COMMUNITY ASSESSMENTS Assessments Strategic Planning Comprehensive facilitation and

COMMUNITY ASSESSMENTS: Assessments & Strategic Planning Comprehensive facilitation and validation for broadband development. AZ TELECOM ROUNDTABLE Municipal Solutions, llc 2005

Who Am I? • Public Sector – Schools, State, COG & Local Government – AZ, CA, CO, ID, FL, KS, MO, MT, NV, TX, UT. • Facilitator / Negotiator – Cable Franchises, Wireless Communications, Railroad Abandonment Mitigation, Collective Bargaining, Military / Municipal Land Use Compatibility (BRAC) • Other Private Sector – 3 Com, Admiral (UK), Cisco, Global Wi-Fi, Lucent, Norwest / Wells Fargo, Rensais, Titan, Tyco, Adelphia, American Towers, AT&T, Comcast, Intel, MCI-Worldcom, Qwest / US West, Sprint, Time. Warner, Burlington Northern & Santa Fe and Union Pacific Railroads, US Department of Defense, BLM, USDA, rural telephone cooperatives & more! • Technologist - Entrepreneur - Student & Observer • Educator / Trainer – – Masters in Public Administration, Masters in Urban Planning, Bachelors of Political Science, Associates in Business – 15 years Public Sector & Private Industry – Delivering ideas, new information, providing resources, best practices, pending legislation, etc…. • Father - 3 girls, 1 boy 2/14/2022 Municipal Solutions, llc 2005 2

Reality of Perspectives • As kids…simplicity, uncomplicated, world is HUGE! • As adults. . . complexity, sophisticated, world is SMALLER! • From ‘your’ perspective, Broadband today is ____ ? • From ‘their’ perspective, Broadband today is ____ ? SUCCESS FORMULA: Effective Storytelling. 2/14/2022 Municipal Solutions, llc 2005 3

Ming Lo Moves the Mountain 1. 2. 3. 4. Push the tree. Pots and pans. Loaves of bread. ‘Strange Dance’. How does your agency resolve the challenges? Arnold Lobel, Scholastic Books inc. 2/14/2022 Municipal Solutions, llc 2005 4

Initial Discussion What is going on in this Community? 1. 2. 3. 4. 5. Municipal Communications Needs Other Government Agency Needs Commercial & Industrial Uses Service & Provider Problems Quality of Life 2/14/2022 Municipal Solutions, llc 2005 5

What can be done? • Strategic Plan Scope – – I: Infrastructure & Service Assessment II: Business Survey III: Government-Agency Summit IV: Strategic Plan / Policy Recommendations • Goal: Validation 2/14/2022 Municipal Solutions, llc 2005 6

Mesquite, Nevada • • • Population: 18, 000 Annual Growth: 16% Status: – Service Variety – Affordability – Local Capacity • Challenges: – Distance – LATA Boundaries – Local Demand 2/14/2022 Municipal Solutions, llc 2005 7

Queen Creek, Arizona • • • Population: 19, 000 Annual Growth: 16% (2004) Status: – High availability of Internet – Limited Availability of Broadband – Perception of lack of capacity, providers and service options • Challenges: – Rural, large residential lots – Local Demand uncertain – Local agency demand uncertain 2/14/2022 Municipal Solutions, llc 2005 8

Flagstaff, Arizona • • Population: 53, 000 Problem: – Perception of Service Disparity – Affordability – Local Capacity • Challenges: – Distance from ? ? ? – Local Demand – # Providers and capacities 2/14/2022 Municipal Solutions, llc 2005 9

Strategic Planning Process Community and Council Education • Title I, II and VI • “Broadband” • Economies of Scale • Return on Investment (ROI) • Telecommunications Options: – ‘Feasibility and Prudence’ 2/14/2022 Municipal Solutions, llc 2005 10

Decision Making Is broadband essential? No Stop, focus on other priorities Are current capabilities & offerings sufficient? No Yes Stop, focus on other priorities Will the market respond? Yes Stop, focus on other priorities No Stop, seek other solutions No Change law/seek alternative Yes No Is municipal entry allowed? Yes Is business case sound? Yes Consider building & operating a municipal broadband network. 2/14/2022 Municipal Solutions, llc 2005 11

