HomeMy WebLinkAbout8.14.2019 Telecom Board PacketBOARD
MEMBERS
Dave
Buck
Anesa
Kajtazovic
Rich
Kurtenbach
Randy
Pilkington
Andrew
Van Fleet
CITY OF WATERLOO
Telecommunications UTility Board of Trustees
August 14, 2019
Harold E. Getty Council Chambers
4:00 p.m.
1. Approval of agenda as presented.
2. Election of board chair and vice chair.
3. Discuss vision for the board,
4. Review of community broadband needs.
5. Presentation of broadband consultant proposals and discuss next
steps for community broadband.
6. Adjourn
Kelley Felchle
City Clerk
RECAP OF RECENT BROADBAND ACTIVITIES
May 29, 2018 - Waterloo Industrial Development Association (WIDA) to contract the services of
David LaMarche. Mr. LaMarche is researching and evaluating current broadband and internet
availability in Waterloo, the evolving needs of businesses and residential users, and exploring
available alternatives. Results delivered to City staff.
July 2018—LaMarche delivers Broadband Report
January 2019 -Amperage conduct market study
Andy Van Fleet added to Tele com board 1/14/2019
March 2019 —Both studies are presented to Council and Telecom board
April 2019 - Ad
hock committee
of WIDA, Mayor and city staff, Van
Fleet and
Pilkington
RFQ—Consultant
to
Develop Design/Engineering/ Build -out
plan/
Business Model
May— Four consultants gave presentations by conference call
June —Three proposals received from consultants
Next Steps:
Telecommunications Board
o Meet to discuss hiring consultant—
o Make final recommendation to City Council —
o Project follow through
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Waterloo Broadband Consultant Proposal Review
Friday, June 28, 2019 11:OOam — Noon
First Floor Conference Room City Hall
The internal team of staff and stakeholders met to discuss all three proposals.
Present: Randy Pilkington, Chris Wendland, Chris Fereday, Chris Youngblut, Noel Anderson, Michelle
Weidner, Adrienne Miller, and Wendy Bowman,
Absent: Andy Van Fleet and Mayor Hart
Brief summary of discussion:
BHC Rhodes: Demonstrated technical expertise. The business model presented was strong. The
proposal felt 'canned' and the use of 'Opportunity Zones' felt contrived. There was no mention of
residential. It was very business focused. The price was too high and not a good value.
Magellan: They showed experience with communities of similar size. Feels like the right size for our
community. The projects outlined were deep and diverse. They used the Waterloo Canada logo. They
are good at not overloading customers with too much technical information and jargon. The cost is
reasonable and there is potential to use the Amperage study to save money. Andy Van Fleet and Mayor
Hart were unable to attend but communicated their preference for Magellan.
SMART: Experience lies in smaller communities with an existing municipal utility. Not clear if any of
these projects have executed and did not feel certain they could execute in a timely manner. (i.e. 2016
project not completed) Unsure if we will receive adequate data and analysis in their feasibility and
business case. Very low cost. Too small.
The internal team recommends Magellan to the Waterloo Telecommunications Board as the
consultant of choice for Waterloo's broadband project.
Next Steps:
• The Waterloo Telecommunications Board will be meeting in the coming weeks (before the end
of July) to make a final recommendation to the City Council. Mayor's Admin, Kendra Wyatt is
arranging this meeting. Randy requests Chris Wendland attend.
• Wendy will review past minutes to determine if a president/chair was elected
• Mayor will appoint staff to serve as ex officio on the board
• An update has been sent to the three companies stating that we met and have referred a
recommendation to The Waterloo Telecommunications Board, which will be meeting in the
coming weeks to make a final recommendation to the City Council.
• Michelle Weidner will consult with the bond attorney to determine how we will pay for the
consultant
• Chris Fereday will look into insurance coverage for the board
• Chris Wendland will review Chapter 16 of the State Code
• Notification of the Board's recommendation will be sent to the preferred company prior to the
City Council meeting.
• We hope to have a selection made by the end of July or first week of August.
CITY OF WATERLOO
BROADBAND STRATEGY AND ACTION PLAN
Prepared For: Wendy Bowman
Communications Director
City of Waterloo
Prepared By: Magellan Advisors
Contact: John Honker
Office: 786,208.8952
Email: ihonkerCo)magellan-advisors.com
999 181h Street, Suite 3000
Denver, CO 80202
Magel) n
ADVISORSrIlOr
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 786208.8952 or Jhonker(c�magellan-advisors.com.
Sincerely,
Page 2
John Honker, President &CEO, Magellan Advisors
www.magellan-advisors.com gig@magellan-advisors.com
Mage//an
ADVISORS
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.
