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HomeMy WebLinkAboutItem 02 US Ignite Grand and City-Wide Fiber Update AGENDA ITEM SUMMARY Meeting Date: 9/21/2020 Meeting Type: Regular Meeting Staff Contact/Dept.: Courtney Griesel, CMO Staff Phone No: 541-726-3700 Estimated Time: 20 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and Revitalization through Community Partnerships ITEM TITLE: US IGNITE GRANT AND CITY-WIDE FIBER UPDATE ACTION REQUESTED: Staff is requesting Council direction on Council participation in a joint Springfield Utility Board (SUB) City Fiber Task Force in addition to general feedback and guidance related to current progress of the Downtown US Ignite Fiber project and general Council priority for citywide fiber initiatives. ISSUE STATEMENT: Framed within the Springfield Economic Development Strategy, and with financial investment of US Ignite, the City and SUB have been working toward expansion of Springfield fiber infrastructure. This presentation seeks to provide an update on the US Ignite Grant and request Council feedback on the City’s long-term, community wide, role and areas for priority investment in expansion. ATTACHMENTS: 1. 2018 City of Springfield Economic Development Fiber Strategy Summary 2. US Ignite Grant for Downtown Fiber Expansion Overview 3. Regular Session Presentation DISCUSSION/ FINANCIAL IMPACT: The City Council adopted Springfield Economic Development Strategy (2018) included a focused initiative to leverage public fiber assets to facilitate private competition and increase community access to high quality, high speed, affordable broadband (Attachment 1). Strategic tactics included engagement with private service providers, marketing of efforts and early wins, and work to identify and invest in an internet exchange and public infrastructure needed to expand fiber opportunities community-wide. Late in 2019, the City of Springfield received a small grant from US Ignite and the National Science Foundation to expand fiber in Downtown, piloting connectivity to the regional fiber hub in Downtown Eugene (Attachment 2). The value of the grant includes $99,500 in funds to study and construct interconnectivity and a contribution of internet exchange equipment. All funds must be expended by December 31, 2020 (this timeline may be expended due to COVID). The City, SUB, LCOG, and regional private internet service providers have been working over the past months to outline strategies and tasks for construction and ‘lighting’ of Downtown fiber, which include a need to locate a critical connectivity point on City Hall property. As the City and SUB work to pursue the Downtown pilot project, understanding around a citywide strategy and City Council priorities to drive that strategy is needed. Staff is requesting Council; • Review and discussion of recommendation to site a fiber interconnectivity facility on City Hall property; • Feedback on preferred priorities and role of the City related to investment in fiber connectivity buildout throughout the City; • Guidance on priorities for fiber to areas of the community; commercial, residential, industrial; and • Direction on SUB request for designated Councilor participation on a joint technical task force to include staff and elected leadership from both agencies. Springfield Economic Look – Fiber Initiative (March 2018) I. SPRINGFIELD ECONOMIC PLAN PURPOSE The purpose of the City of Springfield’s Economic Development Strategy is to define a clear plan of action for City staff to make the greatest impact on influencing Springfield’s economic growth. This strategic plan intentionally focuses efforts on traded-sectors and factors of importance to traded-sectors because they yield the largest economic impact for our community. By growing traded-sectors, external money flows into our community to residents and small businesses. WHY THIS WORK IS IMPORTANT TO SPRINGFIELD The “why” of this work is a compelling motivator to stay on track for implementation. The goal of the Springfield Look Plan is to improve the lives of Springfield’s citizens by increasing the per capita income and the number of family wage jobs in Springfield while providing the tools to reduce poverty in our community. We are motivated by the understanding that the economic vitality of Springfield and the financial health of its public agencies are linked to healthy population growth and the number of quality jobs available in our community. WHAT SUCCESS LOOKS LIKE Using a strategic plan as a tool, we recognize that it provides us clarity on a shared vision for what we set out to do. This enables us to empower staff to do impactful work; prioritize