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HomeMy WebLinkAbout09.24.2019 Telecom Board PacketTELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES 2:00 PM September 24, 2019 Harold E. Getty Council Chambers Members Dave Buck Anesa Kajtazovic Rich Kurtenbach Randy Pilkington Andrew Van Fleet Roll Call. Approval of Agenda, as proposed or amended. Approval of Minutes. 1. Minutes of the August 14, 2019, as proposed. Agenda Items. 2. Motion to approve engagement of Magellan Advisors to perform a comprehensive community broadband feasibility study as per proposal, in an amount not to exceed $84,450, and authorize Board Chair and City Clerk to execute documents to formalize said engagement on terms satisfactory to said officers and to the Board's legal counsel. 3. Motion to recommend to the City of Waterloo that it jointly engage Magellan Advisors to perform the boradband feasibility study. ADJ OURNMENT Kelley Felchle City Clerk CITY OF WATERLOO Council Communication Minutes of the August 14, 2019, as proposed. Telecommunications Utility Board of Trustees Meeting: 9/24/2019 Prepared: ATTACHMENTS: Description Type o Minutes of August 14, 2019 Backup Material TELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES August 14, 2019 4:00 p.m. Harold E. Getty Council Chambers Members present: Kajtazovic, Kurtenbach, Pilkington, Van Fleet. Dave Buck arrived at 4:15 p.m. Moved by Pilkington seconded by Kurtenbach that the Agenda, as proposed, be approved. Voice -vote Ayes: Four. Motion carried. Moved by Pilkington seconded by Kurtenbach that Andy Van Fleet be nominated to fill the position of board chair. Voice -vote Ayes: Four. Motion carried. Moved by Kurtenbach seconded by Van Fleet that Randy Pilkington be nominated to fill the position of board vice chair. Voice -vote Ayes: Four. Motion carried. Objective: Discuss vision for the board. Board members discussed their reason for joining the board and how the board is expected to operate in relation to the city council. Chris Wendland, City Attorney, explained the history of the Telecommunications Utility Board and how it interacts with the city. Michelle Weidner, Chief Financial Officer, explained that the board does not have funds and wants to ensure that the board is set up correctly to expend city funds. She explained that a few items need to be researched in order to advance funds or set a referendum to generate funds. She also commented that the city cannot subsidize the operation of the utility but is checking with an attorney named Steve Nadel with Ahlers & Cooney out of Des Moines. Moved by Van Fleet seconded by Kurtenbach that the board consult with attorney Steve Nadle of Ahlers & Cooney, Des Moines, Iowa for utility research. Voice vote -Ayes: Five. Motion carried. Andy Van Fleet requested a general definition of the type of telecommunication that would be operating under the board's purview. Chris Wendland explained the potential scope of activity the board may oversee. He explained that the city's ordinance will not provide specific direction but the board would need to decide what avenue of telecommunication it would want to pursue. At this time, the board does not have a broad or narrow mandate. Randy Pilkington commented that the focus of the board in the past was broadband and in the future should be broadband. Rich Kurtenbach commented residents are frustrated with the lack of knowledge of what is available for internet in Waterloo. Andy Van Fleet explained that currently no timeline is in place right now to decide the specific scope of the board's responsibility due to infancy of the project, however, the scope can be narrowed at a later date. Objective: Review of community broadband needs. Wendy Bowman, Communications Director, provided an overview of research city staff undertook to find a broadband consultant to help implement broadband in the community. Objective: Presentation of broadband consultant proposals and discuss next steps for community broadband. Telecommunications Utility Board of Trustees Page 2 Andy Van Fleet explained that he participated in the phone interviews with the broadband consultants and explained that Magellan Advisors stood out as the most competent provider of a broadband solution for Waterloo. Magellan Advisors has implemented broadband in comparable sized cities in Iowa and other Midwestern states. The proposal is to complete a feasibility study to explore what a broadband utility would look like for Waterloo. Randy Pilkington explained that he has reviewed the proposals and recommended that the board move forward with recommending the Magellan Advisors proposal to the city council. Michelle Weidner advised the committee to hold off on making a formal recommendation to city council until Steve Nadel at Ahlers and Cooney has had an opportunity to review the city ordinance, contract with Magellan Advisors, and other regulations. Kelley Felchle, City Clerk, recommended allowing the attorney time to review all necessary documents and make a formal recommendation next week once legal and financial research has concluded. Dave Buck stated that the committee did a lot of work ten years ago and council did not support spending money. He explained that the council needs to support spending funds in order for this project to be successful. Sharon Juon, Council Liaison, commented that WIDA might continue to provide financial support as well. Anesa Kajtazovic questioned if the board would be able to seek grant funding to help move forward. Kelley Felchle commented that she was unsure but it would be worth exploring. Andy Van Fleet questioned how often the board is supposed to meet. Kelley Felchle commented that the board should set the next meeting date, if possible before adjourning the meeting. Sharon Juon questioned what needs to happen before the next board meeting. Michelle Weidner clarified that the legal research needs to be concluded so that the board can move forward. Andy Van Fleet questioned where funding for the legal work would come from. Michelle Weidner commented that the funding would be paid for by the city. Motion by Kurtenbach seconded by Van Fleet to have staff research next steps from a legal standpoint. Voice vote -Ayes: Five. Motion carried. The board agreed to hold its next meeting on September 24, 2019 at 2:00 p.m. in the City Council Chambers. With no further business before the board, it was moved by Van Fleet seconded by Buck that the meeting be adjourned at 4:43 p.m. Voice -vote Ayes: Five. Motion carried. Kelley Felchle City Clerk CITY OF WATERLOO Council Communication Motion to approve engagement of Magellan Advisors to perform a comprehensive community broadband feasibility study as per proposal, in an amount not to exceed $84,450, and authorize Board Chair and City Clerk to execute documents to formalize said engagement on terms satisfactory to said officers and to the Board's legal counsel. Telecommunications Utility Board of Trustees Meeting: 9/24/2019 Prepared: ATTACHMENTS: Description Type ❑ Magellan Advisors Presentation Backup Material ❑ Magellan Advisors Broadband Strategy and Action Plan Backup Material SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Motion to approve engagement of Magellan Advisors to perform a comprehensive community broadband feasibility study as per proposal, in an amount not to exceed $84,450, and authorize Board Chair and City Clerk to execute documents to formalize said engagement on terms satisfactory to said officers and to the Board's legal counseL CITY OF WATERLOO BROADBAND STUDY AND ACTION PLAN ENABLING GIGABIT BROADBAND FOR COMMUNITIES NATIONWIDE Washington Oregon Nevada California Arizona Magellan ADV/SORB Montana Wyoming Colorado New Mexico North Dakota Minnesota South Dakota —17:a Nebraska Kansas Oklahoma Missouri Kentucky Tennessee Mississipp Alabama Louisian Vermont New Hampshir Massachusetts New Jersey Delaware Maryland Washington D.C. New York Pennsylvania .st vnrginia Georgia North Ca■• ina PROVEN PROCESS. PROVEN RESULTS. 