Title
Planning and Building Department, Economic Development Division, recommending the Board:
1) Receive and file a presentation from the County’s Broadband Consultant, NEO Connect, focusing on past, current, and upcoming Broadband planning efforts, and the California Public Utilities Commission Federal Funding Account grant;
2) Approve the County taking ownership of the network as a condition of the award and consider the advantages and potential challenges of owning the infrastructure;
3) Accept four (4) California Public Utilities Commission Federal Funding Account grants in a cumulative amount of $66,322,824, consisting of:
A) Coloma Broadband Project - $4,692,838;
B) Garden Valley Broadband Project - $25,227,011;
C) Georgetown Broadband Project - $5,636,823; and
D) Indian Creek Broadband Project - $30,766,152;
4) Delegate authority to the Director of Planning and Building, to execute the California Public Utilities Commission Federal Funding Account grants and any grant-related documents necessary to secure grant funds and implement the approved grant, including, but not limited to, requests for payment, reports, and amendments that do not require a County match, contingent upon approval by County Counsel and Risk Management; and
5) Receive an update on a Request for Proposals to establish a Public Partnership(s) with an Internet Service Provider(s) to maintain and construct the network.
FUNDING: California Public Utilities Commission Federal Funding Account Grant Funds
Body
DISCUSSION / BACKGROUND
NEO Connect
With over 13 years of experience, NEO Connect is an industry leader in planning, community engagement, design and engineering, business modeling, financing, owning and operating fiber optic, wireless, and Fiber-to-the-Premise networks.
In September 2017, the County contracted with NEO Connect for a Broadband Needs Assessment and Feasibility Study; then, in January 2020, the Board approved an as-needed contract for broadband consulting services. Through this collaboration, the County has applied for and been awarded an Economic Development Administration (EDA) Grant for $3,782,433, a Local Agency Technical Assistance (LATA) grant for $500,000, and most recently four (4) CPUC FFA grants totaling $66,322,824.
CPUC FFA Grants
California’s multi-year broadband investment package established the last-mile FFA as part of the Budget Act of 2021 and Senate Bill 156 and invested $2 billion in the program over multiple years. The FFA funds the construction of last-mile broadband infrastructure projects in unserved areas of California.
On June 30, 2023, the CPUC opened the first FFA application window for last-mile federal funding, with a closing date of September 29, 2023. On September 25, 2024, the County of El Dorado (County), with assistance from NEO Connect, applied for Last Mile FFA grant funding for the underserved/unserved areas of Coloma, Garden Valley, Georgetown, and Indian Creek (Project Areas), and on October 2, 2024, the County was officially notified that their grant applications were approved.
Utilizing the FFA grant funding, the County proposes to provide up to one (1) gigabit per second (Gbps) download and 500 megabits per second (Mbps) upload service to consumer locations within the Project Areas. Locations, as defined by the CPUC is a term that refers to a structure that has or can receive broadband service. For example, a single-family housing unit, a multi-dwelling unit, a business building, or a commercial structure. A multi-dwelling unit is a building or group of buildings that contains multiple separate housing units. Examples of multi-dwelling units include apartment buildings, duplexes, triplexes, quadplexes, and mixed-use properties. The County, in collaboration with a PPP(s), would also offer a low-cost plan to consumers who qualify. Additionally, the Project Areas would provide the following:
Coloma Broadband Project - This Project proposes to install approximately eight (8) miles of network infrastructure underground and would serve an estimated 82 unserved locations. There are approximately 128 unserved locations in the Project area, including 23 unserved multi-dwelling unit locations, representing an estimated 65 unserved units. An estimated unserved population of 377 would be offered service and an estimated total population of 386 would benefit from these investments in the community of Coloma and surrounding unincorporated El Dorado County.
Garden Valley Broadband Project - This Project proposes to install approximately 47 miles of network infrastructure underground and would serve an estimated 605 unserved locations. There are approximately 649 unserved locations in the Project area, including 119 unserved multi-dwelling unit locations representing 257 unserved units. An estimated unserved population of 1,683 would be offered service and an estimated total population of 1,693 would benefit from these investments in the community of Garden Valley and surrounding unincorporated El Dorado County.
Georgetown Broadband Project - This Project proposes to install approximately 11 miles of network infrastructure underground and would serve an estimated 161 unserved locations. There are approximately 168 unserved locations in the Project area, including 62 unserved multi-dwelling unit locations representing an estimated 145 unserved units. An estimated total population of 960 would benefit from these investments in the community of Georgetown and surrounding unincorporated El Dorado County.
Indian Creek Broadband Project - This Project proposes to install approximately 57 miles of network infrastructure underground and would serve an estimated 945 unserved locations. There are approximately 945 unserved locations in the Project area, including 237 multi-dwelling unit locations representing an estimated 513 unserved units. An estimated total population of 2,884 would benefit from these investments in the community of Indian Creek and surrounding unincorporated El Dorado County.
