Presenter/Contact
Presenter
Jeff Jewell, Director of Economic and Community Development
Contact Info
(830) 221-4621 - jjewell@nbtexas.org
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SUBJECT:
Title
Approval of a resolution of the City Council of the City of New Braunfels, Texas, approving a recommendation of the New Braunfels Economic Development Corporation to enter a professional services contract with ALK Development Services; and declaring an effective date.
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BACKGROUND / RATIONALE:
This project expenditure would allow the EDC to contract with ALK Development Services to serve as project manager for deployment of an expanded internet fiber service in New Braunfels. Albert Kaufmann owns and operates Alk Development Services but was previously an executive at NBU where he spent more than two decades leading the organization’s technology, financial and support services and divisions. While still employed with NBU, Mr. Kaufmann served as Project Manager in partnership with the City, NBU and Chamber of Commerce to study how to expand and enhance the availability of affordable broadband in New Braunfels. After a solicitation from the City of New Braunfels and a review of qualifications, Mr. Kaufman recommended a partnership with Frantic LLC to provide the expanded service in New Braunfels. Frantic LLC is a privately-owned business founded in 1999 by Mr. Asaf Benaroch and is based in New York City. In 2016, Frantic launched its high-speed fiber internet service in New York to dozens of commercial buildings and hundreds of customers. Frantic is proposing a partnership with the City, EDC and NBU that will bring broadband services at affordable rates to downtown businesses initially.
Broadly, the company plans to utilize existing street poles to deliver backbone routes and connections to each building and utilize available city and NBU easement utilities as necessary. The company will invest in the pilot service and will be responsible for all aspects of design, build, operations and management of the infrastructure network, billing and collections. It will maintain ownership of the fiber cable up to the building and will commit to ~$100/month for 1000/1000Mbps service. This service requires the City, NBU and EDC to commit to several components that include a permitting streamline and use of utility poles and easements. The service area expansion is roughly divided into three separate phases (attachment included).
While the full details of the request are not yet understood, the EDC will also consider a project expenditure to financially support the fiber deployment. Mr. Kauffmann will work with staff and Frantic in order to formulate a funding request that is supportive of the project goals over the term of the engagement.
With successful completion of this phase of the project, Mr. Benaroch will expand that offering to more areas of the City. Mr. Kaufman’s will serve as a Project Manager to act as the lead representative for the EDC, City and Chamber on this project in order to advance the project through to implementation. He will act as an agent of the stakeholders in his negotiations with Frantic for service design and will bring proposals and action items for the committee’s consideration as they are finalized. As Mr. Kaufmann was instrumental in the initial proposal development and has worked with Frantic on the feasibility of the proposal, staff believes he is best qualified to serve as the Project Manager.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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X |
Yes |
Envision New Braunfels |
ACTION 5.22 Increase the access and availability of affordable high-speed internet/broadband to ensure the community is digitally connected. Plan by laying conduit infrastructure ahead of the need or as projects progress. ACTION 6.7 Strategically invest in existing and new transportation and technological infrastructure such as broadband expansion. |
FISCAL IMPACT:
The proposed expenditure of up to $40,000 will cover Mr. Kaufman’s minimum monthly charge of $5,000 through the end of the project. He anticipates ~40/hours/month for an approximate six-month timeframe. If additional services are required or the anticipated budget is exceeded before the end of 2021, staff will bring a proposal for authorization of additional funds.
Recommendation
COMMITTEE RECOMMENDATION:
The EDC Board unanimously approved this expenditure at its May 2020 meeting.
STAFF RECOMMENDATION:
Staff recommends approval of the Resolution.