency at less than 15
milliseconds.
Commercial telecommunications companies
provide wireline broadband services in
communities using a combination of fiber optic
and copper cabling. Typically, the copper cables
extend into our homes and offices from the street
over short distances of about 300 feet. Fiber optic
cables act as the backbone of the broadband
service spanning cities and states; they are even
located under oceans, providing worldwide
interconnectivity. Fiber optic cables transmit
data through light waves that can travel over long
distances without degradation. Each cable can
consist of thousands of individual optical strands
able to transmit data at commercially viable rates
up to 100 Gbps (gigabits per second). The main
challenge with wireline service is existing copper
cables within a provider’s network will reduce
broadband speeds and the cost to construct new
fiber optic cables can be expensive.
Within our homes, we often provide wireless
broadband access (Wi-Fi) to the internet using
local area networking devices that connect to our
service providers wireline network. These devices
allow us to connect at data rates of up to 9,608
Mb/s (IEEE 802.11ax) at 2.4, 5, and 6 GHz.
However, these devices work best with line-ofsight use, and obstructions such as walls, appliances, and furniture greatly reduce range.
This application is often used in commercial
settings such as shopping districts and airports
with WIFI repeaters that extend range.
Commercial providers deliver wireless broadband
services through what is known as the fifthFigure 2 The relationship between throughput, bandwidth and Latency
City of Pinole Broadband Assessment
CSWST2 | 3
generation (5G) cellular network. The provider
divides the service area into small geographic
areas called cells. Each cell has a base station
with fixed antennas as shown in Figure 3, that
connect to every 5G wireless device within the
cell. Typically, the base stations are connected by
fiber optic cable or dedicated wireless links to the
service provider’s backbone network. A 5G
network can deliver a peak data rate of 10 Gbps
but this can be reduced by multiple users in the
cell as well as the wireless signal can be
attenuated by vegetation and building walls.
Figure 3 Typical 5G wireless antenna
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STATUS OF BROADBAND IN PINOLE
Each year, the California Public Utilities
Commission (CPUC) collects data to provide
California residents and local agencies with
information on broadband services. This data is
presented in the California Interactive Broadband
Map, which can be found at
https://broadbandforall.cdt.ca.gov/interactivebroadband-map/. Based upon the most recent version of the map, Pinole is fortunate to have
various internet service providers, including AT&T
and Comcast as well as Sonic, which is currently
deploying in the City that offer wired internet
connections to households. The CPUC’s
broadband map as shown in Figure 4 illustrates
that most of the City has at least 25 Mbps
download and 3 Mbps upload of connection to the
internet. In addition, the CPUC has found that at
least one subscriber in a census block receives 1
Gbps and 2 Gbps of connectivity, as shown in
Figure 5. This indicates that there is robust
infrastructure to support broadband in Pinole.
Figure 4 Broadband Availability in Pinole
City of Pinole Broadband Assessment
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The City also has broadband wireless coverage
offered by ATT, Sprint, T-Mobile, and Verizon
serving connections ranging from 20 to 300 Mbps.
According to the CPUC’s CalSPEED test, the
highest-speed provider in Pinole is T-Mobile, as
shown in coverage map in Figure 6.
Figure 5 Pinole Wireline Broadband Capacity
City of Pinole Broadband Assessment
CSWST2 | 6
The CPUC tool indicates that there are about 40
locations in Pinole, as shown in Figure 7, that have
less than 10 Mbps download and 1 Mbps upload
or no access to broadband at all. These sites,
known as priority eligible, can receive funding
from the CPUC’s California Advance Service Fund
(CASF) to improve broadband access.
We have compared these results with actual
reported data rates from Pinole residents and
businesses, as detailed in the Outreach section of
this report. Figure 5 illustrates that 25 of the 128
survey respondents receive below 51 Mbps of
internet access. Five, or about 4% of
respondents, receive less than 10 Mbps and
twenty, about 16% of respondents, have between
11 to 50 Mbps of internet connectivity. There does
not appear to be a strong geographic link to the
low broadband rates.