Why municipalities get involved? – To address market imbalances or failures, – To improve limited infrastructure or service disparity, – To correct regulatory problems, – To ensure local fiscal security, and – To facilitate local economic development, These conditions currently exist in Mesquite! 2/14/2022 Municipal Solutions, llc 2005 12

Why municipalities are increasingly offering public-owned telecom / broadband services. – Better services & lower prices. – Eliminate / Reduce / Improve local market conditions. – Municipal financing opportunities (low-cost municipal bonds for capital construction). – Precedent (800+ municipalities and counting). – Efficient & economic service distribution to homes, businesses & industry. 2/14/2022 Municipal Solutions, llc 2005 13

More reasons why municipalities construct local fiber networks. 1. 2. 3. 4. 5. 6. 2/14/2022 Regulatory delays. Local economic conditions unclear. Poor ‘interconnect’ infrastructure. High cost factors. E-Government Broadband for less. Municipal Solutions, llc 2005 14

Broadband (Advanced Telecommunications Services) – Convergence • Voice, Video & Data – Infrastructure • Cable (Charter, Cascade Access, Cox) - Municipal • Telephone (Rio Virgin, Sprint, Qwest) - FCC – Law & Municipal Authority • • 2/14/2022 General Plan Right of Way Ordinance Building Codes / Subdivision Ordinance Cable Communications Ordinance Municipal Solutions, llc 2005 15

Broadband – – Broadband is speed plus capacity. Broadband is a ‘moving target’: – A transmission medium that allows transmission of voice, data, and video simultaneously at rates of 1. 54 Mbps or higher. Broadband transmission media generally can carry multiple channels - each at a different frequency or specific time slot. (BPS=Bits-Per-Second). • Depends on your industry / application needs! – 2/14/2022 Bundled Services: video, voice & data. Municipal Solutions, llc 2005 16

Broadband Time to transmit a complete CD/DVD w 7. 81 GB of data. Or Shipping one pencil at a time versus a trailer full at once! 2/14/2022 Municipal Solutions, llc 2005 17

Practical Uses of Broadband • E-Commerce: Architecture, engineering, banking, investments, mortgages, title work, efficiency (cost savings), employment, purchasing / supplying, researching competition, premises security, transmitting vital & time sensitive data, weather & travel, video conferencing & telecommuting. • Education: audio books, continuing education, distance learning, research, video-on-demand, • Entertainment: gaming, video-on-demand, voice, music, • Life Safety: public safety / traffic systems, telemedicine, weather & travel, • E-Government: permitting, news & information, email notification, enrollment, utility billing / payments. • Quality of Life (intangibles) 2/14/2022 Municipal Solutions, llc 2005 18

Infrastructure Assessment Results Nevada’s 13 Local Telephone Exchanges and Certified Areas • Mesquite: – Regulatory Problems • Nevada: 13 Local Exchange Carriers (LECs). • Rio Virgin Telephone Company – who is the designated “Competitive Local Exchange Carrier (CLEC) for Mesquite, NV and Littlefield, AZ. • Mesquite assigned to the Southern Utah Local Access Transport Area (LATA) by FCC 2/14/2022 Municipal Solutions, llc 2005 Source: Nevada Telecommunications Association, 2001). 19

Infrastructure Assessment Results • High Cost for Services – Basic Cable TV: $22. 50 per month. – Digital Cable: Only one provider but problems with reliability. – High Speed Internet: • Basic residential DSL: – 256 k download ($49. 95) to 768 k download ($104. 95) - among highest, anywhere. – Statewide average price of 1. 5 Mbps service is $39. 95. • Business class service: – Only one provider offers 1. 5 Mbps internet service – Can provision a DS 3 with a price tag near $16, 000 per month. 2/14/2022 Municipal Solutions, llc 2005 20

