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Kristofor Sellstrom, Jamestown Board of Public Utilities General Manager, is asking the City Council to request council members approve the formation of a sixth BPU division concerning its fiber project.
Sellstrom explained that the new division would become known as the Digital Infrastructure Division, joining Electric, Water, Wastewater, District Heating and Solid Waste. Establishing a new BPU division may require City Council approval.
The new division will own, operate and maintain the utility's open-access fiber network and support future digital infrastructure initiatives. The nine-member BPU board will govern the new division which will be maintained as a financially self-sustaining operation with finances segregated from the BPU's other utility divisions.
Under the open-access model, the BPU will own and operate the fiber-optic infrastructure while participating Internet Service Providers (ISPs) will offer retail internet service, billing and customer support. Residents and businesses can select from ISPs - currently FiberSpark and SumoFiber - with various plans and rates offered by the providers.
Service is available now or will shortly be available to all customers who have BPU electric service. Customers who sign up before Oct. 1 will receive ninety days of free internet.
The fiber network is being constructed through an Empire State Development ConnectALL grant in partnership with EntryPoint and project contractors. Once completed and accepted, the network assets will be transferred from EntryPoint to the BPU for ongoing operation.
"Creating the Digital Infrastructure Division provides the long-term organizational structure to manage this important public asset," stated Sellstrom. "The division will be responsible for maintaining reliable infrastructure that allows multiple private internet service providers to compete for customers over the same publicly owned fiber infrastructure."
Existing BPU personnel and utility divisions may provide administrative, customer service, engineering, purchasing, information technology and field support to the Digital Infrastructure Division on a fee-for-service basis.
The new division is expected to add personnel and assets as its operations and customer base grow. The BPU is not requesting city taxpayer funding to establish the division. Operating costs are intended to be supported by revenues generated through use of the fiber network.
"This investment in modern infrastructure is supporting residents, businesses, education, healthcare and economic development," Sellstrom said. "Public ownership and the open- access design are intended to preserve customer choice, encourage competition and ensure that the infrastructure serves the community. This action will formally set up the operation and maintenance responsibility for these new assets."
The utility was established in 1923 with its Water and Electric Divisions. District Heat was added in 1984, while the Sewer and Solid Waste Divisions joined the BPU in 1993.