400 MUNI Et UTILITY CLIENTS 50+ OVER 50 NETWORKS IMPLEMENTED NATIONWIDE S1B OVER A BILLION IN BROADBAND PROJECTS FUNDED 1M 1 MILLION FIBER TO THE PREMISE CONNECTIONS 1K 1,000 COMMUNITY ANCHORS CONNECTED MAGELLAN HELPS MORE COMMUNITIES ACHIEVE THEIR BROADBAND GOALS. mageena. LOCAL EXPERIENCE IN IOWA • City of Waverly Full engagement with the community 4, Network design, costing and deployment options Waverly Financial and funding support with local banks Utilities Comprehensive Business Plan and deployment strategy Sales, marketing and product development • City of Indianola • Feasibility study to assess retail and partnership options • Engagement with local stakeholders to determine need • Full financial plan with options for deployment • Business Plan to meet City's deployment goals • City of Davenport • Comprehensive broadband feasibility study • Public -private partnership development • Analysis of retail, wholesale and P3 options ALL 3 CITIES ARE NOW GIGABIT COMMUNITIES CITY OF INDIANOLA EST.1B49 City of c1t2rtP� 5 magenal. MAGELLAN'S VALUE PROPOSITION • We are your turnkey partner through every phase of broadband development - planning, implementation & management • The most direct experience planning, building and operating broadband networks for munis and utilities • Community -based approach that engages local stakeholders • Not just broadband, we plan for smart city and loT integration • Expert technical, business & financial planning, funding ready options • A solid company with the best reputation in the industry • Company size and scale to support the City's needs • Honest, unbiased and objective advice magees* MAGELLAN'S VALUE PROPOSITION • Smart City Planning & Implementation • Application we specialize in: • Intelligent transportation • Traffic camera/gunshot detection/LPRs • Autonomous vehicle planning • Water/Wastewater utility modernization • Sensor alert systems: snow, water, road • Policy development to support the smart city • 5G/Wireless preparedness • Dig once/Joint trench • Master licensing agreements magVaisi. MEETING COMMUNITY GOALS BROADBAND GOALS MAGELLAN'S APPROACH ., dillo& Inclusivity Opportunity to all residents, businesses and community anchors to connect Comprehensive planning that includes thorough outreach to all stakeholders to understand needs High Speed 1 Gigabit and greater speeds as the need arises Reliable Reasonable Cost Define standards for broadband services in Waterloo to meet long-term needs of stakeholders High reliability for the class of Understand stakeholder requirements for users that need connectivity reliability and incorporate into plan Affordable services on par with other gigabit communities Determine the right business models, financing and partnerships to achieve the lowest costs for citizens and businesses Magellan ao�,soR TAILORED APPROACH FOR WATERLOO 1. Set goals and objectives 2. Engage stakeholders 3. Measure real demand —statistically valid for Waterloo 4. Determine if public -private partnership is the best route 5. Determine reasonable business & financial options 6. Build consensus with the City team on the best options 7. Lay out a step by step roadmap, phasing plan and next steps Magees* MAGELLAN'S APPROACH Set Goals & Expectations •Discussions and conclusions from preliminary study •Develop Project Plan 'Outreach, Communications & Engagement Strategy •Timeline & Milestones • PHASE 1 Community Engagement •Stakeholder Meetings •Interviews & Focus Groups •Statistically valid surveys for residents and businesses •Develop Needs Assessment City Fiber & Asset Analysis •Document Assets •Create GIS maps to determine opportunities •Determine Usability & Value ( Gap Analysis & Needs Assessment •Current Issues & Root Causes •Based on Stakeholder Needs, today and future • Long-term challenges Magees* MAGELLAN'S APPROACH Develop Sound Business Models •Retail, Wholesale, Public - Private Partnerships •Roles & Responsibilities •Risk & Reward Tradeoffs •Workshop With City team PHASE 2 Assess Financial Feasibility •Separate financials for each business models •Compare metrics between business models •Funding requirements Workshop The Options •Workshop with City team •Review All Feasible Options •Solicit Feedback •Build Consensus on the Best Options Recommend the Strategy •Benefits •Business Model •Costs •Timeframe •Risks •Roadmap to Implement Strategy 11 iaa meffaisw CITY PARTICIPATION • GIS Data • Current parcel, meter and zoning data • Business tax receipts or occupational licenses • Assistance with Outreach • Scheduling and "warm intros" with stakeholders • Overseeing/approving community messaging • Participating in stakeholder meetings when required • Site Visit Workshops • Review initial findings • Review business and financial model analysis • Provide feedback & consensus • Development of Recommended Approach • Consensus building on the best options for the City • Participating in final presentations magees* MAGELLAN'S DELIVERABLES • Comprehensive, Action -Oriented Report: • Stakeholder Needs Assessment with Specific Community Information • GIS-Based Broadband Maps & Documentation (City, Public & Private Networks) • Broadband Gap & Issue Analysis • State of Broadband in Waterloo • Business Model Matrix & Alternatives • Comprehensive Financial Plans • Recommended Model(s) and Supporting Reasons • Benefits to the Community • Deployment roadmap, next steps and timeline Velocity Broadband City of Hudson - Ohio's Next Gigabit Community POOH SPEED BUILT FQR xrfasoW CLIENT INFORMATION Client Since: 2014 Client Location: Hudson Industry Sector. Governmental Industry OPPORTUNITY SOLUTION SUCCESS The City of Hudson's business friendly atmosphere, nationally ranked schools and unsurpassed quality cf life combine to create a unique community attractive to both families and businesses. Hudson is an innovative community that provides a range of utilities to its population of 22,000. PROJECT INFORMATION City/County: Hudson, OH State: Ohio Country: United States of America Status: Ongoing Magellan's expert team of business, financial and technical advisors crafted the Broadband Business and Deployment Plan for the City's broadband service_ Magellan's deep experience planning, implementing and operating broadband networks gave Hudson e partner with the real -world experience to successfully stand up the operation under tight timelines and meet the City's goals for service availability, on time and en budget. Today, Velocity Broadband is delivering Internet speeds up to 1 Gigabit to Hudson's business community. "It's moving faster than we thought," said City Manager Jane Howington. "Offering faster Internet service Is a linchpin of the City's economic development plan. The Velocity service is already speeding up the City's plan to buy land and buildings to double the size of its downtown business district with more office and commercial space, as well as other development plans, Howington said." Waverly Utilities CLIENT INFORMATION Client Since: 2013 Client Location: Waverly. IA Industry Sector: Governmental Industry OPPORTUNITY SOLUTION Magellan Assists Waverly Light & Power Become Iowa's Next Gigabit Community