STRATA, sole bidder for city fiber, pitches $33 million network; council favors subscription model
May 17, 2022, 4:00 p.m. · American Fork City Hall, 31 N. Church St.
American Fork received one response, from STRATA Networks, to its call for partners on a citywide fiber network: a city-owned, open-access system that STRATA would operate, estimated at $33 million using micro-trenching, with 6-12 months of design and three years of construction. Council members favored a subscription model over a utility fee, and Councilmember Staci Carroll asked for more on the risk of not reaching the needed take rate. Staff also reviewed FY2023 goals including a 30-acre south-side property planned for 28 acres of parks and a third fire station.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| FY2023 strategic goals | Discussed |
| Fiber proposals | Discussed |
Agenda, item by item
Item 1 · Other
FY2023 strategic goals
Discussed
Camden Bird listed goals: citywide fiber; 200 South design, bonding, bid and construction starting September 2022; a 30-year facilities master plan including a 30-acre property (28 acres for parks, 2 for a third fire station near Lakeshore); pressurized irrigation metering and rates by spring 2023; a water recycling concept modeled by Horrocks; and a full city code rewrite with the development code outsourced. The mayor said residents saved 245 million gallons from April 15 to May 15 versus the 10-year average.
- ContractAmount not given to Horrocks
Item 2 · Roads and utilities
Fiber proposals
Discussed
The city's intent-to-negotiate drew only STRATA Networks, proposing a hybrid XGS-PON/active ethernet open-access network owned by the city, with STRATA operating it under a 5-10-year agreement and revenue sharing after debt is paid. About 13,000 addresses; utility model costs $7 million-$8 million more than subscription model; micro-trenching estimate about $33 million at $13-$16 a foot versus $20-$30 for directional drilling. Shelton questioned revenue sharing when STRATA bears no debt risk and worried about roads needing full-depth reclamation. Council favored proceeding to negotiations.
- Budget$33.0 million to STRATA Networks
- Sole proposer: STRATA Networks
- Estimate: about $33 million (micro-trenching)
- Connections: about 13,000 addresses
- Design 6-12 months; construction 3 years