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01.12.23 Agenda M ayor Aaron Brockett Council M e mbe rs Matt Benjamin Lauren Folkerts Rachel Friend Junie Joseph Nicole Speer Mark Wallach Tara Winer Bob Yates Council Chambers 1777 Broadway Boulder, CO 80302 January 12, 2023 6:00 PM City M anage r Nuria Rivera-Vandermyde City Attorne y Teresa Taylor Tate City Cle rk Elesha Johnson ST UDY S E S S ION BOULDE R CIT Y COUNCIL Airport Community Conversation Update 15 min Presentation / 45 min Council Discussion Discussion on Membership A pplication to the Rocky Mountain A irport Noise Roundtable 15 min Update on Community Broadband 30 min Presentation / 60 min Council Discussion 2:30 hrs City Council documents, including meeting agendas, study session agendas, meeting action summaries and information packets can be accessed at https://bouldercolorado.gov/city- council/council-documents. (Scroll down to the second brown box and click "I nformation Packet") This meeting can be viewed at www.bouldercolorado.gov/city-council. Meetings are aired live on Municipal Channel 8 and the city's website and are re-cablecast at 6 p.m. Wednesdays and 11 a.m. Fridays in the two weeks following a regular council meeting. Boulder 8 TV (Comcast channels 8 and 880) is now providing closed captioning for all live meetings that are aired on the channels. The closed captioning service operates in the same manner as similar services offered by broadcast channels, allowing viewers to turn the closed captioning on or off with the television remote control. Closed captioning also is available on the live HD stream on Boulder Channel8.com. To activate the captioning service for the live stream, the "C C" button (which is located at the bottom of the video player) will be illuminated and available whenever the channel is providing captioning services. Packet Page 1 of 24 The council chambers is equipped with a T-Coil assisted listening loop and portable assisted listening devices. I ndividuals with hearing or speech loss may contact us using Relay Colorado at 711 or 1- 800-659-3656. Anyone requiring special packet preparation such as Braille, large print, or tape recorded versions may contact the City Clerk's Office at 303-441-4222, 8 a.m. - 5 p.m. Monday through Friday. Please request special packet preparation no later than 48 hours prior to the meeting. I f you need Spanish interpretation or other language-related assistance for this meeting, please call (303) 441-1905 at least three business days prior to the meeting. Si usted necesita interpretacion o cualquier otra ayuda con relacion al idioma para esta junta, por favor comuniquese al (303) 441- 1905 por lo menos 3 negocios dias antes de la junta. Send electronic presentations to email address: CityClerkStaff@bouldercolorado.gov no later than 2 p.m. the day of the meeting. Packet Page 2 of 24 C OVE R SH E E T ME E T I N G D AT E January 12, 2023 ST U D Y SE SSI ON I T E M Airport Community C onversation Update P RI MARY STAF F C ON TAC T Allison Moore-Farrell, Senior Transportation Planner AT TAC H ME N T S: Description I tem 1 - Airport Community Conv ersation Update Packet Page 3 of 24 STUDY SESSION MEMORANDUM TO: Mayor and Members of City Council FROM: Nuria Rivera-Vandermyde, City Manager Chris Meschuk, Deputy City Manager Natalie Stiffler, Interim Director of Transportation & Mobility John Kinney, Boulder Airport Senior Manager Allison Moore-Farrell, Senior Transportation Planner DATE: January 12, 2023 SUBJECT: Boulder Airport Community Conversation EXECUTIVE SUMMARY The City of Boulder (city) will conduct community conversations with both on and off airport stakeholders and develop a range of alternatives for the future of Boulder Municipal Airport (BDU). This engagement process and resulting alternatives analysis will provide a better understanding of the desired future for BDU. This study is expected to achieve the following: - Understand community goals and aspirations for the airport - Identify key issues and opportunities for consideration - Identify a range of alternatives - Identify preferred alternative - Determine the next steps Building on the Boulder Valley Comprehensive Plan, and in preparation for a future Airport Master Plan Update, the city has contracted with Kimley-Horn and their subconsultants to facilitate a series of community conversations with the Boulder community to understand their aspirational goals and desired outcomes for the future operation and/or development of BDU. QUESTIONS FOR COUNCIL Transportation & Mobility Department staff request that Boulder City Council offer general feedback on the proposed Boulder Airport Community Conversation process. Specific questions include: 1. Are there any additional stakeholder groups not already identified that should be included in the process? 2. Does Council have additional feedback about the process defined here for the Airport Community Conversation? 3. Are there additional considerations that the project team should be aware of? Item 1 - Airport Community Conversation Update Page 1 Packet Page 4 of 24 BACKGROUND The city owns BDU, which is a general aviation airport that offers business, private, recreational, and emerging aviation services to the city and surrounding communities. It has two published runways and supports heavy glider operations. The city has expressed interest in holding in-depth community conversations to better understand the aspirations of directly impacted stakeholders, residents, and traditionally underserved communities. This memo provides the Boulder City Council an overview of the purpose of the project, initial themes from stakeholder interviews, and next steps. The project team plans to present the range of alternatives and the preferred alternative at the conclusion of the community conversations effort in June 2023. CONSULTANT SCOPE OF WORK Overview The scope of this project is to carry out a community engagement process that identifies community goals and desired outcomes, a range of alternatives and the selection of a preferred alternative. The city is