funding resources; and build trust and stronger relationships within City Hall and with partners. Together we can have the courage to be bold with creative solutions. Our buy-in, by building this plan together, ultimately shapes City culture and becomes what, how and why we serve our business customers. Although we seek results as soon as possible, we understand successful economic development involves commitment to the long term, a.k.a. “stay the course”. SPRINGFIELD ASSETS Many factors for competitively addressing the needs of traded-sectors are outside the direct control of City Hall. Although not in direct control, it is important to influence the improvement of critical factors in order to strengthen Springfield’s value proposition for companies to locate and grow here. The Springfield Telecommunications Enhancement Project (STEP) is one of many strategic initiatives identified for implementation which focuses on priority areas for competitiveness improvement outside of City Hall. Details of the initiative are included on the following page(s). Attachment 1, Page 1 of 3 Springfield Economic Look – Fiber Initiative (March 2018) S PRINGFIELD T ELECOMMUNICATIONS E NHANCEMENT P ROJECT (STEP) G OAL Leverage public assets to facilitate private competition. Public assets can include publicly-owned infrastructure and publicly-controlled space (e.g. right of way and public utility easement management, development standards, communication space on utility and city poles, etc.). W HY IMPORTANT? Expanding existing fiber infrastructure in a community can establish a competitive advantage for businesses and community access, thus reducing cost to access. With more access, businesses can expand operations. Manufacturing, including tech companies, rely heavily on high-speed, quality telecommunication access. The "gig economy" (individuals or small business contracted for parts of a larger project) creates local opportunities to connect to the global market and telecommunications can be at the heart of that connection. Expansion of fiber can contribute to a smarter community, as access decreases “digital divide” inequalities. T ACTICS 1. Enhance Foundation for Political Support  Potential joint session with SUB Board and City Council to discover understanding of opportunity and political will to move forward with initiative.  Engage users/public about value and opportunity. 2 Current Situation  Where are we now with providers, community, SUB Board, City leadership?  Conduct proactive research by engaging with providers.  Provide update on existing telecommunications services provided by SUB and SUB Board buy in on the mission (or Board changes to mission) and general dedication of resources to this project.  Explain what SUB is doing and what we are not doing with this project.  Develop landing page on SUB’s website to communicate SUB’s efforts in the context of the larger group.  Place status updates on SUB’s landing page.  Potential migration of this material to the web site developed by the larger group.  Review of SUB’s telecommunication service policies.  Provide recommendation to Team Lead.  Review of SUB’s telecommunication IRU contract – pull out language that will reside in any updated telecom policies which an updated contract.  Potential creation of transitioning telecommunication department to a telecommunications utility in the budget process.  Review of City’s telecommunication service policies/ordinances share findings with City to ensure that City policies/ordinances and SUB polices work together.  Understand what EugNet (eugnet.org) did in mapping out the business model.  Potential migration of this material to the web site developed by the larger group. 3 Task Force  Identify potential Task Force Members Near Term Infrastructure Coordination Roadmap of Roles and Responsibilities. 4. Marketing  Brand initiative.  Define benefits into compelling message.  Build website.  City Economic Development and Chamber outreach to business; promote on website. Attachment 1, Page 2 of 3 Springfield Economic Look – Fiber Initiative (March 2018) I MPLEMENTATION T EAM 5. Engagement with Providers  What open access infrastructure do they need? 6. Identify Internet Exchange Options for Springfield  Identify Infrastructure Needs - includes physical location options of IPs as well as interconnection to data hubs (SUB/?).  Evaluate funding options  Identify and potentially develop a strategic location that is publicly-owned or controlled to house a carrier neutral facility.  Consider “Gang of 6” Fiber in assessment of exchange sites. 