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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/06/2017 - FIRST READING OF ORDINANCE NO. 083, 2017, APPROPRIAgenda Item 22 Item # 22 Page 1 AGENDA ITEM SUMMARY June 6, 2017 City Council STAFF Mike Beckstead, Chief Financial Officer Seonah Kendall, Economic Policy & Project Manager SUBJECT First Reading of Ordinance No. 083, 2017, Appropriating and Transferring Prior Year Reserves in the General Fund and Appropriating Prior Year Reserves in the Light and Power Fund for Broadband Strategic Support Services. EXECUTIVE SUMMARY At the May 9, 2017, Council Work Session discussion concerning the City’s Broadband efforts, staff highlighted the need to dedicate resources to support further development and details associated with a Municipal Retail model. Staff is requesting $160k of one-time funding to be appropriated for consulting support per the current work scope. The effort to develop a more detailed Municipal Retail fiber internet service model will run in parallel with staff efforts to issue a Request for Proposal (RFP) to explore a third party alterative. As the work scope describes, consultants will work with City staff to develop details around how to launch a Municipal Retail fiber internet service. Those plans will enable the City, upon approval by Fort Collins voters authorizing the City to move forward, to immediately begin the effort, issue RFPs to support the design and construction, and begin internal processes for call centers, billing, marketing, sales, etc. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Staff is evaluating consulting opportunities and working to have resources working by late June in support of a Municipal Retail broadband service model. While voter approval is required to begin service under this model, staff and consultants will be developing a launch plan consistent with the items on the attached Work Scope document that will allow the City to move into implementation mode shortly after the November election. Without this advanced work, several months of implementation planning will be required prior to moving into implementation. Costs are estimated based on billing rates for two consultants and travel expenses for one consultant. The current re-appropriated budget remaining to support broadband is approximately $70k. This appropriation requests an additional $160K to support planning efforts through the end of the year. Project deliverables are also outlined in the work scope. CITY FINANCIAL IMPACTS This one-time funding of $160k will be split equally with $80k coming from General Fund reserves and the other $80k coming from Light and Power Fund reserves. Agenda Item 22 Item # 22 Page 2 ATTACHMENTS 1. Municipal Retail Model Resource Work Scope (PDF) 2. Powerpoint presentation (PDF) Municipal Retail Model - Broadband Work Scope:  Working with existing City staff: o Overall project leadership and coordination o Community & City coordination, issue resolution, response to Citizens, public communication  Develop Business / Implementation Plan o Service Offerings  Evaluate open architecture similar to what was proposed by Axia and ensure technology compatibility - GPON or Active E  Phone or not  Finalize pricing – both residential and commercial o Operational Plan:  Establish Technical architecture and design standards  Establish network performance standards and monitoring  Develop RFP for design work  Establish construction standards and oversite  Develop RFP for construction work – ultimately negotiate contractor agreements and work to establish firm fixed price for construction  Establish project management standards & oversite  Develop RFP for project management  Develop RFP for equipment and electronics o Define organization & facilities  Develop best in class customer experience protocols & process  Define overall service standards, procedures and policies – 2hr MTTR, 2 min call  Establish business processes for product development, marketing, customer acquisition, customer interaction & billing  Staffing & sequence of hire  Assess opportunity for 3rd party Tier I call center  Define Tier II & III network operations center  Define and align integration with Utilities CSA  High level policies & protocol for CSA, field techs, repair & maintenance  Define & document space & facility needs  Define & document equipment, computers, office needs  Define rolling stock & technical equipment requirements  RFP for facilities, equipment, rolling stock  Establish shared resource coordination – finance, CSA, CPIO, Legal, HR o Marketing & Sales Plan ATTACHMENT 1  Develop sales & marketing materials aligned with CPIO  Residential & commercial o Financial Plan  Details on cash flow requirements per above  Develop bonding requirements and coordinate initial discussions with Finance regarding bond issuance  Establish shared resource coordination – finance, CSA, CPIO, Legal, HR Experience & Skills:  Broadband start-up and launch experience  Experience within a municipal organization  Experience running, maintaining, monitoring high performing fiber network  Experience and understanding of various fiber technologies (GPON, Active E, DWDM) and cabling standards and cable deployment schemes  Experience managing the construction and build of a fiber network  Knowledge of fiber testing and quality control techniques  Experience evaluating and implementing upgrades to a fiber network  Experience with marketing and sales, customer acquisition in a competitive market  Experience establishing customer service standards and monitoring performance  Experience managing repair and maintenance activities  Understanding of internet product offering alternative – triple play, over the top, etc.  