Infrastructure Assessment Results – Other factors • Interconnection costs too high (anti-competitive). • No alternatives to Interconnection of Tier I or II Infrastructure. • Incumbent strategies that are not conducive to the community needs. • LATA and Inter-LATA restraints limit competitive options without municipal involvement. • “First Mouse Syndrome” – Density & Uncertainty of Local Economic / Demographic Conditions. 2/14/2022 Municipal Solutions, llc 2005 21

Infrastructure Assessment Conclusion: Change the status quo. 1. 2. 3. 4. 2/14/2022 Public – Private Partnership. Municipal-fiber Network. Market Status Quo. Municipal intervention though government agency partnerships or public incentives. Municipal Solutions, llc 2005 22

Business Survey • Methods – Chamber of Commerce Membership List – City Business License List – Random Sample • By the Numbers – 853 Locally-owned businesses – 395 contacted (46% contacted) – 112 completed surveys (28%) 2/14/2022 Municipal Solutions, llc 2005 23

Business Survey • The Questions – 2/14/2022 Designed to evaluate local business community's need for highspeed internet service and the best ways to provide it. • Understanding that the provision for local telecommunications / broadband services is historically driven by the private sector, is there a demonstrable need for municipal involvement in this area of the local economy? • If there is a need or demand for improved telecom / broadband services locally? and, • What are the local conditions which might impact municipal consideration of financing and constructing its own telecommunications infrastructure? Municipal Solutions, llc 2005 24

Business Survey Results • Almost 70% of the respondents represent rather small businesses – average staff of less than 10 employees. Almost 70% of respondents have 2 -10 computers, and 76% have their computers networked. • 78. 5% have access to the Internet. – most (60. 7%) use a Digital Subscriber Line (DSL) 256 kbps average. • 27. 6% use standard dial-up, 8% use a T 1 line. 2/14/2022 Municipal Solutions, llc 2005 25

Business Survey Results • Satisfaction / Dissatisfaction – 43% of the local businesses surveyed said they were not satisfied with their current choice of providers • Demand for Broadband – More than half of the businesses that responded want broadband services while 23% said they did not. – 45% say their high speed internet needs will increase 5 x and 12. 5% see a need for 10 x current capacity – both within the next two years. – Rio Virgin cannot provision a T 1 to the Internet itself. 2/14/2022 Municipal Solutions, llc 2005 26

Business Survey Results • Price – Mesquite’s current prices need to be brought into line with the statewide average prices for internet access. Current prices: $49. 00 $104. 95 per month for 768 kbps. Statewide average prices: $19. 85 / 56 kbps download or $39. 95 / 1. 5 mbps download; – 50% that they would be willing to somewhat willing to pay up to 30% more than they are currently paying to have broadband services • Community Education: – The survey overview indicates that any decision by the City to assist in telecom development will require community education and additional resident exposure to the benefits of broadband services - evident in responses between men and women. 2/14/2022 Municipal Solutions, llc 2005 27

Government Summit July 1, 2004 • Participants: – Clark County School District – Clark County – NV Dept. of Information Technology (Do. IT) – NV Department of Transportation (NDOT) – SAIC (Tech Consultants for CCSD) – State of Arizona, Govt. Information Technology Agency (GITA). – University Communications & Computing Services Network … (UCCSN) – University of Nevada-Reno Medical School – USDA-Rural Development (USDA-RD) 2/14/2022 Municipal Solutions, llc 2005 28

Government Summit • Findings & Recommendations 2/14/2022 • Provide e-government services - conduct business over the web, provide various municipal services online, broadcast City Council meetings over the internet, pay bills online, , and more. • All agencies desperately need the local and middle-mile infrastructure, and are willing to assist in developing a strategic plan (policies and network design), financing, and technical assistance to improve local services. • Construct telecommunications Infrastructure (fiber) connecting all City buildings, and make bandwidth and connections available to other public agency buildings. Municipal Solutions, llc 2005 29