working to develop a deeper understanding of the desired future for BDU by engaging directly with the greater Boulder community, while being mindful of current obligations and commitments to the Federal Aviation Administration (FAA). Kimley-Horn and their subconsultants have begun connecting with various community members to understand common interests, challenges, opportunities, and potential alternatives through facilitating community conversations. Each conversation will aim to understand the stakeholders’ points of view about the benefits of the airport, airport operations, how the airport affects community members, and determine what alternatives might be preferred. Following the in-depth interviews, the project team will form a Community Working Group (CWG) comprised of both on and off airport stakeholders which will meet three times over the course of the project. The project team will host two public open houses to engage the broader public in the community conversation about the future of the airport. These community conversations and the CWG will help shape the development of a preferred alternative for the future of the airport and guide a future FAA Airport Master Plan Update should the City Council decide to pursue. Using the information gathered in these conversations, the project team will develop a range of up to four alternatives. The analysis of these alternatives will include goals, objectives, evaluation criteria and a high-level estimated cost of implementation. From these alternatives, the team will optimally identify a preferred alternative. The preferred alternative presented may not be representative of all comments and concerns gathered during the community conversation process. There will likely be elements outside the alternatives that warrant additional quantification or discussion (including conversations with regulatory agencies) which will be addressed through a separate process complimentary to the alternatives. While mindful of the community recommendations, the project team will work with federal partners to understand how the recommendations will stand up to the continuing FAA obligations. The outcome of this additional study will be shared with the City Council for review, input, and further staff direction and guidance. Community Conversation Strategy Purpose The purpose of this strategy is to facilitate community conversations about aspirations and desired outcomes for the future of the airport. These conversations will help the project team understand and Item 1 - Airport Community Conversation Update Page 2 Packet Page 5 of 24 contextualize the relationship between directly impacted communities and airport operations. By speaking directly to stakeholders, the city will foster relationships between city and airport leadership and key stakeholder groups to meaningfully apply community input and desires into the future of the airport. Consistent with the City’s Racial Equity Plan, the project team will engage directly with underserved community members and will collaborate with the city’s Community Connectors to solicit feedback on the engagement strategy, process, and issues at hand. Staff and the project team will employ the city’s Racial Equity Instrument to further refine the community engagement activities for this effort, with a focus on underrepresented communities including the San Lazaro Mobile Home Community and the Vista Village Mobile Home Community. Outreach to these communities will be used to inform the decisions for the future of the airport that prioritize community experiences and allow for diverse representation. The desired outcome for this effort is for the city to gain a better understanding of the community's desires for the future operations and development of the airport and how it integrates into the community. Additionally, the city aims to identify common understanding among impacted stakeholders about the information gathering process and ensure that all parties and the broader community feel that their input was accurately and equitably considered. Stakeholder Interviews The community conversations kick off with one-on-one stakeholder interviews. These interviews provide key stakeholders who are directly impacted or have direct involvement with the airport an opportunity to discuss topics of primary interest and concern. The project team received initial interview participant recommendations from airport and city staff. During the stakeholder interviews conducted so far, the project team asked participants if they had additional recommendations about other stakeholders to contact for this effort. In addition to this stakeholder list, city staff recommended names and groups to ensure this effort includes traditionally underserved communities. To facilitate broader participation, the project team is providing interpretation services for the interviews upon request. Aviation safety is of the highest priority for the city and the FAA, both in air and on ground. As the regulatory agency, the FAA has vested interested in what occurs at the airport. There are some comments that occurred in which additional context is available: • Several times it was requested that the city remove leaded fuel from BDU o On September 2, 2022, General Aviation Modifications, Inc. (GAMI) received a functional fleet wide approval through FAA’s Supplemental Type Certificate process for an unleaded 100 octane fuel. While this is fuel is compatible with all existing infrastructure (airplane engines, fuel tanks, fuel pumps, fuel trucks, etc.) it will take some time to ramp up production of the G100UL fuel for distribution to all general aviation airports. • Airport repurposing, alternative uses of airport land, and/or access restrictions: o A separate process quantified by legal reviews consistent with existing Grant Obligations with the FAA with cost benefit analysis is suggested o Land purchased with FAA grant monies in the past may preclude reuse of the airport land as anything other than an airport as a viable alternative o The FAA will require the airport