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Home My WebLink About14.E. Study of Wireless, High Speed Internet Service City of Shakopee l'f.c, Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: John Peterson, Telecommunications Coordinator SUBJECT: Study of Wireless, High Speed Internet Service DATE: December 15, 2005 Introduction: On September 20th, the City Council approved a recommendation from the Telecommunications Commission to have Bradley and Guzzetta perform a feasibility study of wireless broadband services to Shakopee, at a cost not to exceed $22,500. Since that time several questions have been raised, leading the Telecommunications Commission to reconsider their recommendation. Background: When the proposed Telecommunications Budget for 2006 came before the City Council on November 29th, it contained $50,000 for continued study ofWiFi, above and beyond the $22,500 already authorized. Several Council members raised concerns about the amount being set aside, what its specific use would be and how it was related to the $22,500 amount previously approved. The $22,500 study, which was approved by Council in September but subsequently placed on hold pending further discussion, was to have funded a study of the existing telecommunications infrastructure/services in the Scott County area and identified the current service demand and broadband options available to residents and businesses. It did not include evaluation of various models for municipal involvement, a formal cost-benefit analysis, an exploration of funding options or the development of a recommendation for implementation. This is what the $50,000 originally budgeted for 2006 would have funded, assuming the results of the initial study supported moving forward. About a week after Council members raised concerns about the 2006 budget allocation for Wi- Fi, staff and two members of the Telecommunications Commission attended a municipal wireless summit held in St. Paul. The presenters at the conference all suggested that cities considering municipal WiFi services do an informal survey of residents and local businesses first. They stressed that a city needs to have a specific reason why they would get involved in the provision of internet services rather than simply following what other cities are doing. At the December ih Telecommunications Commission meeting, the Commission discussed what they heard at the summit. The Commissioners that attended the summit agreed that Shakopee should reconsider its approach to this issue, and start with an informal survey of local businesses and residents before proceeding with the study that was previously authorized. This survey would be mailed out to residents and business and be based on the survey recently conducted by I the City of St. Louis Park (see attached). Once this survey has been completed and the results analyzed, the Commission will come back to the Council with a recommendation regarding next steps. It is possible that the Commission will recommend re-authorizing the original study at that time. The Telecommunications Commission estimates that it can conduct an informal mail-in survey for approximately $5,000. However, given the potential need for a more in-depth, technical study depending on the results ofthe initial study, the Commission would like to have additional funds available for this project in 2006. Therefore, they are recommending that the $22,500 initially authorized for the study by Bradley & Guzzetta be carried over to 2006 so that funding is available if the City decides to proceed following the mail-in survey. The additional money budgeted for 2006 can then be reduced from $50,000 to $5,000. Recommendation: The Telecommunications Commission recommends that the City Council rescind its authorization of a feasibility study of wireless broadband services to Shakopee, to have been performed by Bradley and Guzzetta, at a cost not to exceed $22,500. In its place, the Commission recommends that the city conduct an informal survey of residents and local businesses to determine their needs, interest and reasons for wanting wireless broadband service. Budgetary Impact: Given the above recommendation, the Telecommunications Commission recommends that the $22,500 that was allocated from the 2005 budget for a study by Bradley and Guzzetta be carried over to 2006 and that the proposed 2006 budget be adjusted so that an additional $5,000 is budgeted for study ofWi-Fi, rather than an additional $50,000 as originally proposed. This will result in a total of$27,500 available for the study ofWi-Fi in 2006. It will also reduce the total proposed Telecom budget by $45,000. This change in the 2006 budget is reflected in the Telecom portion of the 2006 budget before the Council for action on this agenda. It should be noted that Bradley and Guzetta had generated $438.75, before the project was halted. That will be chargeable to the Telecommunications Fund. Action Requested: If the Council concurs with the Commission's recommendation, it should offer a motion to rescind its authorization of a feasibility study of wireless broadband services, to have been performed by Bradley and Guzzetta; and authorize the balance ofthe $22,500 allocated for this study be carried over to 2006. /// . ----.---.." ~~~~... _~petersOn -- ~/ elecommunications Coordinator 2 Should the City Ensure Access to High Speed Wireless Internet Service? Like many cities around the country, the City of St. Louis Park is in the preliminary stages of exploring whether or not it should help ensure access to competitively priced wireless high speed Internet services to its residents and businesses. Wireless service provides mobile access to the Internet (for example, at a park or coffee shop). This survey is one of several efforts aimed at asking residents and businesses for feedback on issues related to high speed Internet service. Please take a few moments to complete and return this survey by April 20, 2005. Your response will be anonymous and given full consideration by the City Council. 