DMINISTRATIVE Rf CITY OFVENTURA

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CITY OFVENTURA

f\DMINISTRATIVE Rf PORT

To: Honorable Mayor and City Council

From: Dan Paranick, Interim City Manager

Date: June 29, 2018

Agenda Item No.: 8

Meeting Date: July 09, 2018

Mary Eckman, Interim Finance and Technology Director

Subject: Magellan Advisors, LLC - Broadband Strategy

RECOMMENDATIONS

It is recommended that City Council:

a. Approve the Agreement for Services with Magellan Advisors, LLC for a total not-toexceed amount of $83,700 over the next 6 months to perform a market, business and financial analysis to determine the feasibility of a Broadband/Fiber Master Plan to include developing a "dig-once" policy. Upon approval, Magellan Advisors will proceed with the development of the Master Plan Compilation and an optional Wireless Policy and Practice.

b. Authorize the City Manager or designee to execute documents incident to the Agreement.

c. Authorize Finance and Technology staff to transfer funds from the contingencies; $50,000 from City Council Contingency and $33,700 from General Fund Contingency in the proper fiscal year, fund, project and accounts to support this effort.

PREVIOUS COUNCIL ACTION

March 11, 2013 - The City Council approved and adopted the 2013-2018 Economic Development Strategy which included a call to action to work toward expanding broadband capacity in Ventura. Performance indicators for this action item included implementation of policy and best practices.

SUMMARY

Along with other cities in Ventura County, the City of Ventura has been encouraged to improve upon its broadband network from the Broadband Analysis and Planning final report prepared by the Broadband Consortium of the Pacific Coast (Attachment A). To

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Administrative Report July 9, 2018 Page2

avoid falling behind in providing high quality broadband services and to maintain desirability for existing and future businesses operating in the City of Ventura.

DISCUSSION

An advanced communications network such as Broadband, or high-speed Internet, is a critical 21st century infrastructure and a key enabling technology for economic competitiveness, education, public health and safety, sustainable communities, civic engagement, environmental preservation and access to information and services delivered through broadband applications and technologies. Broadband access has become a necessity in the daily lives of Americans and fundamental to the American economy. In addition, basic digital literacy skills are virtually essential to every aspect of the 21st century economy; however, infrastructure and access gaps are present in the City of Ventura.

The Broadband Consortium of the Pacific Coast (BCPC) is a local effort in the Central Coast Area of California organized to improve broadband deployment, access, and adoption in San Luis Obispo, Santa Barbara and Ventura counties through a collaborative regional approach. The BCPC is working alongside central coast cities and other key stakeholders to better understand the broadband challenges that communities face and to identify opportunities to ameliorate those challenges. The Economic Development Collaborative of Ventura County (EDC-VC), the business resource for companies in Ventura County, has been actively supporting the BCPC. EDC-VC's mission of attracting, retaining and expanding businesses in Ventura County through economic development programs closely parallels BCPC's goals to improve broadband speeds in Ventura County.

The East Bay and Central Coast broadband consortia adopted a grading methodology developed by broadband consortia in other regions, by the California Emerging Technology Fund and by many local agencies, to assess the primary wireline infrastructure in Ventura County. This methodology uses a five-point grade system, from A-F. The average California household has a "C" grade, meaning it has access to broadband infrastructure that supports at least one provider offering a minimum of 10 MBPS download and 6 Mbps upload speeds and at least one other provider offering this minimum service level.

Recently, the BCPC conducted a local Broadband Analysis and Planning study (Attachment A) and gave the County of Ventura a C grade in Broadband Infrastructure; however, the City of Ventura received a D grade. This grade indicates existing broadband infrastructure does not meet the needs of businesses and citizens today and does not confer a competitive advantage to place the City of Ventura in an opportune position to attract businesses and citizens as technology and the economy continue to evolve.

The need for broadband infrastructure is clear; it is an integral part of building a 21st century technologically advanced city that supports students, educators, first responders, government, and businesses. If the City of Ventura is to stay competitive in providing high quality broadband for all users, and to attract businesses, there is a need to improve broadband capacity.

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Administrative Report July 9, 2018 Page3

ANALYSIS

Highlighting the Need for Improved Broadband Infrastructure

Up-to-date Broadband infrastructure provides the City of Ventura the opportunity to advance access to the digital economy in two important ways. First, fiber enables gigabit services, including 10- and 100-gigabit services that are currently in demand by technology sectors such as the biotech, health care, high-tech manufacturing, trading and insurance agencies in California. This demand is growing. Second, fiber deployment allows communities to reach unserved and underserved areas where residents or businesses may not currently be able to obtain broadband services above dial-up speeds without having to pay high dollar amounts.

The City is exploring the possibility of developing such fiber infrastructure throughout the city. The first step in this process is to perform a feasibility study and come up with a strategy by which to move forward.

Magellan Advisors will evaluate the current conditions for broadband in Ventura, reach out to key stakeholders, do a community survey, perform a feasibility study and provide the City with a roadmap to achieve a robust and sustainable fiber infrastructure which can be leveraged by businesses and residents, and be able to support Smart City initiatives such as street media, smart traffic analytics, security and traffic cameras and much more.

IMPACTS

The proposed contract cost is $83,700. There are funds available in the City Council contingency, $50,000 and the general Fund Contingency, $33,700 to fund the contract. These funds are already contained in the FY 2018-19 budgeted General Fund appropriations.

ALTERNATIVES

The City Council could suggest staff not pursue these recommendations. However, this could result in the City of Ventura falling farther behind in broadband services and potentially receiving lower future grades in broadband services as given by the BCPC.