sponsor to maintain compliance with all 39 grant assurances until federal obligations expire o Future development and the character of the airport will be part of the future Airport Master Plan Item 1 - Airport Community Conversation Update Page 3 Packet Page 6 of 24 o As a federally obligated airport, the city must “…make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities…” (FAA Grant Assurance 22). The common comments, aspirations and desired outcomes heard during the initial stakeholder interviews can be categorized as follows: • Further restrictions beyond today’s voluntary noise procedures: o Engage congressional delegations given similar themed proposed legislation o Enhance flight tracking software capabilities o Update rules, regulations, and leasing policies to incentivize compliance with the noise program • Greater citizen involvement and accountability through restructured governance o Citizen board with biannual updates to City Council o Airport expenses better delineated in the transportation budget o Provide web-based real time flight data • Remove leaded fuel from BDU • Enhance safety, reduce risks, implement a Traffic Management Program for use of runways: o Introduce traffic pattern modifications o Evaluate touch and go activity o Enforcement for individuals/companies who deactivate collision avoidance systems • Landing fees for non-based aircraft to recoup facility operation and maintenance expenses: o Implement technology solutions • Implement rules, regulations, and leasing policies for tenant accountability • Airport repurposing or alternative uses, or access restrictions: o Economic benefit and cost of having an airport versus other potential uses requires additional study, outside of the scope of this process. • Reduce from two to one runways: o Only allow FAA compliant runways Community Working Group (CWG) After the initial interviews, the project team will convene a CWG which will consist of key stakeholders who will remain engaged throughout the project. The project team will use their input to create a series of three meetings, which will further refine stakeholder input, identify alternatives, and establish a setting for discourse between all impacted stakeholders. A key element of discussion will be education of all stakeholders as to what elements are allowed or precluded from implementing by the FAA and or the City of Boulder as the airport sponsor. Members of the CWG are expected to include (but are not limited to): 1. Interview participants 2. Other key stakeholders to represent the broader community including residents geographically located near the airport 3. Aviation community members such as pilots and tenants 4. Underserved community members who may be directly impacted by the current operations and future alternatives and may include Community Connectors The CWG will meet three times throughout the course of the project to collaborate with city to develop a range of alternatives for the future of the BDU. The first meeting will be a vision workshop in February 2023 where members will talk about the future of the airport, their role as a CWG and determine what a successful project will look like. In April 2023, the CWG will meet to establish community priorities and Item 1 - Airport Community Conversation Update Page 4 Packet Page 7 of 24 begin to outline a range of alternatives for consideration. The third and final CWG meeting will establish the preferred alternative to be shared with the project team. Public Open House Meetings One-on-one interviews and establishing the CWG will help identify a range of alternatives and define the Preferred Alternative. In order to allow the wider community to participate in the process, the project team will plan and execute two public open house meetings. Immediately following the first CWG meeting, the project team will host the first public open house meeting to inform the community about the history of the airport and provide a snapshot about what the city has heard from the interviews and CWG group so far. A community survey will coincide with this meeting to solicit initial feedback from the community to aid in the development of the range of alternatives. The second public open house meeting will coincide with the second CWG. This will allow the public to learn about the alternatives identified for evaluation, solicit initial feedback on the alternatives and encourage continued engagement throughout the project and beyond. The consultant will prepare informational content for the city to execute. These materials will include: one community survey to gather initial community feedback, one community survey to gather community feedback on the range of alternatives, two informational fliers (English and Spanish) and a digital resource package (website text, images and social media graphics with supporting text). Alternatives Analysis Using the information gathered through this process the project team will develop up to four alternatives. The analysis of these alternatives will include goals, objectives, evaluation criteria and estimated cost of implementation. From these four alternatives, the team will identify a single preferred alternative. The evaluation criteria developed to assess alternatives will be based on applicable city and project requirements; State, Division of Aeronautics, and FAA considerations; and community and stakeholder perspectives garnered through the robust outreach previously described. The evaluation criteria are a lens to consider the alternatives for BDU. Tasks and Schedule Engagement/Outreach Develop Engagement Plan Within two weeks of notice to proceed (NTP) Develop Stakeholder List to be used for interviews and Community Working Group (CWG) Within two weeks of NTP Conduct a Situation Analysis/Community Conversations NTP through February 2023 Conduct up to 10 total meetings with airport stakeholders and community at- large to develop goals, objectives, evaluation criteria, and resulting alternatives Ongoing throughout project Prepare for and present an initial report to the