Citywide fiber-optic network (STRATA Networks)
City-owned open-access fiber-to-the-premises network to be designed and operated by STRATA Networks, the sole respondent to the city's solicitation. In September 2022 the city estimated $35 million-$40 million financed by a 30-year bond repaid from subscriptions, requiring about a 40% take rate; the council approved a master services agreement and Phase I design in October 2022.
- Where it stands
- Approved
- Type
- Public project
- Location
- Citywide
- Applicant
- American Fork City
Every hearing and vote
February 10, 2022 · City Council work session
FY2023 strategic goals
Discussed
Possible goals: fiber, property acquisition for parks and public works, a master plan for the 30-acre south-side purchase, an investment strategy, a downtown master plan with police/courts and offices, employee morale, communication, the code rewrite, 200 South funding and water recycling with TSSD.
February 15, 2022 · City Council work session
Fiber survey results (Mobile Digital Insights)
Discussed
Ron Gailey of MDI reported 615 residents responded to a December survey; 69% were very interested in the city developing fiber internet. Most residents use Xfinity; 31% pay more than $80/month. Dependability mattered most, then speed. Staff will return with options.
March 22, 2022 · City Council work session
Intent to negotiate for citywide broadband fiber
Discussed
City Administrator David Bunker proposed an 'intent to negotiate' solicitation, modeled on Heber City, for a citywide, open-access fiber network that stays publicly owned. Proposals would be due May 3; staff would rank them, top bidders would present to the council, then term sheets and an agreement. Bonding would be part of the process. Carroll said she would not commit until she saw the bids; Shelton suggested outside fiber experts help review.
May 17, 2022 · City Council work session
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.
- Sole proposer: STRATA Networks
- Estimate: about $33 million (micro-trenching)
- Connections: about 13,000 addresses
- Design 6-12 months; construction 3 years
September 20, 2022 · City Council work session
Citywide fiber town hall
Discussed
IT Director George Schade traced the city's broadband history (AirSwitch purchase in 2002, sold 2008, retained backbone fiber from Salt Lake to Spanish Fork). Camden Bird cited 2019-2021 surveys (870, 1,500 and a statistically valid 615 responses) showing fiber as a priority. STRATA's Tyler Rasmussen and David Ryan described a subscription model: about $12-13 per subscriber to the ISP, about $20 to STRATA for operations, and the rest to the city for bond payments and equipment refresh. Bunker put the cost at $35 million-$40 million, financed by a 30-year bond needing a 40% take rate; timeline: final design and agreement fall 2022, pre-registration winter 2022.
- Partner: STRATA Networks (sole proposer)
- Estimated cost: $35M-$40M
- Bond: 30 years, repaid from subscriptions
- Break-even take rate: about 40%
- Sample prices: 250 Mbps $65/mo; 1 Gbps $75; 2 Gbps $100; 10 Gbps $200
- Per-subscriber split: ~$12-13 ISP, ~$20 STRATA, remainder city bond/refresh
October 11, 2022 · City Council
STRATA Networks master services agreement and statement of work for city fiber
Approved · 5-0
Approved a master services agreement and Phase I statement of work with STRATA Networks to begin design of a citywide fiber-optic network; Bunker said Phase I design is about 8% of total project cost. Costs will be fronted from the capital projects fund and reimbursed from a bond expected in 2023; starting now saves six to eight months. The city keeps ownership of the design; profit-sharing is open for later negotiation. Shelton asked about micro-trenching and said a Comcast lobbyist had asked how Comcast could invest to stop the project. Carroll said she now supports it as a true public-private partnership. No dollar amount is stated in the minutes.
- Phase I design: about 8% of total budget
- Future funding: fiber bond expected 2023
- Participation by residents not mandatory
October 25, 2022 · City Council
Fiber design standards, new Section 17.5.135
Approved · 4-0
Created city code section setting design standards for fiber-optic infrastructure.