Prepared by Ivijan Day, Management Analyst II For: Mary Eckman, Interim Finance & Technology Director:

n nance & Technology Director

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Administrative Report July 9, 2018

Page4

FORWARDED TO THE CITY COUNCIL

~ (}rfvirl--t /Ge___ Office of the City Manager

ATTACHMENTS

A. Broadband Analysis and Planning final report prepared by the Broadband Consortium of the Pacific Coast (I:ocated in the City Clerk• s 9ffice and Council Reading file)

B. Magellan Advisors - Broadband and Fiber Master Plan Proposal

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LOCATED IN THE CITY CLERK'S OFFICE AND COUNCIL READING FILE

ATTACHMENT A

BROADBAND ANALYSIS AND PLANNING FINAL REPORT

PREPAREDBYTHEBROADBAND CONSORTIUM OF THE PACIFIC

COAST

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ATTACHMENT B

MAGELLAN ADVISORS -BROADBAND & FIBER MASTER

PLAN

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Malle/Ian. ADVISORS

Firm History and Background

Overview of Magellan Advisors Magellan Advisors, LLC is a Colorado-based firm with local offices in Denver, Los Angeles, and Miami. Magellan's primary address is 999 18th Street, Suite 3000 Denver, CO 80202. Magellan Advisors, LLC was founded in January of 2004 and has been in operation as a limited liability Company since inception. We are a Florida Small Business Enterprise based out of Denver, Colorado. Magellan's office number is 888.960.5299.

Magellan provides leading broadband, smart city, information technology and security consulting services to public and private organizations. We are a full spectrum planning and implementation firm that brings together technology, communlcations and utility consulting to create smart gigabit cities of tomorrow.

Our professionals bring years of experience from the broadband, telecom, information technology and government sectors. We are thought leaders and real-world implementers of broadband and smart city networks that keep communities competitive in the digital world.

Unlike most consulting firms, we partner with our clients every step of the way, whether they are deploying institutional fiber networks, developing broadband public-private partnerships or deploying smart city networks. We are a "hands-on" firm with strong project managemer1t abilities and implementation skills to see our client's projects through from concept to completion.

We are only successful when our cltents are successful. Our goal ls to deliver practical broadband and technology solutions that our clients can implement in their communities. Through our services, over $1 billion of new fiber investments have been made connecting more than 1,000 schools, hospitals, libraries and governments and passing nearly 1 million homes with fiber.

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Maaellanf;IJ ADVISORS

Magellan Serves Over 300 Local Government Organizations

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Magellan .. "ADVl!JDRS

Our combination of unmatched broadband, telecom, business and operational experience creates actionable strategies that communities use to realize their broadband and smart city objectives. We have led the planning, funding, construction and management of over SO fiber to the premise networks passing over 1 million homes and connecting more than 1,000 schools, hospitals, government offices and community organizations. Our work has resulted in over $1 b1Hion in new broadband investments nationwide. Magellan has helped more communities successfully plan, implement and manage gigabit broadband networks than any other firm in the market.


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Magellan. "ADVISORS

Portfolio of Services Magellan is the only firm that provides comprehensive broadband planning, implementation and project management services, enabling our clients with a turnkey consulting partner that helps them through every step of the process. Our project teams are comprised of professionals with significant operational experience in the broadband, public utility, local government, smart city and information technology sectors. Unlike many consulting firms, we have deep business and operational expertise planning, building and managing networks, skills that are paramount to helping our clients plan and implement their own broadband networks and smart city initiatives by creating effective internal and external partnerships. Our consultants develop real-world, actionable strategies that organizations can rely on to support the development of their broadband and smart city initiatives. No other firm in the Industry has these combined capabilities.

Magellan uses a customized approach in every project based on the needs of our clients and their communities. We develop innovative solutions that allow public and private organizations to best utilize their strengths to expand broadband and develop smart city applications. Magellan is at the forefront of public-private partnership development, working to negotiate and forge these partnerships between public organizations and private broadband providers. Conquering broadband issues often takes the participation of multiple parties that are aligned around common goals. Magellan helps communities recruit innovative providers and form strategic partnerships that benefit providers and the communities they serve. Magellan also provides strategic plans with blueprints for cities to build, expand and operate their municipal fiber networks should they chose to do so.

Feasibility Studies Magellan helps public organizations and broadband operators determine reasonable expectations for deploying fiber to the premise networks. We develop comprehensive feasibility studies that assess the current broadband environment and determine the opportunities to deploy advanced broadband networks. Our feasibility studies are real world tested and based on the latest broadband industry trends that provide strategic direction for communities to achieve their broadband and smart city goals.

Community Needs Assessments Market Analysis & Current Environment Network Analysis & Inventory

Broadband Engineering

Business Models & Financial Planning - Design & Engineering - Opportunity, Risk & Benefit Analysis

Our broadband design and engineering services provide the latest technical designs for fiber-to-the-premise, backbone, metro and long-haul networks. Our wireless design and engineering services develop effective fixed wireless, microwave and WiFi networks to cover the most challenging terrain. Our services cover all aspects of broadband design and engineering, from outside plant fiber and wireless, to equipment, to services and content, to BSS/OSS and systems integration.

FTIH, ITTP, Metro & Long-Haul Fiber O Fixed Wireless, Microwave & WiFi

O GPON, Active Ethernet & WDM

: Routing, Switching & MPLS O Internet, Voice & Video Integration

O BSS/OSS & Network Management Systems


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Business Models & Partnerships Magellan is on the forefront of emerging business models and partnership development within the broadband industry. We successfully plan, negotiate and execute partnership agreements between public organizations and private operators, leveraging the strengths of each organization to benefit the community. We have a stellar record of recruiting broadband providers to local communities and helping these organizations make their communities Gigabit Ready.

