City approves high-speed broadband policy, but Eudora likely to get service before Lawrence

After an 18-month debate, Lawrence city commissioners on Tuesday approved a policy designed to make it easier for companies to build high-speed gigabit broadband service in the city.

The delay, though, may end up costing Lawrence in its race to get the Google Fiber-like service before other area communities. Baldwin City-based RG Fiber confirmed that it signed an agreement with Eudora officials on Monday that is expected to bring the high-speed Internet service to Eudora within the next 12 months.

Mike Bosch, an owner and founder of RG Fiber, said the Eudora agreement means his company will have to push back plans it had to build a high-speed fiber network in Lawrence.

“Lawrence is definitely behind Eudora in our plans,” Bosch said. “Our ambitions for Lawrence are the same. It is our timeline that has changed.”

Bosch said he hopes to sign a license agreement with Lawrence city officials in the coming weeks that would allow RG Fiber to lease portions of unused city-owned fiber. That fiber would be supplemented by fiber installed by RG Fiber that would provide high-speed broadband service to homes and businesses along several of the major corridors in Lawrence, such as 23rd, Iowa, Sixth and other major streets. But Bosch said it likely will take 24 months — from the time the license agreement is signed — for his company to raise the additional capital needed to start the Lawrence project.

That timeline would put Lawrence third in line for a major gigabit project in Douglas County. RG Fiber has started a project in Baldwin City. RG expects to provide service to Baker University and other parts of Baldwin City by this summer.

Bosch said a sign-up campaign will begin in Eudora next week. Plans in both communities call for full gigabit service for both upload and download speeds. Gigabit service is roughly 100 times faster than basic cable modem service. RG Fiber has announced it plans to sell the service in Baldwin City for about $80 a month or about $135 if customers also want television service.

The Lawrence fiber policy spells out how companies can create agreements with the city to use city-owned fiber. The policy opens the door for companies other than RG Fiber to bring high-speed broadband service to Lawrence neighborhoods. It is not clear whether other companies are currently exploring bringing the service to large parts of the city.

Lawrence-based Wicked Broadband has gigabit service at a few locations in town, and had previously proposed bringing the service to several Lawrence neighborhoods. That project was delayed by the lack of a city fiber policy and also debate at City Hall about whether the city should guarantee a loan to help fund the project.

On Tuesday, Joshua Montgomery, an owner of Wicked Broadband, said his company no longer has any significant plans for large-scale fiber projects in the city.

“We’ve moved on,” Montgomery said. “We’re doing other things.”

Montgomery urged commissioners to delay action on the fiber policy. He said the policy needed to be reworked to create more assurances that broadband companies won’t just provide service to wealthy Lawrence neighborhoods, but also will provide service to lower-income neighborhoods.

“Lawrence no longer has the opportunity to be a leader in this,” Montgomery said. “All the other cities have passed you, so you might as well take some time and make sure you get this right.”

City commissioners approved the fiber policy on a 5-0 vote. They noted the policy does provide incentives — namely a temporary waiver of lease payments — if a company uses city-owned fiber to provide free service to certain low-income populations and nonprofit agencies. Commissioners also said they could change the policy in future years, if they feel the system isn’t working.

“I’m really sick of stagnation,” said City Commissioner Matthew Herbert. “I’m ready to pursue this policy.”

In other business, commissioners:

• Unanimously approved a contract for current Assistant City Manager Diane Stoddard to serve as interim city manager. Stoddard will begin as interim city manager on May 29 after current City Manager David Corliss leaves to take a town manager job in Colorado. Stoddard will receive a $145,000 annual salary, paid on a pro-rata basis, during her time as interim city manager.

• Unanimously approved a $45.2 million bid for construction work to begin on a new sewage treatment plant south of the Wakarusa River. Kansas City-based Garney Construction had the low bid for the project. Commissioners approved the project after being assured that the $45 million bid can be paid for through previously anticipated sewer rate increases that are scheduled to run through 2017. The project will allow the city to grow by about 20,000 residents in future years, and also help the community meet higher treatment standards. Construction on the plant could begin in June and likely would last through early 2018.

• Deferred for at least one week a request to remove a requirement that a future bistro at 804 Pennsylvania St. make at least 55 percent of its revenue from the sale of food rather than through liquor sales. Commissioners deferred the item to give the property owner and members of the East Lawrence Neighborhood Association additional time to discuss concerns.