City Manager Tony Delgado said Lakeland has entered into confidential agreements with two private internet service providers who may be willing to strike a private-public partnership to offer gig-speed internet at Monday's city commission meeting.
"They feel there might be opportunities in our market," he said.
Commissioner Scott Franklin said recently one company reached out to him about what possibilities exist with Lakeland, who he then referred to city staff. Franklin did not identify the interested party.
"They are seriously interested in leasing our fiber, providing services to our community and paying us part of the profits," he said. "We would make money off our fiber with no risk to the city."
Finance Director Mike Brossart said the city's other non-disclosure agreement is with a business that contacted Terry Brigman, Lakeland's chief information officer.
"It's very recent," Brossart said. "They just came out of the woodwork."
Delgado said these contracts allow the two companies to look at the city's existing nearly 350 miles of fiber-optic cable and other infrastructure while ensuring its security. A third company has also stepped forward, according to Franklin.
"There are at least three parties interested in providing competition," he said. "I think competition is good. I think we need it."
A public-private partnership may provide a lower-cost alternative to Lakeland launching its own municipal-owned broadband utility at an estimated cost of $97 million, according to figures provided by city consultants Magellan Broadband.
"If there are organizations interested in being private partners with us, I would love to hear more and more specifically on how that would work," Commissioner Sara Roberts McCarley said. "That is the best-case scenario."
McCarley said she believes the true cost of launching a citywide, high-speed internet service would be higher than the $97 million proposed. She cited the costs of training employees, providing customer services and possible legal challenges from competitors, like Spectrum.
"I don't know that we need to get in the business of another utility," she said.
Commissioner Justin Troller, a dogged proponent for municipal broadband, questioned if these private businesses are sincere about working with the city. His proposal to hold a public referendum next spring allowing Lakeland residents to vote yes or no on whether the city should pursue launching broadband failed by a 5-to-2 vote Monday.
Commissioner Stephanie Madden was also in favor of putting the issue to a public vote.
"I don't feel this commission has the resolve or bold leadership to make it happen," she said.
Interim City Attorney Palmer Davis cited that the state has outlined specific steps local governments looking to enter into internet service need to follow.
"It does not allow the approval process to be delegated to the electorate," he said. "The state Legislature, for better or for worse, has put that ultimate decision directly on the local governing body."
A referendum would have only been an indicator of Lakeland residents' interest. Franklin pointed to the surveys already conducted by the city and its consultants over the past four years.
"We have all the information here in our hands to make a decision," Franklin said. "I'd say let's make a decision and get the show down the road."
Commissioner Philip Walker agreed, "We've already heard from the people."
Troller's motion to begin formally moving through the state's legal procedures necessary prior to launching a municipal-internet service found unanimous support among the commission. The city commission will set dates for the first of two formal public hearings no sooner than February 2020.
©2019 The Ledger (Lakeland, Fla.). Distributed by Tribune Content Agency, LLC.