- Dark Fiber, Open Access, Triple Play

:::: Feasibility Analysis of Business Models

- Public-Private Partnership Development

Financing & Grants

Partner Recruitment & RFQs

Advocacy & Negotiation In Partnerships

:::: Opportunity, Risk & Benefit Analysis

Magellan provides extensive financial planning services for organizations looking to invest in advanced broadband networks. Our extensive financial plans help government organizations and private operators understand the opportunities and risks and the most feasible financial strategies to achieve their goals. Our plans are investment ready and are routinely used to support funding with bond underwriters, banks, private equity firms and grant programs. Magellan also maintains a portfolio of financing partners and grant programs that we bring to communities to help them acquire funding.

,.., Investment-Ready Financial Plans

- Funding Development ,..., Partner Recruitment

Project Management

" Broadband Grant Writing & Management

FCC, E-Rate, CAF & State Programs Economic Development Grant Programs

Magellan helps operators, utilities and government organizations implement next-generation networks and smart city initiatives. We provide turnkey project management services that enable these organizations to maintain resources that cover every aspect of deploying broadband networks, from fiber and wireless network deployment, to equipment and content integration, to marketing and sales, to operations and management. Magellan provides the only turnkey solution that enables these organizations to deploy their networks in a timely manner and launch their networks with the confidence to achieve the best results in their communities.

:::: Procurement & Contract Negotiation

Construction Management

Network Commissioning & Certification

Policy Development

:::: Content Acquisition & Agreements

- Sales, Marketing & Business Development Business & Operations Management

Magellan maintains knowledge of best practice in policy development and organizational structure for implementing and operating broadband networks and smart city initiatives. We help municipalities and utilities organize and refine internal business processes for improved communications, project management, financial management and policy development. We provide our clients a knowledgebase of zoning, right of way management and wireless policies for enabling and facilitating the development of broadband infrastructures and smart city initiatives. Our recommendations generate business processes and workflows that improve internal and external partnerships for streamlining ongoing expansion of broadband and smart city deployments.

O Right of Way Management Ordinance

D Wireless Ordinance & Guidelines

D Fiber Ordinance & Guidelines

D Dig Once & Joint Trench Policies

D Telecommunications Master Funding

O Internal & External Working Groups


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Magellanf/Jt "ADVISORS

Additional Services Magellan provides a wide range of supplementary services in information technology and security, smart city planning and networking technology fields. Many of our services complement one another, allowing Magellan to provide a onestop-shop for our clients' full range of broadband, smart city, IT and security needs. Magellan's experts lead the industry in planning and deploying the latest technology solutions to meet a wide range of business needs. As the Internet of Things transitions from concept to reality, Magellan helps its clients adapt to the rapidly changing world and prepare communities to thrive in the digital domain.

;::; Information Technology Smart City Consulting Public Safety CJIS Consulting

Utility Security & SCADA Consulting PCI Compliance & Implementation Information Security Consulting


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Masellanlfl IUIVISDRS

Recent Project Experience

City of West Hollywood, CA - Fiber Master Plan & Wireless Master Plan

The City of West Hollywood retained Magellan Advisors to develop a Fiber Master Plan in 2016, and a complimentary Wireless (WiFi) Master Plan in 2017. Both plans outlined a multi-year action plan and investment roadmap to support the city's goals and vision. Magellan worked with the City to analyze and develop a Broadband Architecture and Design and Wireless Architecture and Design including the review of all city-owned assets and identifying the related business/operational requirements for the City to execute on these plans. The plans outlined recommendations regarding effective use and integration of City fiber and wireless assets. Magellan evaluated and made .recommendations for wireless technology for the City1s proposed WiFi network, including network hardware, software and network security criteria. The Fiber Master Plan was presented to the West Hollywood leadership and City Council during Q3 of 2016, and is currently in implementation. The Wireless Master Plan has been accepted by the City, and is scheduled for a City Council presentation in December of 2017.

City of Rancho Cucamonga, CA - Fiber Master Plan & Turnkey Implementation Services

Magellan Advisors was retained by the City of Rancho Cucamonga, CA in 2016 to develop a Fiber Master Plan for the City. The city has consistently shown entrepreneurial spirit in past initiatives (starting electric utility, purchase of 16,000 street lights from California Edison), and now in the deployment of high-speed, next-generation broadband services. The plan identified ways for the City to expand their existing fiber network, its extensive traffic assets, and additional investment to create a backbone network throughout the City's primary business corridors, and economic development zones. The network will support additional use by internal departments, community anchors, partnerships with ISP's, and the support for Smart City initiatives. Magellan worked with Rancho Cucamonga in development and solicitation of a RFl for Public Private Partnerships, and developed a roadmap and action plan that recommended the City/Utility formalize its broadband utility as a division of Rancho Cucamonga Municipal Utilities (RCMU). Magellan was subsequently contracted to perform full Network Design and Engineering services and full turnkey implementation services, including all procurement, governance, network standup and testing, data center design, public poficy, marketing and branding, and integration of all ISPs into the network platform. Network construction is slated to begin Q2 of 2018. Adoption of the Fiber Master Plan has led the City to budget $12 million to execute the plan over a 6-year period.

City of Portsmouth, VA-Fiber Master Plan, and Turnkey Implementation

In 2016, Magellan was contracted by the City of Portsmouth to develop a Fiber Master Plan aimed at connecting over 70 city and Portsmouth school facilities in an effort to significantly increase the amount of network bandwidth to each site, while reducing long-term operating costs. Magellan performed Enterprise Network Architecture and Design as part of the planning process, which identified a 46-mile fiber build, and an investment of over $8 million over the next several years. The City of Portsmouth has extended the contract with Magellan which includes full Design and Engineering services as well as Project Management/Construction Management for the turnkey implementation over a 5-year period. Adoption of the Fiber Master Plan. led the City to budget over $8 million to implement the network as defined through this engagement.