Government Summit 2/14/2022 • Consider leasing redundant bandwidth to competitors and vendors to increase local investment and competition. • Consider offering Cable TV, Telephone and Internet Services to the community. • Amend / update building standards to include curb-to-thehome, high-speed drops inside all new residential and commercial structures, and possibly create a telecommunications utility fee. • Improve community education on benefits and uses of broadband technology. Municipal Solutions, llc 2005 30

Government Summit 2/14/2022 • Work to create local redundancy. • Create a climate for competition or ‘competitive opportunity’. • Improve community education on benefits and uses of broadband technology. • Continue to attempt a strategic partnership with Rio Virgin. Do not discount the possibility that they may choose to participate with the City once the City takes a formal position and adopts a policy to that effect. Municipal Solutions, llc 2005 31

Legislative Issues (State) • Continuous Legislation – All States • Telecom / Cable / DSP: Cox, Verizon, etc – Failed Tax Equalization – Limits to Right of Way Compensation – Limits to negotiable In-kind services (Source: Render, Vanderslice & Associates, 2003) 2/14/2022 Municipal Solutions, llc 2005 32

Legislative Issues (Fed / State) • Lautenburg-Mc. Cain: SB 1294 – Community Broadband Act of 2005 • Proposes to amend Telecom Act of 1996 to bar states from prohibiting public agencies from offering advanced and or competitive telecommunications (broadband) services to the private sector. • Clearly favors municipal intervention & comprehension of big picture. 2/14/2022 Municipal Solutions, llc 2005 33

Legislative Issues (Federal) • Senator Ensign – Anti-Municipal Legislation. • Purported bill contains restrictions on community broadband that his aide, • Industry Ties: Michael Sullivan, former SBC employee, continues to exert heavy pressure on the high technology industry to renounce their policy statement supporting community broadband support such limitations (handout). 2/14/2022 Municipal Solutions, llc 2005 34

US Supreme Court Rulings • Brand X Case – Question: Whether cable TV companies are required to provide open access to infrastructure for Internet Service Providers (ISPs) as telecommunications companies are. – Answer: No. While broadband services are converging, current legislation still treats telephone and cable TV as separate ‘types’ of providers (Title II vs Title VI) and do not require open access from Cable TV providers. 2/14/2022 Municipal Solutions, llc 2005 35

Strategic Plan Principals – – – Access and Availability. Emerging & Advanced Technology. Level Playing Field. Preservation of Regulatory Control. Protection from Loss or Degradation of Services. – Enhanced service for residents and businesses. 2/14/2022 Municipal Solutions, llc 2005 36

Strategic Plan Options • Phase 1: Municipal Fiber Network – Building to Building Connectivity • Phase II-A: Enterprise (limited): Public agency Interconnectivity & Joint Use • Phase II-B: Enterprise (limited) – Public-Private Interconnectivity and Joint Use • Phase III: Municipal Telecommunications Service Provider 2/14/2022 Municipal Solutions, llc 2005 37

“Smart Buildings” • Building Code enhancements – Fiber to the Curb (FTTC) – Pre-wired buildings for cable and fiber • Right-of-Way Standards – Street Requirements – Traffic Safety / Emergency Services (redundancy) – Municipal-owned conduit & fiber 2/14/2022 Municipal Solutions, llc 2005 38

Decisions • Does Mesquite want to be a Smart City and a Smart Community? (Industry term) – A city is a legal unit of government. – A Smart City is one that transforms city government functions or services. – A community is a broad term encompassing the collective array of neighborhoods, organizations, groups and individuals that give a sense of place. – A Smart Community is one that transforms its many elements through broadband advanced telecommunications. 2/14/2022 Municipal Solutions, llc 2005 39

Why Mesquite should offer a public and private telecom / broadband service. – State and County agencies will benefit. – Better services & lower prices. – Eliminate / Reduce / Improve local market conditions. – Municipal financing opportunities (low-cost municipal bonds for capital construction). – Precedent (800+ municipalities and counting). – Efficient & economic service distribution to homes, businesses & industry. – Who will? 2/14/2022 Municipal Solutions, llc 2005 40