To evaluate internet options for businesses in
Pinole, we made calls to AT&T, Comcast, and
Sonic and requested service at various
commercial addresses. All offered services and
stated they could provide up to 1 Gbps of
symmetrical broadband connectivity. We also
confirmed that T-Mobile offers a wireless option at
245 Mbps.
Figure 6 T-Mobile S22 Predicted Download Speed
City of Pinole Broadband Assessment
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Figure 8 CASF Priority Eligible Locations
Figure 7 Results of Online survey for users with less than 51 Mbps of access
City of Pinole Broadband Assessment
CSWST2 | 8
OUTREACH
To understand the current status of broadband
connectivity within the community, we completed
an in-person meeting at the Pinole Senior Center
as well as conducted an online survey. Members
of our team visited the Senior Center on August
17, 2023, as shown in Figure 9 and asked a range
of questions, as illustrated in Figure 12.
We spoke with approximately 30 senior center
patrons. All were internet users, and those who
lived in Pinole had no concerns about gaining
access. However, some noted that it would be
helpful to have classes available to learn to use
internet-based tools such as search and artificial
intelligence. Also, some asked about programs
related to lower-cost internet access.
To understand internet access needs in the
greater community, we conducted an online poll,
which was first advertised in the City Manager’s
report, “The Pulse,” on August 8, 2023. In
addition, we created flyers, as shown in Figure 11
and posted them at City Hall, Senior Center, and
Pinole Library. The questions asked are shown in
Figure 12.
By October 2023, we received 128 responses to
the survey. The results of the survey indicated
that about 91% of respondents reside in singlefamily homes and that 98% were residents rather than owners of a business in Pinole. We present
the age range of respondents in Figure 10 and we
illustrate the locations of respondents in Figure
13. Figure 9 Pinole Senior Center August 17, 2023
Figure 10 Survey Flyer
Figure 11 Age range of survey respondents.
City of Pinole Broadband Assessment
CSWST2 | 9
City of Pinole Broadband Assessment
CSWST2 | 10
Figure 12 Survey Questions
City of Pinole Broadband Assessment
CSWST2 | 11
Figure 13 Locations of survey respondents by street
City of Pinole Broadband Assessment
CSWST2 | 12
The survey indicated that about 62% of the
households have 1 or 2 people, 33% have 3 to 4,
and about 5% have more than 4. Most of the
respondents have both a mobile phone and wired
internet service, as shown in Figure 14. About
75% of respondents to the survey indicated that
they subscribe to Xfinity (Comcast) for wired
internet service, while about 35% used AT&T for
mobile phone access, as shown in Figure 15.
Figure 14 Communications and entertainment services used at home Figure 15 Left. Wired Service Provided - Right. Wireless Service Providers
City of Pinole Broadband Assessment
CSWST2 | 13
The survey asked users to test their internet speed
by using an online tool. As shown in Figure 16,
about 60% of respondents had internet speeds
greater than 100 Mbps, which exceeds the
definition of broadband access and provides a
household of four with a robust internet
connection. However, five of the respondents had
internet speeds less than 10 Mbps, which are
summarized as follows:
In reviewing the comments, survey respondent
number 7 seeks other options beyond AT&T and
Comcast. The responses received from Oakhill
Court note that AT&T only provided basic internet,
which limits speeds to 10 Mbps of download
capacity. These locations do not appear to
correspond to the CASF Priority Eligible
properties.
Respondent ID Provider Location Structure Type
7 Comcast Martinez Court Single Family Residence
57 Comcast East Meadow Avenue Single Family Residence
59 AT&T Oakhill Court Single Family Residence
61 AT&T Oakhill Court Multi Family Residence
115 AT&T San Pablo Avenue Business
Figure 16 Survey respondent internet speed test results
City of Pinole Broadband Assessment
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The survey indicates that 89% of respondents use
the internet more than 10 hours per week, while
the remainder use it between 5 and 10 hours per
week. According to a 2018 report from the
University of Southern California’s Annenberg
Center for the Digital Future, Americans spend an
average of 23.6 hours per week online. The uses
are diverse, as shown in Figure 17; about 70% of
respondents use the internet to work from home.
Most of the respondents spend more than $75 per
month for internet service, as shown in Figure 18.
According to a 2024 study provided by the USC
and the California Emerging Technology Fund
(CETF), the average cost of internet access in
California is $86.60 per month.
Figure 17 Survey respondent internet uses
Figure 18 Cost of internet access.
City of Pinole Broadband Assessment
CSWST2 | 15
Although many respondents feel the cost is too
expensive, 57% of respondents are not looking to
change their internet service provider and over
83% are not familiar with the California Public
Utilities Commission’s Low-Cost Internet Service
Plans.
A summary of written comments organized by
topic includes the following:
Those seek better performance
1. We have poor internet connection in this area!
2. Interested in having access to greater internet
speeds including fiber optic options.
