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Funding Summary <br />Building the broadband network can happen in many ways, including: <br />• Dig Once Opportunities <br />• Opportunistic Options <br />• Grants such as traffic signaling funding, E -Rate for schools and libraries <br />• Like/kind exchanges with other carriers or providers (BART, CalTrans, fiber and <br />wireless carriers) <br />• Existing funds including Plan of Record (POR) allowances <br />While ongoing maintenance funds are expected to be offset by offering wholesale <br />broadband access/services to businesses and anchor institutions, such maintenance <br />costs have not been reflected in the financial model. <br />Financial Model <br />The included financial model (found in Appendix E) makes assumptions about network <br />costs, network maintenance costs, revenue and funding sources. This model uses <br />conservative estimates for end user take rate and revenue opportunities and was built to <br />reflect the most challenging scenario for network costs and associated funding <br />requirements. The model does not take into consideration any of the potential funding or <br />grant sources available to help augment the cost of the network, nor does it include any <br />potential network lease savings by using the City's own network assets instead of leasing <br />services from outside providers. <br />Many of the benefits of having a broadband network owned and operated by the City are <br />difficult to capture in monetary terms, such as having broadband available for the <br />disadvantaged population, Smart City initiatives, aging in place, or increased security and <br />services from the EMS groups. Monetary economic development advantages that come <br />from having a robust broadband network should also be considered. <br />Magellan Advisors does not recommend rushing out and issuing a bond or financing the <br />project in total; however, as the model indicates, such a paradigm would be financially <br />viable if all the assumptions are met. <br />These models demonstrate the two phases of the City network: Lit San Leandro and the <br />proposed expansion to the City network. In general, each phase calls for building a core <br />115 <br />