City Council NTP through January 12, 2023 Prepare for and conduct CWG #1 to discuss the community vision for BDU. January/February 2023 Item 1 - Airport Community Conversation Update Page 5 Packet Page 8 of 24 Prepare for and conduct a Public Open House #2 Immediately following CWG #1 Prepare for and conduct CWG #2 to develop community priorities and present the range of alternatives April 2023 Prepare for and conduct a Public Open House #2 Immediately following CWG #2 Prepare for and conduct CWG #3 to develop the community recommendations May 2023 Prepare for and present range of alternatives considered, evaluation criteria and the preferred alternative to the City Council June 2023 Develop communication materials for City to execute Ongoing throughout the project Develop the Range of Alternatives NTP –through April 2023 Develop goals, objectives, evaluation criteria, and a range of alternatives (up to four), recommendations going forward and estimated cost of implementation Identify a Preferred Alternative Determine and prepare presentation of the Preferred Alternative integrating CWG, broader community, city and project team recommendations May 2023 Prepare for and present range of alternatives and preferred alternative to the City Council June 2023 Report Preparation Ongoing throughout project – completed June 30, 2023 Prepare Draft Report and Executive Summary Prepare Final Report and Executive Summary NEXT STEPS • Continue stakeholder interviews and refine CWG member list – January 2023 • Conduct CGW meetings o Vision workshop – February 2023 o Community priorities and range of alternatives – April 2023 o Community recommendations – May 2023 • Hold Public Open House #1 – February 2023 • Hold Public Open House #2 – April 2023 • Develop range of alternatives and optimally identify a preferred alternative – ongoing – May 2023 • City Council presentation – June 2023 • Final report – June 2023 Optimally, a preferred alternative will be presented at the conclusion of this study for the City Council’s review, consideration, and potential budgetary impacts. Item 1 - Airport Community Conversation Update Page 6 Packet Page 9 of 24 C OVE R SH E E T ME E T I N G D AT E January 12, 2023 ST U D Y SE SSI ON I T E M Discussion on Membership Application to the Rocky Mountain Airport Noise Roundtable P RI MARY STAF F C ON TAC T C arl Castillo, Intergovernmental Officer AT TAC H ME N T S: Description Rocky Mountain Metropolitan Airport Community Noise Roundtable Packet Page 10 of 24 STUDY SESSION MEMORANDUM TO: Mayor and Members of City Council FROM: Carl Castillo, Chief Policy Advisor Natalie Stiffler, Acting Director for Transportation and Mobility John Kinney, Airport Principal Project Manager DATE: January 12, 2023 SUBJECT: Discussion of council’s interest in applying for city membership in the Rocky Mountain Metropolitan Airport Community Noise Roundtable EXECUTIVE SUMMARY Council is being asked to consider a staff recommendation to apply for city membership in the Rocky Mountain Metropolitan Airport Community Noise Roundtable (CNR). The purpose of the CNR is to “provide for and promote a regional, coordinated approach to collaborate on and address the noise impacts to the community surrounding the Rocky Mountain Metropolitan Airport.” The members of the CNR are the following local governments: Arvada, Boulder County, Jefferson County, Lafayette, Louisville, Superior, Westminster. The city’s participation in the CNR would require appointment of a city council member The CNR meets monthly at the RMMA terminal building from 9:00 am to 10:00 am on the second Monday of each month. Virtual participation is allowed. Questions for Council 1. Is council interested in applying for city membership in the Rocky Mountain Metropolitan Airport Community Noise Roundtable? 2.Does council have a member willing to serve as the city’s representative should the city be granted membership? BACKGROUND The city’s absence from the CNR may allow decisions to be made that negatively impact Boulder residents. One example is the recent Pilot Project to implement VFR Rock Mountain Airport Noise Roundtable Page 1 Packet Page 11 of 24 Arrival/Departure Flight Path Changes. Boulder lacked a voice in the design stage on that decision. The flight paths were identified and implemented without our input or awareness. Moreover, based on reported noise complaints, staff estimates that pilot practice areas above Boulder are being used approximately 50% of the time by RMMA flight schools. These practice areas should be reviewed as to options to relocate to undeveloped farmlands away from homes. This is particularly relevant given that RMMA is on an aggressive growth trajectory and is seeking to schedule additional service. The city’s participation on the committee would allow it to raise these issues in a venue recognized by state and FAA local offices. NEXT STEPS Should council express interest in applying for membership, Boulder would need to submit a letter of interest to Broomfield Council Member Devin Shaff and follow up with a presentation to the CNR making the case why it should be allowed to join. The CNR would then vote on whether to allow Boulder to join. If the city was offered membership council would then need to appoint a representative and approve an IGA. Rock Mountain Airport Noise Roundtable Page 2 Packet Page 12 of 24 C OVE R SH E E T ME E T I N G D AT E January 12, 2023 ST U D Y SE SSI ON I T E M Update on Community Broadband P RI MARY STAF F C ON TAC T Nuria Rivera-Vandermyde, City Manager Chris Meschuk, Deputy City Manager Jennifer D ouglas, C hief Innovation & Technology Officer M ike G iansanti, D eputy Director of Innovation & Technology Tim Scott, Broadband P roject M anager AT TAC H ME N T S: Description Community Broadband Study Session Memo Packet Page 13 of 24 STUDY SESSION MEMORANDUM TO: Mayor and Members of City Council FROM: Nuria Rivera-Vandermyde, City Manager Chris Meschuk, Deputy City Manager Jennifer Douglas, Chief Innovation & Technology Officer Mike Giansanti, Deputy Director of Innovation & Technology