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City of El Segundo, CA - Broadband Feasibility

Magellan was retained by the City of El Segundo, CA to develop a Broadband Feasibility Study for the City. Magellan worked with the City of El Segundo and local stakeholders to assess the needs of businesses throughout the City. Magellan worked with the City to analyze the City's current fiber infrastructure and developed a conceptual design for a future City owned broadband utility to serve local businesses, government, and schools. The City wHI leverage its current assets in fiber infrastructure and possible investments in new fiber to meet the needs of its extensive business community.

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roject Team

www.magellan-acMsors.rom

Jory - VP of Digital Innovation Jory joined Magellan after 22 years as CIO of the City if Santa Monica, CA where he launched Santa Monica City Wi-Fi, which provides free internet services to the public through a network of 32 hot zones and wireless coverage in most major commercial and transit corridors throughout the city. He created Santa Monica City Net, a 100 gigabit broadband initiative to support an environment for local businesses to compete in the global economy with cutting edge network solutions. Jory has over 35 years of experience in Information Technology, including broadband, ITTH and Smart City initiatives. Jory and his teams have received over 50 awards for information technology projects during his career and in 2012 he received the CIO Lifetime Achievement Award from the Los Angeles Business Journal.

Joe Sr. Broadband Consultant Joe Carella has over 25 years' experience in technology management, applications development, enterprise application integration, operations management, and consulting in the technology space, including the last seven years in fiber construction, broadband management, digital inclusion and smart cities planning for two metropolitan municipal governments. Prior to joining Magellan, he had roles as CIO at a financial services firm, as head of applications at a Wall Street broker I dealer, and developing strategic IT and organizational restructuring plans for a global biotechnology firm. He has successfully applied for over $75 million in federal grants, including $23 million in three Broadband Technology Opportunities Program (BTOP) grants, which fulfilled all program goals and closed successfully. Joe is a certified PMP, understands the E-Rate program, and graduated from NYU with majors in Mathematics and Computer Science, and minors in Economics and Philosophy.

Eric Edwards - Senior Consultant Eric Edwards is a results-driven marketing professional (M.B.A.) with substantial experience building, managing and leading top-performing marketing/creative teams. Self-starter with repeated success developing, executing and managing integrated online/digital & offline marketing campaigns, launching new products and managing brands. Proven ability to lead, innovate and identify internal and external opportunities, as well as develop, connect and translate strategic plans into clear, focused tactical marketing initiatives that increase efficiencies and ROI.

Melanie Downing - Management Analyst Melanie has over ten years of experience in client relations and a background in business communication and rhetorical studies. She has experience coordinating, researching, and implementing projects across a variety of fields from defense contracts to small business plans. Her expertise is in creating and delivering customized plans tailored to the needs of organizations. Prior to joining Magellan, Melanie worked in healthcare management and consultlng and was a graduate research student at the University of Central Florida's Technical Communication program, where she focused her studies on technology and public policy.


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lteri Project PaulM Senior Engineer Design

Mr. Frislie serves as a Senior Engineer of lteris' Transportation Systems division and has been with firm since January 2001. For over 17 years, Mr. Fris!ie has been involved in several transportation and traffic engineering projects that include both planning as well as design and deployment of ITS, systems integration, and traffic signal design. Recently, he has served as the Project Manager for the Rosecrans Avenue Arterial Improvement Project, Cypress Phase 1 through 3 ITS Projects, the Newport Beach ITS Phase 5 through 8 Projects, the Santa Monica ATMS Phase 4c project. He has also been the Lead Design Engineer for the development of design plans for the Oxnard ITS Master Plan Design Project, Vermont Avenue Arterial Improvement project, the Santa Monica ATMS 4a/4b Project, SR-710 ITS Design Project, Newport Beach ITS Phase 1, 2, 3, 4 and 7 Projects and the Fountain Valley Phase IV project, as well as the Signal Construction Inspector for completion of the Oxnard ITS Master Plan and the Rosecrans and Vermont Arterial ·Improvements.

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Magellan .. "ADVISORS

Proposed Scope of Work

Task 1: Market Assessment

Ventura Community Anchor Institution Identification

Magellan Advisors, LLC A Florida Limited Liability Company (hereafter "MAGELLAN"} will work with the City of San Buenaventura (hereafter "CITY" or "VENTURA") to build an inventory of all community anchors across education, healthcare, municipal, public safety, state and regional organizations. We routinely work with cities to identify prominent stakeholders that will benefit from a network.

MAGELLAN will identify community anchors, business, residential, and wholesale costs to help VENTURA understand how they compare to other peers. It will also enable VENTURA to understand the costs necessary for the expansion of the community broadband network.

Opportunity Assessment

MAGELLAN proposes to conduct a comprehensive outreach to the Community's anchor institutions and businesses to develop a broadband needs assessment, tailored specifically to VENTURA'S goal of becoming a "Fiber City". MAGELLAN will use a combination of on-line surveys, focus group interviews and discussions as detailed below.

A. Online Broadband Surveys MAGELLAN'S online surveys will provide important information to understand perceptions around broadband services, inventory current services, test speeds across the business and residential community, and identify Issues. We generally receive strong response rates from respondents in these surveys, which provide valuable information for the planning process.

B. Community Anchor Interviews MAGELLAN proposes to hold interviews with key community anchor organizations ("CAls") to gain an understanding of their current and future broadband and technology needs. The format for these are in group settings. We will work with VENTURA to identify community anchors across education, healthcare, municipal, public safety, state, regional and other organizations. CAls are key organizations that often become "anchor tenants" on broadband networks because of their high demand for bandwidth.

C. Business Focus Group Interviews For businesses in the Communities, MAGELLAN proposes to hold focus group interviews and discussions to understand their current and future broadband and technology needs. We find that these can often be coordinated through local economic development personnel or the local chamber of commerce. Focus groups containing 5-10 businesses each provide valuable information that we will utilize to assess the demand for services in Ventura. Area business interviews are important to identify key business anchors that may utilize a broadband network.

