Municipal Broadband Solutions and Team Building Strategies

Two Journeys To a Municipal Broadband Solution Two Journeys To a Municipal Broadband Solution Denzel Hankinson Leverett, MA Page Clason Islesboro, ME Bringing Broadband to Maine s Rural Communities CEI Hallowell, ME 10/25/2016

Building a Team Building a Team Leverett Broadband Committee & Current MLP Board Software engineer Database engineer Network engineer Capital projects manager Retired research and development executive (BBCom and Board member) Attorney and member of the Select Board (BBCom Chair/Board member) Leverett Exec Administrator (BBCom and MLP manager) Retired business development executive (MLP Board Chair)

Building a Team Building a Team Core Skills conversant vs. professional Technical Technical consider & match options to community Political Political leadership support, funding Business Business financial sheets/negotiation Tax Assessor Tax Assessor tax impact/municipal practices Social Social reach into diverse groups Grant/proposal writing Grant/proposal writing gain assistance 5 In Our Core Working Group 1 in admin New committee forming Community: Truly engaged to earn their buy-in Appropriate vendors/service providers Network Design Engineers, ISP, Construction Crew, Outside Plant , Project manager/ OPM OPM

Building Momentum Building Momentum The state (MBI) built the middle mile ('08 - '13) L Leverett supported from beginning Concurrent decline in tel service triggered DTC investigation Leverett participated in the process MBI grant ( June 2011) for $40,000 for network design Select Board appoints Broadband Committee (July 2011) Depressed real estate Contractors available (the recession ) Exceptional contractor motivation ("first last mile") 90 90% Town Meeting % Town Meeting Approval for the bond Approval for the bond 86 86% Approval for the % Approval for the Debt Override Debt Override

Building Momentum Building Momentum 2012 Economic & Sustainability 2013 Board of Selectman Selectman informed and supportive 2013 (on going) Public Public Dialog Dialog 2014 Feb Feasibility Study, draft 2014 Dec RFI sought sought partners partners for 2015 Jan Selected partner Selected partner 2015 Mar Vote 1: RFP - engineering design engineering design & select construction contractor 2016 Jun Vote 2: Authorized for Bonds & Construction 2017 Summer Begin operating the FTTP broadband Overwhelming Overwhelming majority for $230k majority for $230k design design supportive 145 Yes, 23 No 145 Yes, 23 No Approval Approval for million bond million bond draft of of solution solution for solution for $3.8 $3.8 solution select construction contractor

Financing Financing No business sense, need subsidies for both: Plant and Equipment (think: capital) Operating expenses (think: revenue) Similar to roads and schools - without toll booths or tuition: $3.79 general obligation municipal bond for: Build, Make ready, Project mgmnt, POPs, Other Subscriber revenue for ongoing expenses: Pole rental, pole bond, insurance, depreciation, etc The Goods! The Goods! Fiber to the Home! Fiber to the Home! ( (not the curb) not the curb) Active Ethernet Active Ethernet 39 Miles 39 Miles 810 Drops 810 Drops 610 Aerial 610 Aerial 210 Underground 210 Underground See: leverett.ma.us, then "LeverettNet" menu item on left, then . . page down to "Important references", select: An Overview of Institutional, Contractual and Financial Arrangements. An Overview of Institutional, Contractual and Financial Arrangements.

Financing Financing Explored options: co-op, incumbent, private/public Explored partnership with GWI Refined to town owned & GWI operated profit model Capital to build property taxes Expense to operate/maintain subscriber fees Town assuming most risk, GWI operating and maintaining Town owned, GWI cost-plus operation 3.3% general obligation bonds Level payments 20yr. $265k annual principle + int. Service tiers vs. same to all Residential & Business services same Cost to property owner, existing services vs. possible services + property tax increase: Is this good for me?

Engaging the Public Engaging the Public Free month from the ISP Free month from the ISP Meetings Meetings Signs Signs CTY CTY Newsletter Newsletter Forms cache Forms cache Church guilt trips Church guilt trips Direct mail including certified a Direct mail including certified as well as broadcast email ISP ISP telemarketing telemarketing well as broadcast email

Engaging the Public Engaging the Public Town Informational Meetings Board meetings of institutions and organizations Informal public, small group, & individual meetings Town mailings to property owners Articles in local newspaper Town website Is this a good deal for me? Baseline service cost Construction & Post- Construction Install Costs 1. Subscriber Intent 2. Subscriber preparedness 3. Service Agreement 4. Install Public involvement: Identifies problems enabling early resolution Earns voter buy-in

Common Community Dialogs Common Community Dialogs Generational Investment Generational Investment (rural electrification, ferry service, boat building) All communications All communications moving to the Internet Digital divide Digital divide status and impacts Reliability, consistency, availability Reliability, consistency, availability of Internet access Maine population trends population trends Who Who is coming to fix this problem fix this problem for you Cost of current utilities Cost of current utilities (Satellite/cable, cell, land line, etc.) Internet is a utility Internet is a utility required for global participation This is like the roads, school, town floats like the roads, school, town floats Internet (TV, phone, etc.)

Questions & Discussion Questions & Discussion Lessons Learned? Lessons Learned? Authorizations right of entry, survey, sketches Authorizations right of entry, survey, sketches Ability to opt out Ability to opt out TV content TV content Other? Other?