Tim Scott, Broadband Project Manager DATE: January 12, 2023 SUBJECT: Update on Community Broadband EXECUTIVE SUMMARY The purpose of this study session is to update council members on the construction of the city’s fiber backbone, to outline various approaches to using the city’s fiber backbone to provide community-sponsored fiber-based internet services, and to outline the proposed next steps. Community broadband is a topic that was initially discussed with council in 2016 and at that time a feasibility study was conducted. In 2018, council decided to fund the construction of a dark fiber backbone along main transportation corridors in the city. This decision was made as council recognized that there was substantial future value in this asset to enable broadband programs and that similar cities with successful programs generally owned some of their backbone infrastructure. As the construction of the backbone is completed in 2023, it is time to take the next steps in defining the city’s community broadband program. As staff embarks on this work, minor revisions to the objectives for community broadband are proposed to keep the objectives relevant for today’s broadband market. Additionally, staff is seeking council’s strategic direction on how to approach achieving the outcome of affordable, high-speed fiber-based broadband internet access for all in Boulder. The three general approaches include: A.“Provider of Last Resort” - The low-risk, low-cost, but lower-likelihood of successfully achieving the desired outcome option of using the city-owned backbone for city’s own purposes and as a “provider of last resort” to address Community Broadband Page 1 Packet Page 14 of 24 specific community challenges not addressed by private providers. In this approach the city would consider case by case fiber leases of backbone based on to-be-defined criteria, but it would not participate wholistically in the broadband market to retail residential or business customers. B.“Provider of Last Resort + Public Private Partnership” - The medium-risk, low-cost, and likely to successfully achieve the desired outcome option of doing both Approach A and selecting a private-sector provider(s) who utilizes the city’s backbone and implements privately owned infrastructure to achieve city-defined broadband policy objectives. In this approach the partner builds a new fiber- based, high-speed network connecting premises and the city negotiates on several parameters that could include retail price, prioritization of infrastructure investments, and access to lease city-owned fiber assets. C.“City operated service” - The high-risk, very high-cost, and likely to successfully achieve the desired outcome option of funding the construction and operation of a fiber network to premise owned by the city. In this approach the city builds the entire fiber-to-premise network, operates the network, and is the service provider taking on all functions such as marketing, billing, and all technical services. Regardless of approach, additional research and community engagement must be completed to define viable operating models before a final decision can be made. Staff is recommending that the “Provider of Last Resort + Public Private Partnership” (approach B, above) approach be explored further, with additional analysis and exploration of what types and levels of partnership could enable achieving the outcome and objectives for community broadband. QUESTIONS FOR COUNCIL 1. Do councilmembers have any questions on work completed to date or on the current broadband ecosystem? 2.Do councilmembers agree with the proposed revisions to the outcome and objectives for the city’s community broadband initiatives? 3.Do councilmembers agree with staff’s recommendation to further explore approach B, “Provider of Last Resort + Public Private Partnership”? BACKGROUND Boulder, like many other similarly sized municipalities, has limited competition in the commercial broadband services market for residential and small/medium-sized business customers. Physical fiber infrastructure to premises is also very limited within the city with nearly all advertised broadband services being delivered via cable – a less ‘future- proof’ technology. As a result of this limited competition and infrastructure, pricing for services tends to be high with both innovation and customer service low. In November 2014, the community approved a ballot measure (Item 2C) exempting the city from state limitations on telecommunication services. This measure established city Community Broadband Page 2 Packet Page 15 of 24 autonomy to invest in community broadband services, which had previously been limited by Colorado Senate Bill 05-152. Without a voter-approved exemption, this law significantly restricts the ability of municipal governments to provide broadband services, either independently or in partnership with private entities. A Broadband Working Group composed of community representatives was established in 2015 and continued to meet until early in 2017. A formal, consultant-assisted broadband feasibility study was presented to council in a study session on July 12, 2016.  The city then issued an RFP for potential partners, and on April 18, 2017, a public hearing was held to consider recommendations about how best to proceed. In the weeks leading up to the April council meeting, one company that the city had been negotiating with showed promise, and in the days prior to the meeting withdrew from negotiations. This change – along with an assessment that additional analysis was needed – led staff in May 2017 to recommend against pursuing a ballot issue in the election that was then just several months away. Council agreed. Staff then stepped back, and reassessed the approach in late 2017, conducted additional community engagement, and in June 2018 presented council with various broadband operating model options (see also council materials from 1/9/18, 5/8/18, and 6/12/18). Council voted to approve the design and construction of a city-owned “fiber backbone” in effort to work towards