3. We have ended up with two service providers,
Sonic & Xfinity. We needed a faster
connection for work so recently added Xfinity.
We would have stayed with Sonic primarily as
we would have been with them for several
years. I was reluctant to give up their service
entirely as they are a smaller business, and
we prefer to support them.
Cost concerns and choice
1. I think the city should look into creating a selfsustaining, non-profit 501(c)3 org that offers municipal broadband at actual cost.
2. Feel like we have no options except for Xfinity
which is over $200 a month. It is way over our
budget. Wish there was another option for
cable and internet services.
3. Would be nice to have cheaper options, but
keeping the reliability that the more expensive
providers have.
4. Xfinity keeps raising the price, a few dollars at
a time. Would love to have Sonic. I have
friends who have it and they love it.
5. AT&T keeps raising its rates. I wonder if
internet should be a public utility.
6. It should not be as expensive.
7. It would be nice to have options other than
Comcast.
8. Not enough competition. Only two choices in
the area where I live.
9. Google Fiber would be nice or anything better
than AT&T and Xfinity.
10. Would like AT&T fiber in this area.
General comment
1. It needs to be better.
2. It is important to remember that I and many
people use the internet for monitored home
security systems.
3. As soon as Sonic’s build out is done Pinole
will have world class service. Hopefully soon.
4. Please put Sonic in Pinole Valley.
5. My work subsidizes my internet bill but if it did
not, it would be very expensive for me to pay.
Figure 19 Issues with internet service
City of Pinole Broadband Assessment
CSWST2 | 16
6. No access to Sonic but hoping they cover my
area soon.
MUNICIPAL NETWORK
If the City was to develop its own network to
provide broadband internet service to the
community, it could either use a Passive Optical
Network (PON) or an Active Optical Network
(AON). PON, which includes variations like GPON
(Gigabit PON) and EPON (Ethernet PON), operates
without active electrical components between the
central office and the end-user, using optical
splitters to divide a single fiber into multiple
paths. This results in a cost-effective and energyefficient system with lower maintenance requirements.
In contrast, AON, such as Active Ethernet, relies
on active electronic devices, such as switches
and routers, to manage the optical signals,
enabling greater flexibility and higher bandwidth
capabilities. However, this approach is more
complex and expensive due to the need for
powered equipment along the network path and
increased maintenance efforts. While PON is
generally favored for residential deployments due
to its simplicity and lower cost, AON is preferred
in scenarios requiring high performance and
advanced network management.
The largest cost in developing a broadband
network is the installation of the fiber optic cable.
The least cost option is to install the cable
overhead on utility poles if they exist. This
requires joining the joint pole association to
reserve space on the utility pole. This installation
is subject to utility disruption if the overhead lines
are damaged due to falling trees.
The preferred method is to install the fiber optic
cable in underground conduits using trenchless
construction methods. These conduits can be
installed using a microtrench as shown in Figure
20, which insets the conduit and cable in a narrow
trench within the asphalt pavement. This
approach can be one of the least costly
trenchless methods but needs to be re-installed
every time the street is re-surfaced.
Installation of conduits using the horizontal
directional bore method, as shown in Figure 21
offers the most flexibility and protection for the
fiber optic network. However, this approach is the
costliest of the trenchless methods but
significantly less expensive than construction by
open excavation.
Figure 20 Microtrench
Figure 21 Directional Bore
City of Pinole Broadband Assessment
CSWST2 | 17
For the purpose of this assessment, we have
developed a preliminary design using an AON
topology as shown in Figure 22. We assume that
the Pinole would construct a fiber optic network
throughout the City’s 52.22 centerline miles of
roadways to reach every parcel. The City would
be divided into six sectors of generally an
equivalent number of properties. Within each
section, there would be a neighborhood cabinet to
aggregate fiber. Fiber optic backbone cables
would link each of these neighborhood cabinets
to a network operations center (NOC) potentially
at the City of Pinole. From this location, the City
would interconnect to a regional data center
located in Oakland or Emeryville by leasing dark
fiber (fiber that is not active) located within the
Union Pacific Railroad’s right of way.
Figure 22 Conceptual Municipal Network
City of Pinole Broadband Assessment
CSWST2 | 18
The City would lease space within the data center
to place its transmission and routing equipment
to serve the municipal network. Within the data
center, the City would lease access to the global
internet backbone from a Tier 1 internet service
provider such as AT&T, CentruyLink, Verizon, NTT
Communications, or Aerlion.