Waverly, the county seat for Bremer County. IA and a hub for activity, is a safe community with parks, trails, golf courses, a revitalized downtown, and so much more_ Designated as a Main Street Iowa District, the beautiful downtown is home to a quality mix of service businesses. specialty shops. destination stores and restaurants to the City's 10,000 residents. tfr Waverly Ele trio Internet Ca tile_ Residential Commercial Miscellaneous Charges Inflamed Service Policies sign iJp PROJECT INFORMATION City/County: Waverly, IA State: Iowa Country: Status: Ongoing The City of Waverly suffers from broadband digital divide issues faced by many of America's rural communities. Investment by providers has been limited as they have not been able to sustain a business case to upgrade their networks_ Businesses also suffer from limited choir, slow speeds and unreliable services and as a result, the City fears many business will look at other cities with more robust broadband. Magellan helped City leadership understand the opportunities, benefits and risks of developing the fiber 10 the home network through a comprehensive analysis of the market. competition and strategy for deployment. Magellan's expert team of business and operatoinal consultants walked City leadership through all aspects of designing, building and operating the network. focusing on the importance of execution and meeting key metrics for success. Based on positive feedback from leadership, Magellan developed Waverly's Business and Financial Plan for development of Waverly's fiber to the .home utility_ SUCCESS The Waverly City Council and Light & Power Board approved the Plan and engaged Magellan to assist the leadership team begin implementation_ Magellan supported Waverly through the entire due diligence process and helped Waverly obtain financing through our strong industry credibility, investment -ready financial plans and strong track record of successful projects_ Magellan continues to assist Waverly in the deployment of its fiber to the home utility in 2016. MageIIan ADVISORS CITY OF WATERLOO BROADBAND STRATEGY AND ACTION PLAN Prepared For: Prepared By: Wendy Bowman Communications Director City of Waterloo Magellan Advisors Contact: John Honker Office: 786.208.8952 Email: jhonker@magellan-advisors.com 999 18t" Street, Suite 3000 Denver, CO 80202 MagADVISORSe//ann Letter of Transmittal Dear Mrs. Bowman, Magellan Advisors is proud to respond to the City of Waterloo's Request for Proposals for the Broadband Feasibility Study Project. Magellan is the Country's leading municipal broadband development firm with clients in 30 states, including Iowa. We assist communities plan, engineer, launch and manage broadband services in the municipal environment, with over 50 active municipal broadband networks in operation today. We take an ecosystem approach to broadband that incorporates not only high-speed internet into the planning, but also smart city technologies and municipal communications that are critical to how municipalities will conduct business in the future. We help you prepare for the internet of things by integrating broadband and smart city technologies into your long-term plan, helping you ensure that Waterloo is prepared to take advantage of all future wired and wireless applications. Magellan has worked significantly with Iowa communities on broadband development. We understand the local environment, broadband markets and Iowa Utilities Board statutes that are pertinent to these projects. We have worked with the City of Waverly to plan and launch their gigabit Internet services to homes and businesses. We provided teams of expert to assist Waverly at key stages of their development, including: • Comprehensive broadband feasibility study with ground -up community outreach and support • Engineering design and costing for the network to cover 100% of the community • Broadband business plan, giving the City a strategic roadmap for their fiber services • Financing support with Waverly's bond council and financial advisors Magellan also provided similar services to the City of Indianola by crafting community and economic development focused strategies in their business plan to guide their deployment of broadband services. Finally, Magellan developed the City of Davenport's broadband feasibility study that educated city management and council on the most appropriate broadband strategies. This work lead to the recent partnership with Metronet, a regional provider that is now building out fiber to the home in Davenport under a master development agreement with the City. In all three cases, Magellan's work lead to significant improvement in local broadband services for Iowa communities and we propose to do the same for the City of Waterloo. We will do the same for Waterloo. We will develop an action plan for Waterloo to immediately move forward and make broadband improvements to the community, focused on retaining and attracting new businesses, improving residential services and making Waterloo a high-tech community. Unlike other consulting firms, Magellan only recommends real -world, achievable solutions based on our assessment of the City's capabilities, funding environment and requirements of the community. We give you clear side by side comparisons of the feasible options and roadmaps showing the City how to deploy each option. Finally, we provide strategic recommendations on the most feasible options, build consensus with your team and present the findings to City leadership and Council. If you have any questions or we can be of assistance in any way, please feel free to contact me with any questions or comments. You can reach me directly at 786.208.8952 or Jhonker@magellan-advisors.com. Sincerely, John Honker, President & CEO, Magellan Advisors Page 2 www.magellan-advisors.com gig@magellan-advisors.com MagADeVIS//ORSan Overview of Magellan Advisors Magellan is the only firm that provides comprehensive broadband planning, implementation and project management services, enabling our clients with a turnkey consulting partner that helps them through every step of the process. Our project teams are comprised of professionals with significant operational experience in the broadband, public utility, local government, smart city and information technology sectors. Unlike many consulting firms, we have deep business and operational expertise planning, building and managing networks, skills that are paramount to helping our clients plan and implement their own broadband networks and smart city initiatives by creating effective internal and external partnerships. Our consultants develop real -world, actionable strategies that organizations can rely on to support the development of their broadband and smart city initiatives. No other firm in the industry has these combined capabilities. 