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 FEASIBILITY&
ENGINEERING BUSINESS PLANNING
FUNDING &
GRANT WRITING
Mage/ i
ADVISORS
NETWORK BUSINESS&
IMPLEMENTATION OPERATIONS
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 •Routing, Switching & MPLS
• Fixed Wireless, Microwave &WiFi •Internet, Voice &Video Integration
• GPON, Active Ethernet & WDM • 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.
Ourfeasibility 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 vdww.magellan-advisors.com gig@magellan-advisors.com
Mage//an
ADVISORS
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
Network Implementation
• Broadband Grant Writing &Management
• FCC, E-Rate, CAF & State Programs
• Economic Development Grant Programs
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
Business &Operations
• Content Acquisition &Agreements
• Sales & Go To Market Strategy
• Business & Operations Management
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
Additional Services
• New Services Launch
• Network Operations
• Field Operations
• Engineering
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 •Utility Security & SCADA Consulting
• Smart City Consulting • PCI Compliance &Implementation
• Public Safety CJIS Consulting • Information Security Consulting
Page 5 w .magellan-advisorsxom gig@magellan-advisors.com
Mage//an
ADVISORS
Business Models ek 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 •Partner Recruitment & RFQs
• Feasibility Analysis of Business Models • Advocacy & Negotiation in Partnerships
• Public -Private 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
gge//an
ADVISORS
Project Team Bios
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 Sheriffs Office, and the Lake County
Sheriffs Office.
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Mage//an
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,
vdww.magellan-advisors.com gig@magellan-advisors.com
Key Customers
�vWaverly
Utilitis
imst
lNDIANOLA
tstuss
giMa//an
ADVISORS
Cityof
City of Tuscaloosa I Alabama
City of Winter Park
Florida
Salt River Project Arizona City of Winter Haven
Pima Area Council of Arizona City of Fort Lauderdale
Governments
City or Rancho Cucamonga California City of Bartow
Rancho Santa Fe California City of Lakeland
City of Huntington Beach California Orlando Utilities Commission
City of Manhattan Beach California City of Winter Garden
City of Mission Viejo California Charlotte County
City of Santa Ana California Seminole County
City of Fairfield California City of Ketchum
City of Ventura California Rock Falls Utilities
City of Oxnard California City of Davenport
City of La Mesa California Waverly Utilities
Florida
Florida
Florida
Florida
Florida
Florida
Florida
Florida
Idaho
Illinois
Iowa
Iowa
Iowa
City of
Chula
Vista
California
California
Indianola
Municipal
Utilities
City of Hayward
City of Minden
Boone County
City of Missoula _
Missoula County
Niagara County
_ _ Butler County
Stark County
I Hudson Utilities
Ci of Hamilton _
I ity of Hillsboro
_ _ _ Marion County
Pierce County
Jefferson Public Utility District
Johnson City Energy Authority
Louisiana
City of Concord
California
California
California
California
'California
California
Missouri
City of Alameda
City of Glendale
City of Rancho Cucamonga
City of San Leandro _
City of Davis
City of Davis
City of Woodland
City of Winters
City of West Sacramento
_ Ventura County
Sonoma County
Napa County
Montana
Montana
New York
Ohio
Ohio
California
Ohio
Calfornia
Ohio
California
Oregon
California
Oregon
California I
Oregon
California
Oregon
_
California
Tennessee
Alameda County
California
Holston Electric Cooperative
Se uachee Valley Electric
Tennessee
Yolo County
California
Tennessee
South Bay Council of
Governments
California
Appalacean Electric
Cooperative
Tennessee
City of Boulder
Colorado
Middle Tennessee Electric
Cooperative
Tennessee
City of Golden
Colorado
Duds 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
City
of
Fort
Morgan
Colorado
City
of Dayton
Texas
Yuma County
Colorado
City of Portsmouth
Virginia
City of Clermont
Florida
City of
Newport News
Mrginia
City of Jupiter
Florida
City
of Walla Walla
Washington
CI
of
Palm
Coast
Florida
Whitman
Coun
Washin tan
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nMa//an
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,
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Mage//an
ADVISORS
Phase I
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.
Page �� www.magellan-advisors.com gig@magellan-advisors.com
Mage//an
ADVIpo
SORS
Process Steps & Timelines
as 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.
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ADVISORS
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
commerciakonly, 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
• Multkservice 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 operatingand 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
Mage//an
ADVISORS
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.
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Mag man
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 Gity 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.
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Magell n
I SORB
as 1. 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 wwvd.magellan-advisors.com gig@magellan-advisors.com
Mag I" n
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 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
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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 1.
Kick -Off Meeting, Project Charter & Goals
$7,000
Task
2.
Broadband Needs Assessment & Demand Planning
$109500
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
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Magel) n
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
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