1. Does your residence currently have access to the 7. High speed Internet access is (or is quickly Internet? becoming) as essential a service as water and D Yes, low speed dial-up service sewer or electricity. D Yes, high speed service D Agree strongly D No D Agree somewhat D Disagree somewhat 2. Do you currently use e-mail? D Disagree strongly D Yes, at home only D Yes, at work only 8. There is a role for city government to play in D Yes, at both home and work making sure that all residents have access to D No competitively priced high speed wireless Internet service. 3. Do you regularly visit web sites to check out D Agree strongly products and services you are interested in D Agree somewhat buying? D Disagree somewhat D Yes, and I often make the actual purchase D Disagree strongly online D Yes, but I seldom or never make the actual 9. There is a role for city government to play in purchase online making sure that all school-aged students, and D No their parents and teachers, have access to competitively priced high speed Internet service. 4. Are there children under 18 in your household? D Agree strongly D Yes, pre-schoolers only D Agree somewhat D Yes, school-aged only D Disagree somewhat D Yes, both pre-schoolers and school-aged D Disagree strongly D No 10. High speed Internet service is quickly becoming Please indicate how much you agree or disagree a key way for residents to stay connected with with statements 5 through 11. the civic and economic life of their communities. 5. The competitive market currently offers high D Agree strongly speed Internet access at prices that low income D Agree somewhat households can afford. D Disagree somewhat D Agree strongly D Disagree strongly D Agree somewhat D Disagree somewhat 11. In the near future, most businesses will be able D Disagree strongly to function efficiently only if they and their D Don't know customers havehigh speed Internet access. D Agree strongly 6. The availability of competitively priced high D Agree somewhat speed wireless Internet access is now a D Disagree somewhat "livability" factor people consider when D Disagree strongly choosing a community in which to live. D Agree strongly 12. What neighborhood do you live in? (If you D Agree somewhat don't know, please provide the nearest set of D Disagree somewhat cross streets, such as Minnetonka and Raleigh) D Disagree strongly Thank you for completing this survey. Please refold the survey, tape it shut, and drop it in the nearest mailbox. (No need to apply postage.) Should the City Ensure Access to High Speed Wireless Internet Service? Municipalities around the country are exploring ways to ensure their residents and businesses have access to competitively priced high speed Internet services. In the Twin Cities, Chaska recently began offering a municipally-owned wireless service, which also provides mobile access to the Internet. The 8t. Louis Park City Council is in the preliminary stages of exploring whether or not the city should help ensure access to competitively priced wireless high speed Internet services to its residents and businesses. This survey is one of several efforts aimed at asking residents and businesses for feedback on issues related to high speed Internet service. Please take a few moments to complete and return this survey by April 22. Your response will be given full consideration by the City Council. 1. Does your business currently have access to the 6. There is a role for city government to play in Internet? making sure that businesses have access to D Yes, low speed dial-up service competitively priced high speed Internet service. D Yes, high speed service D Agree strongly D No D Agree somewhat D Disagree somewhat 2. Does your business currently have a web site? D Disagree strongly D Yes, and customers can select and pay for products and services online 7. There is a role for city government to play in D Yes, but customers cannot select and pay making sure that all residents have access to for products and services online competitively priced high speed Internet service. D No D Agree strongly D Agree somewhat Please indicate how much you agree or disagree D Disagree somewhat with statements 3 through 9. D Disagree strongly 3. The competitive market currently offers high 8. Competitively priced wireless high speed speed Internet access at prices that even the Internet service would be attractive to your smallest business can afford. business. D Agree strongly D Agree strongly D Agree somewhat D Agree somewhat D Disagree somewhat D Disagree somewhat D Disagree strongly D Disagree strongly D Don't know 9. In the not-too-distant future, most businesses 4. Businesses are more likely to locate in a will be able to function efficiently only if they community where competitively priced high and their customers have high speed Internet speed Internet access is available to them. access. D Agree strongly D Agree strongly D Agree somewhat D Agree somewhat D Disagree somewhat D Disagree somewhat 0 Disagree strongly 0 Disagree strongly 10. How many employees does your business have 5. High speed Internet access is (or is quickly at your 8t. Louis Park location(s)? becoming) as essential a service as water and D 1-4 sewer or electricity. D 5-9 D Agree strongly D 10 -19 0 Agree somewhat D 20 - 49 0 Disagree somewhat 0 50 - 100 0 Disagree strongly q More than 100 Thank you for completing this survey. Please refold the survey, tape it shut, and drop it in the nearest mailbox. (No need to apply postage.)