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Magellan'4f.f ""ADVISORS

Smart City and Emerging Technologies

MAGELLAN will interview VENTURA departments and local service providers, both public and private, to identify smart city applications, locate them geographically and to inform and advise VENTURA in using the wired and wireless broadband network for supporting these innovations. These include but are not limited to intelligent transportation, traffic signal synchronization, mass transit priority, public safety, parking and traffic, Wi-Fi, streaming video, credit card services, EV charging, environmental sensors, vehicle and pedestrian counting and access control. The report will also identify how VENTURA can use the broadband network for supporting emerging technologies, including drones, autonomous vehicles, advanced robotics, and mobile hotspots. This assessment will dovetail with identifying and assessing the viability of using existing or new assets such as conduits, buildings, traffic signal poles and cabinets, street light poles and smart poles. A more fully defined set of advisory services includes:

Public WiFi D Location Aware Launch Pages

O Session Management

D Income from Advertising D Promotion of Location and Space for Business D Secure Municipal Networks

Smart Parking 0 Wireless Meters 0 Real-time Parking Availability

Pay-on-Foot Devices '' Smart Mobile Parking Apps LJ

Parking Navigation

D Directional Signs D Real-time Signs

D Credit Card Transactions

D Wireless Accounts

Smart Transportation D Traffic Signal Synch

D Transit Priority D HD Traffic Cameras D Transportation Management Center

D Smart Bike Lanes

Smart Public Safety

D 4G & Wi-Fi Data D Mobile Streaming Video

D HD Public Safety CCTV Cameras

Smart Resources D Sanitation D Water Monitoring

O Rubbish Disposal


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Market Survey

MAGELLAN will work with VENTURA to systematically investigate the availability, adoption and utilization of broadband by community stakeholders and businesses through a survey campaign designed to provide specific responses from each group. MAGELLAN will work with VENTURA to identify the target stakeholder group. Once the target stakeholder group is identified, an overall population of the group will be determined and a target sample size will be recommended by Magellan to reach a statistically significant data set. To reach statistically reliable results, MAGELLAN will recommend participant levels to ensure at least a 90% level of confidence within a 5% margin of error based on the stakeholder group population. MAGELLAN works with cities to achieve relevant and critical information to help support VENTURA'S assessment of broadband. The survey will be administered by MAGELLAN, with VENTURA and community partners focused on promotion of the survey campaign.

Competitive Analysis

The competitive analysis will determine the services that are available, providers, service level, pricing, and access. We will document all publicly owned and privately-owned networks in Ventura and build a comprehensive GISbased broadband map to illustrate how VENTURA is served by broadband and what providers currently serve the market.

We should expect that some private providers will not share their infrastructure maps for the project, but we find that in many cases, providers will cooperate in this initiative as this collaboration often provides opportunities for them to better understand the local market. Our analysis will document fiber and copper networks, facilities, data centers, and related infrastructure in the city to determine how well the area is served by broadband. We will also work with the local providers to understand and document their current needs, as they too are stakeholders in the community. These discussions should lead to potential opportunities for VENTURA and private providers to define potential partnership opportunities in delivering new broadband services to VENTURA.

This market assessment will include businesses, schools, hospitals, clinics/doctors' offices, and other community organizations determined in the analysis. We will incorporate the current network into the comprehensive broadband map, which will allow us to begin building layers of potential customer locations on top of the current infrastructure. Layers will include businesses, schools, hospitals, clinics, government organizations, community support organizations, and others to be determined.

Based on information collected from the market assessment, we wlll identify the opportunities for VENTURA to consider a variety of options for developing a community broadband network. Thls analysis should build on VENTURA'S current fiber/conduit infrastructure, other potential partners and new infrastructure that would create a network to support the community. There are many inputs to the overall feasibility and sustainability of community broadband networks and Magellan will work with the VENTURA team to determine the drivers in VENTURA that would support such a network.

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Tas Fiber rk Build Model, Partners ips and Lease Opportu

MAGELLAN'S project team includes highly experienced staff that have successfully completed over 250 fiberoptic broadband planning projects across the US. The project executive overseeing VENTURA'S Broadband and Fiber Master Plan will be Jory Wolf. Jory is the past CIO of the City of Santa Monica and creator of Santa Monica City Net, City Wi-Fi, and over a dozen smart city initiatives. He has vast understanding of the telecommunications environment throughout California, and will lead Magellan's team to create a successful plan for VENTURA. Our team has worked with cities to assess and implement a variety of business models across our clients and is innately familiar with how these models differ from city to city. Each city is unique, and through our proven process we will work with VENTURA to find the model that is most feasible and presents the best opportunity for VENTURA.

Public-Owned VENTURA owned "middle mile" infrastructure with potential partnership opportunities for "last mile" connections

Open Access

D Proceed with the intent to lease or otherwise make available, fiber infrastructure (conduit, dark or lit fiber, vertical and other assets) to other municipal entities, telecommunications carriers, other service providers or businesses

D Connect to an Internet peering Point of Presence (POP) and offer a choice of Internet Service Providers (ISPs) to partnership entities and end-users on the network through either wholesale, retail, revenue sharing or passive network access

Demand-Driven

D Deploying the network and associated services where areas of demand (both social an economic} will be strongest

D Realizing a financial return on investment in terms of economic development impact, infrastructure enhancement, leased line or other communications service savings and revenue generation

D Focusing on social return on investment in terms of enhancing Quality of Life via educational, Public Safety and Smart City initiatives

Incremental Build

D City/municipal buildings and facilities, evaluating leased-line savings, communications and operational enhancements

D Community Anchor Institutions (CAls) such as large businesses, hospitals, learning institutions, etc.