400 MUNI Et UTILITY CLIENTS 50+ OVER 50 NETWORKS IMPLEMENTED NATIONWIDE S1B OVER A BILLION IN BROADBAND PROJECTS FUNDED 1M 1 MILLION FIBER TO THE PREMISE CONNECTIONS 1K 1,000 COMMUNITY ANCHORS CONNECTED Our combination of unmatched broadband, telecom, business and operational experience creates actionable strategies that communities use to realize their broadband and smart city objectives. We have led the planning, funding, construction and management of over 50 fiber to the premise networks passing over 1 million homes and connecting more than 1,000 schools, hospitals, government offices and community organizations. Our work has resulted in over $1 billion in new broadband investments nationwide. Magellan has helped more communities successfully plan, implement and manage gigabit broadband networks than any other firm in the market. Magellan uses a customized approach in every project based on the needs of our clients and their communities. We develop innovative solutions that allow public and private organizations to best utilize their strengths to expand broadband and develop smart city applications. Magellan is at the forefront of public -private partnership development, working to negotiate and forge these partnerships between public organizations and private broadband providers. Conquering broadband issues often takes the participation of multiple parties that are aligned around common goals. Magellan helps communities recruit innovative providers and form strategic partnerships that benefit providers and the communities they serve. Page 3 www.magellan-advisors.com gig@magellan-advisors.com Portfolio of Services FIBER & WIRELESS ENGINEERING FEASIBILITY & BUSINESS PLANNING FUNDING & GRANT WRITING Mage//an� ADVISORS NETWORK IMPLEMENTATION BUSINESS & OPERATIONS High -touch, client -centered engineering using the latest technologies and tools to deliver wold-class broadband • FTTH & FTTP • Metro & Long Haul • GPON, NG-PON2 • Active Ethernet & DWDM • Data Center & Central Office Design • Fixed Wireless & WiFi • 5G, LTE & WiFi Integration Customized business and financial studies that give you real -world scenarios for your deployment • Conjoint Market Research • Competitive Analysis • Needs Assessments • Business Strategy • Bond, Bank & Fund Ready Financial Plans • Real -World Capital & Operational costing • Business Risk Analysis Strategies for funding projects through public and private options, including federal and state grants • • • • • • Investment Analysis Bank & Bonding Support Federal & State Grants Preparation & Compliance Loan Design & Administration RUS Smart Grid & Telecom FCC CAF & USAC Turnkey project & construction management for networks, data centers, electronics & content • • • • • • • • Program Management Procurements Construction Management Inspections & Closeout Electronics Integration Internet, Voice & Video Content Acquisition Data Center Integration Beta Testing & Network Commissioning Turnkey management of operations, customer service and the business to ensure you meet your objectives • Network Operations • Customer Service • Business Processes • Billing & Provisioning • Sales & Marketing • P&L Management • Standard & Emergency Maintenance Fiber & Wireless Engineering Our broadband design and engineering services provide the latest technical designs for fiber -to -the - premise, backbone, metro and long -haul networks. Our wireless design and engineering services develop effective fixed wireless, microwave and WiFi networks to cover the most challenging terrain. Our services cover all aspects of broadband design and engineering, from outside plant fiber and wireless, to equipment, to services and content, to BSS/OSS and systems integration. • FTTH, FTTP, Metro & Long -Haul Fiber • Fixed Wireless, Microwave & WiFi • GPON, Active Ethernet & WDM Routing, Switching & MPLS Internet, Voice & Video Integration BSS/OSS & Network Management Feasibility & Business Planning Magellan helps public organizations and broadband operators determine reasonable expectations for deploying fiber to the premise networks. We develop comprehensive feasibility studies that assess the current broadband environment and determine the opportunities to deploy advanced broadband networks. Our feasibility studies are real world tested and based on the latest broadband industry trends that provide strategic direction for communities to achieve their broadband and smart city goals. Magellan helps public organizations and broadband operators determine reasonable expectations for deploying fiber to the premise networks. We develop comprehensive feasibility studies that assess the current broadband environment and determine the opportunities to deploy advanced broadband networks. Our feasibility studies are real world tested and based on the latest broadband industry trends that provide strategic direction for communities to achieve their broadband and smart city goals. • Community Needs Assessments • Market Analysis • Network Analysis & Inventory • Business Models & Financial Planning • Design & Engineering • Opportunity, Risk & Benefit Analysis Page 4 www.magellan-advisors.com gig@magellan-advisors.com MagADVISORSe//ann Funding & Grant Writing Magellan provides extensive financial planning services for organizations looking to invest in advanced broadband networks. Our extensive financial plans help government organizations and private operators understand the opportunities and risks and the most feasible financial strategies to achieve their goals. Our plans are investment ready and are routinely used to support funding with bond underwriters, banks, private equity firms and grant programs. Magellan also maintains a portfolio of financing partners and grant programs that we bring to communities to help them acquire funding. • Investment -Ready Financial Plans • Funding Development • Partner Recruitment • Broadband Grant Writing & Management • FCC, E-Rate, CAF & State Programs • Economic Development Grant Programs Network Implementation Magellan helps operators, utilities and government organizations implement next -generation networks and smart city initiatives. We provide turnkey project and construction management services that enable these organizations to maintain resources that cover every aspect of deploying broadband networks, from fiber and wireless network deployment, to equipment and content integration, to marketing and sales, to operations and management. Magellan provides the only turnkey solution that enables these organizations to deploy their networks in a timely manner and launch their networks with the confidence to achieve the best results in their communities. • Procurement & Contract Negotiation • Construction Management • Network Commissioning & Certification • Content Acquisition & Agreements • Sales & Go To Market Strategy • Business & Operations Management Business & Operations Magellan provides ongoing retail operations for munis and utilities that want the expertise of a seasoned telecommunications partner. Magellan Broadband Solutions provides ongoing operations for fiber and wireless networks, including sales, marketing, network operations, finance, accounting and general management. Magellan becomes an extension of your organization, fulfilling specific functions with teams of seasoned experts that have been operating broadband networks for more than 50 years. • Ongoing Sales & Marketing • Business Management • Project & Construction Management • Network Expansion • New Services Launch • Network Operations • Field Operations • Engineering Additional Services Magellan provides a wide range of supplementary services in information technology and security, smart city planning and networking technology fields. Many of our services complement one another, allowing Magellan to provide a one -stop -shop for our clients' full range of broadband, smart city, IT and security needs. Magellan's experts lead the industry in planning and deploying the latest technology solutions to meet a wide range of business needs. As the Internet of Things transitions from concept to reality, Magellan helps its clients adapt to the rapidly changing world and prepare communities to thrive in the digital domain. • Information Technology • Smart City Consulting • Public Safety CJIS Consulting • Utility Security & SCADA