HomeMy WebLinkAboutCOD-036-10~ REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION
Date: June 21, 2010 Resolution#: ~I°X>i'38'G"~b By-law#: NIA
Report: COD-036-10 File#: N/A
Subject: BROADBAND -RURAL CONNECTIONS PROGRAM APPLICATION
UNDER THE REGION OF DURHAM 2010
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report COD-036-10 be received;
2. THAT Council confirms that it considers broadband service to be a priority issue
for the residents and businesses of the Municipality of Clarington;
3. THAT staff be authorized to assist the Region of Durham by providing
information and support in processing its application for Broadband funding
under the Rural Connections Broadband 2010 Program for the Regional
Municipalities;
4. THAT if it is determined to be an absolute necessity that the Region requires use
of Municipal infrastructure, similar to the Region's approved policy for
infrastructure use on Broadband initiatives as in-kind contribution to the
application, the Chief Administrative Officer, in consultation with the Department
Head, be authorized to consider the request for approval or denial; and
5. THAT the Region of Durham be adv
application to the Rural Connections
Municipaliti
Submitted b
rie Marano, H.B.Sc., C.M.O.
Director of Corporate Services/
Human Resources
ised, and thanked for taking the lead in the
2010 Program on behalf of the Regional
Reviewed by:
' I Franklin Wu
1,~ Chief Administrative Officer
MM/gj
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-0830
REPORT NO.: COD-036-10
PAGE 2
BACKGROUND AND COMMENT
1.0 Broadband Funding Programs
1.1 The Rural Connections Broadband Program was applied for in February 2009 as
approved in report COD-014-09, without success due mainly to the limited
information available to allow a comprehensive gap analysis. The Rural
Connections Provincial program was discontinued after that application.
1.2 Council was updated in September 2009 with report COD-067-09 which
identified a partnership between the Province and Federal government to bring
high speed Internet to more residents and businesses. That program was for
private companies, consortiums and only municipalities who would own, build
and operate telecommunications infrastructure. Consequently, there was no
application to that Federal program.
2.0 Rural Connections Broadband Program 2010
2.1 The Province, through OMAFRA (Ontario Ministry of Agriculture Food and Rural
Affairs), announced on May 14'h, 2010 that a final funding opportunity would
become available for applications received by July 8~h, 2010.
2.2 The 2010 program will be the final Rural Connections funding opportunity, and is
limited to a total of $4 million to be available to the entire South/Central/West
Ontario area. The maximum available under any one application is $1 million, as
a 1/3 funding contribution by the Province. The applicant must agree to secure
the funding for the 2/3 balance to complete the infrastructure, and must confirm
that broadband service is a priority for the residents and businesses. The
contribution can be in-kind or infrastructure, excluding land.
2.3 In an effort to assist the Federal Government program initiative, the Region of
Durham approved a policy to allow, under certain criteria, use of Regional
infrastructure such as water towers for in-kind contribution or lease opportunity,
thereby encouraging extension of broadband services into rural areas.
3.0 The Region of Durham -Lead Applicant
3.1 The timelines for completing the background required for a successful application
are extremely tight.
3.2 Region has been diligently working to establish accurate information on the lack
of service by hiring a consultant to complete a gap analysis for the entire Region.
Clarington Staff have been working with the Region to assist in providing
REPORT NO.: COD-036-10
PAGE 3
information required to complete the gap analysis to be prepared for any
potential future funding opportunity.
3.3 Clarington Council have been updated on the initiative undertaken by the Region
on the gap analysis, and the Municipality's participation in circulating the survey
to residents and businesses to gain direct feedback and information on the extent
of service in the area.
3.4 With the Broadband 2010 announcement, the Region has been coordinating with
the Area Municipalities to maximize the opportunity for a successful application.
Also with the funding availability limited to $1 million per applicant, the Region
Staff have agreed to request approval by Regional Council to act as the lead
applicant on behalf of the area municipalities, to maximize the funding
opportunity. The Region Report 2010-A-29 (Attachment #1), will be presented to
the Region Finance and Administration Committee meeting on June 16~h, with
Council ratification on June 23`d
3.5 It is expected that the service requirement of Clarington along with one or two
Area Municipalities, could utilize the potential $1 million funding, with the
substantial remaining 2/3 from the private sector, and some in-kind value from
the Region's infrastructure and consultant contribution. If the Region requires in-
kind contribution of a Municipal infrastructure as a necessary component in order
to complete the program, it is recommended that the CAO be given authority to
assess the request with the governing Department, for final approval or denial.
4.0 Broadband Service Level
4.1 The Province's primary focus in this intake of the Rural Connections initiative is
to service residents.
4.2 The program criteria requires the Internet Service Provider ISP to be capable of
providing download speed of minimum 1.5 Megabits per second with scalability
to advance to 3 Megabits. The new stick technology is not considered acceptable
as it is unpredictable and unreliable, however there is new technology in this area
that is currently being explored under the program.
4.3 If the application is successful and the service is extended into the rural areas, it
is important to note that the topography creating interference of sightlines does
not guarantee service to each resident. The program target is considered
successful at approximately 90 to 95% achieved service.
REPORT NO.: COD-036-10
PAGE 4
5.0 Financiallmplication
5.1 The Municipality of Clarington has not included any budget provision for financial
contribution to the expansion of broadband services, and contribution will be
primarily staff assistance.
