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Broadband Services Expansion OFFICE OF THE GENERAL MANAGER BOARD OF PUBLIC WORKS HOLLAND, MICHIGAN To: BPW Board of Directors Date: 2017-05-22 Subject: Broadband Services Expansion Technology Department Introduction: HBPW has been serving customers with Broadband Services for many years. There is now an opportunity to expand these services into a shared gigabit infrastructure along with adding Internet connectivity. Recommendation: Adopt a resolution accepting the filing of the HBPW's updated broadband business plan, and recommend to Holland City Council the adoption of an ordinance to add Chapter 7, Article III (Municipal Broadband Services) to the code of the City of Holland. Description: During this discussion we will explore the current state of HBPW Broadband Services and the opportunities going forward. Particular interest will be placed on building fiber to the premises in the Downtown Holland area along with the associated business plan. An ordinance will be presented as a recommendation for City Council adoption. New rate sheets will be evaluated for adding additional services to meet the expanding needs of our customers. Expanding broadband services is part of the strategic direction of the Holland City Council and establishing the ordinance will authorize the HBPW to provide additional services. The business plan for providing additional services has been previously provided in a joint study session and needs to be accepted for filing. The ordinance will allow the City to adopt charges and fees by resolution on a variety of costs. It also declares the City's intent to fully comply with the Metropolitan Extension Telecommunications Right-of-Way Oversight Act (METRO), Public Act 48 of 2002 and Michigan Telecommunication Act, Public Act 179 of 1991. Respectfully submitted, David G. Koster General Manager Strategic Directive: Innovation 4.03: Expand the Fiber Optic Utility Attachments: 2017-05-22 Resolution for HBPW Broadband Ordinance 2017-05-22 Broadband Services Ordinance 2017-05-22 Broadband Expansion Presentation 2017-05-22 Broadband Services Gigabit Rate Sheet 2017-05-22 Broadband Services Rate Book 2017-05-22 Broadband Business Plan Report prepared by: Becky Lehman, Technology Director RESOLUTION OF THE HOLLAND BOARD OF PUBLIC WORKS ACCEPTING THE FILING OF UPDATED BROADBAND BUSINESS PLAN, RECOMMENDING THE ESTABLISHMENT OF AN ORDINANCE TO CITY COUNCIL TO ADD CHAPTER 7 ARTICLE III (MUNCIPAL BROADBAND SERVICES) TO THE CODE OF THE CITY OF HOLLAND ________________ Metro Act MCL 484.3101 et seq. At a special meeting of the Holland Board of Public Works of the City of Holland, Michigan, held at 625 Hastings Ave, Holland, Michigan, on the 22th day of May, 2017 at 4:00 p.m. PRESENT: ___________________________________________________ ___________________________________________________ ABSENT: ___________________________________________________ ___________________________________________________ The following Resolution was offered by Board member _______________________ and supported by Board member _____________________________. RESOLUTION WHEREAS, the City of Holland, acting by and through its Holland Board of Public Works (“HBPW”) provides “broadband internet access transport services” as such term is defined in Act No. 49 of the Public Acts of 2002 (effective November 1, 2002), MCL 484.3101, et seq. (“Act”). WHEREAS, the HBPW owns and operates telecommunications facilities within the City of Holland and Holland Township that provides broadband internet access transport service before December 31, 2001. WHEREAS, prior to November 1, 2005, the HBPW owned and operated telecommunications facilities within other public entity boundaries. WHEREAS, the HBPW desires to expand its delivery of broadband internet access transport services beyond the service territory existing before December 31, 2001 in order to effectuate the purposes of Holland City Charter, the Act, and such other authorized and delegated powers and authority permitted by law. WHEREAS, prior to November 1, 2005, the HBPW had filed with the City of Holland a cost/benefit analysis (“Business Plan”) as required by MCL 484.3114(b), and public hearings on the HBPW business plan for providing broadband internet access transport services to third parties and conducted a hearing on the Business Plan. WHEREAS, The HBPW and City have also secured METRO Act permits from the City and neighboring communities in connection with its utilization of public right of ways for provision of such services. WHEREAS, The HBPW has prepared an updated business plan that projects revenue, capital expenses and operating and maintenance expenses for three years for provision of broadband services, consistent with the METRO Act and Uniform Budget and Accounting Act, MCL 141.436. WHEREAS, In