7. Track Innovation Hub Strategic Initiative 8. Engagement with Property Owners 9. Engagement with Community & Tenants  Chamber, City Club, Rotary. 10. Core Infrastructure Coordination Evaluate options for long term management of:  Local Network (SUB).  Last Mile.  Internet Exchange Site Management.  Data hub agreements and backhaul management to connection at internet exchange. 11. Outreach and education elements  Testing concepts.  Examples of localized pricing data.  Value return-on-investment for land and building owners/residential land to illustrate advantages. 12. Six/Fiber Study Plan  Identify path back to internet from carrier neutral facility.  Options defined.  Placement of Springfield Innovation Hub or supercomputing facility.  Weighting for desired priorities. 13. Public Build-out Location  Proactively identify initial early opportunity for build-out location.  Collaboration space to increase accessibility and entrepreneurship – link into Springfield Innovation Hub potentially. LEAD Jeff Nelson, Director of Resource Management, Springfield Utility Board Tracy Richardson, Utility Planner, Springfield Utility Board TEAM Core: Collaborator: Springfield Utility Board Springfield Chamber City of Springfield Lane Council of Governments (may be Core) Economic Development Department Technology Association of Oregon (may be Core) Planning Department Attachment 1, Page 3 of 3 SPRINGFIELD T ELECOMMUNICATIONS E NHANCEMENT P ROJECT (STEP ) U PDATE ; 2/11 /20 L EAD : SUB/T RACY R ICHARDSON - D OWNTOWN F IBER P ILOT P ROJECT T ASK D ETAIL U PDATE CITY/C OURTNEY G RIESEL As part of the City of Springfield economic development plan, the Springfield Utility Board and City of Springfield began efforts to explore and invest in the build-out of fiber assets to the Springfield community. S HARED C ITY /SUB G OAL Leverage public assets to facilitate private competition, including publicly-owned infrastructure and publicly-controlled space. O VERARCHING STEP P ROJECT D ESCRIPTION : Expand existing fiber infrastructure to establish a competitive advantage for businesses and community ac cess, thus reducing cost to access. With more access, businesses can expand operations. Manufacturing, including tech companies, rely heavily on high -speed, quality telecommunication access. The "gig economy" (individuals or small business contracted for parts of a larger project) creates local opportunities to connect to the global market. Expansion of fiber can contribute to a smarter community, as access decreases “digital divide” inequalities. STEP P ROJECT V ARIABLES :  SUB Board and SEDA Board/Council Support and Coordination  Voltage Conversion Project Impacts and Drivers  Willamette Internet Exchange Connectivity  Carrier Hotel/Build-Out Planning and Resources  Ambleside Neighborhood Pilot Project Progress  Inclusion of PAN and other regional partners D OWNTOWN S PRINGFIELD P ILOT P ROJECT F UNDING : Following a November 2019 project team meeting between SUB and City staff, a funding opportunity through the expansion of the US Ignite grant, administered by the City of Springfield, was identified as a potential resource to support initial stages of fiber planning and build-out specific to Downtown. Following a brief discussion with US Ignite leadership and an expedited submittal of project elements, US Ignite increased grant funding to the City of Springfield in an amount of $99,500. Details of the funding requirements are summarized below. W HAT : Fund the planning and implementation of fiber build out in Downtown Springfield. The project should maximize the interconnection capacity between the cities of Springfield and Eugene by partnering to establish a Digital Town Square/Micro Carrier Hotel (DTS) in Springfield WIX I-5 PATH ? PATH KNOWN MICRO CARRIER HOTEL DOWNTOWN LOOP Attachment 2, Page 1 of 3 connecting to the Digital Town Square/Willamette Internet Exchange (WIX) in Eugene, allowing for access to high speed afforda ble internet connectivity to Springfield residents, businesses and visitors. H OW: $99,500 has been awarded to the City of Springfield as the US Ignite grant administrator to fund. Funds may be moved between project tasks/funded activities as needed through email communication with Ignite: F UNDED A CTIVITY F UNDING A MOUNT Project Administration and Working Group Team Convening $2,500 Regional Fiber Optic Infrastructure Connectivity Plan Development; WIX to Springfield Carrier Hotel/DTS $10,000 SUB/SEDA/CITY Governing Body Decision Point Carrier Hotel Site Construction/Retrofit to House DTS $15,000 DTS Build-Out $63,000 Take to Market: Education, Marketing, Coordination $9,000 S TEPS /TIMELINE : All funds must be expended and providers ‘online’ by August 31st, 