To ensure resiliency in the network, the City would
construct fiber optic cables using diverse
pathways in both the municipal network and the
link to the data center. This would also require the
installation of backup devices, such as switches
and routers within the network. The approximate
cost to develop this network would be $74 million
in 2024 dollars, as shown in Table 1.
The capital construction cost assumes that about
4,320 households (about 60%) in Pinole will
subscribe to the service. The City would need to
fund the operating cost of the network, including
network supervision and maintenance, as well as
the costs associated with dark fiber lease, data
center hosting, and connection to the internet.
We assume the City would outsource network
operations and maintenance to a firm the
specializes in this work. Assessing costs
associated with fiber leases, hosting, and
dedicated internet connections fluctuate widely,
and we present conservative values in our
analysis.
Table 1. Municipal Network Capital Improvement Cost
ITEM QUANTITY UNIT UNIT COST COST
General Conditions 1 LS $7,464,115 $7,464,115
Install by Directional Bore 137,861 LF $65 $8,960,952
Install by Micro Trench 137,861 LF $42 $5,790,154
Pull Boxes 230 EA $1,100 $252,745
Cabinets 8 EA $15,000 $120,000
Backbone Fiber 95,124 LF $9 $856,116
Neighborhood Fiber 158,540 LF $6 $951,240
Drop Fiber 95,124 LF $3 $285,372
Electrical Service 8 EA $45,000 $360,000
Neighborhood Switch 8 EA $38,000 $304,000
Service Entrance 4,320 EA $4,000 $17,280,000
Optical Network Terminal 4,320 EA $500 $2,160,000
Backbone Switch 12 EA $25,000 $300,000
NOC 1 EA $100,000 $100,000
Interconnect Router 1 EA $125,000 $125,000
Backend Setup 1 EA $150,000 $150,000
Dark Fiber Connection Fee 1 EA $50,000 $50,000
Subtotal: $45,509,693
Planning and Design: $6,826,454
Construction Management: $6,826,454
Development Subtotal: $59,162,601
Contingency: $14,790,650
Total Project Cost: $74,000,000
City of Pinole Broadband Assessment
CSWST2 | 19
If the City provided each subscribed with up to
100 Mbps of upload and download capacity and
secured an internet connection of 10 Gbps, this
would provide an oversubscription ratio of about
40:1. This means that for every 40 users, there is
one shared bandwidth unit, which equates to at
peak periods, not every user will achieve 100
Mbps of throughput. This oversubscription ratio is
within industry standard but on the high side.
Typically, the network would evaluate the network
and adjust as needed to ensure a reasonable level
of service. Based upon these assumptions, we
present the annual operating costs in 2024 dollars
shown in Table 2.
If we were to assume that the City would pay the
capital costs to build the network and would
recoup the operating costs through monthly fees,
the monthly cost to each of the 4,320 subscribers
would be about $35 per month in 2024 dollars.
This cost would increase annually with inflation.
However, if the cost of the network deployment
was born by the subscribers and this was funded
through a municipal bond paid over 10 years at an
interest rate of 5% and initial principal of $81.4
million, the total cost to the subscribers would be
about $235 per month.
Over the first ten years, this value would be
substantially higher than current plans offered by
AT&T, Comcast, and Sonic. This analysis also
does not consider equipment replacement costs,
which will likely create significant operating costs
in future years.
To reduce the operating costs, the City of Pinole
could explore a partnership with the City of
Richmond. Richmond operates a free wireless
internet access network that is served by the
Internet Archive. The Internet Archive is a nonprofit digital library that operates a data center in Richmond. In addition, the City of Richmond has
the rights to a bundle of fibers in the West Contra
Cost County School District’s network that spans
Richmond, San Pablo, Pinole, and Hercules as
shown in Figure 23. By interconnecting to this
network, it would remove much of the operating
costs by reducing dark fiber, data center, and
internet connection fees. Also, a partnership with
other West County cities could reduce operating
costs.