order to recognize the value and utility of existing broadband internet access transport services facilities and system installed and operated by the City of Holland, both within and outside the City, and to promote the public health, safety, morals, general welfare, security, prosperity and contentment of the City and its residents, the City provides authorization for construction and operation of infrastructure needed to provide broadband services and third party access to broadband internet access transport services within or without its corporate limits. NOW, THEREFORE, BE IT RESOLVED as follows: 1. That Holland Board of Public Works of the City of Holland accepts for filing the Updated Broadband Business Plan of the HBPW pursuant to MCL 484.3114(b). 2. That a copy of the updated Broadband Business Plan of the HBPW shall be filed and made available for public inspection at the HBPW Service Center; the office of the City Clerk at City Hall; and the Herrick District Library. 3. That the Holland Board of Public Works recommends to City Council the adoption of an ordinance to add Chapter 7 Article III (Municipal Broadband Services) to the code of the City of Holland. 4. That Holland Board of Public Works recommends to City Council the establishment of a date for the public hearing to consider public comments and written communication regarding the passage of an ordinance or resolution authorizing the HBPW to provide municipal broadband services. 5. That Holland Board of Public Works recommends to City Council the publishing of a Notice of Public Hearing, which is attached hereto as Exhibit A. AYES: _____________________________________________________________ ____________________________________________________________. NAYS: ____________________________________________________________ ____________________________________________________________. 2 This Resolution declared approved and adopted this 22th day of May, 2017. HOLLAND BOARD OF PUBLIC WORKS By__________________________________ Janet Lemson Its: Secretary to the Board 3 EXHIBIT A NOTICE OF PUBLIC HEARING PUBLIC HEARING TO CONSIDER THE UPDATED BROADBAND BUSINESS PLAN OF THE HOLLAND BOARD OF PUBLIC WORKS AND TO ADOPT AN ORDINANCE OR RESOLUTION AUTHORIZING THE HBPW TO PROVIDE MUNICIPAL BROADBAND SERVICES The Metro Act – MCL 484.3101 et seq. NOTICE IS HEREBY GIVEN that the Council of the City of Holland, Michigan, will conduct a public hearing on the 19th day of July, 2017, at 7:00 P.M. to receive public comment or written communication regarding the adoption of an ordinance or resolution authorizing the Holland Board of Public Works to provide municipal broadband services. A copy of the updated broadband business plan of the Holland Board of Public Works is on file with the City Clerk’s Office, the Holland Board of Public Works, and the Herrick District Library. Any written comment to be considered by the City Council should be filed on or before 5:00 P.M. on the19th day of July, 2017 with the Holland City Clerk. The City of Holland will provide necessary accommodations and/or auxiliary aids and services, such as signers for hearing-impaired persons and audio tapes or printed materials being considered, to persons with disabilities at the public hearing upon seven (7) days prior notice. Persons with disabilities requiring such accommodation or auxiliary aids or services should notify the City of Holland by contacting Anna Perales, City Clerk (telephone number: 616-355- 1304) or applying in person at City Hall, 270 South River Avenue, Holland, MI 49423. CITY OF HOLLAND Dated: _______________________, 2017 By_________________________________ Anna Perales Its City Clerk 4 ORDINANCE NO. _____ AN ORDINANCE TO AMEND THE CODE OF THE CITY OF HOLLAND, MICHIGAN, BEING ORDINANCE NO. _____ OF THE CITY OF HOLLAND BY ADDING A NEW ARTICLE III, CONSISTING OF SECTIONS 7-63 THROUGH 7-72, TO CHAPTER 7 OF SAID CODE. THE CITY OF HOLLAND HEREBY AMENDS THE ORDINANCE CODE OF THE CITY OF HOLLAND AS FOLLOWS: CHAPTER 7 Article III. Municipal Broadband Services. Sec. 7-63 Findings and Purpose. (a) The City of Holland, acting by and through its Holland Board of Public Works (“HBPW”) provides “broadband internet access transport services” as such term is defined in Act No. 49 of the Public Acts of 2002 (effective November 1, 2002), MCL 484.3101, et seq. (“Act”). (b) Before December 31, 2001, the HBPW owned and operated telecommunications facilities within the City of Holland and Holland Township that provides broadband internet access transport service. (c) The HBPW expanded its delivery of broadband internet access transport services beyond the service territory existing before December 31, 2001 in order to effectuate the purposes of Holland City Charter, the Act, and such other authorized and
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