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HomeMy WebLinkAboutLEG 08-20 Report to Council Report Number: LEG 08-20 Date: August 10, 2020 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Broadband Service for Whitevale and Green River - ICON Grant Funding - File: A-3700 Recommendation: 1. That the broadband network proposed in this report to service the areas of Whitevale and Green River be endorsed; 2. That staff be directed to continue working with Vianet Inc. to complete an application under the “Improving Connectivity for Ontario” Program for Provincial funding support for the said broadband network; and 3. That appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. Executive Summary: City staff have worked with Vianet Inc. (“Vianet”) to develop a proposal to extend broadband service to the residents and businesses of Whitevale and Green River. While the bulk of the project costs would be borne by Vianet, and Provincial grant funding is being sought, a contribution of $150,000 by the City is needed for the project to proceed. The project would replace the poor and costly internet service currently tolerated by the residents of Whitevale and Green River, and would make it easier to extend service directly into the Seaton Employment Lands. Financial Implications: The total project cost is $1,000,000.00. Vianet will contribute $600,000.00 toward the project cost. Provincial funding covers up to 25% of project costs ($250,000.00), and the City will be obligated to contribute the remaining $150,000.00. It must be noted that at Stage 1 of the grant funding process, the project costs are estimates. As the City and Vianet proceed to Stage 2 of the Provincial funding process, the design work will be completed and the project cost figures will be finalized. The City will only commit funds to the project after the Provincial funding has been secured and or awarded. If the City is not successful in o btaining the Provincial grant, then no City funds will be expended without further Council approval. Subject to Provincial grant funding approval, a subsequent report will be presented Council with finalized cost figures and seeking Council approval to fund the project. When the City constructs a local road, there is a benefit to the homeowner who lives on the street but also, to a certain degree, to the community at large. If this project is successful, residents in Whitevale and Green River will enjoy 100% of a benefit (enhanced internet connectivity) that is LEG 08-20 August 10, 2020 Subject: Whitevale Broadband and ICON Provincial Application Page 2 partially funded by all City taxpayers. Taxation staff will explore the use of the special area tax rate to determine if this taxation tool is available to be used as a funding strategy to help offset the City’s cost. If this taxation tool is available, Council will have the final decision as to whether or not to use it. Discussion: Over the last few months, City staff have been in discussion Vianet Inc. (“Vianet”) to determine if Vianet and the City can collaborate to address gaps in broadband Internet connectivity in Pickering. Vianet is registered with the CRTC as a non-dominant telecom service provider (“TSP”), currently providing Internet, TV, phone, and hosted services in Sudbury, York Region and beyond. Vianet has been in business since 1988, and has provided internet services since 1995. Vianet has a long track-record of providing open-access broadband services in rural areas of northern and central Ontario. Recently, the Government of Ontario announced their “Improving Connectivity for Ontario” Program (“ICON”), administered by Infrastructure Ontario. Recognizing that connection to the internet has become essential for homeowners and businesses, the Province has introduced ICON to provide funding for municipalities and their TSP partners for broadband infrastructure to provide a minimum of 50/10 Mbps Internet service to rural areas that do not currently have it. ICON provides up to 25% of the funding, and this funding may be “stacked” with funding from other sources, including TSPs and other levels of government. The deadline for funding applications for Stage 1 of ICON is 5:00 pm, August 21, 2020. It has long been recognized that northern areas of the City lack adequate internet access. Access is non-existent in some places. In others, it is too slow and/or too expensive. In recent years, residents of the Hamlet of Whitevale have been understandably vocal in advocating for more and better internet access. The large telecom providers, Bell and Rogers, have expanded their service in some areas of Pickering, but they have not extended their internet service into Pickering’s rural, northern areas to any significant extent. They seem unable to make a business case to justify the capital investment necessary to extend service to the small number of residents spread over Pickering’s northern areas. By contrast, Vianet, a smaller company based in Sudbury, has a history of connecting smaller and more remote communities. After meetings with the Director, Corporate Services & City Solicitor and the Division Head, IT, Vianet has come up with a proposal to provide internet service to residents and businesses in Whitevale and Green River. Vianet’s network proposal is Attachment No. 1 to this report. Vianet is able to connect Whitevale and Green River because it has access to a nearby point of presence (“POP”) a short distance west of the York-Durham Line. Connecting to conduit owned by Yorknet, Vianet will build 11.5 kilometers of underground optical fibre that will connect 123 homes and businesses in Whitevale and Green River to the internet. The network will consist of “backbone” along Highway 7, North Road and Whitevale Road, together with fibre to the premises (“FTTP”) for all residents who choose to sign up with Vianet for internet, television or phone service. All conduit and fibre in the network will be buried, so there will be no negative aesthetic impact on the Heritage District. Decent internet service will be a welcome change for the residents of W hitevale and Green River. They are both eligible for ICON funding because they currently access Internet service only via dial-up or cellular networks. Cellular networks are relatively slow and very expensive to