18839 - Resolutiontoapprove2017SalesUseTaxAgreementCityofEllensburg

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PROJECT NARRATIVE 1. Project Description: Describe the scope of work. Indicate the major work involved, including a brief comparison of existing and proposed conditions. On June 1, 2015 the City Council accepted construction of the City's 27 mile long fiber optic network as complete. On August 3, 2015 the City Council amended the telecommunications ordinance to allow Internet access services to be provided to the public in addition to public agencies. On October 19, 2015 the City Council hired a consultant to design a wireless network for use by the electric and natural gas utilities for telemetry and by crews in the field. Design, bidding and construction of the wireless network will be completed in 2016. The City's wireless network will also be capable of providing Wireless Fidelity (Wi-Fi) services to businesses, home offices, and telecommuters. Phase I of this application is to purchase and install wireless subscriber modules to provide better, cheaper and faster Internet access services to businesses, home offices, and telecommuters using the excess capacity of the network. Although the City plans to purchase and install the majority of the necessary wireless telecommunications infrastructure, the cost to purchase and install a wireless subscriber module to connect to the network is a significant burden for a customer. See Exhibit 1A for the Phase I vicinity map. Phase II of this application is to purchase and install additional wireless access points to provide more coverage for Wi-Fi Internet access services enabling additional businesses, home offices, and telecommuters to use the excess capacity of the network. As part of the City's 2016 project, Wi-Fi capabilities will be available in several areas of the City but will not be available throughout the community. See Exhibit 1B for the Phase II vicinity map. Phase III of this application is to purchase and install fiber optic connections to businesses, home offices, and telecommuters using the excess capacity of the network. The City has been offering fiber optic services to the community during the last year. Although the City has purchased and installed the backbone of the fiber optic telecommunications infrastructure, the cost to extend fiber optics from the backbone to reach each customer's location has been a significant burden for customers. Businesses, home offices, and telecommuters are required to pay the connection cost, which averages $5,000 each. See Exhibit 1C for the Phase III vicinity map that shows locations that have requested services during the last year. 2. Explain the specific Infrastructure issues the project addresses and how they are linked to economic development improvements. Businesses, home offices, and telecommuters rely more and more on technology and the Internet in their day to day operations. Point of sale systems at local merchants are becoming the norm. By having safe and reliable Gigabit telecommunications, companies that are looking for remote office locations would look to Ellensburg for its great quality of life for their employees. The grant funds will be used for necessary infrastructure to provide telecommunications services to businesses, home offices and telecommuters. With more than a year of experience now, the City has learned that connection costs are a significant burden for customers, again preventing them from taking advantage of connecting to the fiber optic network and the wireless network. The City recently began to offer "WICKED FAST" Internet access services with Gigabit speed, which is not currently available through any other local service provider. 3. Preliminary Engineering Phase: Estimated Start Date: October 19, 2015 Estimated End Date: August 26, 2016 Please explain phase status (work already completed, in progress, awaiting funding, etc., and factors that may slow phase progress). The planning and design of the City's wireless network has been underway since October 19, 2015. Staff anticipates that the design will be complete by August 26, 2016, and that City Council will award the bid to construct the network no later than October 3, 2016. Construction of the wireless network is scheduled for completion by the end of 2016.