Table 2. Annual Municipal Network Operating Costs
ITEM QUANTITY UNIT UNIT COST COST
4 Strand Dark Fiber 12 MO $80,000 $960,000
Data Center Fee 12 MO $5,000 $60,000
10 Gbps Internet Connection 12 MO $30,000 $360,000
USA Locating 12 MO $6,000 $72,000
Network Operations Center 12 MO $5,000 $60,000
Marketing 12 MO $2,500 $30,000
Technical Support 12 MO $5,000 $60,000
Field Support 12 MO $10,000 $120,000
System Maintenance 1 ALLOW $100,000 $100,000
Subtotal $1,822,000
City of Pinole Broadband Assessment
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Figure 23 West County Network
City of Pinole Broadband Assessment
CSWST2 | 21
RECOMMENDATIONS
According to the 2023 Statewide Digital Equity
Survey from USC and the California Emerging
Technology Fund (CETF), an estimated 3.5 million
people in California remain disconnected from
access to broadband internet. Both California
and the United States offer funding to help close
the gap. However, it is directed at communities
that lack access to broadband. As previously
noted, Pinole is served by several
communications providers offering both wired
and wireless broadband services. With Sonic
entering Pinole, it increases competition, which
should enhance broadband service and reduce
costs for Pinole residents and businesses.
From a review of the City’s encroachment permit
records, we can see that AT&T, Comcast, and
Sonic are actively working within the City of Pinole
to improve their networks. This is a sign that these
commercial service providers are actively
investing in the community to build and improve
their networks and offer Pinole increased
broadband capacity. However, based on our
review of conditions and discussions with the
community, we recommend the following:
1. Low-Cost Internet Plans. The California
Public Utilities Commission (CPUC) offers
information regarding low-cost plans at this
link. Figure 24 is a screenshot from the CPUC
website that illustrates options in Pinole. We
suggest providing this information on the
City’s website and through other outreach
methods used to inform the community.
2. Education. Several groups we spoke with at
the senior center were interested in learning
more about the internet tools. We suggest
completing a survey at the senior center,
library, and other community venues to learn
what topics are of most interest. Based upon
the results, we suggest the City provide
classes to support users access to the
internet.
3. Infrastructure. We recommend that all
public works projects install conduits and pull
Figure 24 CPUC Low-Cost Internet Plan Portal
City of Pinole Broadband Assessment
CSWST2 | 22
boxes with streets. This will facilitate the
development of a broadband network serving
the City. If possible, private developments
should make improvements to the public right
of way to install similar conduits and pull
boxes.
4. Intelligent Transportation System. An
intelligent transportation system (ITS)
connects the City’s traffic signals with fiber
optic cables allowing for dynamic
modifications to timing as well as remote
monitoring. The Contra Costa Transportation
Authority (CCTA) has installed fiber optic
cables along certain segments of the City to
support the I-80 corridor project and we
understand that CCTA may be upgrading this
system. We recommend Pinole, partner with
CCTA to install a parallel conduit and fiber
system to serve as the basis for its fiber
network. In addition, we recommend
interconnecting all traffic signals within Pinole
to develop an ITS. The Federal Highway
Administration offers grants to support these
developments.
5. West County Partnership. As discussed in
the previous discussed, the City of Richmond
has access to fiber within the City of Pinole.
Pinole should explore opportunities with
Richmond to activate this fiber, interconnect
it to the Internet Archive, and set up a
municipal broadband network in partnership
with other West County cities.
6. Leverage Assets. As the City develops
broadband infrastructure, it should explore
opportunities with commercial service
providers to sell, lease, and/or swap conduits
and fiber. This will help expand broadband
opportunities for the Pinole community.
7. CASF Funding. For the 40 sites in Pinole that
are eligible for CASF funds, coordinate with
the CPUC and existing service providers to
obtain funding to support enhanced
broadband connectivity.
8. Starlink. New technologies are ever
emerging, which can disrupt the
communications industry. For instance,
Starlink is a satellite-based internet service
which offers broadband speeds of 100 Mbps
of download to 20 Mbps of upload. It is
available in Pinole for $120 per month and a
onetime cost of $599 for hardware.
CONCLUSION
Developing a new broadband network for
residential users is an expensive and complex
undertaking. Not only are construction costs high,
but operating and maintaining the network
requires significant resources. Moreover, there is
no guarantee that customer adoption rates will
meet expectations. Even well-funded projects
such as Alphabet Inc.’s Google Fiber scaled back
its expansion plans in 2016 due to significant cost
challenges.
As technology advances rapidly, it becomes
increasingly difficult to keep up. Educating our
communities about internet access options is
crucial. We recommend incrementally building
broadband infrastructure in conjunction with
public works projects and piggybacking on other
construction efforts. This strategy can help form
strategic partnerships with broadband providers
to enhance access within the community.
Additionally, federal and state grants, particularly
in Intelligent Transportation Systems and security
sectors, can be leveraged to build infrastructure
that supports broadband access.