use. Moreover, ICON’s “Improving-connectivity-ontario-map-tool,” shows that the available Internet LEG 08-20 August 10, 2020 Subject: Whitevale Broadband and ICON Provincial Application Page 3 bandwidth in Whitevale and Green River is “zero (0) Mbps”. In other words, they are badly in need of affordable, openly-accessible FTTP connectivity in order to receive reliable, scalable, and affordable Internet access to healthcare, education, government services, public safety resources and commerce. Such Internet access is critical to Pickering residents’ and businesses’ economic vitality and social well-being. ICON funding eligibility is contingent on the network being open access. This complements City staff’s strong preference for open access networks which ensure that all TSPs are free to compete with each other in an open system. This provides consumers with more choices, better services, and lower rates. Whitevale and Green River are adjacent to the Innovation Corridor and the entire Seaton Development Area. Seaton requires FTTP for businesses and residents. Internet access is available for the new homes in the south end of Seaton (along Taunton Road), but that service will extend north only slowly, with the pace of residential development. Vianet’s fibre in Whitevale will position it perfectly to extend service directly into the Innovation Corridor. This will enhance the value and utility of the employment lands located along the Highway 7/407 corridor, including lands purchased by the City. Vianet has a history of incrementally extending its existing infrastructure to reach more underserviced areas, and it has expressed keen interest in the future extension of its Whitevale/Green River fibre into the Innovation Corridor. Currently, for many of Pickering’s rural residents and businesses, FTTP Internet connectivity is not available at any price, and may never be available without interventions such as the Vianet proposal. The longstanding need for broadband in the north, and the availability of ICON funding make it the right time to proceed with the construction of a network for Whitevale and Green River. The total project cost is $1,000,000. Vianet is willing contribute $600,000. ICON funding covers up to 25% of project costs ($250,000). In order to proceed, it will be necessary for the City to contribute $150,000 toward the total project cost. Staff recommend that the City pay $150,000 toward project costs. This amount is available for “broadband initiatives” in the IT Capital Budget. It is a reasonable price to pay for providing service to our residents in Whitevale and Green River. Furthermore, a tangible municipal contribution toward the project will position Pickering more favourably to get ICON funding. To ensure that Pickering is getting full value for its financial contribution to this project, City staff have negotiated the agreement of Vianet to give the City access to 12 strands of optical fibre within the network for City uses. Known in the telecom industry as an “indefeasible right of use”, this agreement will grant use of the strands to Pickering for a 30 year term. The strands can then be used by Pickering to connect remote facilities and infrastructure in and around Whitevale and Seaton, and could even be used, on reasonable terms, as part of a future Regional broadband network. Staff recommend that Council endorse the Vianet broadband proposal. Council’s support is required as a condition of eligibility for ICON funding. A further report to Council will be presented once the network design is completed and any necessary project agreements will be presented for Council approval at that time. Providing fast and affordable internet access to Whitevale and Green River would be a significant accomplishment for Pickering. It would provide much -needed service to 123 homes and LEG 08-20 August 10, 2020 Subject: Whitevale Broadband and ICON Provincial Application Page 4 businesses, while setting the stage for service to the Innovation Corridor. Finally, this FTTP model can serve as a template for permanently bridging gaps in other unserved and underserved areas of Pickering and across Durham. Attachments: 1.Presentation of Vianet Inc. for a network to service Whitevale and Green River. Prepared By: Paul Bigioni Director, Corporate Services & City Solicitor PB:ks Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Interim Chief Administrative Officer Building Connections Whitevale and Green River FTTH Attachment 1 to Report LEG 08-20 Project Overview •Leverages Vianet access to Dark Fibre near Markham/Pickering border •Establishes new FTTH and transport POP to service rural Pickering •Total Project budget $1M, $100,000 for POP site and $900,000 for approx. 11.5 km new fibre build serving 146 under-served homes/businesses •Provides high capacity Fibre access to Western section of Industrial lands Green River Serving Area •44 dwellings passed Industrial Lands •Creates Fibre access points at corner North Road and both Highway 7 and Whitevale Rd for future servicing of Industrial Lands •1, 10 and 100 Gbps transport capacity to 151 Front St suitable for large tech dependent businesses, wholesale agreements to major national carriers Whitevale Serving Area •82 dwellings passed Funding Requirements •$1,000,000 preliminary budget, Vianet to invest $600,000 •Town of Pickering and/or higher levels of government to contribute remaining $400,000 •Opportunity to install conduit for Town of Pickering during Vianet conduit installation (depending on conduit specifications) •Potential for reducing overall budget requirements by following Vianet’s Rural Fibre Optic Installation Guidelines Vianet Rural Fibre Optic Installation Guidelines •Pared down permit drawings for rural areas with limited future development planned •Express turnaround on permits •Flexible running lines to minimize disturbance of natural environment Additional Durham Region Opportunities •By Oct 2020 Vianet will have high capacity fibre transport available at 3 rural locations bordering Durham Region and York Region •Green River, Goodwood and Udora •Interconnect available between sites and to 151 Front St •Up to 100 Gbps transport service will be available •Possible partnership to build fibre though Durham Region to directly interconnect these locations : Thank You