Consulting • PCI Compliance & Implementation • Information Security Consulting Page 5 www.magellan-advisors.com gig@magellan-advisors.com MagADVISOR//aSenn Business Models & Partnerships Magellan is on the forefront of emerging business models and partnership development within the broadband industry. We successfully plan, negotiate and execute partnership agreements between public organizations and private operators, leveraging the strengths of each organization to benefit the community. We have a stellar record of recruiting broadband providers to local communities and helping these organizations make their communities Gigabit Ready. • Dark Fiber, Open Access, Triple Play • Feasibility Analysis of Business Models • Public -Private Partnerships • Partner Recruitment & RFQs • Advocacy & Negotiation in Partnerships • Opportunity, Risk & Benefit Analysis Policy Development Magellan maintains knowledge of best practice in policy development and organizational structure for implementing and operating broadband networks and smart city initiatives. We help municipalities and utilities organize and refine internal business processes for improved communications, project management, financial management and policy development. We provide our clients a knowledgebase of zoning, right of way management and wireless policies for enabling and facilitating the development of broadband infrastructures and smart city initiatives. Our commendations generate business processes and workflows that improve internal and external partnerships for streamlining ongoing expansion of broadband and smart city deployments. • Right of Way Management Ordinance • Wireless Ordinance & Guidelines • Fiber Ordinance & Guidelines • Dig Once & Joint Trench Policies • Telecommunications Master Funding • Internal & External Working Groups Page 6 www.magellan-advisors.com gig@magellan-advisors.com Project Team Bios MagADVISORSe//ann John Honker: President & CEO John is a seasoned broadband and telecom executive with 20 years' experience across public and private sectors. His first 10 years were spent with Columbus Networks planning and managing broadband networks across 20 countries in the Americas region. Under his leadership, Columbus' Internet Services grew from $0 to $100 million in annual revenue over 7 years. As a key founder of Magellan, John has managed over 100 public and private broadband projects across the U.S. from concept to completion, helping dozens of communities' plan and deploy FTTH networks. John's role has been to guide the business, strategy and financial aspects of these projects to ensure his clients understand how to deploy FTTH networks in a fiscally responsible and cash -flow driven methodology that supports long-term financial sustainability. Courtney Violette: Chief Operating Officer Courtney has led over one hundred municipal broadband planning and implementation projects across the country. He is a Certified Fiber -To -The -Home Professional and holds several technical certifications in broadband, information technology and information security. Prior to joining Magellan, he spent seven years as the CIO for the City of Palm Coast. During this time, he planned and built the first true City -owned open -access network in the Southeast. Through his leadership, the network grew to serve government, business, education and healthcare needs across the City, saving these organizations millions of dollars and providing gigabit connectivity to meet the community's needs. Courtney holds an MA in Information Technology Management and a BS in Computer Science from Webster University. Greg Laudeman: Project Manager Greg Laudeman is a leader in innovative, talent and technology -based economic development strategy, research, and implementation. He is the Executive & Founder of Eduity, LLC, which provides talent- and technology -based economic development services and is applying social media to transform workforce planning and development. Greg's diverse experience as an analyst, communicator, facilitator, and organizer has always focused on how technology can make communities and organizations more competitive, innovative, and productive. For over a decade Greg led community technology outreach efforts for the Georgia Tech Enterprise Innovation Institute. Greg has a doctorate in Learning and Leadership from the University of Tennessee at Chattanooga, has master's degrees in public policy from Georgia Tech and Telecommunications from Michigan State, and a bachelor's degree in mass communication from UTC. Matthew Southwell: Telecommunications Analyst Matthew has over 10 years in the telecommunications field. Matthew's career began as a U.S Army Sergeant where he worked on emergency operations communication systems, Sat-Com radio systems, and deploying weekly COMSEC key changes OTAR (Over the Air Rekeying) with newly deployed radio systems during two Operation Enduring Freedom deployments. Matthew's private sector work includes work with a Motorola radio distributor and contractor where he supported many Federal, State, and local County entities to include: Department of Homeland Security, Immigration and Customs Enforcement, Drug Enforcement Administration, Florida Highway Patrol, Greater Orlando Airport Authority, Orange County Sheriff's Office, and the Lake County Sheriff's Office. Page 7 www.magellan-advisors.com gig@magellan-advisors.com Magellan* ADVISORS Mark Lane: Sr. Technical Consultant Mark Lane has over 30 years of experience in enterprise IT, carrier network operations, and technology consulting. While serving as CTO for Bristol Virginia Utilities OptiNet, he helped provide the strategic direction and practical implementation responsible for their fiber -to -the -premise (FTTP) network build -out and broadband service deployment for eight counties in Southwest, VA. His vision and leadership contributed to Bristol, VA being selected as an Intelligent Community Forum Top 7 Intelligent City in 2009. Mark received a bachelor's in computer science from the University of Tennessee. Ashley Poling: Project Management Analyst Ashley has been a member of the Magellan Advisors team since 2014, initially in the capacity of Business Development Manager and most recently as a Project Management Analyst. She has been integral in supporting Magellan in sourcing business through the request for proposal and proposal process, and now supports the Southeast Team in project management, client engagement, and deliverable development. Ashley has a BA degree in Education with a minor in Political Science. Page 8 www.magellan-advisors.com gig@magellan-advisors.com Key Customers OP Waverly Ut�litres Magellan* ADVISORS City of cis I� Customer State Customer State City of Tuscaloosa Alabama City of Winter Park Florida _ Salt River Project Arizona City of Winter Haven Florida _ Pima Area Council of Governments Arizona City of Fort Lauderdale Florida City or Rancho Cucamonga California City of Bartow Florida Rancho Santa Fe California City of Lakeland Florida City of Huntington Beach California Orlando Utilities Commission Florida City of Manhattan Beach California Gity of Winter Garden Florida City of Mission Viejo California Charlotte County Florida City of Santa Ana California Seminole County Florida City of Fairfield California City of Ketchum Idaho City of Ventura California Rock Falls Utilities Illinois City of Oxnard California City of Davenport Iowa City of La Mesa California Waverly Utilities Iowa City of Chula Vista California Indianola Municipal Utilities Iowa City of Hayward California City of Minden