DATE: July 27, 2009

TO: J. Russell Allen

City Manager

FROM: Kristen Rosselli

Community Services Director

SUBJECT: American Recovery & Reinvestment Act – Broadband Technology Opportunities

The City of Raleigh will be a co-applicant on a national application for American Recovery &
Reinvestment Act – Broadband Technology Opportunities funds. One Economy Corporation, a
global 501-c-3 nonprofit organization, will be the lead applicant. Their mission is to maximize
the potential of technology to help low income people improve their lives and enter the economic
mainstream. Currently, the City and One Economy are partnering on a project to connect Chavis
Heights and Heritage Park households to computers and Internet access, training and support,
and comprehensive online content to expand their opportunities to make more informed
decisions and build assets.

In partnership with One Economy and their national sponsors, our goal is to connect low income
people and communities in Raleigh to the 21st century economy by catalyzing widespread access
to broadband, computers, and on-line educational content. The City’s proposal was jointly
developed by Community Services, Parks & Recreation, Information Technology, Budget
Office, Community Development, and City Manager’s Office. This application is also consistent
with the recommendations presented by the Southeast Raleigh Quality of Life Coalition in its
“Impetus for Change” report.

The City’s application will consist of three components, each with a different match requirement:

1. Broadband Technology Opportunities Program – Broadband Internet Access

 Objective: Connect broadband internet access and service to a maximum of 3,000
units of multi-family affordable housing to increase adoption of digital technology
by persons living in poverty.
 Total Project Cost: $1,953,000
i. Cost includes building broadband network, internet connectivity to
households for 2 years and adoption.
 Match Requirement: No match required.
  Criteria Used:
i. Within walking distance (½ mile) of a Parks and Recreation Community
Center or Neighborhood Center located in a low-income census tract
ii. Priority given to publicly owned or financed rental housing
iii. At least 20 units per owner (priority given to adjacent communities
comprising the majority of the census block)
iv. These housing communities must have less than 40% of its households
subscribing to broadband internet service
 Program Description:
i. For the first 2 years, the Internet will be "open" to all users in the housing
communities partnering on this application at no charge. Beginning in
Year 3, the network will be "closed" so only subscribers will have
access. If residents don't want to continue their Internet service, they don't
have to pay for it.
ii. This grant will cover the broadband Internet charges for the first 2 years.
During these 2 years, we will be working with our partner communities to
increase adoption of the Internet by their residents, with a goal of 30%
adoption. At the 30% adoption rate, One Economy estimates that the
monthly Internet Service Provider charge will be between $10-15/month
per household.
iii. The property owners will have no responsibility for paying Internet fees,
unless they choose to do so. For those communities with very low income
residents, there may be opportunities to find private funding to pay for the
monthly service charges beginning in Year 3.
iv. One Economy's experience is that once the Internet is available in housing
communities there was not a problem at reaching a 30% adoption rate.

2. Broadband Technology Opportunities Program – Broadband Internet Adoption via

“Digital Connectors” Initiative
 Objective: Recruit a maximum number of six teams of 15 “Digital Connectors”
(90 youth) over a two-year period to provide computer and Internet training to
increase adoption of digital technology by persons living in poverty. “Digital
Connectors” are between the ages of 14 – 21 years and receive training, a stipend
and a laptop computer.
 Total Project Cost: $595,364
 Match Requirement: Up to 20% (in-kind or cash)
i. Cash Match Amount/Source: None.
ii. In-Kind Match Amount/Source: $97,364 (16.4% match)

Match Type Description Amount

Facility Rental/Use $30/hour for a medium size meeting room x $23,400
130 hours (120 training hours plus10 for
set-up/breakdown) x 3 sites
Staffing PT Program Coordinator at $15/hour x 20 $29,026
hours/week x 45 weeks + 7.5% fringe
Mileage Reimbursement 50 miles/week x 45 weeks x .55 per mile for $2,476
PT Program Coordinator
Grant Administration 4 hours/week of Grant Administrator’s time $12,222
Copy & Mailing Costs Promote Digital Connector program $30,240
(newsletters only) recruitment, sites, service, and outcomes via
RTN, City website and CAC newsletters
In-Kind Match Total $97,364
  Criteria Used:
i. Youth 14-21 years of age
ii. Youth living in the identified housing communities
iii. Youth living in close proximity to the identified housing communities or
City community center
 Program Description:
i. The best way to generate excitement about a technology initiative and a
culture of technology use is by engaging young people. One Economy’s
Digital Connectors program is designed to address the barriers to
technology adoption and use in low-income communities, and equips
youth with leadership and workplace skills.
ii. Digital Connectors receive approximately 120 hours of computer and
Internet training, a small stipend and a laptop.
iii. In exchange, each Digital Connector commits to providing a set amount of
community service hours in the form of teaching persons living in poverty
within the identified housing communities.
iv. Digital Connectors provide training in primarily in City computer centers
located within City Community Centers and Neighborhood Centers. In
addition, Connectors can provide training out of other computer centers
open to the public (such as libraries, schools/universities or nonprofit
agencies).
v. Up to three teams of Digital Connectors will be recruited in Year 1 and up
to three teams in Year 2. Proposed Parks and Recreation sites:
1. Year 1: Sanderford Road, Chavis and Carolina Pines/Peach Road
2. Year 2: Tarboro Road, Walnut Terrace, Method Road

3. Public Computer Centers

 Objective: Establish up to 15 public computer centers at Parks and Recreation
Community Centers and Neighborhood Centers to increase adoption of digital
technology by persons living in poverty.
 Total Project Cost: $878,280
 Match Requirement: 20% match (in-kind or cash)
i. Cash Match Amount/Source: None.
ii. In-Kind Match Amount/Source: $175,800 (20% match)

Match Type Description Amount

Facility Overhead / 20 square feet of space per computer for $90,000
Utilities facility/utility overhead costs x average
costs of $15.00/year/square foot provided
by Budget Manual.
Staffing Afterschool Computer Instructors, Teen $65,790
Outreach Computer Instructors
Software Software subscription/costs for Afterschool $7,500
and Computer Classes
Grant Administration 4 hours/week of Grant Administrator’s time $11,760
Advertisement Cost for 1/2 page lab advertising in Leisure $750
Ledger for 3x a year / 15 centers
In-Kind Match Total $175,800

 Criteria Used:
i. Parks and Recreation Community Centers and Neighborhood Centers
located in low-income census tracts
ii. Priority given to centers located within ½ mile of a high-density of
affordable multi-family housing communities
 iii. Excludes centers identified in FY10 budget for computer centers or
upgrades
 Program Description:
i. Install and connect up to 10 computer stations per site.
ii. Each center will serve as a wireless access point.
iii. Community Centers and Neighborhood Centers will accommodate
afterwork & weekend hours.
iv. Sites identified for this application are the following Parks and Recreation
Community Centers and Neighborhood Centers: Biltmore Hills, Carolina
Pines, Lions, Method, Peach Road, Chavis, Roberts, Tarboro Rd, Walnut
Terrace, Ralph Campbell, Jaycee, Green Road, Halifax, Worthdale, and
St. Monica’s.

cc:
Diane Sauer, Parks and Recreation
Michele Grant, Community Development
Karen Randolph, Information Technology
Angel Wright-Feldman, City Manager’s Office
Joyce Munro, Budget Office