City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01428 10/15/2024 Consent Item 24.
Accepting a California Public Utilities Commission (CPUC) Last Mile Connectivity Grant File ID: 2024-01428
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
1) accept the Last Mile Connectivity Grant for an amount of $38,696,843 from the State of California Public Utility Commission (CPUC) to expand internet access for unserved communities in Sacramento; 2) execute the required documents necessary to accept the Last Mile Connectivity Grant; 3) establish a grant G07000200 (CPUC Last Mile Grant Program), Fund 3704, including revenue and expenditure budgets in the amount of $38,696,843.
Contact: Darin Arcolino, Chief Information Officer, (916) 808-0403, [email protected]; Manuel Martinez, IT Manager, (916) 808-8785, [email protected]; Ignacio Estevez, IT Manager, (916) 808-7349, [email protected]; Information Technology Department Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Award Letter
4-CPUC Consent Form
5-Exhibit A - Map of Last Mile Network Areas
Description/Analysis
Issue Detail: The American Rescue Plan Act of 2021 (ARPA)appropriated funds for states to deploy last-mile broadband internet networks. Communities across California face many barriers to deploying resilient and accessible broadband networks. Broadband internet access and service in urban communities varies by neighborhood. Rural areas of the state often lack the infrastructure for sufficient wireline and wireless broadband internet access service. The COVID-19 pandemic highlighted the extent to which broadband access is essential for public safety, public health and welfare, education, and economic resilience, adding greater urgency to developing new strategies and expanding on existing successful measures to deploy reliable networks with affordable service.
File ID: 2024-01428 10/15/2024 Consent Item 24.
The CPUC established a Local Agency Technical Assistance (LATA) grant program, funded with ARPA monies administered by the United States Treasury. The LATA program provided grants for eligible pre-construction work which facilitates the construction of broadband network projects. The City applied for funding and was awarded a $210,300 grant on October 6, 2022, for the City of Sacramento Digital Expansion Project. The project included the development of an all-inclusive Broadband Strategic Plan to help improve access and affordability of high-speed internet service for community members, businesses, and efficient delivery of City services. The scope of the strategic plan included an asset inventory of both public and private broadband infrastructure; a market analysis that evaluated the incumbent Internet Service Providers (ISPs) and their rates, service tiers and speeds; and a needs assessment that analyzed data sets and indicators of broadband need, including conducting a community survey and hosting focus groups of both City departments and community stakeholders. Additionally, the plan included a conceptual network design that maximized connectivity and reach into residential neighborhoods and business corridors, created a phased implementation approach, and evaluated the capital costs and grant opportunities for feasibility. The strategic plan and corresponding network design highlighted that the City is in a favorable position to leverage our expanded broadband network infrastructure with a private partner who is willing to construct all or a portion of the conceptual network in exchange for rights to sell affordable high- speed internet services utilizing City fiber. This work gave Sacramento an advantage in pursuit of the designated $38 million in broadband construction grant funding available for Sacramento County through the SB 156 Last Mile Federal Funding Account (FFA).
On July 21, 2023, staff issued a Request for Proposals (RFP) for Fiber Optic Network Public-Private Partnership (PPP), inviting firms to submit proposals to partner with the City to finance the project, and comply with any requirements, conditions, or service offerings as required by any grant sponsors. This includes, but is not limited to, any affordable connectivity programs or connecting under-served or disadvantaged areas, extending its own communications network of any newly installed fiber to provide retail high-speed broadband internet and data services to residents and businesses. As part of this engagement, the selected respondent(s) shall negotiate and commit to privately finance and construct additional fiber optic backbone infrastructure consistent with then applicable ordinances, regulations, policies, and standards, including but not limited to, privately- owned conduit and fiber optic laterals and service drops to expand high-speed broadband service offerings within the City of Sacramento, with a particular focus on affordability and access for underserved, disadvantaged, vulnerable, or low-income areas. The City received seven proposals. A team of City staff evaluated the proposals, concluding that the proposal from Consolidated Communications (CCI) best met the City’s requirements. An agreement with CCI will be brought back to the City Council for approval prior to execution.