2020. August 31st, 2020 for expending funds is based on the conclusion of the underlying NSF fund available and cannot be extended: updated 1/24/2020 Tactic Lead Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec % complete Springfield Assets: STEP Downtown Springfield Fiber Tracy Richardson (Courtney G) 1 Project Kick-Off/Coordination CG 100% 2 Regional Partner Coordination and Project Meeting TR, CG 3 Springfield Carrier Hotel/DTS Site Selected NA, TR 4 Carrier Hotel/DTS Site Agreements for Access in Place TR, CG, BM 5 Regional Fiber Cross-Connect Plan and Technical Spec from Eugene WIX/DTS to Springfield DTS SUB, City 6 Springfield Site Plan and Technical Spec Complete SUB, City 7 Purchase Springfield DTS Equipment/Assets SUB, City 8 Construct Facility/Rack SUB, City 9 Promote/Market Asset SUB, City 10 DTS Hosting ISPs SUB 2020 Attachment 2, Page 2 of 3 A DDITIONAL N OTES : City/SUB may jointly elect to terminate the project or grant utilization at any time without penalty should it be determined as infeasible at that time. Attachment 2, Page 3 of 3 CITY-WIDE FIBER STRATEGY & DOWNTOWN IGNITE UPDATE COURTNEY GRIESEL, CITY ECONOMIC DEVELOPMENT City Council Regular Session September 8, 2020 Attachment 3, Page 1 of 7 CITY COMPETITIVENESS WORLD-CLASS DEVELOPMENT SERVICE MINIMUM DEVELOPMENT STANDARDS STRATEGIC DEVELOPMENT OF PRIORITY SITES FORMALIZE BUSINESS INCENTIVES SPRINGFIELD ASSETS INNOVATION HUB SPRINGFIELD TELECOMMUNICATIONS ENHANCEMENT PROJECT REAL ESTATE PRODUCT DEVELOPMENT PARTNER ECONOMIC DEVELOPMENT TEAM BUSINESS OUTREACH BUSINESS RETENTION & EXPANSION INDUSTRY CONFERENCE RECRUIT TARGET INDUSTRIES HOW DOES FIBER FIT IN THE ECONOMIC STRATEGY? Attachment 3, Page 2 of 7 SPRINGFIELD ASSETS SPRINGFIELD TELECOMMUNICATIONS ENHANCEMENT PROJECT PRIORITY INITIATIVES LEAD Jeff Nelson, Springfield Utility Board TEAM SUB, CMO, Economic Development Dept., DPW What: Invest in and Develop Publically Owned Fiber Assets through STEP Why: Public Fiber Build-Out Facilitates Private Competition Increases Access, Decreases Cost ‘Gig Economy’ Increases Competitive Recruitment & Retention How: 2-5 Year Special Project, $1M+ Resource Need (Planning & Capital) Enhance Foundation for Political Support Assess Current Situation Assemble Task Force Brand and Market the Initiative and Engage Providers Capitalize Low Hanging Fruit into Early Wins Core Infrastructure Coordination SIX/Fiber Study Plan Public Build-Out Location Attachment 3, Page 3 of 7 EARLY WINS… SPRINGFIELD TELECOMMUNICATIONS/FIBER Fiber to the Home: Affordable, High Quality, Fiber to Springfield Homes Provides Access to Community Members and Springfield Workforce. Accessible on Public Backbone -A Pilot Public Fiber Expansion to the Home Project was Completed in the Springfield Ambleside Neighborhood in June 2020 Increased Quality -Current Internet Service is Costly and Often Low Quality or Metered Increased Affordability and Competition -This Expanded, Affordable, High Quality Service is Introducing Competition into a Previously Monopolized Market Replicable –This Project Provides Springfield Area Providers with a Proof of Concept, Showcasing that Adequate Take Rates Can be Met with the Utilization of Public, Affordable, Fiber Backbone Attachment 3, Page 4 of 7 WIX I-5 PATH ? PATH KNOWN MICRO CARRIER HOTEL DOWNTOWN LOOP Public Path Public Path859 Willamette Eugene Springfield Public Backbone Fiber Fiber to PDX EARLY WINS… SPRINGFIELD TELECOMMUNICATIONS/FIBER US Ignite Downtown Replication: December 2019, City of Springfield is Awarded a $99,500 grant from US Ignite to implement a fiber build- out in Downtown Springfield, maximizing the interconnection between Springfield and Eugene Downtown SpringfieldAttachment 3, Page 5 of 7 EARLY WINS… SPRINGFIELD TELECOMMUNICATIONS/FIBER US Ignite Downtown Replication: What is a Micro Carrier Hotel, or Interconnect Site? & Why Locate at City Hall? A Secure Interconnect Between Public Fiber & Private Brings Internet Service Providers Closer to the Customer PUBLIC PATH PRIVATE PATH H Attachment 3, Page 6 of 7 ULTIMATE GOALS AND NEXT STEPS… SPRINGFIELD TELECOMMUNICATIONS/FIBER Feedback on the Outcomes to Date? What is the Council Desired City Role in the Work and Ownership of Fiber Infrastructure and Community Wide Buildout? Council Guidance on Priorities for Investing in Fiber to Areas of the Community? Commercial, Residential, Industrial, etc. Are there Opportunities for Expanded Team Springfield Partnerships as we Expand Micro Connect Sites? SUB Requests Designated Councilor Participation on a Joint Technical Task Force to Include Staff and Elected Leadership from Both Agencies Attachment 3, Page 7 of 7