D Business economic development zones or corridors and the broader business community

D Public Wi-Fi areas, public safety and other smart city services requiring a fiber backbone or otherwise enhanced by high-speed access

D Eventual possibility of residential communities including multi-dwelling units {MDUs), low-income housing and the broader community at large

Other considerations

D Leverage the existing network, including adding redundancy and resiliency, building the network to carrier-grade levels, monetizing current assets including leasing infrastructure

C Capitalize on joint-trench opportunities and other Right of Way access opportunities in conjunction with other Public Works projects to expand network infrastructure

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D Investigate opportunities for a mutually profitable partnership in connecting to the Ventura County VCNet or with other nearby municipalities

Investigate Partnership Opportunities

Magellan assists communities to develop public-private partnerships that achieve the community goals. We help local governments use their public-sector capabilities and assets to attract broadband partners to deploy Gigabit Internet and other leading services to citizens and businesses. Magellan helps communities through the entire process, from developing the "ask" for communities, to managing the procurement process for broadband partners, to negotiating the terms of agreements, to managing the partnerships on behalf of communities. Through our deep industry contacts and experience, we help communities find the right providers to deliver the services they need. MAGELLAN will assist VENTURA in investigating the opportunities for partnerships including public-private and public-public including the possibility of a mutually profitable partnership with other local municipalities.

Some of the key questions that we will address in this section include: D How will joint investment in broadband infrastructure be accomplished between VENTURA and private

sector organizations? What legal and operational structures should be considered by VENTURA and private sector organizations in use of VENTURA'S proposed infrastructure?

D How will VENTURA balance private sector goals of revenue growth and profitability with public goals of providing affordable and available broadband services across the City?

D How will future system expansion be handled between VENTURA and private sector providers and what contributions will the parties make to this infrastructure?

D How will VENTURA maintain neutrality and open interconnection policies with private sector providers, promoting a competitive environment that benefits VENTURA'S broadband user base?

D How will an oversight and management board be structured, who will seat the board and what powers and responsibilities will the board have to the project?

Task Assess of City Assets We will conduct a comprehensive asset inventory of VENTURA'S current network to determine its usefulness for new broadband applications. This assessment will give VENTURA a realistic assessment of the network's capabilities and opportunities to use it as a foundation for future broadband programs. We believe that the following components should be analyzed at a minimum:

O Underground conduit, innerduct, empty and available conduit D Fiber cables, strand counts, splice points, terminations and utilized strands D Vault and handhole locations O Available and reserved capacity throughout the network D Construction and placement method policies D Current as-builts and documentation

D Terminating locations and city facilities O City GIS maps including City-owned property, right of way, easements

MAGELLAN will provide VENTURA with a comprehensive report on the network and accompanying GIS files. Thls report will provide the inventory of available broadband assets that MAGELLAN should consider formalizing into its broadband program as it develops. MAGELLAN'S GIS services will enable VENTURA to accurately collect, track, analyze and report on key broadband infrastructure assets throughout VENTURA We propose to first build a Geocorrect layer for VENTURA'S conduit and fiber, identifying placed conduit, type, size, status (occupied/vacant) and

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related information. A second layer will incorporate poles, traffic signal cabinets and other assets to be used for expanding the network, for network operations and for opportunities to generate lease revenue through vertical pole assets from SG micro-cell site deployments.

We will work with VENTURA'S public works and water departments to assess capital projects that may create opportunities to install conduit and fiber infrastructure, in conjunction with other broadband providers. We propose to review the long- term capital projects schedule and build a map that identifies the projects where broadband infrastructure could be installed over the 10-year period. We'll also plan cost estimates for VENTURA year-by-year to determine how much funding should be allocated to these projects, if any.

We will collect vertical pole inventories for leveraging DAS attachments and Wi-Fi deployments for lease revenue opportunities, for support of smart city applications and for lifestyle improvements for workers, visitors and residents.

Magellan will be subcontracting lteris on this portion of the project in light of existing plan for lteris to complete an asset inventory for VENTURA.

Task 4 .. Network Design Magellan will work with VENTURA staff to identify infrastructure that is required to meet the needs of the community determined in the needs analysis. Our team will thoroughly review all communications facilities owned by VENTURA that could be utilized in a new strategy that would be developed as part of this Study. Our consultants will work with VENTURA 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 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 VENTURA, and the network should be capable of supporting the following:

O Gigabit-capable with a path to 10-gigabit O High-performance, dedicated connectivity O Relrable and redundant O Flexible to support multiple technologies, such as GPON and Active Ethernet simultaneously

O Scalable to support future growth, density and bandwidth requirements O Multi-service in design - voice, video, data, with the necessary QOS management O Administratively lean, fitting well within the electric utility operational environment O Smart City, Grid applications

Based on the network design, MAGELLAN will provide estimates to VENTURA 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 back-haul options will be reviewed to identify the most optimal routes out of VENTURA, 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 VENTURA 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 build out in year-by-year schedules that accounts for all revenues and costs borne by VENTURA'S proposed network. Details on how our model works is described in the following sections.

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Task 5. Business Model & Financial Analysis

MAGELLAN will help VENTURA analyze a range of business model options in the framework of financial, operational, and organizational requirements to determine which models are "best fit" for VENTURA, have the greatest chance of success, and will be the most financially sustainable. We will present each analysis of every business model to the VENTURA team and provide an analysis of how each meets VENTURA'S goals in the project.

MAGELLAN will work with VENTURA to define the range of business model options to evaluate for expanded fiber deployment, which may include the following:

D Wholesale dark fiber and/or services in partnership with telecommunications providers;

D Expanded retail services to a range of customer segments, which may include residential

O Partnership models with existing broadband providers;

O Others to be determined.