On September 29, 2023, staff applied for grant funding through the CPUC Last Mile FFA to implement our "Sacramento Last Mile Connectivity Project" to connect unserved communities to affordable broadband infrastructure. The unserved locations were selected based on criteria
File ID: 2024-01428 10/15/2024 Consent Item 24.
established by the CPUC's FFA program while overlaying the City network with the FFA Public Map, which identifies areas at the census block level lacking reliable broadband service of at least 25 Mbps downstream and 3 Mbps upstream. On September 13, 2024, the City received an award letter for $38,696,843 after the CPUC voted and approved the grant award in Resolution T-17835. To receive the funds, the City must execute the attached CPUC Consent Form. The award is also predicated on the City of Sacramento’s agreement to construct its project as detailed in its application and compliance with the Federal Funding Account Last Mile programs rules. In addition, the City must also agree to comply with all federal and state statutes, rules, and regulations covering broadband services and state contractual rules and regulations in accordance with Decision (D.) 22- 04-055, Appendix A: FFA Program Rules and Guidelines.
Policy Considerations: This initiative aligns with the Information Technology Department’s Digital Strategy Update 2024-2025 document that includes expanded broadband to underserved communities as a key initiative goal. Investment in infrastructure will strategically position the City for the next economy. The City stands to receive significant short and long term economic gains from this PPP.
Economic Impacts: The City will utilize CPUC grant funds to expand City infrastructure and implement the Sacramento Last Mile Connectivity Project, which will connect unserved communities to affordable broadband services.
Environmental Considerations: The project is consistent with the 2040 General Plan and certified Master EIR (Resolution No. 2024-0065), and is categorically exempt. The future infrastructure installation project(s) that would be funded by the fiscal activities authorized herein would involve the conversion of existing small structures and minor alterations to land, including minor trenching and backfilling where the surface is restored as described in sections 15301, 15303, and 15304 (f) of the CEQA Guidelines (14 C.C.R. §§ 15000, et seq.).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Sacramento Last Mile Connectivity Project proposes to serve an estimated 4,620 unserved locations and an estimated unserved population of 21,681. An estimated total population of 43,341 will benefit from these investments in the City. The last-mile fiber project will provide up to ten gigabits per second of symmetrical internet service to consumers. The project will benefit disadvantaged or Environmental and Social Justice communities; 93 percent of the unserved locations are low-income. Exhibit A lists the communities/neighborhoods that will be serviced under this project.
File ID: 2024-01428 10/15/2024 Consent Item 24.
Financial Considerations: No City funding will be required. The City Manager or the City Manager’s designee is authorized to increase the revenue and expense budgets in the CPUC Last Mile Grant Program (G07000200) by $38,696,843 (CIP Grant Fund, Fund 3704).
Local Business Enterprise (LBE): Not applicable.
Background: On March 11, 2021, President Biden signed into law the ARPA of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, which appropriated funds for states to deploy last-mile broadband Internet networks. This law requires funds to be expended by the end of 2024 and projects to be completed by the end of 2026. On July 20, 2021, Governor Newsom signed SB 156 into law, creating the FFA, with CPUC being responsible for implementing the new grant program. The CPUC initiated the Broadband for All proceeding to set the strategic direction and changes necessary to expeditiously deploy reliable, fast, affordable broadband Internet access services connecting all Californians. The State of California issued Executive Order N-73-20 on August 14, 2020, directing state agencies to accomplish 15 specific actions to help bridge the digital divide, including ordering state agencies to pursue a minimum broadband speed goal of 100 Mbps download to guide infrastructure investments and program implementation to benefit all Californians.
On September 10, 2020, CPUC opened its doors and made the necessary changes to expeditiously deploy reliable, fast, affordable broadband Internet access services that connect all Californians.
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
October_________________
Accepting a California Public Utilities Commission (CPUC) Last Mile Connectivity Grant
BACKGROUND
A. On October 6, 2022, the City of Sacramento was awarded a Local Agency Technical Assistance (LATA) grant from the CPUC to facilitate the pre-construction of the Sacramento Digital Expansion Project.