Louisiana City of Concord California Boone County Missouri City of Alameda California City of Missoula Montana City of Glendale California Missoula County Montana City of Rancho Cucamonga California Niagara County New York City of San Leandro California Butler County Ohio City of Davis California Stark County Ohio City of Davis California Hudson Utilities Ohio City of Woodland California City of Hamilton Ohio City of Winters California City of Hillsboro Oregon City of West Sacramento California Marion County Oregon Ventura County California Pierce County Oregon Sonoma County California Jefferson Public Utility District Oregon Napa County California Johnson City Energy Authority Tennessee Alameda County California Holston Electric Cooperative Tennessee Yolo County California Sequachee Valley Electric Tennessee South Bay Council of Governments California Appalacean Electric Cooperative Tennessee City of Boulder Colorado Middle Tennessee Electric Cooperative Tennessee Gity of Golden Colorado Duck River Electric Membership Cooperative Tennessee City of Centennial Colorado Newport Utilities Tennessee City of Loveland Colorado Tennessee Valley Authority Tennessee City of Fort Collins Colorado Lenoir City Utilities Tennessee City of Yuma Colorado Morrisville Utility Systems Tennessee City of Wray Colorado City of Mont Belvieu Texas Gity of Fort Morgan Colorado City of Dayton Texas Yuma County Colorado City of Portsmouth Virginia City of Clermont Florida City of Newport News Virginia City of Jupiter Florida City of Walla Walla Washington City of Palm Coast Florida Whitman County Washington Page 9 www.magellan-advisors.com gig@magellan-advisors.com Magn ADVISORS Project Approach Phase 1. Magellan believes that the most effective approach to this Study will be through engagement with the Waterloo community to determine their needs and develop broadband strategies that will meet those needs, now and in the future. Phase 1 of the project will assess current broadband needs in Waterloo, determine gaps and identify infrastructure needed to fill those gaps. We will engage with the Waterloo community to understand local needs and plan citywide infrastructure improvements to address needs over time. A summary of phase 1 is shown below. Set Goals & Expectations •Discussions and conclusions from preliminary study •Develop Project Plan -Outreach, Communications & Engagement Strategy •Timeline & Milestones • Community Engagement •Stakeholder Meetings •Interviews & Focus Groups •Statistically valid surveys for residents and businesses •Develop Needs Assessment City Fiber & Asset Analysis •Document Assets •Create GIS maps to determine opportunities •Determine Usability & Value Gap Analysis & Needs Assessment •Current Issues & Root Causes •Based on Stakeholder Needs, today and future •Long-term challenges Page 10 www.magellan-advisors.com gig@magellan-advisors.com Mage//an� ADVISORS Phase 2. Phase 2 will determine the City's most viable opportunities to expand broadband infrastructure to meet the community's needs. It will develop infrastructure designs, cost estimates, financial pro formas and business models that the City could utilize to expand broadband. Magellan proposes to workshop these options with the City in detail to facilitate understanding of each business model and build consensus on the best approach for the City to carry out the broadband mission. Based on the most achievable option(s), Magellan will provide a full roadmap, with step-by-step actions that the City should take to meet its broadband goals. Develop Sound Business Models •Retail, Wholesale, Public - Private Partnerships •Roles & Responsibilities •Risk & Reward Tradeoffs *Workshop With City team Assess Financial Feasibility •Separate financials for each business models •Compare metrics between business models •Funding requirements Workshop The Options •Workshop with City team •Review All Feasible Options *Solicit Feedback •Build Consensus on the Best Options Recommend the Strategy •Benefits •Business Model • Costs •rmeframe •Risks •Roadmap to Implement Strategy Page 11 www.magellan-advisors.com gig@magellan-advisors.com MagADeVIS//ORSan Process Steps & Timelines Task 1. Kick -Off Meeting, Project Charter & Goals Our team will begin the project by conducting an onsite kickoff meeting with the City project team. The purpose of this meeting is to develop a project charter with clear goals and objectives. This will ensure alignment of our team with yours' and that the final deliverables will meet your expectations. Magellan will also develop a project plan and timeline to meet your schedule. Task 2. Broadband Needs Assessment & Demand Planning Statistically -Valid Surveys Magellan will determine the current broadband environment in Waterloo by understanding what residents and business utilize today. We propose to utilize a statistically -valid survey of residents and businesses to understand the current services that they use, what they pay and what they desire in their internet services. Magellan's conjoint survey methodology will answer the following questions for the City to help educate City leaders on the State of Broadband in Waterloo: 1. What services are available to residents and businesses? 2. How many providers do residents and businesses have access to in Waterloo? 3. Is there a digital divide in Waterloo and to what degree? 4. Where are the territories of each provider and do they compete? 5. What do residents and business pay today? 6. What speeds do residents and businesses receive today? 7. Are residents and businesses getting what they pay for? 8. What market share does each provider hold today? 9. If the City provided services directly or through a partnership, what take rates could it expect? 10. What prices, speeds and packages are most demanded by residents and businesses? Magellan will conduct separate residential and business surveys of the Waterloo community. Stakeholder Outreach Magellan proposes to hold interviews with key community organizations to gain an understanding of their current and future broadband and technology needs. We believe that engaging your key stakeholders is important to educate the community and make broadband planning an inclusive process with the community. The surveys mentioned above will provide important quantitative data; the stakeholder outreach process provides important qualitative data. It will involve Waterloo's key public organizations to determine community -wide needs for broadband. We would suggest including: • City departments • School district • Local business associations or the chamber of commerce • Residential representatives, opinion leaders or home owners associations • Major healthcare associations or organizations Magellan proposes to hold sessions with community organizations to gain an understanding of their current and future broadband and technology needs. We find the most effective format for these interviews to be in group settings where participants are encouraged to share open, honest feedback with our team. Magellan will collect information from these organizations to help the City understand the needs of its major stakeholders. Page 12 www.magellan-advisors.com gig@magellan-advisors.com MagADVISORSe//ann Market Analysis The market analysis will determine the services that are available, providers, service level, pricing, and access. We will document all publicly -owned and privately -owned networks in the City and build a comprehensive broadband map to illustrate how the City is served by broadband providers today. The market analysis will also