HomeMy WebLinkAbout6 Broadband Status Agenda Item # G
Me Kim O
To: Board of Directors
From: Peter Holzmeister
Date: August 15, 2003
Subject: Broadband status report
WHY THIS MATTER IS BEFORE THE BOARD
The Board has asked for an update on the amount of money that we have spent to date
on the Broadband issue. Also included is a status report and analysis of future tasks.
HISTORY
We began to look at offering high-speed broadband services a few years ago. Our
vision was to deploy in Truckee a system that would connect Truckee to the high-speed
network that is being deployed in metropolitan areas throughout our country, but is not
being installed as quickly in smaller towns. This high-speed network is an important tool
for the conduct of business and to share information. If Truckee has this tool available,
we are more likely to prosper in the emerging new world.
We began by employing the services of RMI/Navigant to prepare a business case
analysis. That report concluded that a broadband system could be deployed in Truckee
at a reasonable cost. The system could be used to offer Internet service, business to
business data service and cable TV service. The analysis demonstrated that
construction and operation of such a system would be financially viable.
We then employed the services of Sierra Market Research to survey a sampling of our
customers to determine their satisfaction with current voice, video and data providers.
The survey concluded that there is considerable dissatisfaction with current video and
data service in Truckee, and that the entry of TDPUD into the broadband business would
be welcome.
We then employed the services of Vectren to review the earlier studies. Vectren
validated the basic conclusions of the Navigant and Sierra Market Research studies, and
went on to suggest that a broadband system deployed by TDPUD should accommodate
voice service as well.
We then designed a hybrid fiber-coax system for deployment in our service area. We
continued to monitor developments in broadband technology and related costs, and
came to realize that the cost to deploy a fiber-to-the-home system had become
competitive. We redesigned our system to incorporate a fiber-to-the-home concept.
We applied to Nevada County LAFCo for activation of the latent power to enable us to
offer broadband communication services. LAFCo gave tentative approval subject to
satisfying a few conditions. We began to develop the funding program to construct the
system and we launched a community awareness program.
NEW INFORMATION
We have completed Phase 1, the prolonged business study process. The Board has
given tentative approval to launch a broadband business unit. We are now involved in
Phase 2, implementation of the business plan.
We have been very careful each step of the way. Some suggest we have studied the
issue to death. Please review the attached financial analysis. We are in the process of
updating this report since it does not reflect the benefit we received from the sale of one
of the conduits. Tammie Hoedeman is preparing the update, but she is out of the office
this week attending to family matters in Michigan. I hope to have the updated analysis
by Wednesday evening.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
FiberlTelecom/Broadband Related Disbursements through 5131102
Disbursements
Broadband Business Plan to Date
RMI/Navigant $102,667
Braitman &Associates 11,239
Porter Simon 37,266
Dennis DeCuir 113
Vectren Financial Analysis 10,000
Sierra Market Research 15,300
Misc Materials & Supplies 25
District Labor&Overhead 225,763
Total Broadband Business Plan $402,371
Williams Communications Conduit $122,780
Encroachment Permit
RMI/Navigant 1,247
5
Dale Burt ,451
45
Misc Materials& Supplies 1 ,
District Labor& Overhead 45,084
District Materials& Overhead 85
Total Williams Communication Conduit $416,313
District Installation of Communications Conduit $23,592
Misc Materials & Supplies
752
District Labor& Overhead ,
District Materials&Overhead 28,427
27
Total Installation of Communications Conduit $58,771
Pole Attachment Lawsuit- USA Media $100,507
Porter Simon 61,400
Dennis DeCuir 625,197
Somach, Simmons & Dunn 18,891
District Labor&Overhead
Total Pole Attachment Lawsuit-USA Media $805,995
Pole Survey Work-GIS Work (25% of total work order charges) $143,911
Total All Disbursements $1,827,361
Estimated value of 16 miles of 2 -2 inch communication conduits from $2,000,000
Williams Communications
6/19/2002 3.56 PM
Broadband Analysis_V2/Board Summary /
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Fiber/Telecom/Broadband Related Disbursements through 6/1312003
Disbursements
to Date
Study&Analysis
RMI/Navigant $102,667
Sierra Market Research 15,300
Vectren Financial Analysis 10,000
Third Networks, Inc. 286,000
District Labor& Overhead 411.934
Misc Materials&Supplies 26,193
852,094
Legislative
Braitman &Associates 14,239
LAFCO 15000
26,239
Legal
Porter Simon 59,686
Dennis DeCuir 113
59,798
Advertising/Public Relations
Pettit Gilwee 16.013
Financing
Aggregate Networks 150,052
Williams Communications Conduit
RMI/Navigant-Construction Inspection 60,667
Williams Communications- Encroachment Permit 1227780
District Labor& Overhead 66,397
249,844
6, 51
X
......... 0
Pole Attachment Lawsuit- USA Media vs.TDPUD Electric
Porter Simon $100,507
Dennis DeCuir $61,400
Somach, Simmons& Dunn $625,197
District Labor& Overhead $18,891
Broadband Analysis BoardPacket 7-2-03.xis 08/20/2003