B. On July 21, 2023, staff issued a Request for Proposals (RFP) for Fiber Optic Network Public-Private Partnership (PPP), inviting firms to submit proposals to partner with the City to finance the Sacramento Last Mile Connectivity Project, and comply with any requirements, conditions, or service offerings as required by any grant sponsors. Seven organizations submitted proposals for the project. Staff evaluated the proposals and determined Consolidated Communications Inc. (CCI) proposal best met the City’s requirements.
C. On September 29, 2023, staff applied for grant funding through the CPUC Last Mile Federal Funding Account (FFA) for the "Sacramento Last Mile Connectivity Project.”
D. On September 13, 2024, the City of Sacramento received an award letter notification that the CPUC voted and approved a $38,696,843 grant award under CPUC’s Resolution T-17835. The award is predicated on City of Sacramento’s agreement to construct its project as detailed in its application and compliance with the Federal Funding Account Last Mile program rules.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1.
The City Manager or the City Manager’s designee is authorized to accept the Last Mile Connectivity Grant in the amount of $38,696,843 from the State of California Public Utility Commission (CPUC) to expand internet access for underserved and unserved communities in the City of Sacramento.
Section 2.
The City Manager or the City Manager’s designee is authorized to execute the required documents necessary to accept the Last Mile Connectivity Grant from the CPUC. To receive the funds, the City must execute the attached CPUC Consent Form.
Section 3.
The City Manager or the City Manager’s designee is authorized to establish a grant G07000200 (CPUC Last Mile Grant Program), Fund 3704, including revenue and expenditure budgets in the amount of $38,696,843.
09/13/2024
Manuel Martinez
City of Sacramento
[email protected]
Re: Sacramento Last Mile Connectivity Project
Dear City of Sacramento,
Congratulations! The California Public Utilities Commission (Commission) is pleased to inform you that City of ’s application for Last Mile Federal Funding Account (FFA) funding for the "Sacramento Sacramento Last Mile " project and grant request amount of $ has been approved.Connectivity Project 38,696,843.00 Your application was received on and posted on the Commission’s Last Mile Federal Funding Account webpage.09/29/2023 Staff reviewed the applications referenced for compliance with Commission and federal rules, conducted fiscal and technical analysis, and determined your application meets the requirements for a grant under the program. On 08/22/2024 Commissioners considered your application and voted to approve your grant award in Resolution T- .17835 The award is predicated on ’s agreement to construct its project as detailed in its application. In addition,City of Sacramento also agreed to comply with all federal and state statutes, rules, and regulations covering broadbandCity of Sacramento services and state contractual rules and regulations in accordance with Decision (D.) 22-04-055, Appendix A: Federal A summary of the performance, payment, and reporting requirements areFunding Account Program Rules and Guidelines. summarized in the Attachment to this letter.
For CPUC Staff to begin processing the award, you must complete, sign, and submit the following forms:
1. Consent Form and
2. Either:
Government Agency Taxpayer ID Form (for government entities) or Payee Data Record Form (for non-government entities)
You must submit these documents by uploading them to the within 30 days of the date ofBroadband Grant Portal this letter. If these forms are not uploaded within the required timeframe, the award shall be rescinded.
All awards are contingent on available state budget appropriations funding and may be subject to Budget Letter 24-07.1 1In Budget Letter 24-07, issued on April 29, 2024, the Department of Finance suspended the authority to expend one-time funding provided in Section 2.00 of the Budget Acts of 2021, 2022, 2023, that meets certain criteria.
Thank you for your application and please direct any questions to . We appreciate [email protected] efforts to provide service to our fellow Californians.
Sincerely,
Maria Isabel Ellis
Deputy Director of Broadband
ATTACHMENT
Summary of Last Mile Federal Funding Account Grant Program Reporting Requirements
The award is contingent on the ’s agreement to construct the proposed project as detailed in itsCity of Sacramento application. The grant award is also contingent upon fulfilling the requirements as specified in Decision (D.) 22-02-055, These requirements include, but are not limited to,Appendix A: Federal Funding Account Program Rules and Guidelines. execution and performance, payment, and reporting requirements. The following summarizes the requirements in D. but does not replace them. Awardees22-02-055, Appendix A: Federal Funding Account Program Rules and Guidelines, must submit all reporting documents through the Broadband Grant Portal.
