The slow road to fast fiber? The slow road to fast fiber? (February 11, 2004)

Community effort to extend fiber-optic communications to homes and small businesses goes back to mid-1990s, with deep city-owned-utility roots

* September 1899 : Palo Alto proposal to use reserves to build an electric power plant on what is now Rinconada Park; opponents claim the plant "for years will be only a burden to taxpayers" because "the majority of people in any town do not use electric lights."
*1896-1917 : City enters water, electricity, gas and wastewater utility business.
*1991 : City creates Utility Advisory Commission to assist City Council and city staff with in-depth analysis of convoluted utility investments and operations. The integrated utilities, directly and indirectly, contribute nearly $1 million per month to the city's general fund.
* Fall 1993 : Palo Alto Community Network (PA-ComNet) founded by Palo Alto libraries, Stanford-Macintosh Users Group, Palo Alto Medical Foundation and individuals interested in technical and social aspects of high-speed, broad-bandwidth communications (not necessarily fiber).
* September 1996 : City Council approves installation of a $1.8 million "fiber ring" to be leased as dark fiber (without content) to communications firms. A City Telecommunications Policy staff report touts "benefits to residents," and a Telecommunications Advisory Panel (TAP) assists in the decision.
* September 1997 : As Fiber Ring cables are strung over their homes, Community Center Neighborhood Association joins PA-ComNet to learn more about "neighborhood networks."
* October 1997 : City Council candidates, with one exception, pledge interest in a citywide high-speed, broad-bandwidth communications in a PA-ComNet forum co-sponsored by Community Center neighbors.
* February 1998 : Community Center develops proposal for a "trial area" to connect the fiber ring to residents in the area surrounding the former power-plant site.
* March 1998 : Fiber ring completed, but suffers operating losses until 2000, when leases surge -- until after the dot.com bust.
* April - August 1998 : Community Center neighbors submit plan in which residents and city share cost of installing fiber to homes and evaluating results. City surveys neighborhoods to find highest concentration of interested residents -- Community Center and Barron Park lead. Pro-fiber group, Palo Alto Fiber Network (PA-FiberNet), formed with Aug. 12 kick-off event.
* January 1999 : Over former utility director's strong doubts, Utilities Advisory Commission recommends dual-track approach to broadband: (1) inviting bids from telecoms to build out city while (2) conducting a neighborhood fiber-installation trial.
* April-May 1999 : Council approves budget for a single-neighborhood fiber trial in Community Center area. Council authorizes staff work toward a fiber trial in August 1999.
* January - September 2000 : New Utility Director John Ulrich lists fiber among top projects in briefing package for newly-elected council members. In September, Assistant City Manager Emily Harrison announces full staff conceptual support for a "fiber utility" as essential to maintain economic health in an age of information-based commerce, in an International City Managers' Association presentation.
* November 2000 - May 2001 : Council approves 70-home fiber trial for Community Center area. Utility staff presents strategic plan and fiber utility plan. Council approves budget for surveys, evaluation and "fiber utility" business case.
* October 2001 : Fiber trial area installation completed; high-speed Internet service begins.
* October 2002 : Utilities Advisory Commission reviews first draft of detailed Business Case, with market-survey data and engineering cost estimates. Residents' payments cover operating cost of trial network. Dark fiber leasing revenues remain strong despite dot-com bust, netting more than $500,000 per year toward paying off original fiber-ring investment.
* May 2003 : Utilities Advisory Commission recommends proceeding from business case to the first part of a more detailed business plan. Net revenue from dark-fiber leasing approaches $700,000 per year.
* July - September 2003 : Utilities Advisory Commission asks that a review of legal risks and a more thorough risk-assessment and management section be added to 90-percent complete business plan. Legal section delayed in September by City Attorney Ariel Calonne's resignation.
* January 2004 : New City Council sworn in; utility staff postpones release of final plan to mid-February.

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