provide a gap analysis, using data from the surveys, to determine where the areas of greatest need are in the City, illustrate where the digital divide may be most apparent and identify key regions of the City where economic development could be bolstered by broadband. Task 3. Broadband Engineering and Cost Estimates Asset Inventory Magellan will conduct a comprehensive asset inventory of any existing fiber network resources and other above and underground assets, including traffic signal, utility pole, and street light infrastructure to determine its usefulness toward improving broadband. In addition, Magellan will research wireless tower assets to identify additional need to support current wireless and future 5G services. This inventory will give the City a realistic assessment of the infrastructure's capabilities and opportunities to use it as a foundation for deploying broadband, in effort to lower overall costs of deployment. Broadband Engineering Magellan will provide a broadband high-level design and cost estimates to the City for expanding fiber and wireless services to businesses and residents. We utilize a phased approach to engineering and building broadband networks that allows our municipal clients to evaluate different buildout strategies, considering commercial -only, residential -only and residential plus commercial. Our engineering will give you a clear understanding of the regions of the City to be covered by broadband infrastructure and the costs of deploying the network. The overall engineering process will be based on the needs of the residents, businesses, and anchors in Waterloo. This will determine the bandwidths and speeds, performance, redundancy and scalability requirements, meeting today's needs and future bandwidth requirements, such as: • Gigabit -capable with a path to 10-gigabit • High-performance, dedicated connectivity • Reliable and redundant • Flexible to support multiple technologies, such as GPON and Active Ethernet simultaneously Scalable to support future growth, density and bandwidth requirements Multi -service in design — voice, video, data, with the necessary QOS management Supporting future smart city and internet of things applications Our analysis will include method of delivery (FTTP, wireless, fiber/wireless hybrid, etc.), and associated infrastructure and backhaul routes. We will also include full equipment budgets for the network, renewal and replacement and capital expansion requirements over the long-term (15-20 years). Cost Estimates Magellan will provide full cost estimates for all fiber and wireless infrastructure, equipment, services and renewal and replacement. We will also provide complete operating cost estimates for the broadband network, to enable Waterloo to understand all expenses that go into operating and managing services as a retail provider such as Waverly and CFU. This will provide valuable information to inform the City of the overall costs of providing services versus creating partnerships with current providers. The cost capital and Page 13 www.magellan-advisors.com gig@magellan-advisors.com MagADVISOR//aSenn operational cost estimates will be utilized in the Study to evaluate different feasible business models for the City to consider. Task 4. Analysis of Feasible Business Models Overview and Detailed Analysis of Each Business Model Magellan will provide the City a side -by -side comparison of each of the feasible business models for expanding broadband in Waterloo. This comparison will provide the essential functions of each business model, the financials, risks, rewards and control elements that are important for the City's consideration as it evaluates expanding broadband. Magellan will also provide many real -world examples of other cities that have implemented each business model to help the City better understand the best practices, successes and failures. Magellan believes that the City should consider the following business models and we are open to evaluating other options for the City as the project unfolds, as we find unique opportunities in each community that may not conform to a particular business model: • Retail services — business and residential • Retail services — business only • Retail services — residential only • Public -private partnership • Public -public partnership • Open -access • Dark fiber leasing Some of the key questions that we will address in this section include: • What immediate steps could the City take to improve broadband and what business models would be most effective? • What would it take for the City to provide all retail services to homes and businesses? • Could the City work with neighboring broadband utilities, such as CFU or Waverly to reduce risk and bring broadband services to Waterloo more quickly? • Would a public -private partnership be appropriate for Waterloo and what are the tradeoffs that the City should consider? • Could the City provide business services first to support economic development, followed by expansion into residential? • What is the financial performance of each business model? What are the costs and how long would it take for the City to break-even on each business model? • What are the financial and non -financial risks of each business model? Financial Planning for Each Business Model Magellan proposes using our Broadband Financial Sustainability Model to ensure that the City of Waterloo has a full understanding of the business and financial sustainability of various broadband business models. Using these tools will allow the City to evaluate different business models and make informed decisions on which are most adequate for the City and community — including environments that require no funding. Page 14 www.magellan-advisors.com gig@magellan-advisors.com Mage//an ADVISORS Our models are widely used tools to model feasibility and financial performance for over 50 municipal broadband providers. Magellan's financial modeling tools have been utilized to plan and manage broadband network investments for over $1 billion of broadband investments in the US. Using our financial tools, we suggest using the following process to conduct the business model analysis and make recommendations. We would propose using a 20-year period to analyze business models: 1. Develop the cost model for the network, including one-time and ongoing capital expenditures to build the network. 2. Develop the cost model for operations, including O&M, network operations, field services, staffing, billing and customer service. 3. From the market analysis and outreach, determine the customer segmentation and growth on the network, across each type of customer (business, school, hospital, etc.). 4. Determine customer growth rates for the network, based on benchmarking analysis from other utility and municipal providers. 5. Determine a proposed competitive rate schedule for potential services, using pricing information from the market analysis and benchmarking information. 6. Develop financial statements, pro-formas, depreciation schedules, and cash flows. 7. Conduct comprehensive financial analysis on the project to determine overall financial sustainability using key metrics such as free cash flow, debt service coverage, operating margin, and net income. 8. Use scenario analysis to evaluate different business models and determine which are feasible for the City to consider. 