Strategic Internet Network Consultant Proposal

Request for Proposal (RFP) for a Strategic Internet Network Consultant
The Need/Goals: As Mapleton City continues to grow, we recognize that fiber

internet is a big part of our community. Many within our community have limited
high speed internet service available, are lacking in finding affordable internet,
as well as poor customer service. Currently the local incumbent providers
continue telling our City leaders that they do not have a plan of when are area
will be upgraded and we continue to get passed over. More and more of our
resident’s work from home and require access to the internet. A few of our
residents have commented that they have drove to their office in Provo as it was
faster than getting internet connection. New and old businesses suffer as they
search for the best provider to accommodate their needs.
At the direction of the Mayor and City Council we are considering a “Community
Network” built, owned and operated by Mapleton City thus we are looking for a
Consultant to provide us with a Comprehensive Final Plan and
Recommendations.
Work Process and Timeline: The Attached work plan documents the work
process and deliverables for each project phase. The work shown in the
Attachment must be performed over the course of ten (10) weeks. All work
products will be owned by Mapleton City. The submitted RFP must describe three
closely related areas:
1. Approximately how many hours per week will the Consultant need to complete
the Attached Work Plan;
2. What will be the hourly rate and estimated total billing for the Proposal; and
3. As per the Attached Feasibility Study completed by Uptown Services what

areas from the study does the Consultant agree or disagree with and what would
be the Consultants plan moving forward to provide the best “Community
Network” to Mapleton.
Posted Date: 09/21/2020

Closing Date: 10/05/2020 at 5:00pm
Proposals will be accepted by closing date at the City Office, by email at
cbrown@mapleton.org or by mail to:
Mapleton City
Attn: Camille Brown, City Recorder
125 West 400 North
Mapleton, UT 84664
Page 1 of 2
Work Plan for Strategic Internet Network Consultant
1. Estimate construction cost

a. Get competitive bids for installation
2. Enumerate capital expenditures
Headend Electronics
a. Necessary vehicles and equipment
i. Bucket Trucks, Directional Drilling Machines, Cable Trailer, etc.
b. Fiber splicing equipment
3. Outline staffing requirements and create job descriptions
4. Create a bond expenditure list for each year
5. Complete budgets for the first 5 years of the project
6. Complete a revised pro forma
7. Secure funding options
8. Prepare a Mapleton Fiber Project website
9. Complete a project management chart
10.Prepare press releases
11.Meet with resident’s committee and keep them as a resource
12.Meet with businesses, chamber of commerce, Rotary club?
13.Design the entire FTTH system
Calculate fiber footages and counts
a. Map fiber paths
b. Locations of both active and passive nodes
14.Calculate total cost of construction
Feet of drilling per day
a. 200-300 feet per day per drill
Feet aerial per day
a. 4000 feet per day strand
b. 5280 feet fiber lashed
15.Give a comprehensive final plan presentation to the City Council
Page 2 of 2
Broadband Feasibility Study
for
Mapleton City
June 2020
Uptown Services, LLC

Dave Stockton & Neil Shaw, Principals
OBJECTIVE: Identify and evaluate the financially feasibility of a range of options for the City to
significantly enhance the availability, reliability, and capacity of broadband infrastructure to
residents and businesses
SCOPE:
1. Market Analysis
 Quantitative market research
 Demand estimation
2. Technology Strategy, Design, and Capital Budget
 Reference architecture
 Sample designs
3. Product Strategy
 Data and Voice services
 Current and near-term multi-Gig offerings
4. Potential Business Models & Funding Sources
5. Pro Forma Financial Analysis
 Revenue, Opex, and Capex detail
 Pro forma outcomes
9/23/2020 Study conducted by Uptown Services, LLC 2
Residential Quantitative Survey
 The quantitative research process utilized both subject matter and functional expertise across
multiple contractors by specialty:
 Uptown Services: Subject expertise and study data needs
 SDR Consulting (Rick Hunter): Research expert overseeing design and execution (23 years experience
with 200k completed research projects)
 American Directions Research Group: Survey fielding and data collection (7 US-based call centers with
capacity to complete 85k person-hours of call interviews per month)
 Prairie Research Group (James Wolken): Online survey programming, crosstab analysis and production
of output banners (25 years experience)
Survey Survey Online Survey Client Report

Sample File
Instrument Programming Programming,
Design & Fielding Data File
Processing &
Crosstabs
Uptown, SDR &

City Staff & SDR
City Staff ADRG PRG Uptown

 Phone and online surveys
 Total sample of 670 respondents (401 via phone and 269 online) of universe of 2,582 households
 ± 3.3% sample error at 95% confidence interval
 List included wireline and wireless numbers
 Age quotas used to ensure robust sample across all age groups. Results weighted to reflect actual age
distribution from 2010 Census data
 Respondents screened to ensure
 Decision-maker for telecommunications and entertainment services in the home
 Reside within city limits
 Respondents with immediate family members employed by any of the following were excluded:
 Mapleton City
 Comcast
 CenturyLink
 CentraCom
 Rise Broadband
 Utah Broadband

