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Independent assessment finds Loma Linda municipal broadband financially unsustainable; staff to return with debt resolution
Summary
A consultant's assessment found Loma Linda's municipal broadband program (LCCP) cannot sustain commercial operations and recommended separating municipal-critical services from commercial offerings; staff said they will return no later than October with actions to address the outstanding redevelopment-era debt.
City IT staff and the Broadband Group presented an independent technical, operational and financial assessment of the Loma Linda Connected Community Program (LCCP), concluding the commercial side is not generating sufficient revenues to service the outstanding loan and recommending separating municipal-critical operations from commercial services.
"When looking at the commercial side of it, the revenues are not able to, cover, the operating cost of that network," consultant Jeff Ryman said in the presentation. The consultant reported the original $9,800,000 unsecured redevelopment agency loan had grown to more than $20,000,000 with roughly $560,000 in annual interest; the network serves municipal critical communications (water, traffic signals, public safety) as well as commercial residential and business customers. Staff said the immediate priority is to preserve the municipal functions and that they expect to bring back proposed actions, including companion resolutions to cancel or reassign the successor-agency debt, by October at the latest.
