The decision on the financing of a Peachtree City-owned broadband service for city facilities and large business customers was taken off the Dec. 3 agenda at the recommendation of City Manager Jon Rorie so that further study can be made. The issue will be addressed again in January.
The idea behind the initiative, one that could provide broadband service for city facilities and large, high-end industrial and commercial users, was approved by the council in September.
Rorie at the Dec. 1 work session gave a history of the project that began in the spring and noted surveys with potential service stakeholders in September and October. A request for proposal for financing was sent out in November, Rorie said.
Funding the 22.54 miles of underground fiber cable, other needed infrastructure and staffing would require a municipal bond totaling approximately $3.23 milllion.
Rorie acknowledged that the city’s data needs continue to grow. Then he posed the question.
“What to do? Buy more capacity at a higher cost or build and operate our own network? Or look at other options like a public/private partnership?” Rorie asked.
Noting the basic assumptions outlined in the Phase 1 study with a $3.23 million price tag, Rorie said the survey led him to the “gut instinct” that the initiative is “doable and sustainable. But why so? Do we produce the service or provide the service? My gut says move (on it) but my gut can be wrong. I need to overcome my gut instinct to get the fullest picture.”
With that, Rorie said he had the item included in the Dec. 3 agenda but he was not ready to make a recommendation and suggested the item be addressed in January.
The council by consensus agreed to have the issue presented in January.
Weighing in on the topic, Councilman Eric Imker said he believed broadband would be a good project for the city, though he maintained that considerations such as a confirmation or something in writing from customers would be needed along with a program management plan. With that, Imker said he agreed with delaying the decision.
Responding to a comment reiterated by Councilman Terry Ernst in agreeing that the city is not in business to be a business, Rorie said he wanted to make sure the city limits its risk exposure.
It was noted at previous meetings that the city, if engaged in providing broadband service to large-users, could sell the service inside and outside Peachtree City.
A recurring question has been whether a sufficient number of large broadband customers would sign on to the service and for what length of time.