Strategic critical thinking in approach to problem solving, issue resolution nd solution development  Strong business acumen and perspective gained from a wide range of experience  Ability to communicate at executive level & effectively influence both up and down BROADBAND June 6 2017 ATTACHMENT 2 May 9 - Direction Sought 2 • Which alternative(s) would Council recommend staff continue pursue. • Does Council support dedicating resources to support Retail Model? • Does Council support the development of ballot language for a November 2017 election? Options Under Consideration 3 Third Party Option Retail Option • RFP Issued May 30th • Ballot Language in process • Finalizing high level Business Plan • Resource Discussion Timeline 4 May June July August September October November December January February Potential Ballot Charter Amendment: July 11 Council Work Session July 25 1st Reading; Ballot Language Aug 15 2nd Reading Ballot Language Silent Period Nov 7 Election May 9 Council Work Session • If Retail Model • Ballot question - Telecom in L&P, Governance, Debt • Dedicated resources needed • If Partnership Model • Ballot question – Telecom in L&P, Governance, Debt • Communications challenge – City Retail or Partnership messaging Internet Services Launch If voter Approval Detailed Business / Launch Planning Resource Needs Experience / Skill Set • Industry expertise – broadband & fiber • Municipal expertise – fiber launch • Business start-up and financial leadership • Technology - GPON, Active Ethernet, etc. • Deployment & construction of Fiber to the Premise (“FTTP”), construction QC • Marketing, Sales, Customer Service. Billing • Long term planning and implementation • Network operations & performance mgmt Duties • With existing staff - project leadership & management • Development Retail Broadband Operational/Launch Plan • Establish technical architecture and design standards • Establish network performance & construction standards • Develop RFPs for design, construction, QC, equipment • Develop service procedures, policies & standards • Develop options to integrate with L&P and evaluate 3rd party call centers. Integration plans with HR, Finance, Legal, IT, CPIO • Develop Sales & Marketing plans & materials 5 2 Consultants June 6th 6 Does Council support dedicating resources to support Retail Model? Consultants $170k Consultant (travel) 20k Contingency/Legal 40k Less existing re-approp (70k) Appropriation Request $ 160k -1- ORDINANCE NO. 083, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND AND APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT AND POWER FUND FOR BROADBAND STRATEGIC SUPPORT SERVICES WHEREAS, at the May 9, 2017 City Council Work Session discussion concerning the City’s Broadband efforts, staff highlighted the need to dedicate resources to support further development and detailed plans associated with a Municipal Retail Broadband model; and WHEREAS, in pursuit of that plan development, staff is requesting an appropriation of one-time funding of $160,000, which will be split equally with $80,000 coming from General Fund reserves and $80,000 coming from Light and Power Fund reserves; and WHEREAS, costs estimates are based on billing rates for two consultants and travel expenses for one consultant; and WHEREAS, in addition to this appropriation request, there are $70,000 in currently available budget appropriations for strategic broadband support; and WHEREAS, staff and consultants will be developing a launch plan that will allow the City to move into implementation mode shortly after the November 2017 election, with the understanding that voter approval is a prerequisite to launching this effort; and WHEREAS, without this advanced work, several months of implementation planning will be required after the election before the City may begin service implementation; and WHEREAS, this Ordinance appropriates Electric Utility enterprise funds and Council finds that evaluating broadband service delivery plans by the City’s Electric Utility serves utility purposes and benefits ratepayers consistent with Article XII, Section 6 of the City Charter, including but not limited to advancing potential expansion of the Electric Utility to deliver coordinated telecommunication and electric services in furtherance of current City strategic objectives and outcomes; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff have determined that the appropriations as described herein are available and previously unappropriated in the General Fund and the Light and Power Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from prior year reserves in the General Fund the sum of EIGHTY THOUSAND DOLLARS ($80,000) for Broadband Strategic Support. Section 3. That there is hereby appropriated from prior year reserves in the Light and Power Fund the sum of EIGHTY THOUSAND DOLLARS ($80,000) for Broadband Strategic Support. Introduced, considered favorably on first reading, and ordered published this 6th day of June, A.D. 2017, and to be presented for final passage on the 5th day of July, A.D. 2017. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 5th day of July, A.D. 2017. __________________________________ Mayor ATTEST: _____________________________ City Clerk