6.0 Timelines
6.1 The application to the Province must be completed by July 8, 2010. The
application requires 5 elements to be completed for consideration:
1. Business Case
2. Gap analysis
3. Technical Plan
4. Cost Summary
5. Outreach to Residents & Businesses
6.2 The submission will be reviewed and Provincial announcement of successful
applicants is expected in the Fall 2010. The RFP would be issued by the Region
after approval of the funding, with the likely project completion in 2011.
7.0 Conclusion
7.1 It is recommended that the Municipality participate as a component of the
Region's application to assist residents and further economic development in the
business community.
Attachments: Attachment 1 -Durham Region Report #2010-A-29; Rural Connections
Broadband Program Application
JDN-16-201D(TDE] 09 20 E~onomi~ Deu, Tourism and Comm. [FRK)9056666228 P DD2/005
ATTACHMENT #1
The Regional Municipality of Durham
To: Finance and Administration Committee
From: Commissioner of Human Resources and Corporate Services
Report No.: 2010-A-28
Date: June 16, 2010
$ubiect:
Rural Connections Broadband Program Application
..
Recommendations:
That the Finance and Administration Committee recommend tv Regional Council that:
1) In light of the fact that broadband service is a priority for the residents and
businesses of the Region of Durham and the municipalities in which they reside,
the Economic Development and Tourism Department, in co-ordination with the
Finance Department, be authorized to submit an application for provincial
funding in an amount not to exceed $1,000,000 under the 2010 Rural
Connections Broadband Program;
2) Should the application for funding under the 2010 Rural Connections Broadband
Program be successful, the Economic Development and Tourism and Finance
Departments be authorized to undertake a vendor selection process through a
formal Request for Proposals.
3) The Regional Chair and Regional Clerk be authorized to sign the necessary
funding agreements.
Background:
The Gvvemment of Ontario is commifted to building strong, sustainable
communities. A modern, efficient and reliable telecommunications system is part of
the plan and.recognizes the importance of affordable, accessible and reliable
broadband for public and private sectors.
The Province of Ontario announced on May 14'", 2010, that k is investing
approximately $4 million to help expand broadband coverage in southern Ontario by
leveraging community and/orprivate-sector investment. The initiative dedicates
funds to capital infrastructure as well as economic development outreach fvr small,
medium enterprises and entrepreneurs. Application deadline is July 8, 2010.
158
JIJN-15-2010(TIJE] 09:21 Economic Oe~, Tourism and Camm. (FRK]9056666228 P.OOA100E
Report No.: 2010-A-29 Page No.: 2
• There are a number of gaps in high speed internet service within the Region's
business and residential communities in both urban and rural areas. Seven of the
eight municipalities have currently identified gaps.
Report:
The Economic Development and Tourism Department is currently undergoing a
broadband gap analysis to identify areas where high-speed internet access is not
available to its citizens or the current status of their broadband service does not
meet provincial standards. This information will be used by the Region's consultant
to evaluate options as well as a basis for a proposed application to the Rural
Connections Broadband Program. It is a fundamental component for a successful
Rural Connections application.
^ Projects eligible for funding under Rural Connections will develop broadband
infrastructure to provide connectivity to residents, businesses and public institutions
in rural areas that currently do not have access to broadband Internet services,
providing a foundation for growth and innovation.
• To be considered for funding, applicants must demonstrate how the proposal
addresses the four eligibility criteria: readiness; commitment; gaps to be covered;
and benefits to the community.
• Eligible costs for approved projects can be incurred from May 1, 2010, and the
applicant must incur all project expenses within the approved tizpelines of the
Contribution Agreement, and no later than March 31, 2012.
^ The Province will contribute up to one-third (113) of eligibh? costs, to a maximum of
$1 million per application. Municipalities are responsible for securing the remaining
share of the eligible costs from their own resources and/or from partner
contributions. The funding may be applied to research and the management of the
project as well as all aspects of the implementation of solutions.
Financial Implications:
The Region of Durham Economic Development will incur a cost of approximately
$13,DOD for the consukant, Actionable Intelligence Inc. Funds are available in the
Economic Development 2010 budget. The consukant wilt obtain sufficient
information related to the technical solution options and costing which will be used in
determining the actual amount of funding to be requested. Actionable Intelligence
will also assist in completing the application to the 2010 Rural Connections
Broadband Program.
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No.:
Economic Oe~, Tourism and Comm.
[fRH)9056666226 P. 0051005
No.: 3
The $-1,000,000 funding request represents the maximum contribution by the Province
under the program, which is 1/3 of the total cost of the project(s). The actual amount of
funding applied for may be less than the maximum based on the consultant's review
and findings.
in the event that the application is successful, vendors will be selected through a
forma! Request for Aroposal process, and will be subject to Council approval. In this
case, further casts would be incurred by the Region to engage the services of a
project manager which would become part of the 2D11 Economic Development and
Tourism budget. One third of these and any other costs incurred after May 1, 2010
related to the broadband project will be eligible for reimbursement by the province.
The Region will not incur costs related to the implementation of any approved
broadband initiative. Design, installation and capital casts for any identified projects
will be borne by the service provider(s) selected, and by the Province through their
1/3 contribution. Local municipalities in which projects are implemented may
choose to participate directly in funding if they wish through in-kind contributions of
existing infrastructure (e.g. towers).
This report has been reviewed by the Finance Department and the Commissioner of
Finance concurs with the financial recommendations.
Respectfully submitted,
~.
Gartk ohns, Commissioner
Econ mic Development and Tourism
'~-~~
Garry H. Cubitt, M.S.W.
Chief Administration Officer
160