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HomeMy WebLinkAbout5 Broadband Status Report Agenda Item # Public Utility DistrictDONNER MIS 4IEftMW"MO To: Board of Directors From: Peter Holzmeister Date: June 16, 2003 Subject: Broadband status report and task list Why this matter is before the Board—we have been going through an evaluation of launching a broadband business. We have probably studied it to death. The Board has endorsed the idea, subject to the details being worked out within the framework as described in the various case studies. We are now buried in the devilish details. I sense some frustration at the board level. Ideas that are expressed include: Why is this taking so long? What still needs to be done? Where is the financing? Why don't we just build it? I would like to make a brief presentation to the Board covering the items in the attached outline. It will give you an idea of what we are doing History — The idea is to create a smart community. The smart community relies on rapid sharing on information. We conducted a series of feasibility studies and learned that we could build a state of the art broadband system and offer vice video and data services and it would be financially strong. We also learned that there is a desire in our community for improved video service. We applied to LAFCo for activation of a latent power. We secured a franchise from the Town of Truckee. We designed a fiber-to-the-home system. We are working with a service provider for content. We are arranging access to a POP to bring services to Truckee. We retained the services of an underwriter and bond counsel. We are down to the final issues, and they are the most difficult to resolve New Information — In discussions with bond counsel, underwriter and consultants, we have developed a list of tasks that need to be completed quickly and simultaneously. That list is attached. I would like to walk the board through the tasks to give you an idea of what we are doing. Items will come before the board quickly from this point on. Recommendation — At the conclusion of the discussion of the task list there is no motion that you need to consider. We will suggest that the board set a special meeting dedicated solely to broadband to be can take action of the issues that are ready. in some cases we ask the Board to allow me to approve certain actions and report to the Board after the fact. BROADBAND STATUS REPORT The closer we get the faster we move and the hotter it feels Goal: Serve customers by January 1, 2004 What needs to be done? 1) Arrange financing 2) Secure final approval from LAFCo 3) Board gives go ahead 4) Build the system 5) Build the organization 6) Launch 7) Provide ongoing service The devil is in the details 1) Arrange financing Construction plans specifications and contract documents Go to bid Contractors hold bids for three months Contract with a content provider Secure transmission service Contract for electronics equipment Underwriter conducts an independent study— RW Beck Have LAFCo accept that study Prepare Official Statement for COP issuance Go to bond rating agencies Go to bond insurance agencies Conduct pre-pricing Conduct closing 2) Secure approval of LAFCo Franchises from counties Submit financing plan Submit Master Service Element 3) Board gives go ahead 4) Build the system Issue the construction contract Manage construction Test the system Sign up customers Make customer connections Set up show room .._ . 5) Build the organization Name and brand of the business Organization chart Narrative description of the organization Employees, services, tasks, reporting scheme, suppliers, policies, rates, billing, cost sharing arrangements, rental of office space. 6) Launch Public relations Training for customer service staff 7) Provide ongoing services