Execution and Performance
City of Sacramento must sign and submit the Consent Form agreeing to the terms of the award within 30 calendar days Failure to submit the signed Consent Form within the required timeframe will result in thefrom the date of this letter.
Commission deeming the award null and void.
City of Sacramento must complete the project within 18- or 24-months, in accordance with the terms of the award. The Awardee must notify the Communications Division of any delays in the project completion or if the awardee is unable to complete the project within the required timeframe. The Commission may reduce or withhold payment, and / or impose penalties for failure to satisfy this requirement.
City of Sacramento must communicate in writing to the Communications Division’s Director regarding any changes to the substantive terms and conditions underlying the Commission’s approval of the award (such as changes to a work plan or budget) at least 30 days before the anticipated change. Substantive changes may require approval by either the Communications Division’s Director or by Commission Resolution before becoming effective.
Payment and Payment Requests
Awardees can request payments as the project is progressively deployed. Requests for payments may be submitted at the following intervals:
• 10 percent completion
• 35 percent completion
• 60 percent completion
• 85 percent completion
• 100 percent completion
Payments are based on submitted receipts, invoices, and other supporting documentation showing expenditures incurred for the project in accordance with the approved budget included in the Awardee’s application.
Awardees must submit a project completion report to request final payment. The final 15 percent (from 85 to 100 percent) will not be paid without an approved completion report.
Monthly Contractor Reporting
California Public Utilities Code section 281(l)(1)(A-C) requires Awardees to report monthly to the Commission the following information throughout the construction phase:
• The name and contractor’s license number of each licensed contractor and subcontractor undertaking a contract or2 subcontract in excess of $25,000 to perform work on a project funded or financed pursuant to this section. • The location where a contractor or subcontractor described in subparagraph (A) will be performing that work. • The anticipated dates when that work will be performed.
Monthly Construction Verification Progress Reports
Awardees must submit monthly construction verification reports. Within six weeks of the date on this award letter, Awardees must submit:
1. A construction schedule showing key permitting and construction milestones.
2. A high-level design in an acceptable geographic information system (GIS) format.
Each month thereafter the construction verification progress reports must include:
• An updated schedule for the build
Must show permitting and construction start and completion times based on an Awardee-defined segmentation of the build.
Segmentation must be sufficiently sized to show progress and correspond with payment intervals. • Geotagged photos showing key construction progress and completion, • Updated As-Builts, and
• Optical time-domain reflectometer (OTDR) reports for construction completed sections.
The geotagged photos, along with the As-Builts and OTDR reports, will be used to track completion of the project and verify the construction schedule, construction activities, and to expedite project reimbursement. Details for the GIS deliverable, schedule format, and geotagged photos can be found in the FFA Construction Verification documentation.
As part of the project completion report, Awardees will also be required to provide:
• Updated GIS file showing deviations from originally submitted high-level design • As-Built files showing construction prints and work completed • OTDR reports for all fiber terminations
Quarterly Reports
Awardees must submit quarterly progress reports to the Commission by the due dates shown below. Quarterly Reports must contain the information required in D.22-02-055, Appendix A, Section 14. 2Licensed contractor or subcontractor means any contractor that holds a Contractor’s License through the Contractors State License Board ( https://www.cslb.ca.gov/).
Reporting Period Project Information Due to CPUC
July 1 – September 30, 2024 October 6, 2024
October 1 – December 31, 2024 January 7, 2025
January 1 – March 31, 2025 April 6, 2025
April 1 – June 30, 2025 July 6, 2025
July 1 – September 30, 2025 October 6, 2025
October 1 – December 31, 2025 January 7, 2026
January 1 – March 31, 2026 April 6, 2026
April 1 – June 30, 2026 July 6, 2026
July 1 – September 30, 2026 October 6, 2026
October 1 – December 31, 2026 January 31, 2027
Awardees are responsible for contacting the Commission at if the information [email protected] be submitted on time.
The quarterly reports requirement is separate and in addition to the monthly contractor reports and the payment requests.
