Laserfiche WebLink
<br /> 113 <br />OPPORTUNISTIC BUILDS <br /> <br />Magellan Advisors has provided a series of network diagrams demonstrating potential <br />network build “phases” that are designed to become the fiber core of San Leandro’s <br />network over time. From this core, all other access technologies can be incorporated <br />including Wi-Fi, cellular access and Smart City applications of the future. We call this <br />opportunistic network building. All cities incorporate opportunistic building options into the <br />broadband network, but the City does need to be prepared, both financially and internally, <br />to respond when these opportunities present themselves. <br /> <br />Opportunistic builds can be a great savings facilitator for the City. However, opportunistic <br />does not mean ad hoc. The City will need to have a detailed network plan/design that <br />demonstrates the long-term view of the desired network. Potential opportunities will only <br />be considered when they fall on the proposed network routes. Fiber need not be built or <br />installed if it does not connect to any strategic location. <br /> <br />These builds also require some capital. A fund should be created and maintained in <br />anticipation of capitalizing on opportunistic builds. A balance of $250,000 in a capital <br />project account is recommended for a city the size and scope of San Leandro. If these <br />funds are not available at the time of joint trench opportunities, a loan from other public <br />works projects in the public right-of-way should be used and paid back at the next capital <br />improvement project budgeting cycle. <br /> <br />FUNDING SAN LEANDRO’S NETWORK <br /> <br />Funding of a network is generally bucketed into two parts: first, initial construction, and <br />then, ongoing maintenance. <br /> <br />Many cities realize revenue in the form of broadband services offered to end users <br />(business or residential, retail or wholesale) and from savings by not having to lease <br />commercial services for their work internal needs. This revenue varies from city to city <br />and from network to network. <br /> <br />Magellan Advisors’ financial model demonstrates a potential cost model for building and <br />maintaining a broadband network. This model should be viewed as only one option <br />available to the City and assumes a total finance scenario rather than incorporating cost <br />savings from opportunistic builds or grant funding options. The City of San Leandro <br />should assume that much of this network will be paid for by grant funds, or that the cost <br />of building the network can be greatly reduced by joint trenching, use of existing assets <br />or opportunistic builds as they present themselves. <br /> <br />When reviewing the financials, one should not conclude Magellan Advisors is <br />recommending issuing a bond or securing all loans to build this network. Similar networks <br />have been built and subsidized or financed through alternative means using incremental <br />and on-demand strategies. However, careful planning and vision is still required to <br />facilitate an appropriate network over time.