R2016-130 Receiving Funds from Howard G. Buffett Foundation for Phase II Fiber Buildout

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Item Coversheet Page 1 of 2 in Development Services DATE: 11/2/2016 MEMO: TO: Honorable Mayor Julie Moore Wolfe and Decatur City Council Members FROM: Tim Gleason,City Manager Jim Edwards,MIS Manager Patrick Hoban,Economic Development Officer Billy Tyus,Assistant City Manager Jerry Bauer,Assistant City Manager SUBJECT: Resolutions authorizing acceptance of funding contribution from the Howard G.Buffett Foundation for and construction and management of the 2nd phase of a city owned fiber network and for transport,dedicated Internet and colocation services. SUMMARY RECOMMENDATION: Staff recommends approval of the following resolutions allowing the City to complete construction and management of a planned open access fiber network and to receive discounted aggregated broadband service. BACKGROUND: City staff has been able to secure a unique opportunity in partnership with the State of Illinois agency charged with expanding statewide high speed internet access and the Howard G.Buffett Foundation that will allow the City to continue construction of a municipal fiber network at almost 40 percent less than the original projected cost.Completion of the project will also provide a critical network for future law enforcement needs and could save money for community government entities,local not for profits and healthcare providers. The Howard Buffett Foundation has agreed to fund up to$330,000 of the project cost to connect our existing fiber network to the Illinois Century Network high-speed network hub at Richland Community College.The contribution if approved is anticipated to cover the bulk of what is expected to be a total project cost of less than$435,000,with original cost estimates two years ago having been upwards of$700,000 for what would be the 2nd phase of the city's original fiber backbone build to connect government facilities in 2014. City Manager Tim Gleason began discussions with the Foundation and Mr.Buffett months ago about community opportunities for growth and development and the Foundation's commitment grew out of those conversations and the organization's continued commitment to providing assistance to the Decatur community.Opportunities for the network include reducing the data operations costs for our current neighborhood cameras and providing the needed high-speed data access if body cameras are to be considered in the future. Such a network will also support new and existing development,provide a critical tool for neighborhood regeneration and could help to reduce declining property values. Finally—there are the substantial cost savings for other potential partners that could include schools,healthcare facilities, other local governments needing high speed internet access,digital records access and law enforcement connectivity.Under the proposed plan,the City would lease some of its fiber to other users at a cost that could be upwards of 75%less than what is currently paid for what in all likelihood will be a faster internet service.Many of the local entities have already expressed a strong interest in connecting to this network if construction is approved. You may recall that Council approved the original phase of this project in 2014 and the goal has always been to extend the network to connect at the Illinois Century Network hub at Richland.Over the last year there has been significant support expressed during study sessions and during other public discussions regarding the benefits of fiber construction to the residents and other organizations in our community. Staff has been working with the Illinois Century Network(ICN)to create a model for construction of a city-owned network that would allow discounted aggregate broadband pricing to the City and community partners.The ICN represents a unique fit for us in that it operates with the sole purpose of providing high-speed broadband to K12 and Higher Education,Public Libraries and Museums,State and Local Government,and the Healthcare community. The ICN serves millions of residents in every county in Illinois,providing Internet and Intranet connectivity for thousands of sites with a primary mission to expand broadband access throughout the State. We have reached an agreement with ICN to provide discounted broadband access,construction of the next phase of the fiber network,maintenance and https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=895 11/7/2016