the goals of affordable and accessible high-speed internet services throughout the city and to preserve the city’s future options for various broadband business models. Staff also recommended and council approved funding of high-priority network laterals (i.e., extensions from the backbone to specific sites) to connect key partner organizations to these services. Five of the planned seven backbone rings will be complete by the end of 2022, see Figure 1, shown in light yellow. The remaining Canyon and Table Mesa areas (phases 5 and 6), shown in heavy red, have planned completion dates in autumn 2023. As rings are completed, they are available for service. This includes the Diagonal and Arapahoe rings that are already being used to deliver fiber for use by our public safety organizations and to traffic signal infrastructure. In parallel, city staff is developing Figure 1 – “Backbone Construction Current State” Community Broadband Page 3 Packet Page 16 of 24 a multi-year ‘smart city’ plan that outlines how connected devices can further council priorities and department master plans while leveraging existing and planned city fiber assets. Boulder is now in positioned to leverage its investment in the city-wide, fiber backbone infrastructure to spur delivery of fiber-based, high-speed, and competitively priced internet services. Furthermore, additional city investment will further close the digital divide that has seen improvement via private infrastructure investment since council approved backbone funding in 2018. The city’s work on community broadband also has a high degree of alignment with all attributes of the Sustainability, Equity, and Resilience Framework: Sustainability, Equity & Resilience Framework Community Broadband’s Impact Safe •Directly enhances public safety communication •Enables more efficient / effective basic public health utilities Healthy & Socially Thriving •Enables digital connection and access to educational opportunities •Enables greater inclusion in the digital world Livable •Enables smart buildings and infrastructure Accessible & Connected •Directly bridges the digital divide •Enhances access to government services Responsibly Governed •Enhances customer experience, government transparency, and overall effectiveness Economically Vital •Enhances the attractiveness of Boulder as a place to do business •Promotes creativity, entrepreneurship, and social mobility for all ANALYSIS Boulder, having invested approximately $20M in core infrastructure (dark-fiber backbone), now must determine the best approach to achieve the city’s desired outcome of community broadband. The fundamental question the city must now answer, is the level of control and financial/other risk it wishes to take on. Community Broadband Outcome and Objectives With grounding in the city’s Sustainability, Equity, and Resilience, staff has drafted the intended outcome of community broadband initiatives: Affordable high-speed fiber-based broadband internet access for all. To achieve this intended outcome staff also proposes 5 objectives on which future decisions will be framed. These objectives are: •Citywide access •Equitable & inclusive •Future-oriented Community Broadband Page 4 Packet Page 17 of 24 •Competitive marketplace •Consumer privacy Two objectives that were defined when council last visited this topic in 2018, ‘net neutrality’ and ‘open access’ are proposed to be removed. By removing them the objectives are less redundant as ‘open access’ is captured as part of ‘competitive marketplace’ and ‘net neutrality’ as part of ‘equitable & inclusive’. It also better reflects the current landscape around the broadband ecosystem and federal standards. ‘Consumer privacy’ is proposed as an addition given its criticality to deliver trusted and competitive services. Operating Model Approaches Figure 2, below, outlines the full range of operating models along a spectrum of risk and control. While the number of approaches is truly limitless along this spectrum of risk, to simplify decision making at this stage of the project, staff has summarized three core approaches to achieving the intended outcome of community broadband – A, B, and C (as indicated in Figure 2 and described below). Variations on each core approach are numerous and will be further outlined once there is alignment on the city’s general direction. From lowest risk and cost to highest: Approach A “Provider of Last Resort”: This approach includes the city using the backbone infrastructure for its own purposes and as a “provider of last resort” (i.e., where private providers are not providing sufficient services) to Figure 2 – “Fiber-based Municipal Internet Service Operating Models” Community Broadband Page 5 Packet Page 18 of 24 address community challenges (e.g. Boulder Rescue connection). The city considers case by case fiber leases of backbone based on to-be-defined criteria. Approach B “Provider of Last Resort + Public Private Partnership”: This approach includes Model A + the city partners with private-sector provider who utilizes the city backbone and implements defined broadband policy objectives. In this approach the partner builds new fiber-based, high-speed network connecting premises and operates associated services. The city leases backbone infrastructure and ensures ease of permitting / construction, and in return negotiates for items such as retail price locks and a say in the prioritization of geographies served. Approach C “City Operated Service” This approach requires an estimated $+100M 1 of capital investment to build fiber city-wide to enable services to all city premises. Additionally, significant annual maintenance costs for all new fiber plant and electronics would be required. There are further complex operational requirements and costs associated with running a premise-based fiber network offering internet services. These include billing, ticketing, network operations, trouble shooting, customer care, and marketing of any new network and services. Given these complex and costly features staff does not believe these are feasible models to achieve the goals of affordable and accessible services in a timely or cost-effective manner. Considering the balance of risk (financial, operational, and reputational) and control / opportunity, staff recommends approach B “Provider of Last Resort + Public Private Partnership”. This partner would take on both the capital and operational risk of running a broadband network, and the market risk of competing and offering internet services in the local market. 