Staff is currently halfway through a Programmatic Environmental Impact Report (EIR) to streamline the California Environmental Quality Act (CEQA) review process by comprehensively addressing potential environmental impacts, allowing for faster deployment of crucial infrastructure.
Acceptance of the four (4) CPUC FFA grants as presented directly aligns with the County’s Strategic Plan goals and builds upon the work the County has completed. The County has identified Public Infrastructure as a strategic focus area, prioritizing Information Technologies/Broadband. Through this FFA grant funding, the County can bring connectivity to unserved/underserved consumers within the Project Areas, thus helping bridge the digital divide.
Public Private Partnerships (PPPs)
Prior to beginning any work with FFA grant funds, the County must establish a PPP with an Internet Service Provider(s) (ISP). Through a PPP, the ISP would maintain the network, while the County would retain ownership of the network. County ownership is a requirement of awarding the grants to El Dorado County, as the CPUC has expressed the desire of public funds to be awarded to public jurisdictions. The County would enter into a PPP with the selected ISP(s) for a proposed initial term of 10 years, with three-year optional extensions and terms for early termination.
For three years after project completion, the County shall retain ownership of the infrastructure. If, for any reason, the County sells or transfers the asset, it must notify the Director of the Commission’s Communications Division in writing of the intent. The County must provide documentation, including an affidavit, stating that the new entity will take full responsibility and ownership to comply with the requirements of the FFA grant and requirements of the U.S. Treasury Department. The new entity shall agree in writing to such requirements and responsibilities.
Through the development of a contract with an (ISP) for the deployment of internet service, the County aims to establish a framework that minimizes risk without compromising service levels. When a jurisdiction collaborates with an ISP via a public-private partnership, retaining ownership ensures that the County maintains control over the service while ensuring alignment with grant requirements. The grant award will cover the initial construction costs; however, the public-private partnership will delineate responsibilities for infrastructure damages and stipulate that the ISP is responsible for network maintenance for the duration of the contract. Additionally, the partnership will allocate a portion of the revenue to address infrastructure damages and mitigate repair costs, which are expected to be minimal.
Upon the conclusion of the initial contract term, the County may incorporate provisions for renewal or renegotiation of the contract based on performance and community needs. If necessary, the contract may permit the County to assume full operational control or invite participation from other ISPs. County staff is collaborating closely with Procurement and Contracts to ensure that comprehensive agreements are in place, clearly outlining ownership, liability, and operational responsibilities to safeguard public interests.
Approximately eight other jurisdictions awarded CPUC grants are in the same process as El Dorado County. These jurisdictions plan to partner with an ISP for service and maintenance, as well as with a contractor for the construction of the infrastructure.
Currently, staff is preparing to issue a Request for Proposals (RFP) to select an ISP(s) for a PPP(s).
Additionally, staff will prepare an RFP for the construction of the networks. This step will occur after establishing the PPP.
ALTERNATIVES
The Board may choose not to receive and file the presentation from NEO Connect and/or accept the four (4) CPUC FFA grants as presented. This would result in forfeiture of the available grant funds awarded to the County under this grant program.
PRIOR BOARD ACTION
On June 30, 2020 (Legistar File 20-0835), at the request of the Broadband Ad Hoc Committee, the Board provided direction to staff to work with NEO Connect to apply for a grant from the EDA. This specific EDA grant was for services related to the design, engineering, and construction of Broadband for priority areas within the County, using designated Transient Occupancy Tax (TOT) funds of $450,000 as the 10 percent County match for funding of a project up to $4.5 million.
On July 19, 2022 (Legistar File 22-1244), the Board accepted a grant award from the EDA for $3,782,433 in CARES Act Funds for the purpose of completing the Middle-Mile Fiber Optic Project. The Middle-Mile Fiber Optic Project proposed to install approximately thirteen (13) miles of underground fiber optic conduit along existing roadways to provide middle-mile broadband service to the underserved areas of Cool, Garden Valley, and Georgetown.
On October 25, 2022 (Legistar File 22-1895) the Board accepted a LATA grant award from the CPUC for $500,000 for development of broadband network deployment projects that benefit the unserved or underserved communities of Garden Valley and Indian Creek.
On August 22, 2023 (Legistar File 23-1486), the Board received and filed a presentation from Neo Connect and directed staff to pursue a CPUC FFA grant for last-mile broadband infrastructure projects.
OTHER DEPARTMENT/ AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION/COMMENTS
Receive and file presentation, and accept grants as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item as no County match is required. Based on the terms of this grant, it is possible that the Department would incur expenses during Fiscal Year 2024-25 and not receive reimbursement until the following Fiscal Year. The Department will work on finalizing the grant expenditure schedule and will return to the Board for approval of a budget transfer, if applicable, once budget appropriations for Fiscal Year 2024-25 are identified.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Public Infrastructure - Identify funding opportunities to secure funding to begin the design and construction of enhanced broadband technology to improve connectivity, efficiency, and resilience.
CONTACT
Kyle Zimbelman, Deputy Director of Economic Development
Planning and Building Department