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HomeMy WebLinkAbout5.F.17. Revised Recommendation Regarding High Speed Internet Service 5~F 17. City of Shakopee CONSENT Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Revised Telecommunications Commission Recommendation on High Speed Internet Service DATE: December 15, 2006 Introduction On July 18, 2006, the City Council received and approved a recommendation from the Telecommunications Advisory Commission (T AC) to undertake a comprehensive study of the feasibility of publicly provided high-speed Internet service within the City of Shakopee. As a result of additional information and discussion over the past few months, the TAC is now recommending that the City not proceed with any further study of this issue at this time. Background Discussions regarding the City providing high-speed and/or wireless internet service to local residents and businesses have been taking place in Shakopee and numerous other metro-area cities in recent years. Earlier this year, the City partnered with SPUC to conduct an informal survey of residents in an attempt to gauge their interest in the City becoming involved in this type of service. While the survey results showed general support for the City becoming involved, it also showed that residents were primarily looking for a lower cost option than those currently available in the marketplace, that availability of internet service was not a major concern in Shakopee and that residents place a low priority on wireless access as compared to other factors such as price and speed. Following the survey, the TAC recommended that the City proceed with a full feasibility study to explore technology options, service delivery models and costs. However, due to a variety of factors, the request for proposals (RFP) for such as study was not immediately issued. Since the T AC' s initial recommendation, the Shakopee Public Utilities Commission has researched the topic and arrived at the decision not to further pursue the idea. Additionally, staff and members of the TAC have attended several regional and one national conference where the issue has been discussed. The message that we are hearing at these conferences and forums is very consistent: (1) you need to have a solid consensus as to the purpose or reason for getting into the business of providing high- speed internet service, and (2) a major undertaking such as this requires champions within the City and the community in order to see the project through a lengthy process to a final decision. After revisiting the issue at their December 6 meeting, the T AC came to the conclusion that Shakopee lacks both ofthese essential components. To date, no clear purpose or reason for pursuing this type ofproject has been articulated and no champions ofthe project have truly been identified and committed to this undertaking. The fact that our neighboring city of Chaska is one of the front-runners in offering public internet service at a low cost is a common jumping off point for discussions in Shakopee. But the T AC has serious doubts that Shakopee could introduce a service today that meets consumer demands at the price point offered in Chaska. There are also questions as to whether getting into the internet provider business is a priority for the City of Shakopee given the numerous other issues requiring the City's attention at this time. Recommendation As a result ofthe above noted factors, the TAC is recommending that the City not proceed with any further study of providing high speed or wireless internet service at this time. Staff and commission members will continue to note what other metro cities are doing in regards to this issue and suggests that the City remain open to potential partnerships with neighboring cities and/or private sector organizations in the future. Action Requested The City Council is asked to authorize staffto discontinue formal research and study of publicly provide high speed internet service at this time.