Administrative
Report
N.5., File # 22-3936 Meeting Date: 4/5/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION ON A REPORT REGARDING GRANT OPPORTUNITIES
RELATED TO MIDDLE-MILE BROADBAND EXPANSION TO CORE COMMERCIAL AREAS
EXECUTIVE SUMMARY
In response to the Strategic Plan Objective to “Explore and report to Council on grant opportunities related to middle-mile broadband expansion to core commercial areas”, staff has prepared the following.
Staff has identified a grant program specific to middle-mile broadband investment in the Infrastructure Investment and Jobs Act (“IIJA”), which was enacted in November 2021. The $1B (over the next five fiscal years) competitive, middle-mile broadband grant program seeks to encourage the expansion of middle mile infrastructure to unserved and underserved areas and to promote broadband connection resiliency. The program is administered by the National Telecommunications and Information Administration (NTIA). All cities appear to be eligible to participate. More information on this and other grant programs administered by the NTIA can be found at <https://www.ntia.doc.gov/category/grants>.
The IIJA middle mile broadband grant program is one of several recent equity programs that emphasize increasing internet connectivity to unserved and underserved areas. NTIA is hosting a preliminary technical assistance webinar series between March and May 2022 in connection with the five new broadband grant programs authorized and funded by IIJA. These webinars are designed to help prospective applicants understand NTIA's IIJA broadband grant programs and to assist applicants prepare high quality grant applications.
Employing the correct strategy to position the core commercial areas of Redondo Beach to best take advantage of the middle mile grant program, as well other similar grant programs, will be a key to scoring well in the competitive programs. However, creating and implementing the most competitive strategies is beyond the capacity and resources of City engineering and IT staff. Therefore, staff recommends that the City Council consider directing staff to engage a grant consultant with expertise in this area as it explores the City’s potential to be well positioned for a middle-mile broadband expansion grant award.
BACKGROUND
Over the last two years the Federal Government has enacted four laws authorizing $5.5 trillion dollars of new stimulus spending, largely in response to economic challenges brought on by the
N.5., File # 22-3936 Meeting Date: 4/5/2022
dollars of new stimulus spending, largely in response to economic challenges brought on by the pandemic. The latest of these, IIJA, was enacted in November 2021 and authorized $550B in new funds over the next five years. Unlike the previous three stimulus packages (Cares Act, COVID-19 Relief Bill and American Rescue Plan) that were primarily direct transfers to state/local and tribal governments and had broad use eligibility, the IIJA is more grant based, including some competitive grants, and identifies funding for specific purposes. Although the funding has been allocated, the timing of the rollout of the various projects is not entirely clear.
Components of the IIJA that address expansion of internet and telecommunication infrastructure are subdivided into three broad categories: broadband, cybersecurity and smart cities (transportation).
Authorized funding for the broadband category is $65B, and the “middle-mile” component of this is $1B.
Most of the broadband and technology opportunities from the Act are geared for State and Tribal governments, but there are subgrants authorized to local municipalities. As of this report, staff was not able to locate specific information regarding subgrants from the State. The City is eligible for a portion of the competitive grant program related to middle mile broadband. However, a primary consideration of these grants is providing equity to unserved and underserved areas. Strategies would need to be developed to position core commercial areas of the City to score well in the competitive process.
The State of California also has a Middle-Mile Broadband Initiative. In July 2021, Governor Gavin Newsom signed into law Senate Bill 156 to create an open-access middle-mile network to bring equitable high-speed broadband service to all Californians. SB 156 provides $3.25 billion to build the necessary infrastructure to bring internet connectivity to homes, businesses and community institutions. The design and construction of the middle-mile network is monitored by the Middle-Mile Advisory Committee (MMAC). This initiative is not a grant program but rather provides for construction of a state-owned open access middle-mile network. However, indications from this program identify portions of this network may be included in the State’s right of way along I-405, Pacific Coast Highway and Hawthorne Blvd. These corridors, however, were not listed in the initial project list. More information on the State program can be found at <https://middle-mile-broadband-initiative.cdt.ca.gov/> and https://middle-mile-broadband-initiative.cdt.ca.gov/pages/data-and-analysis#FeaturedApp <https://middle-mile-broadband-initiative.cdt.ca.gov/pages/data-and-analysis>. No information was found on whether the MMAC will be responsible to develop subgrants for the Federal funding being granted to States/Tribal governments.
Aside from middle-mile broadband, there are other Information Technology (IT) initiatives in IIJA that can potentially be explored by the City. They include:
1. Cybersecurity fund: This allows state and local governments to develop or revise and implement cybersecurity/incident response plans. $1 billion dollars is available over the next four fiscal years. States and tribal governments are the eligible applicants, sub-granting is allowed with 80% of the funds flowing to local governments. There is a match which will be cascading each year; 90-10; 80-20; 70-30; 60-40.
2. Strengthening Mobility and Revolutionizing Transportation Smart Cities (SMART) fund:
Projects that coordinate automation, connected vehicles, sensor-based infrastructure, commerce delivery, smart grid, and smart traffic signals are eligible opportunities as they demonstrate a focus to advance smart city technologies that will improve transportation efficiency and safety. State, local and tribal governments are eligible applicants along with
N.5., File # 22-3936 Meeting Date: 4/5/2022
efficiency and safety. State, local and tribal governments are eligible applicants along with public transit. $100 million dollars will be made available for the next five fiscal years. There is no matching requirement.
COORDINATION
This report was coordinated with Public Works and Information Technology Departments.
FISCAL IMPACT
There is no direct fiscal impact to the City at this time. Engaging a grant administrator (for these programs and others) will require funding and will be presented for consideration as part of the FY 2022-23 budget process. Should the City eventually pursue eligible grant opportunities, matching funds will need to be identified for each potential project application.
APPROVED BY:
Mike Witzansky, City Manager