Zeeland Record
The city of Zeeland will no longer pursue a potential public-private partnership to provide broadband fiber internet service to residents and businesses.
The City Council at its March 17 meeting voted 6-0 to pull the plug on the idea, in light of increased installation activity by private broadband providers.
“A lot has changed here recently. AT&T has ramped up their installation throughout the city. We’re seeing them install fiber in downtown businesses. Also, 123Net is installing fiber infrastructure downtown,” Board of Public Works General Manager Andrew Boatright told the council.
The city had been looking at broadband service for several years, with the City Council last year identifying a potential public-private partnership as part of its strategic action plan. City officials engaged with several broadband companies to see if they might be interested in such a collaboration. They were told a capital investment of $3 million to $5 million would be needed, Boatright said.
In July of last year, the city and ZBPW engaged its consulting firm, CTC Energy and Technology, to put together a market analysis and assist with developing a request for proposals. CTC developed a draft RFP designed to achieve one gigabyte service for all homes and businesses in the city, with a goal of reaching full service within five years, Boatright said.
Another possible stumbling block to the broadband partnership was a provision in the Michigan Metro Act of 2002. While the law allows cities to provide utility services, any investment in a municipal utility greater than $562 would require a public vote, City Attorney Jim Donkersloot wrote in a legal opinion.
CTC advised city officials that because of the recent increased activity by private providers to install fiber, the viability of a city project “would be severely challenged,” Boatright said.
“They were suggesting that if we were to proceed with an RFP, that we sweeten the pot by suggesting that we would entertain proposals where the city would construct a conduit system, which we would then lease out to service providers,” Boatright said. “However, that would require a significant investment on the part of the city, and it would be somewhat speculative.”
AT&T anticipates that it will provide full fiber service to Zeeland by the end of 2029, Boatright said.
Boatright advised that the city monitor ongoing activity in the private sector and maintain open communication with providers to ensure that the broadband needs of city residents and businesses are met. If any gaps are identified, the city could identify potential strategies to address them, he said.
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