Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval of Memorandum of Understanding Between the City of Merced and the County of Merced for Reimbursement of Prorated Share of Countywide Broadband Strategic Plan in the Amount of $69,030
REPORT IN BRIEF
Considers the authorization to approve the memorandum of understanding between the City of Merced and the County of Merced for reimbursement of prorated share of countywide broadband strategic plan in the amount of $69,030.
RECOMMENDATION
City Council - Adopt a motion approving the memorandum of understanding with the County of Merced and authorizing the City Manager or Deputy City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to modifications as conditioned by City Council; or,
3. Deny this request; or,
4. Refer back to staff for reconsideration of specific items (specific items to be addressed in City Council motion); or,
5. Continue to a future City Council meeting (date and time to be specified in motion).
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
This recommendation is consistent with City Council’s priority in establishing and strengthening community partnerships to enhance the quality of life of residents within Merced.
DISCUSSION
On December 6th, 2021 council gave direction to utilize American Rescue Plan Act of 2021 (ARPA) to fund a broadband feasibility study. The City is partnering with the County of Merced on the broadband study feasibility for the whole County. By partnering with County, the City may potentially have access to additional federal funding opportunities. These funding opportunities include the rural broadband infrastructure grants/loan offered by the Department of Agriculture and CASF rural regional broadband grant from California Advanced Service fund. The City would not qualify for either of these programs without a partnership with the County.
The County released an RFP for a broadband feasibility study in December 2021. The RFP goals were to conduct an assessment of broadband service gaps within the County, incorporated cities, and unincorporated communities to provide recommendations for options to address such gaps directly or through a public-private partnership.
The County received two bid responses to the RFP. The City was a member of the group that evaluated the RFP’s. The evaluation team recommended awarding the RFP to Magellan Advisors. They have a strong background in municipal broadband services with over 400 municipality clients in the United States.
The countywide broadband strategic plan will consist of 6 phases: asset inventory/market assessment, outreach and community engagement, policy guidance, broadband readiness assessment, action plan, strategic plan adoption. All 6 phases will take approximately 11 months to complete. Once that study is complete, staff will bring back to council a summarized report and ask for direction on future action.
The Memorandum of Understanding between the City of Merced and Merced County outlines the prorated cost structure the City will reimburse the County for the broadband feasibility study. The City estimated the cost of the city share of the feasibility study to be $150,000 in December 2021. The total cost of the study is $230,100 with the City agreeing to pay 30% of the study equaling $69,030.
IMPACT ON CITY RESOURCES
Funding for the Broadband Study is available under American Rescue Plan Act of 2021 (ARPA) and it is appropriated per Council Action on 2/22/22.
ATTACHMENTS
1. Memorandum of Understanding Between City of Merced and County of Merced
2. Merced County contract with Magellan Advisors, LLC
3. Merced County RFP for broadband strategic plan