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HomeMy WebLinkAboutCOD-062-08Clari~t~ton Leading the Way REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE /1 Date: Monday, October~20, 2008 ~t~o~c~.-~on~~Pg-~a~$-~' Report #: COD-062-08 File # By-law # Subject: BROADBAND EXPANSION OPPORTUNITY- PROVINCIAL PROGRAM Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: THAT Report COD-062-08 be received; 2. THAT the Municipality of Clarington undertake an Expression of Interest (EOI) process to determine the interest of service providers in the expansion of broadband coverage in the Municipality 3. THAT, staff report to Council on the results of the EOI for information with respect to private sector interest, projected cost and funding alternatives; 4. THAT pending a satisfactory response to the EOI, the Municipality coordinate with the Regional Municipality of Durham on the submission of a grant application to the Province of Ontario for funding of up to one third (1/3) of the of the project cost; 5. THAT staff investigate cost sharing arrangements with private sector service providers as part of the EOI process; and 6. THAT staff work with the Regional Municipality of Durham to develop a cost sharing arrangement for the balance of costs not covered by the Provincial Grant and/or private sector service providers. Submitted by: H. Reviewed by: Chief Administrative Officer Director CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT COD-062-08 PAGE 2 OF 4 BACKGROUND 1.1. In March 2008, the Government of Ontario announced a $30 million, four-year (2007 to 2012) initiative designed to reduce broadband infrastructure gaps in underserved rural regions in southern Ontario. Rural Connections will have a positive impact on families in rural Ontario by leveraging broadband infrastructure investment from private-sector businesses and public partners to enhance economic development and improve access to public services such as e-learning, e-health and e-govemment. 1.2. Broadband is defined as ahigh-capacity link between end user and access network suppliers at a minimum download speed of 1.5 megabits per second. 1.3. The Ontario Municipal Rural Broadband Partnership Program was designed to address barriers to economic growth, and ensure that Ontario's small town and rural communities remain viable, healthy and vibrant places in which to live, work and invest. The provincial initiative dedicates funds to capital infrastructure as well as economic development outreach for small, medium enterprises and entrepreneurs. 1.4. The province has established the program with two key submission dates per year until the funding allocation is committed. The current opportunity to make application for funding under the program expires February 12, 2009. 1.5. The Ontario govemment will invest up to 1/3 of the total eligible costs for the project. The municipality is responsible for securing the remaining share. This can be achieved through cooperation between upper and lower tier municipalities and the private sector. 2. COMMENTS 2.1. The Municipality of Clarington encompasses 220 square miles comprised largely of rural areas accommodating small villages, hamlets and farming communities with some minor industrial development. These areas lack the traditional services such as sewer, water and broadband capability enjoyed by the larger towns along the 401 corridor. 2.2. Bringing broadband capacity, that will meet the needs of the business and agricultural community, is key to increasing the competitive advantage of our rural areas. Lack of the traditional services of water and sewer creates a significant barrier to economic growth. The absence of these services is also felt by the residential populace as well. The province has recognized the limited capacity of rural Ontario and is providing this one- time funding opportunity to "jump-start" rural economic development. REPORT COD-062-08 PAGE 3 OF 4 2.3. The Region of Durham's Community Strategic Plan, since its inception, has identified a Strategic Plan Action (E3) to advocate for improved telecommunications and broadband services throughout the Region. The Region has included this action as an integral part of their work plan for many years. More recently it has been identified in the Rural Economic Development Strategy. 2.4. The Regional Municipality of Durham was successful in receiving funding for the implementation of a broadband development project designed to enhance broadband access to the Uxville Industrial Park located in the Township of Uxbridge; Scugog Industrial Park; and throughout the Township of Brock. 2.5. Durham Region is participating in the project in partnership with the provincial government, local municipalities, telecommunication service providers Compton Communications and OmniGlobe Networks, and other private partners. The Region has assisted in the grant application in the northern municipalities and contributed up to half of the municipality's one third contribution. 2.6. The Region of Durham is pursuing the expansion of broadband services in other areas of the Region and as noted they are in the process of engaging a consultant to provide outreach and awareness on broadband capabilities. Under the circumstances it would be appropriate to coordinate with the Region to develop the requirements for an EOI to address the Clarington requirements. For clarification, with the Provincial program the grants will be allotted based on the best proposals received. In short, it is a competitive process between southern Ontario communities. If a submission is made by Clarington and we are successful the grant amount can be as high as $1,000,000.00 toward broadband expansion. The balance of 2/3's funding will have to come from the private sector, the Municipality and the Region. 2.7. In order to determine the interest of the private sector in exploring the provision of broadband service to the rural areas of Clarington it is proposed that a Request for Expressions of Interest (EOI) be issued. If the response is favourable and funding is feasible an RFP can then be issued to select the service providers, or in the event only one service provider expresses an interest it may be more productive to enter into direct negotiations. 3. CONCLUSION 3.1. With the introduction of the Ontario Municipal Rural Broadband Partnership Program an opportunity exists for the expansion of broadband coverage to the rural areas of REPORT COD-062-08 PAGE 4 OF 4 Clarington. This is seen as an important opportunity to reduce or remove one deterrent to rural economic development. 3.2. In order to make this expansion viable apublic -private cost sharing arrangement is proposed in order for the expansion initiative to proceed as envisioned by the Province, 3.3. In order to determine the interest of the private sector in the opportunity to expand broadband coverage, and by association, their market, it is proposed that a Request for Expressions of Interest be issued to determine the interest of the broadband carriers. 3.4. This EOI process would, of necessity, be coordinated with the Region of Durham to ensure their input at all stages of the process. Should the EOI process produce positive results and broadband providers are interested in moving ahead (including provision of partial funding), coordination with the Region with respect to additional funding will continue. 3.5. Reports will be provided at the various milestones in order to update Council on the results of the EOI, results of the grant application and funding requirements as well as the results of the RFP as Council approves progression to each stage.