DATE: MAY 10, 2022
DEPARTMENT: OFFICE OF THE CITY MANAGER
FROM: ANDREW MYRICK, SR ECONOMIC DEVELOPMENT MGR
TITLE: MASTER SERVICE AGREEMENT WITH UNDERLINE
RECOMMENDED MOTION:
A motion to approve the attached Resolution to support the provision of public Wi-Fi on City-owned properties throughout the city and to enter into a Master Service Agreement with Underline Monterey, Inc for the provision of broadband services.
RECOMMENDATION:
Staff Recommends that Council approve the attached Resolution.
BACKGROUND:
In December 2021, the City Council entered into a License Agreement with Underline Monterey, LLC, which allowed them to construct a private fiber network and provide broadband service throughout the City of Salinas. Underline continues to acquire supplies and perform engineering work and currently plans to begin work on the project later this year.
Underline desires to have the City as a customer. City staff has indicated that the City will consider any competitive offer submitted by Underline for the provision of service. The City has also requested that any proposal include options for providing free-to-access public Wi-Fi hotspots that would be available to use by the public. The City currently provides free-to-access public Wi-Fi at City facilities that receive services currently (such as City Hall, the Permit Center, libraries, recreation centers, etc), but does not provide public Wi-Fi elsewhere (such as parks).
Decisions regarding the provision of network services are typically handled administratively (as is the case with other utilities), through the Finance Department’s Information Technology Division (IT). Upon approval of this Agreement, IT will be able to review potential services and enter into agreements for City services through Service Order Forms (examples of which are attached to the Agreement). Council would continue to provide funding each year as a part of the budget process for the City to obtain services.
The attached Resolution would do two things. First, it would provide an additional vendor from which the City could obtain broadband services. The adoption of this Master Service Agreement will not, by itself, commit the City to obtaining service from Underline; however it will give IT the option of obtaining such service through Underline. It also includes language to allow for the City to use in-kind contributions (such as the use of City street lights or roof tops for antennas) to offset any payments for service.
The Resolution also clarifies that the City desires to provide public W-Fi from City-owned and operated properties. In practice, this will make it clear that IT has Council direction to include public Wi-Fi when negotiating for services from broadband providers, even when there is no institutional need for broadband service at the location (such as in a small neighborhood park or tot lot). IT will still have discretion to review pricing, service levels, available funding, and competing offers to determine the best way to accomplish this goal.
ANALYSIS:
Public Wi-Fi can be a key component in achieving universal broadband access – even when in-home broadband services are reduced in price, many will still find the cost of such service prohibitive. Further, there are those that do not have a permanent shelter from which they can obtain fixed broadband services. Public Wi-Fi therefore does not just create a convenience for those who happen to be in the area – it can also provide a vital service to those who would not otherwise be able to access services at all, provided that it is reasonably accessible.
The City currently provides public Wi-Fi from its facilities. However, there are many portions of the City, particularly in its northern and eastern parts, where the number of facilities are limited. Adding parks (and possibly other locations) to the list of locations providing such service would make it significantly more accessible in portions of the City. Underline has represented that if the City was a customer it could provide public Wi-Fi with service speeds of up to 1 Gbps for $100/location/month, with no specified limit on the number of locations, which would allow for the City to offer many public Wi-Fi locations at a nominal cost. This, coupled, with other efforts to improve access (such as mobile hotspots that are available from the City’s libraries and school districts), would significantly increase broadband access throughout the City.
The Master Service Agreement will allow IT staff to work with Underline and determine if the services and pricing they offer are desirable. If the City elects to obtain service from Underline, IT would work with other City Departments to determine the ideal number and location of public Wi-Fi.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
Ensuring that the City has excellent broadband service as well as providing public Wi-Fi furthers the Council’s goal of Investment Strategies/Risk Management by supporting the installation and access to broadband services in the community. It also contributes towards the Council’s goal of Operational Efficiencies as it will provide additional options to the City for obtaining broadband service.
DEPARTMENTAL COORDINATION:
The Economic Development Division has coordinated with the Information Technology Division in the preparation of this Report.
FISCAL AND SUSTAINABILITY IMPACT:
The proposed Resolution is expected to have a minor impact on the City’s budget. Based on conversations with Underline, it is believed that the City could potentially obtain broadband services for less cost than it does currently, even if it also installed several additional Wi-Fi locations. It is also possible for a minor increase in costs. IT will be responsible for ensuring that whatever services are obtained can be covered by its allocated budget allotment for services.
ATTACHMENTS:
Proposed RESOLUTION, including the following Exhibit:
Exhibit “A” – Master Service Agreement
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT