WATERLOO — Waterloo is one step closer to establishing a citywide broadband service.
Magellan Advisors of Denver, Colo., presented a broadband assessment to the City Council last week. The report said the design of a fiber backbone and fiber to the premises, or FTTP, will be completely finished by August.
The broadband study began in January 2020 but was delayed due to COVID-19.
The fiber backbone project will connect 100 miles of fiber optic cables to over 100 sites throughout the city, such as facilities, community centers, fire stations, City Hall and parks. That half of the project is expected to cost $29.28 million.
The FTTP project will connect broadband to Waterloo homes. Magellan’s Chief Operating Officer Courtney Violette said all 390 miles of streets in the city will be covered. This more extensive project is expected to cost $86.38 million.
Waterloo received $31.24 million from the federal American Rescue Plan that can be used for broadband purposes.
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Michelle Weidner, the city’s chief financial officer, said officials are still working on a funding plan for the project. A portion of those federal dollars would be used.
Violette noted the funds could support broadband development in areas of the city where access, affordability and reliability are concerns. Other potential funding could come from federal grants and general obligation bonds.
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The study came after the Waterloo Industrial Development Association and others encouraged the city to consider starting a municipal utility, similar to Waverly or Cedar Falls, to provide internet to homes and businesses due to concerns about Mediacom and CenturyLink.
Magellan conducted a survey for Waterloo residents to ask about their current experience with broadband. Just over 2,700 people responded. Forty percent of respondents said their main issue with their current provider is that it’s too expensive. The study found the median download speed for residents is 75.26 megabits per second. The average bill for an expected speed of 100 Mbps is $88.74.
The report also outlined prioritized areas. These areas were determined by the U.S. Department of Housing and Urban Development’s low to moderate income areas, average costs, and download and upload speeds. On a map of Waterloo, the consultants designated the highest priority networks as downtown Waterloo and neighborhoods near UnityPoint Health-Allen Hospital and Gates Park — mostly the northeast side of Waterloo.
The report also outlined what neighborhoods would receive broadband first. The neighborhoods determined highest priority from the first map would also be the first to receive broadband, as well as the neighborhoods near Maple Lanes.
The buildout concept was determined in phases. Phase one is where the company could connect the most homes for the least amount of money. Almost 11,000 homes would be connected in the first phase at a cost of $14.71 million, whereas phase three would connect almost 8,900 homes for $16.6 million.
Fiber infrastructure designed by Magellan to monitor and detect emergencies in Waterloo’s storm water and sewer drains was completed in the spring of 2021.
Along with design work, procurement of construction services and materials is expected to be complete in August. Agreements for services are expected to be finalized by January.