MAGELLAN will evaluate the current financial and budgetary environment for the network. We believe that VENTURA'S decision-making process for a network expansion needs to include financial analysis of the proposed hardware solution and the operational costs that Ventura will incur in deploying the selected solution. These operational costs include more than equipment service contracts; the selected solution will have financial impacts across many aspects of VENTURA'S operations. We want to make sure these are evaluated so VENTURA understands all financial impacts to the organization.

Once documentation is complete, we propose to analyze current and future needs for VENTURA and the network. MAGELLAN proposes that we ask and answer the following key questions in the needs assessment:

O What are the long-term needs of VENTURA'S current customers including types of service, bandwidth scalability, performance, and reliability?

O Can VENTURA expand its service offerings to attract new customer segments? If so, what customer segments are anticipated and what services will these customers require?

D Are VENTURA'S products and services competitive in the market and how can the expanded network create competitive advantages for VENTURA to expand its customer base in the community?

O What is the current environment in metropolitan area networking that VENTURA should consider for improve competitiveness and meet current and future customer needs?

O How is the network currently managed and what operational goals does VENTURA want to achieve in expansion of its network?

Financial Planning and Our Broadband Financial Model

MAGELLAN proposes using our Broadband Financial Sustainability Model to ensure that VENTURA has a full understanding of the business and financial sustainability of various broadband initiatives. Using these tools will allow VENTURA to eva!.uate different business models and make informed decisions on which are most adequate for VENTURA and community - including environments that require no funding.

Our financial models have been specifically developed for broadband utilities and are very similar to electric utility rate studies. Our models are widely used tools to model feasibility and financial performance for over 50 municipal broadband providers. MAGELLAN'S financial modeling tools have been utilized to plan and manage broadband network investments for over $500 Million in broadband projects nationwide, including $250 Million in Broadband Stimulus investments under the NTIA BTOP grant program.


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Using our financial tools, we suggest using the following process to conduct the business model analysis and make recommendations. We would propose using a 10-year period to analyze the project:

1.. Develop the cost model for the network, including one-time and ongoing capital expenditures to build the network.

2. Develop the cost model for operations, including O&M, network operations, field services, staffing, billing and customer service.

3. From the market analysis and outreach, determine the customer segmentation and growth on the network, across each type of customer (business, school, hospital, etc.}.

4. Determine customer growth rates for the network, based on benchmarking analysis from other utility and municipal providers.

5. Determine a proposed competitive rate schedule for potential services, using pricing information from the market analysis and benchmarking information.

6. Develop financial statements, pro-formas, depreciation schedules, and cash flows. 7. Conduct comprehensive financial analysis on the project to determine overall financial

sustainability using key metrics such as free cash flow, debt service coverage, operating margin, and net income.

8. Use scenario analysis to evaluate different business models and determine which are feasible for VENTURA to consider.

9. Recommend a feasible business model based on overall business and financial sustainability, community benefit, and long-term value to the community. This model will be designed to generate revenue for VENTURA in a self-sustaining broadband maintenance and development program. Our proformas will indicate the cost of resources both internally and externally, as estimated based on previous similar engagements.

Project 11Checkpoint11

Upon the conclusion of Task 5, MAGELLAN and VENTURA will assess the status of the project to date, creating a "checkpoint" at which to discuss further steps. The feasibility of continuing to tasks 6-8 will be discussed in the context of information learned about VENTURA'S assets, community input, financial resources, and desired outcomes of the project. This will serve as an interim deliverable in which MAGELLAN will provide VENTURA with guidance as to how to proceed and any adjustments that should be made to the tasks that follow.

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O I Task . Governance, Ownership nd Management Strategy Analys

Building Opportl . .mties with and Joint

MAGELLAN will assist and guide VENTURA in policy development around Joint Trench and Dig Once. We will help VENTURA organize and refine internal business processes for improved communications, project management, financial management and policy development. We maintain knowledge of best practice in policy development and organizational structure for implementing and operating broadband networks and smart city initiatives and for wireless deployments. Dig Once and Joint Trenching policies will be prioritized so VENTURA can take advantage of ongoing or planned projects by incorporating conduit and fiber into development plans. MAGELLAN will provide examples of best practices in these areas and guide VENTURA leadership through the process of drafting and adopting them in a timely manner. Further policy will be developed as an optional task in

Task 9, but Dig Once and Joint Trench will be addressed early in the project.

We will provide advisory services for development of a governance plan and advise and guide VENTURA in implementing policy that may include the following areas:

Political D

D

D

Engage councils, commissions and community stakeholders Educate and achieve support from internal champions Organize diverse task force and project advocates

Governance and Ownership D Appoint leaders to internal governance board D Hold regular meetings of task force and governance board D Establish operating and CIP budgets for broadband and smart city projects D Create mechanisms for synchronizing project budgets

lntemaf Cooperation, Communication and Alignment

O Assist in removing· department silos D Establish partnersh[ps - Public Works, Traffic Signals, Utilities, Planning, Economic

Development, IT D Document and organize timelines, budgets and partnerships for synergies between smart city

initiatives

Internal Best Practice and Workflow D Document and share municipal, utility and private sector assets D Invite private sector participation in public works projects

D Trade and lease public and private assets for network expansion D Utilize GIS for asset tracking, management and expansion D Combine public works schedules for lowering construction costs D Build on demand and for savings

Internal Budget Considerations Combine telecommunications budgets forefficiencies

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O Create master fund and fund balance to manage and reinvest savings O Budget resources and materials for dig once and joint trench opportunities O Provide guidance in coordinating capital improvement project (CIP) budgets for smart city projects and

applications

Opti I Task Phased Implementation Plan or Road Map for Deployment The culmination of the study will lay out the core strategies for VENTURA in development of its municipal and community broadband initiatives. The Plan will craft the most effective strategies for VENTURA to adopt to bring next- generation broadband to its community, leveraging the City's infrastructure, smart public policies and key partnerships among public and private organizations. MAGELLAN will provide a master plan that details recommendations with actionable steps for VENTURA to expand broadband and fiber infrastructure in VENTURA.