Annual Reports
Awardees must annual reports that include the speed, pricing, subscription data (including number of customers enrolled in the Affordable Connectivity Program (ACP), low-cost, and low-income broadband plans), and any data allowance information on all offered plans.
The report must also include a weblink with information on the recipient’s income-qualified and affordable plans. The associated webpage should provide all plan information, ways to subscribe, and any necessary forms. Additional guidance detailing Federal reporting requirements will be provided post-award.
Termination
The Commission or the Awardee may terminate a grant award at any time by delivering ten days written notice to the other party. In the event that the Awardee terminates the grant award, it will be required to refund within 30 days of the termination all payments received for work not completed or not accepted by the Commission.
Post-Completion Sale or Transfer
For three years after project completion, an Awardee must notify the Commission within five days of determining that the Awardee is planning to sell or transfer its assets. The Awardee shall also provide documentation, including an affidavit stating that the new entity will take full responsibility and ownership to comply with the requirements of the Last Mile Federal Funding Account grant and requirements of the U.S. Treasury Department. Returning a signed Consent Form is acceptance of these terms.
Additionally, Awardees seeking to transfer assets must file a Tier 2 Advice Letter with the following information:
• Purchase price
• Copy of the agreement
• Binding agreement from the purchaser or lessee to fulfill the terms and conditions relating to the project after such sale or lease
• An explanation as to how the transaction would be in the best interests of those served by the project.
Additional Information
Reporting requirements and guidelines are subject to change, and CPUC may define additional requirements. Any additional requirements will be posted on CPUC’s .website
California Public Utilities Commission
Federal Funding Account, Last Mile Program
CONSENT FORM
Acknowledgement and Acceptance of Terms
Awardee Name:
Key Project Contact:
Project Name:
The Awardee identified above acknowledges receipt of the California Public Utilities Commission Resolution or Award Letter for the Project named above and agrees to comply with all grant terms, conditions, and requirements set forth in the Resolution or Award Letter and those in the Federal Funding Account, Last Mile program rules.
Undersigned representative of [Name
of Awardee] is duly authorized to execute this Consent Form on behalf of the Awardee and to bind the Awardee to the terms, conditions, and requirements set forth in California Public Utilities Commission Resolution or Award Letter and those in the Federal Funding Account, Last Mile program rules.
Dated this day of , 20 .
Signature of Awardee Representative:
Title:
Printed Name:
Name of Representative’s Organization:
Business Address:
Street address, suite/apt. number
City, state, and ZIP Code
Telephone Number:
Email Address:
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District 3 District 2
District 4
District 6
District 8
District 5
9TH ST
10TH ST
16TH ST
15TH ST
I ST
N ST L ST
12TH ST
DEL PASO RD
DEL PA
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K ST
EXPOSITION BLVD
19TH ST5TH ST
W EL CAMINO AVE
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GARDEN HWY
FLORIN PERKINS RD
RALEY BLVD
STOCKTO
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65TH ST
BROADWAY
P ST
FRANKLIN BLVD
3RD ST
FLORIN RD
FRUITRIDGE RD
N 16TH ST
NORTHGATE BLVD
EL CAMINO AVE
ELDER CREEK RD
43RD A
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EL CENTRO RD
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BRUCEVILLE RD
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59TH ST
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FOLSOM B
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SEAMAS AVE
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NATOMAS BLVD
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ROSEVILLE RD
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Laguna
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Scale: 1:10,000'
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C:\Users\jacevedo\OneDrive - City of Sacramento\GIS\LocalWorkstation\COSLocalWorks\Layouts.aprx 9/30/2024 DISCLAIMER:
All maps & data provided are subject to T erms of Use
identified in the City of SacramentoOpen Data Policy at https://data.cityofsacramento.org/pages/disclaimer
Schedule A - Exhibit A-1 - Map of the LMN Project Areas Legend
Underserved Communities
Served Neighborhoods
Dense Addresses
Sparse Addresses
District 1
District 2
District 3
District 4
District 5
District 6
District 7
District 8
Served Neighborhoods
Campus Commons
College T own
Northpointe
Parkway
Pocket
Upper Land Park
Valley Hi / North Laguna