HomeMy WebLinkAbout4 Oath of office election of board members I/Agenda Item #
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: November 27, 2002
Meeting: December 4, 2002
Subject: Oath of office and election of Board officers
Our District did not have an election this year. No candidates challenged the
incumbents. So our two incumbents, Pat Sutton and Ron Hemig will begin new terms.
Attached are Certificates of Appointment and Oaths of Office signed by Pat and Ron. In
theory they have already taken the oath of office by signing the form. However, in the
past we have conducted a ceremonial oath of office at the first meeting in December
when directors are beginning a new term. I have listed administration of the oath of
office on the agenda.
Also, it is time to elect Board officers for the next year. Our by laws call for election of a
President and Vice-President. You should be prepared to conduct that election.
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Staff Report
To: Board of Directors
From: Alan Harry, Director of Telecommunications Services
Date: November 26, 2002
Subject: Consideration of Broadband Issues; Approval of Business Case
Summary
Attached for Board review and action is the latest Proforma for the District's Broadband
Business Unit. This document, prepared by staff and Aggregate Networks, requires District
Board approval before being submitted to potential project lenders.
Additionally, I have attached an updated "time line" showing current and future activities
within the Broadband Business Unit. I will update and transmit this document on a monthly
basis.
History
As the District continues to evaluate the opportunity to provide Broadband services to
residential and commercial users within its service territory, the business plan continues to
evolve and improve.
We began in 1999 by embracing the idea of the smart community. With the assistance of
Navigant Consulting we prepared our first business plan based on the deployment of a high-
speed hybrid system that would serve the District's need to upgraded water and electric
SCADA systems, leasing capacity to the incumbent cable television operator, USA Media,
and including capacity for the provision of high-speed internet access and business data
services.
Efforts to partner with USA Media were unsuccessful, so we began to consider adding the
provision of video services with those previously studied, serving District SCADA needs and
providing capacity for high-speed Internet and business data services.
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Following discussions with public entities that have successfully launched voice services
within their community we added capacity for voice services to be provided by a Competitive
Local Exchange Carrier, CLEC, on a contract basis.
As the availability of next generation technology became realistic we conducted further
evaluation of the technology available, and its related costs, and concluded that the
deployment of a fiber to the home system would best serve the needs of our community
today and in the future..
Throughout this process we have continued to perform disciplined business analysis and
now believe that the business plan, at it highest level should include the following:
a) Fiber-to-the-Home infrastructure
b) Provide video services through a partnership
c) Provide high-speed Internet & data services through a partnership
d) Provide capacity for the provision of voice services by a CLEC
e) Provide SCADA services to our District
f) Position ourselves to offer other data and control services to District operations
g) Position ourselves to offer other data and control services to residential, business
and governmental customers
Pursuant to the District's 2002 Strategic Plan the Board approved a contract with Aggregate
Networks in April 2002 to gain assistance in locating financing for the construction of the
District's Broadband system.
To date Aggregate Networks has assisted District staff in the research and preparation of a
revised Broadband Business Unit Proforma, attached, Project Narrative, coming before the
Board in mid December, and other related activities.
New Information
Staff and Aggregate Networks have prepared a Broadband Proforma, attached, for
submission to potential lenders. This Proforma provides for the District to partner with
outside service provider(s) for the provision of competitive voice, video and data services to
both residential and commercial accounts, within the District's Electric service area, over a
Fiber-to-the-Home network.
This Proforma assumes that the Broadband system would begin providing services in the
2"d and 3`d quarters of 2003, that Lease Financing in the amount of $10 million would be
received, and that voice, video and data services would be provided through a private/public
partnership. Further assumptions are shown on page one of the Proforma, "Assumptions".
As you can see at the bottom of page 2, "Net Income", under this scenario the District would
have a positive cash flow by year two.
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Recommendation
Pursuant to the information found in the attached Broadband Business Unit Proforma, it is
staffs recommendation that the Board approves the Proforma, and direct
Telecommunications Director Alan Harry to authorize Aggregate Networks to submit same
to potential lenders for review.
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2003 2004
ID f„3, Task Name Nov Dec Jan Feb Mar ', Apr May Jun Jul Aug. Sep Oct Nov Dec Jan Feb Mar Apr May ,..Jun
1 Public Relations Consultant;Alan
2 Mq Master Services Element Consultant;Alan
3 q5 Attain Anchor Customers Consultant;Alan
4 ( Revise Proforma Consultant;Alan
5 Project Narative Consultant;Alan
6 Re-Design FTTH Consultant
7 Prepare Pilot Bid Consultant
8 Proforma/Narative/Design to Lenders _i Consultant;Alan
9 ( Financing Negotiations ! Consultant;Alan
10 Negotiate Video Franchise Alan
1 i Attain LAFCo approval of Pilot Alan
12 Issue Pilot BidsConsultant;Alan
13 roq Award Pilot Bids '', ' District Board
14 Eg Negotiate Service Providers/Partners Consultant;Alan
15 EA Construct Pilot Consultant
16 r A-A Attain Final LAFCo Approval j Alan
17 Prepare System Bids Consultant;Alan
18 rq Contract for Project Manager '', Alan
19 Issue System Bids Consultant;Alan
20 .ia. FCC Licensing Consultant
21 Marketing ! Consultant;Alan
22 - Award System Bids ' District Board
23 (' Construct System ',. Contractor
24 Launch Braodband Services
Task Milestone External Tasks
Project:FTTH#2 Split Summary ^ External Milestone
Date:Tue 11/26/02
Progress Project Summary Deadline
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