Agmt 2017 Magellan Advisors for FIber Optics Master Plan 2017-18

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B. Conceptual Network Design Magellan will work with San Leandro staff to identify infrastructure that is required to meet the needs of the community determined in the Community Broadband Engagement. Our team will thoroughly review all communications facilities owned by the City that could be utilized in a new strategy that would be developed as part of this Study. Our consultants will work with San Leandro staff to understand the pros and cons of each delivery method and the costs associated with each as the infrastructure that is chosen can have a major impact on long-term financial sustainability. The overall network design will be based on the needs of the residents, businesses and anchors that will utilize it. This will determine the bandwidths and speeds, performance, redundancy and scalability requirements and solution-specific requirements. Magellan will design a network that meets the specifics outlined by the City, and the network should be capable of supporting the following; • Gigabit-capable with a path to 10-gigabit • High-performance, dedicated connectivity • Reliable and redundant • Flexible to support multiple technologies, such as GPON and Active Ethernet simultaneously • Scalable to support future growth, density and bandwidth requirements • Multi-service in design —voice, video, data, with the necessary QOS management • Administratively lean, fitting well within the electric utility operational environment • Smart City applications • Smart Grid technologies Based on the network design, Magellan will provide estimates to San Leandro for cost of network construction, including design, construction, equipment, testing and certification as well as ongoing annual costs to operate and maintain the network. In addition, all backhaul options will be reviewed to identify the most optimal routes out of San Leandro, and to identify potential interconnect points to regional Points of Presence (Pops). Our significant work managing broadband construction projects will allow for accurate estimation of the costs the City will bear in this process. We will incorporate these cost estimates into our financial planning tools used in the project for business, anchor and residential service. We'll incorporate all cost estimates for capital into our Broadband Financial Sustainability Model to conduct further financial analysis of the proposed network. Our model provides comprehensive capital and operational costs for buildout in year-by-year schedules that accounts for all revenues and costs borne by San Leandro's proposed network. Details on how our model works is described in the following sections. Task 4: Business Models & Financials We will help San Leandro analyze a range of business model options in the framework of financial, operational, and organizational requirements to determine which models are"best fit"for the City, have the greatest chance of success, and will be the most financially sustainable. We will present each analysis of every business model to the City team and provide an analysis of how each meets San Leandro's goals in the project. Consulting Services Agreement between City of San Leandro and Magellan Advisors 07/17/2017 for Fiber-Optics Master Plan Exhibit A—Page 5 of 10