Decisions • Mesquite wants to continue to be proactive on multiple tracks of success! – – – 2/14/2022 Top-notch General Plan. Advanced Codes & Ordinances to manage growth. Progressive City image / mission. Fulfill economic development / fuel fiscal growth. Fulfill service demands. Fulfill local Quality of Life expectations. Municipal Solutions, llc 2005 41

Strategic Plan Recommendations ü Phase 1: Municipal Fiber Network – Building to Building Connectivity. ü Phase II-A: Enterprise (limited): Public agency Interconnectivity & Joint Use. ü Phase II-B: Enterprise (limited) – Public-Private Interconnectivity and Joint Use. ü Phase III: Municipal Telecommunications Service Provider 2/14/2022 Municipal Solutions, llc 2005 42

Strategic Plan Action Items Window of Opportunit y/ Urgency Relativ e Cost Priorit y Recommended Action / Initiative Benefit / Impact 1 Design and construct local redundant telecommunications infrastructure. + A $$ 2 Design and construct Municipal Fiber Network connecting all City buildings to advanced telecommunications infrastructure. + A $-$$ 3 Develop formal public-agency & private agency partnerships. + A $ 4 Revise or amend City Construction standards to require joint trenching, interconnection, curb-to-thehome, high-speed drops in new structures, and a telecommunications impact fee on new development. + A $ 5 2/14/2022 Design, and construct a 20 mile fiber connection to Overton / Municipal+Solutions, llc 2005 A Moapa Valley. $$$ 43

Strategic Plan Action Items Priority Recommended Action / Initiative Benefit / Impact Window of Opportunity / Urgency Relative Cost 6 Design and construct a 'limited' Public Enterprise connecting all local public agencies to the Municipal Fiber Network. + B $$ 7 Design and construct an 'open' Public Enterprise allowing private vendor’s use of the Municipal Fiber Network infrastructure. + C $$ 8 Create and Operate a 'competitive' telecommunications - broadband service. Lease redundant capacity to competitive telecommunications providers. +/ - C $$$ 9 Create a Mesquite-area Telecommunications Advisory Committee. + B $ Promote community education and training in the benefits and use of advanced telecommunications. + A $ 10 2/14/2022 Municipal Solutions, llc 2005 44

Update (Discussion) • MUTUAL AID – Secure Commitments for interagency cooperation. – Legal interagency agreements for joint funding, design, construction, operations and maintenance of the infrastructure and system. • CAPITAL EXPENDITURES – Financial Projections - Determining actual costs for design, construction, operations and maintenance of the infrastructure and system. – Secure Funding – Explore and Secure outside funding for design, construction, operations and maintenance of the infrastructure and system. • RFP / RFQ – Contractor / Vendor Selection & Project Management - RFP design, publication, submittal review, selection, and project management. • Educate the Community / Presentations to Council and Public – Technology / Broadband Fair - Community participation, orientation and support. 2/14/2022 Municipal Solutions, llc 2005 45

Conclusion 1. 2. Potential exists for municipalities to make mistakes, yet tremendous progress. – – – Providers should seize opportunities to partner & support municipal efforts to improve local telecom capacity & services. – – 3. Multi-faceted, service-oriented, non-profit corporations. Rural communities Poor relationship with local providers can exist. Community goals, priorities and objectives are often unclear or not integrated. Unschooled on industry perspective & issues. Potential benefits and hazards of “Municipal Broadband”. Municipally-owned Telecommunications Infrastructure as a means for industry expansion. Support local efforts to improve Right of Way planning processes and access. Help change dialogue from Franchise Fees ($) to Economic Stimulation ($$$) through ways to broaden availability (no overbuild, line extension for non-incumbents, etc). Offer financial support for local & statewide strategic planning. Consultant’s Role - Reconnect State / Local Government & Industry. 2/14/2022 – – – “Feasibility” & “Prudence”. Candid understanding of government & industry limitations. Creative, Constructive Strategies to move community forward. Municipal Solutions, llc 2005 46

Conclusion The secret is the ‘dance of the mountain”…. 2/14/2022 Municipal Solutions, llc 2005 47