Community Broadband Initiative

Community Broadband Initiative
TOWN OF JUPITER
Phase I
Project Introduction
Using an Open Access model build a community broadband network to reduce the Town’s operational telecom costs and promote opportunities for economic growth.
Phase I: Replaced the AT&T leased services between 3 municipal campuses (COMPLETED)
Phase II: Extend the fiber backbone network along primary industrial and bioscience corridors (FUNDED)
Phase III: Develop a fiber backbone network east of the ICW to support economic growth in the CRA district (PROPOSED)
TOWN OF JUPITER
Phase II Overview
Quarter End
December
2013
Quarter End
March
2014
Quarter End
June
2014
Quarter End
September
2014
RFP: Design
Design
RFP: Construction
Construction
Activation
Small & Medium
Business
Small & Medium
Business
PHASE 1
Warehousing
& Industrial
School
School
PHASE 2
PHASE 2
Hospital &
Medical Offices
Community
Centers, Parks, Stadium
University, Biotech
& Research
TOWN OF JUPITER
Quarter End
December
2014
Phase II
• Continued operational support for municipal services
– Public Safety (FirstNet, cameras)
– Recreation (Skate Park)
– Government collaboration (disaster recovery, shared services)
• Economic Growth
 Small Business Support – Key Business Support
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Scripps Florida
Max Planck Florida Institute
St. Louis Cardinals Commercial Energy Specialist
Florida Atlantic University G4S Roger Dean Stadium Miami Marlins •
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Gentile, Holloway & Assoc.
Cotleur‐Hearing
Jones Foster
Els Center for Excellence
TOWN OF JUPITER
Business Outreach Feedback
• Outreach has consisted of:
– Meetings with the NPB Chamber of Commerce EcoDev subcommittee on Broadband
• Participants include BDB, Jupiter Hospital, Chamber Business members, Jupiter Businesses, and Abacoa POA
– Business Outreach Meetings
• Meetings held key business leaders including Scripps, Max Planck, FAU, Architectural and Planning firms, Property Managers, and small businesses
TOWN OF JUPITER
Business Outreach Feedback
• Comments and Feedback
– The business community is consistently supportive of this project.
– They want: •
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Improved reliability
Increased capacity/bandwidth
Increased choices
Better customer service
Lowered and more stable cost
– Broadband access is a necessity to their businesses, not a luxury
– Disruption of internet services presents significant business disruptions
“We’re not competing with Martin County or the rest of Palm
Beach County. We’re competing with California and Texas”
[for talent and companies].
~Dr. Dawn Johnson, Scripps Florida
TOWN OF JUPITER
Service Provider Outreach
• Four companies have signed Letters of Intent to provide services using the Town’s network.
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FiberLight LLC
Hotwire, Communications, LLC
ITC Global Networks, LLC
ITS Telecomm, Inc.
TOWN OF JUPITER
Financial Overview
CIP Funding
Phase
Total Funding
Payback
2013 (Actual Phase I – completed)
$405,258
2016
2013-2014 (Phase II)
$906,979
2017
2015 (Phase II)
$330,000
2018
2016 (Phase III – Proposed)
$1,120,579
2020
Total Funding
$2,762,815
TOWN OF JUPITER
Financial Overview
4000
3696
3500
3000
Minimum
Businesses CIP Payback
2500
Expected
Business
Uptake
2000
1500
1000
500
189
234
0
Total Businesses
• CIP Payback – 189 Businesses
• Expected Business Uptake – 234 Businesses
*Over 7 years
TOWN OF JUPITER
Total
Businesses in
Jupiter
Financial Overview
2014
2015
2016
2017
2018
2019
2020
Gross Revenues
$ 0 $ 219,629 $ 436,280 $ 686,678 $ 939,831 $ 1,193,645 $ 1,427,308 Operating Costs
$ 126,663 $ 147,084 $ 172,267 $ 197,609 $ 223,280 $ 248,984 $ 269,946 Gross Profit
$ (126,683) $ 72,545 $ 264,013 $ 489,069 $ 716,551 $ 944,662 $ 1,157,362 CIP Funding
$ 909,979 $ 330,000 $ 1,120,579 CIP Accumulation $ 909,979 $ 1,239,979 $ 2,360,558 Funding Available $ 72,545 $ 264,013 $ 79,069 $ 407,551 $ 694,662 $ 907,362 for CIP Paydown
Cumulative Funds Available for CIP $ 72,545 $ 336,558 $ 415,627 $ 823,178 $ 1,517,840 $ 2,425,202 Paydown
*Operating includes O&M, service contracts, maintenance
*Includes additional costs from original adopted CIP
TOWN OF JUPITER
Review of City of Dunnellon
• City established itself as a residential & business
provider
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Began project in 2010, launched in 2012
Television, Internet, telephone DIRECTLY to residents and businesses
150 mile Fiber-To-The-Home network
Fully functioning data center and headend
10+ staff operating department – customer service, technical,
management
• $10+ million in borrowings to finance Greenlight
TOWN OF JUPITER
Differences Between Jupiter and Dunnellon
Business
Component
City of Dunnellon
Town of Jupiter
Demographics
Population: 1900
Population: 53,000
Business Strategy
End user residential/business services
Compete directly with service providers
Build network all at once
Base financial sustainability on residential
revenues
Build first for cost reductions – phase 1
Provide only wholesale to service providers
Minimize operating costs and overhead
Do not compete with service providers
Build on demand, not for demand
Focus on business services – stronger sustainability
and lower investment than residential services
Business Model
Provide all services directly to the community
-High capital investment
-High operating costs
-High debt service
Provide wholesale only to service providers
-Lower capital investment
-Low operating costs
-Low debt service
Sales & Marketing
Incurred all sales and marketing costs,
competing with telecoms
-High sales expenses
-New organization with little
experience in telecom
Sales and marketing to only service providers,
economic development marketing to businesses (new
and existing)
-Minimal sales expense
-Service providers conduct most marketing
Operations
10+ full time staff to manage all services
-High payroll costs
-High management costs
150 miles of fiber
Utilize existing staff and outsource as needed
-Low payroll costs
-Low management costs
10 miles of fiber
TOWN OF JUPITER
Palm Coast, FL
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City wanted to enhance economic development in key business districts
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Maintained 60+ mile fiber-optic network, used only for City operations
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Made capacity available on this network to local service providers
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Attracted two new service providers to the Palm Coast market, using the
City’s network
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Network serves 16 schools, City, County, Sheriff and 70+ businesses
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Lowering Costs and Keeping Dollars Local
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Lowered Palm Coast’s Internet Costs
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Lowered Local Hospitals transports costs
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$800/month to $250/month = 69% savings to local doctor’s offices
Lowered School Boards IP & Transport Costs
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$120/mb to $40/mb = 66% savings
Transport from $387,480/yr to $252,432/yr = 35% savings
Overall market cost reductions of 20% to local businesses, with
improved services
TOWN OF JUPITER
Florida Municipal Broadband Providers
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City of Bartow
Martin County
City of Lakeland
City of Leesburg
City of Ocala
Gainesville Regional Utilities
City of Palm Coast
North Florida Broadband Authority
Florida Rural Broadband Authority
TOWN OF JUPITER
Municipal Broadband Providers ‐ Nationwide
TOWN OF JUPITER
Next Steps
 Approval of Design Services Contract with Captec
Engineering, Inc. in the amount of $130,000
 Begin negotiating Service Provider agreements.
TOWN OF JUPITER