Optional Task 8 .. Master Pia pilation MAGELLAN will provide a final Fiber Master Plan to VENTURA at the conclusion of this engagement. VENTURA Fiber Master Plan will contain the blueprint for development of city infrastructure to interconnect all corridors with one another, serve municipal and community needs, support economic development, support identified smart city initiatives and prepare VENTURA for the gigabit generation. We will work with you to refine this plan so it is 100% representative of your stakeholders needs and has a high degree of relevance to your community. The Master Plan wllf function as the guidebook for fiber-optic development across VENTURA and will include all information necessary for VENTURA to begin implementing the strategies within. All supporting information such as individual task analysis, raw data, mapping (ESRI) shape files and the technical memoranda from each previous task will be included with the Master Plan. All documents generated to support delivery of the Plan will also be provided to VENTURA.

MAGELLAN'S project team will be readily available for meetings with VENTURA leadership to support the adoption of the Master Plan and we are happy to present the final report and findings to your leadership, VENTURA officials or other stakeholder you believe should be included in the final presentations.

Optional Task .. Wireless Process, Policy & Strategy

MAGELLAN will assist and guide VENTURA in policy development around right of way management and wireless ordinances, licensing agreements and standards and guidelines. We will provide VENTURA with advisory services for right of way management and wireless policies for SG micro-cell site deployments for enabling and facilitating the development of its broadband infrastructure and smart city initiatives. Our recommendations will help VENTURA generate business processes and work flows that will improve internal and external partnerships for streamlining VENTURA'S ongoing expansion of broadband and smart city deployments.

Internal and External Policy Development

O Wireless ordinance O Wireless master licensing agreements D Wireless installation standards and guidelines

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O Assist in removing department silos O Approval practices for right-of-way projects (public and private) and development

agreements

O Streamline excavation and pole permitting processes O Streamline wireless permitting processes

Optional Tasks

MAGELLAN prides itself on being a full service-consulting firm, working with our clients to bring these studies and plans to fruition. We stand ready to work with VENTURA into implementation of the Broadband and Fiber Master Plan and beyond, should you feel we've earned the role of being your "trusted" broadband and telecommunications advisor. We have helped over 50 cities implement their broadband strategies which now serve over 1 million subscribers and connect more than 1,000 community anchor organizations. We have a full team of implementation and project management professionals ready to assist VENTURA with implementation of the most effective strategies developed in the Broadband & Fiber Master Plan. We have a strong track record of negotiating public-private partnerships on behalf of local governments and will bring this bllsiness, legal and regulatory expertise to VENTURA.

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Project Schedule We estimate that over the 6-month duration of the project, approximately 15 days onsite will be required for successful completion of the project. During this time, MAGELLAN will meet with VENTURA staff, hold meetings with stakeholders, review plans, visit VENTURA sites and make presentations to VENTURA'S project teams as well as other activities to be determined between VENTURA and MAGELLAN. Schedules will be determined cooperatively between VENTURA and MAGELLAN. MAGELLAN will require some resources of VENTURA staff to gather relevant City data, work with local stakeholder to schedule outreach meetings, conduct interviews of VENTURA staff with MAGELLAN, participate on status calls and on-site meetings and participate in final presentations.

Assessment

2 Fiber Network Build Model, Partnerships and Lease 0 ortunities

3 Asset Inventory and Management

4 Network Design

5 Business Model and Financial Analysis

6 Optional Governance, Ownership & Management Strategy

7 Optional Phased Implementation Plan or Roadmap for Deployment

8 Optional Master Plan Compilation

9 Optional Wireless Practice and Polic

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L ost Pro I

The total cost to VENTURA for its Broadband & Fiber Master Plan is exclusive of travel and incidental expenses. MAGELLAN will bill in monthly installments as the engagement is executed. MAGELLAN will bill on the first day of the month in six (6) equal installments. Travel and incidental expenses will be billed as incurred up to $5,500, with a 10% administrative fee. MAGELLAN'S per diem rate for meals is $65 per day for full work days. Invoices are payable net 30 terms from the date of invoice. The total cost of the project is $93, 700 and includes all work to be completed by MAGELLAN.

MAGELLAN will subcontract lteris on portions of this project for VENTURA, in particular the asset inventory. lteris has been involved in ongoing talks with VENTURA about helping them with asset management. As MAGELLAN has a close relationship with lteris and has previously worked with their team on similar projects, we will coordinate with their team to prevent overlap of tasks and reduce costs to VENTURA. This subcontract results in a $10,000 reduction to the not-to-exceed cost for VENTURA, as shown below. This $10,000 amount will instead be allocated to lteris for their evaluation of assets including the City of Ventura's I-Net, included in the scope of work contracted between VENTURA and lteris.


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*Cost Reduction for lteris Subcontract Allocation: $10,000

Total Pricing for VENTURA After $10,000 fteris Subcontract Not to Exceed: $83,700

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Masellan,/Jl-Aov,soRs

Design a Engineering

MAGELLAN provides Design Engineering services to our clients at the rates shown below.

$1.00

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Ma11,ellani/I# ""ADVISORS

nature & Acceptance Signature of this Proposal by VENTURA warrants that all components of this Proposal are acceptable to the VENTURA and that the person(s) signing this Proposal has the right, power and authority to execute the Proposal.

Magellan Advisors, LLC A Florida Limited Liability Company 999 1grh Street, Suite 3000

Denver, CO 80202

Print Name: John Honker

Title: President & CEO

Signature:

City of Ventura

Print Name:

Title:

Signature:

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DMINISTRATIVE Rf CITY OFVENTURA

Documents

Transcript of DMINISTRATIVE Rf CITY OFVENTURA