9. Recommend the most feasible business model based on overall business and financial sustainability, community benefit, and long-term value to the Waterloo community. This model will be designed to generate revenue for the City for a self -sustained broadband maintenance and development program. Our pro formas will indicate the cost of resources both internally and externally, as estimated based on previous similar engagements. Task 5. Funding Opportunities & Analysis Magellan will provide a detailed analysis of the funding options for the broadband network and operations. Public funding sources analyzed to determine how the City could fund the project utilizing a variety of vehicles, including municipal bonds, loans, leases, tax increment financing and other municipal options. We believe that some funding streams could come from public grants and private providers and we will help you analyze what funding opportunities are available, potentially reducing the City's funding requirements. Magellan provides grant writing and compliance for a variety of broadband grant and loan programs managed by the USDA, USAC and FCC. We will provide a deep analysis of programs for which the City may qualify, amount of funding available and requirements to apply. Our funding analysis will also inform the City of the best approach to funding the broadband project, which may include the utilization of multiple funding sources where they apply to specific aspects of the project. Task 6: Recommendations & Next Steps Based on the results of the study, a series of key recommendations will be made to inform City leaders of the most feasible options to expand high-speed broadband in Waterloo. Recommendations may include key policy decisions that the City could consider, based on the outcomes of the study. The study will discuss each option in detail and provide a series of next steps that the City could take to pursue one or more of the feasible options. Timelines, costs and resources will be included in the recommendations and next steps. Magellan will workshop these options with the City's project team and if desired, with City leadership in a Council workshop or meeting. Page 15 www.magellan-advisors.com gig@magellan-advisors.com MagADVISOR//aSenn Task 7. Final Broadband Feasibility Study Report Magellan will provide a final Comprehensive Feasibility Study to The City of Waterloo at the conclusion of this engagement. The final report will inform the City of key information that it can use to make decisions on how to proceed in the most prudent way. This information will include: • Executive summary • Broadband needs assessment and demand • State of Broadband in Waterloo today • Broadband opportunities • Broadband benefits • Broadband design and costs • Broadband financial analysis for each business model • Business model options, financial comparisons, risk and reward tradeoffs • Most feasible options • Recommendations and next steps We will work with the City's team to refine this plan, so it is highly representative of your stakeholders needs and is relevant to the Waterloo community. The Study will function as the guidebook for broadband development across the City and will include the relevant information necessary for Waterloo to begin implementing its broadband initiative. All supporting information such as individual task analysis, raw data, mapping (ESRI) shapefiles and the technical memoranda from each previous task will be included with the Study. All documents generated to support delivery of the Study will also be provided to the City. Deliverables Magellan will provide a final Comprehensive Feasibility Study to The City of Waterloo at the conclusion of this engagement. The final report will inform the City of key information that it can use to make decisions on how to proceed in the most prudent way. This information will include: • Executive summary • Broadband needs assessment and demand • State of Broadband in Waterloo today • Broadband opportunities • Broadband benefits • Broadband design and costs • Broadband financial analysis for each business model • Business model options, financial comparisons, risk and reward tradeoffs • Most feasible options • Recommendations and next steps We will work with the City's team to refine this plan, so it is highly representative of your stakeholders needs and is relevant to the Waterloo community. The Study will function as the guidebook for broadband development across the City and will include the relevant information necessary for Waterloo to begin implementing its broadband initiative. All supporting information such as individual task analysis, raw data, mapping (ESRI) shapefiles and the technical Page 16 www.magellan-advisors.com gig@magellan-advisors.com Mage//an ADVISORS memoranda from each previous task will be included with the Study. All documents generated to support delivery of the Study will also be provided to the City. In addition to the final report, Magellan will provide all project support materials used to develop the feasibility report. This includes: • GIS Maps of All Infrastructure, Survey Results and Planned Designs, in GIS, KMZ or related formats • Excel financial plans for each business model studied • Excel raw data for residential and business surveys • Project documentation, plans, meeting minutes and agendas • Project Timeline Task Month 1 Month 2 Month 3 Month 4 Month 5 Task 1. Kick -Off Meeting, Project Charter & Goals Task 2. Broadband Needs Assessment & Demand Planning Task 3. Broadband Engineering & Cost Estimates Task 4. Analysis of Feasible Business Models Task 5. Funding Opportunities & Analysis Task 6. Recommendations & Next Steps Task 7. Final Broadband Feasibility Study Report Task 8. Final Presentations to City Leadership Page 17 www.magellan-advisors.com gig@magellan-advisors.com Mage//an� ADVISORS Fees For Service The total cost of the project is $84,450, including all tasks to be completed by Magellan and a $5,000 expense budget. Magellan's price is not -to -exceed total budget for the project. Task Cost Task 1. Kick -Off Meeting, Project Charter & Goals $7,000 Task 2. Broadband Needs Assessment & Demand Planning $10,500 Task 3. Broadband Engineering & Cost Estimates $14,000 Task 4. Analysis of Feasible Business Models $12,250 Task 5. Funding Opportunities & Analysis $12,250 Task 6. Recommendations & Next Steps $8,750 Task 7. Final Broadband Feasibility Study Report $10,500 Task 8. Final Presentations to City Leadership $4,200 Travel & Incidental Expenses $5,000 Total Not To Exceed Price $84,450 Page 18 www.magellan-advisors.com gig@magellan-advisors.com Mage//an� ADVISORS Optional Services Magellan Advisors also provides comprehensive fiber and wireless design engineering services and other complementary broadband planning and implementation services at the following rates. Description Underground Engineering Design $1.25 Per Foot Aerial Engineering Design $1.00 Per Foot Pole Loading Analysis $50 Per Pole Pole Make Ready Engineering $50 Per Pole Broadband Equipment Design $175 Per Hour Broadband Business Strategy $175 Per Hour Broadband Financial Planning $175 Per Hour Broadband Sales & Marketing Planning $175 Per Hour Broadband Procurement & Vendor Management $175 Per Hour Broadband Operations Planning $175 Per Hour Page 19 www.magellan-advisors.com gig@magellan-advisors.com CITY OF WATERLOO Council Communication Motion to recommend to the City of Waterloo that it jointly engage Magellan Advisors to perform the boradband feasibility study. Telecommunications Utility Board of Trustees Meeting: 9/24/2019 Prepared: SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Motion to recommend to the City of Waterloo that it jointly engage Magellan Advisors to perform the boradband feasibility study.