HomeMy WebLinkAbout12/2/2025 Item 5e, Floyd and Ramos - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: December 2, 2025
TO: Mayor and Council
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Anthony Ramos, Senior Civil Engineer
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5e – AUTHORIZATION TO ADVERTISE BROADBAND
IMPLEMENTATION PROJECT – FFA, SPECIFICATION 2001063
Staff received the following questions regarding the service drops from Astound and
future funding. The questions are below with staff’s response shown in italics:
1) Since the Last Mile Grant is $4.8 million and it is anticipated that the FFA
Phase of this project will only cost $2.2 million, how many additional drops
do we anticipate Astound will be able to install with the remaining grant
funds once the initial phase of construction is complete?
The Last Mile Grant award totals $4.8 million, and funding is sufficient to cover the
estimated $2.2 million construction cost of the FFA Phase. The remaining grant
funds will primarily be used for construction management, additional design fees,
materials testing, archaeological monitoring, and Astound services, as outlined in
the report and table below.
A 30% construction contingency (approximately $625,960) is included in the
budget to address unforeseen costs during construction. Based on typical project
experience, at least half of this contingency (about 15% of total project costs) is
expected to be used to address unknowns such as unforeseen site conditions.
Example scenario: If half of the contingency remains available, this would leave
roughly $312,980 potentially available for additional service drops. The cost of
service drops vary by installation type:
• Underground connections: approximately $1,000 per drop
• Aerial connections: approximately $300 per drop
Under this example scenario, the remaining funds could support roughly 313
underground drops or 1,043 aerial drops, depending on the mix of installation
types.
Item 5e – Advertise Broadband Implementation Project - Correspondence Page 2
Broadband Implementation Project, Specification No. 2001063
Broadband Implementation
Project (2001063)
Project Total
Costs
Last Mile FFA Grant
Publicly Disclosed Limit $2,200,000 $2,200,000
Contingencies (30%) $625,960 $625,960
EN Engineering Permit Application Support $20,000 $20,000
Construction Management $400,000 $400,000
Materials Testing $30,000 $30,000
Archeological Monitoring Plan and Services $15,000 $15,000
Printing & Advertising $2,500 $2,500
Pole Lease Agreement Fees $150,000 $150,000
Service Drops to Unserved Locations (Astound) $1,245,339 $1,245,339
Major Equipment (Astound) $175,000 $175,000
Total Cost of Project $4,863,799 $4,863,799
Total Available Funding $4,863,799 $4,863,799
Remaining Balance $0 $0
2) When do we anticipate the initial construction to be completed? From that
date, when can we estimate when potential customers might be able to
obtain enhanced service not currently available from Astound?
Initial construction is expected to be completed in September 2026. After the
infrastructure is in place, potential customers can typically receive service within a
few days of selecting Astound as their provider. In rare cases, depending on
contractor availability and service order volume, it may take up to a few weeks.
3) How will families/residents know that they might be eligible because new
service is available in their area?
As part of the City and Astound’s P3 agreement, as well as the grant requirements,
Astound is responsible for marketing the new service. This outreach will include
direct mail, emails, and in-person visits to residents in newly serviceable areas.
Item 5e – Advertise Broadband Implementation Project - Correspondence Page 3
4) Since this project does not have any additional budget identified in the 10 -
year CIP, do we have any hope of funding from other sources for the
remaining phases of the plan?
As this is the first Broadband project being completed by the City, a focus was
placed on delivering the Federal Fund Account (FFA) portion. Staff will continue
working with federal and state legislators to continue seeking grant opportunities
for Broadband expansion and pursue those opportunities within staffing resource
availability. Successful completion of this phase and an increased understanding
of the grant funding and reimbursement process would place the City in an
advantageous position for future grants, as granting agencies look favorability on
communities with a track record of fulfilling their prior grant obligations.