1 Estimate based on industry blended per premise installation estimate of $2,500/ premise at approximately 40,000 premises in Boulder Community Broadband Page 6 Packet Page 19 of 24 Additional details about a potential public-private partnership: The city’s fiber backbone has 432 individual fibers, each of which can be designated for a different use. Figure 3 outlines a high-level provisional allocation with several uses in mind reflecting some current and future use cases. Half of the backbone (216 fibers) have been provisionally allocated for the purpose of assisting with the deployment of community broadband solutions, shown in yellow, while others are intended for government services, shown in purple, and others, for city partnerships and being a “provider of last resort” for entities that cannot obtain services elsewhere, shown in blue. Staff’s recommendation is that the portion of fiber strands, in this provisional model there are 50%, be allocated to a private-sector partner who, in exchange, would extend fiber from the backbone to connect to premises across the city. The exact number of strands would primarily be driven by the technology choice that the potential private- sector partner utilizes to design and construct extensions from the backbone and connect fiber to city premises. These fibers are typically granted to the partner within the terms of the public-private-partnership agreement and are typically assigned by granting an Indefeasible Right to Use (IRU) for a term of 20 or 30 years. Assuming a backbone allocation similar to the provisional model, the 216-fiber strand allocation offers an attractive starting point for a private sector partner to begin the process of marketing and ultimately securing fiber-based, internet customers in the city. The city’s risk in this approach would be low as it would only commit a portion of the completed fiber backbone to a new partner to then leverage and create fiber expansion strategies to premises and offer new internet products and services. In return for providing use across the city’s fiber backbone, the city could seek one or more of the following through contract negotiations to achieve affordability and accessibility goals: A.A partner to fund and build fiber to all city premises. Everyone who desires a fiber-based service from this new partner should be served regardless of where they live or their property address Community Broadband 216 Affordable Housing 25CU 11 RTD 11 Transport ation 36 Public Safety 25 Water Utilities 25 Other Smart City Applications 48 General Spare 35 Figure 3 - "Provisional Cross Section of Fiber Backbone Uses" Community Broadband Page 7 Packet Page 20 of 24 B.An expectation, at the city’s discretion, to work with Boulder Housing Partners and other low/middle income housing communities prioritized by the city C.Offer a true city-facilitated community broadband product available to all, a basic broadband service for everyone (e.g. $30 a month for a 100mbps service) D.A partner to pay city a lease fee for using x fibers across the city’s fiber backbone, or, city to share in of collected broadband revenues E.As the partner builds their own fiber network from the city’s dark fiber backbone, they also build city-owned fiber everywhere, effectively creating additional fiber assets across the rest of the city that could be used for “future proofing” and enabling more “provider of last resort” and “smart city” opportunities for the city While the city would welcome a new partner to provide city-wide, fiber-based internet premise-based services, the city would continue to act as a “provider of last-resort" where if desired, it can extend fiber from its backbone and connect to community partners. The city is already completing work like this, such as with Boulder Rescue Squad which will be completed in 2023 providing them with fiber-based, critical, affordable, internet services. The “provider of last resort” would consider the following: 1. Extend lateral connections from the city’s backbone where there is a need from a city partner that is not being served by the private sector 2. Typically these locations would be non-profit or some sort of governmental/institution location 3. The objective is not to compete with the private sector so for-profit organizations are not the focus unless the private sector is unable or unwilling to provide service Increasingly, cities are looking towards private sectoring partnering to achieve true competition with their broadband offerings. Centennial is a good example of this, and more recently this is a direction that Colorado Springs has taken. Additionally, Huntsville, AL, Austin, TX, and also recently Mesa, AZ are all taking similar pathways but not all have an already completed fiber backbone in place that can offer a real incentive to the private partner. Staff’s recommendation is to seek a well-aligned private partner that understands the city’s objectives as it relates to utilizing the current backbone, with the private partner ultimately, funding, designing, constructing and operating the required fiber extension loops and fiber drops that connect to city premises. All funding for the required effort to design, construct, and operate these fiber loops and premise extensions would be borne by the selected private sector partner. They would compete in the local Boulder market offering fiber based, broadband products and services taking on all the market risk and telecom incumbents. Whilst the city would not bring any direct funding to this partnership, the city would make its fiber backbone available for the