Sedona City Council OKs Wecom contract - Sedona Red Rock News

The Sedona City Council unanimously approved a 20-year right-of-way license agreement with Wecom LLC for the buildout of its $4.5 million fiber network that will become city owned at its meeting Tuesday, March 24, that will bring new broadband options.

The agreement grants Wecom use of the city's public rights-of-way for fiber optic cable, with fees waived in an amount equal to Wecom's cost to install a fiber network connecting municipal buildings -- a network that residents and businesses will then be able to connect to.

Last summer, a federal restructuring policy eliminated Broadband Equity, Access and Deployment grant funding for Sedona. On Dec. 2, the National Telecommunications and Information Administration approved Arizona's BEAD Final Proposal, excluding Sedona. Wecom LLC, already selected to provide BEAD-funded internet service in Yavapai County, then approached Sedona city staff about installing fiber without federal funds. City Manager Anette Spickard disclosed the loss of federal eligibility at the council's Dec. 16 priority retreat, where broadband was identified as a key piece of the council's 2026 economic diversification goals as well as: Community, housing and mobility, transit and circulation.

Wecom's cost to build the network is $4,569,600, and the company will use the city's existing conduits to lay the fiber down which is valued at $1,320,000.

"The annual right-of-way license fee would be 3% of Wecom's annual gross revenues generated within city limits; however, in exchange for Wecom installing the city fiber network, the city will provide a fee credit of $3,249,600 to Wecom," to cover the remaining cost, the council packet reads.

Although City Information Technology Manager Chuck Hardy projected about $29,000 a year in ISP savings, he noted additional benefits like backup reliability and video storage consolidation are harder to quantify.

The network is set to link City Hall, Posse Grounds Park, the Contractors Road equipment yard, the city facility at the 'Y' roundabout, the Uptown Parking Garage, the Parks and Recreation office on Brewer Road and the wastewater treatment plant with the option to also connect the Western Gateway in the future.

The wastewater treatment plant's connection could eventually be extended to unoccupied land The Dells on the southeast side of State Route 89A, which could be developed for housing at least 10 years out.

Hardy cited operational limitations with the city's current network, such as slow backup speeds and difficulties storing video files remotely, as justification for the upgrade. He projected the new infrastructure would remain adequate for over 40 years without further upgrades.

"It takes hours to back everything up at night," Hardy said. "We cannot do smaller increments, just because it takes so long. But with this, we'll be able to do at least 15-minute backups, once we get everything running, we are looking at possibly five minute backups."

Wecom CEO Paul Fleming said his company could apply for permits within 45 days and begin construction within 90 days, with work starting near Yavapai College's Sedona Center. He estimated the full project will take one to two years to complete, but that the network's first customers could potentially start connecting in three months.

"Wecom will transfer ownership and maintenance of the fiber connecting the city locations to the city upon completion and testing," the city stated. "The city fiber network will be separate from Wecom's fiber network available to Sedona residents and businesses. The city will still need an ISP to connect to the internet and to provide telecommunications."