partner to quickly have city-wide reach avoiding an estimated 3-years of costly design and construction enabling them to move much faster in a mid-sized metro market such as Boulder. Under this agreement the private partner is also responsible for maintenance of any fiber that Community Broadband Page 8 Packet Page 21 of 24 may be granted from the city. The city would remain responsible for maintenance of fibers not granted to partner from the backbone. Additionally, Boulder, like most mid-sized cities across America, is not regarded as “unserved” or “underserved” per federal definitions as it relates to the opportunities to obtain broadband services. Therefore, staff do not see opportunities to obtain federal or state funds as capital for the purpose of directly building fiber and providing internet services. However, there are several areas of funding that potentially could assist community organizations bridge some of the challenges of broadband adoption such as cost, education, device availability etc. These programs will be further explored in early 2023. MATRIX OF OPTIONS Approach A: Provider of Last Resort Approach B: Provider of Last Resort + Public Private Partnership Approach C: City Operated Service Description City completes fiber backbone in 2023, uses backbone for its own purposes and as a “provider of last resort” to address community challenges e.g. Boulder Rescue connection. City would consider case by case fiber leases of backbone on an opportunistic basis City completes fiber backbone in 2023 and in parallel seeks private sector partner that would utilize city backbone and implement defined city broadband policy objectives. Partner builds new fiber- based, high-speed network connecting any premise within city boundaries City completes fiber backbone in 2023 and in parallel seeks to fund the build out of a full fiber network that could connect fiber to every city premise. City would operate the network and be the service provider taking on all functions such as marketing, billing, and all technical services. These functions are typically performed by cities with existing electric utility departments Infrastructure Owner Backbone: City Distribution: N/A Electronics: N/A Operations: N/A Backbone: City Distribution: Private Electronics: Private Operations: Private Backbone: City Distribution: City Electronics: City Operations: City Service Provider Private Private City Organizational Implications to City Low Risk – Minor staffing implications during construction, no facility implications Low/Medium Risk – City makes a portion of key fiber backbone asset available. Requires possible dedicated FTE to oversee asset allocation. High Risk – as well as the full financial risk of funding a city-wide fiber network, city would have to stand up a new broadband department to perform all required ISP functions including facilities for administration and operations. A new department such as this is Community Broadband Page 9 Packet Page 22 of 24 estimated to require 43FTEs Financial Implications / Considerations Low - $20m budget was secured in 2020 to complete the build of the city’s fiber backbone. Some budget is likely to remain after completion of backbone at end of 2023 that could fund annual operational costs. Annual operational costs are relatively low <$50K. Low/Medium - $20m budget was secured in 2020 to complete the build of city’s fiber backbone. Private partner use of backbone and their plans to then fund and build out fiber across the city does not necessarily guarantee successful broadband outcomes. Annual operational costs are relatively low <$50K and may involve an additional FTE resource within IT High – estimated to be $138m cost to construct, maintain, and operate network and customer service. Network costs estimated to be between $500k to $1m annually excluding all FTE costs. The model to pay back high expected capital costs is typically based on residential take rates and assumed revenue per premise. Control Less Control -Price: Set by provider -Speed: Set by provider -Minimal customer service requirements -Coverage may be dependent on market demand -No funding for backbone usage Some Control -Price: May be negotiated with provider -Speed: May be negotiated with provider -Negotiated customer service requirements -Universal coverage across city -Payment to the city for use of fiber backbone High Control -Price: Set by city -Speed: Set by city -Customer service requirements controlled -Universal coverage across city -No funding for backbone usage Ability to Meet Objectives Low -Citywide access: Not guaranteed -Equitable & Inclusive: Not guaranteed -Future-Oriented: somewhat -Competitive Marketplace: potentially better than status quo -Net Neutrality: ? -Open Access: Fiber backbone yes, other carriers remain on their own networks Mixed -Citywide access: Possible -Equitable & Inclusive: Likely -Future-Oriented: Yes -Competitive Marketplace: somewhat – another competitor -Net Neutrality: Possible -Open Access: Possible, but most potential partners will desire to be sole service provider High -Citywide access: Yes -Equitable & Inclusive: Yes -Future-Oriented: Yes -Competitive Marketplace: another competitor -Net Neutrality: Possible -Open Access: Not initially Community Broadband Page 10 Packet Page 23 of 24 Other Communities with this Approach Holly Springs, NC Centennial, CO Urbana-Champaign, IL Westminster, MD Huntsville, AL Colorado Springs CO Breckenridge, CO Longmont, CO Wilson, NC Salisbury NC Ft. Collins, CO Loveland, CO NEXT STEPS Pending council feedback and general alignment with staff’s recommendation to further research Approach B, next steps include: •Continue backbone construction – planned completion in late 2023 •Backbone-use strategy analysis •Public Private Partnership operating-model analysis (including more detailed cost analysis, resource analysis, and potential points for negotiation) •Community engagement activities •Prepare for a Q2 study session with additional detail around Approach B ATTACHMENTS •N/A Community Broadband Page 11 Packet Page 24 of 24