Refused High school
3%
Education Level or less
 Survey results are weighted to reflect the 6%
actual age distribution (by age decile) per
the 2010 Census of Mapleton. Some
 While unweighted, the income profile of college
29%
the sample is not dissimilar to the 4 year
universe of residents. degree or
more
63%
Household Income
Census Sample Head of Household Age
32% (Unweighted Sample)
30%
27% Census Raw Sample Weighted
26%
15%
12% 13%
11% 10% 10%
7%
5%
1%
Up to $25k $25k - $50k - $100k - $150k - > $200k Refused < 25 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+
$50k $100k $150k $200k
FTTP Residential Quantitative Survey
Current Broadband Services Usage
Incidence of Internet Households
 97% of Mapleton households subscribe to 0% 2%
1%
Internet service at home, with 78% via a 3%
wired connection 16%
 Comcast has 70% market share
 About 1 in 2 households use their home 78%
Internet service to perform job tasks 5 or
more days per week
Internet Market Share Other Wired Connection Fixed Wireless
(Households) 1% Satellite Cellular Data Plan
Satellite Free WiFi Do Not Use
3% CentraCom
0%
Fixed Using Internet at Home for Work Tasks
Wireless
17% 1%
CenturyLink
9% 7% 16%
53%
Comcast 11% 12%
70%
5 days 3-4 days

1-2 days Few times/month
Rarely or Never Don't Know
 Income has a slight impact on use of a wired Internet connection
 The youngest and oldest households are less likely to have a wireline connection
 14% 0f 20-24 use their cellular data plan
 17% of 75+ do not access the Internet
Internet Access Method by Income Internet Access Method by Age
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
Up to $50k $50k - $100k $100k - $150k >$150k 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+
Do Not Use Free WiFi Cellular Data Plan Do Not Use Free WiFi Cellular Data Plan
Satellite Fixed Wireless Wired Connection Satellite Fixed Wireless Wired Connection
Stated Download Speed
33% of households do not know what (Wired Internet Connection Only)

35% 33%
speed they subscribe to
30%
 About 1 in 2 Mapleton households 26%
25%
state they subscribe to 100M or less
20%
 Monthly spending averages $62 15%
15% 12%
9%
10%
5%
5%
0%
Up to 15M Up to 25M Up to Up to Up to 1G Don't
100M 500M Know
Monthly Internet Spending
40%
29%
30%
17% 19%
20%
14%
12%
10%
4% 3%
1%
0%
<$25 $25-$50 $50-$75 $75-$100 $100-$150 >$150 Bundled Don't Know

Home Phone Provider
(*source: National Health Interview Survey, 2018)
 Wireless substitution is slightly higher than
the national average at 61% of HHs. 57%
61%
National
 This substitution is strongly correlated to Average*
age, with older households more likely to Mapleton
retain wireline phone service 24%
 Monthly spending averages $36 for those 7% 5%
households with a wireline phone 1%
Monthly Voice Spending
30% Households Without Wireline Phone Service by

24% 24% Age
80% 79%
71%
20%
14% 13% 57%
52% 52%
9%
10% 7% 7% 32%
2%
0%
20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+
Across all of Mapleton households, only 19% have all 3 services from a ‘single’ provider. This is
being driven by wireless substitution and cord cutting (dropping Traditional Pay TV).
Ramifications to FTTP strategy include:
 Limited and decreasing need to offer video service as households abandon cable TV
 57% of Mapleton households have ‘cut the cord’ and do not use Traditional Pay TV
 Higher bandwidth demand to accommodate video streaming over the broadband connection (next
slide)
Incidence of Triple Play Bundle

Video Market Share
No Video (Households)
6%
Off-Air Only 19.4%
8%
7.5%
Off-Air & Cable TV
Online 31%
12%
73.1%
Satellite TV
17%
Online Only
26% Have All 3 From Single Provider
Have All 3 Services From Multiple Providers
Do Not Have All 3 Services

Traditional Pay TV is losing subs to cord cutting – resulting in fewer bundled households. The households will
not need bundle discount pricing but will need much more data capacity:
 Tracking the impact to data usage prior to and then after cord cutting reveals households use 70% more than average
within 3 months of dropping traditional Pay TV
 This matched usage data comparing video/Internet bundled households to ‘broadband-only’ households with the single
service households using 85% more data each month (211 GB vs. 390 GB)
Monthly Household Data Usage Before and After Cord Cutting Event
(OpenVault, August 2019))
500
Cord Cutting Event
450
400 70% More Data Usage
Monthly Data Usage (GBs)
350
14% More Data Usage
300
250
200 Cord Cutters
150 Average Households
100
50
0
Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Source: OpenVault Q2 2019 OVBI Report

September 20 13
U.S. households are seeing both a significant increase in the number of Internet connected devices as
well as significant growth in total IP traffic across these devices…

Connected Devices by Age
0 1-4 5-9 10+
 Across all Mapleton households, 100%
the number of connected devices
is distributed as: 80%
 0 devices: 1% 60%
 1-4 devices: 20%
40%
 5-9 devices: 46%
 10+ devices: 33% 20%
0%
20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+
 The number of connected devices
increases with household income
Connected Devices by Income
0 1-4 5-9 10+
 Middle-aged households (35-54)
have more connected devices, 100%
likely due to the presence of 80%
children
60%
40%
20%
0%
Up to $50k $50k - $100k $100k - $150k >$150k
Satisfaction & Attribute Importance
Satisfaction Rating by Service/Service Provider
(Mean Rating on a 1-10 Scale)
10 8.5
7.7
8 6.6 6.9
6.2
6
0
Internet Telephone Video Electric Water
(Percent Rating a ‘9’ or ’10’)
57%
60%
45%
50%
40% 30% 31%
30% 22%
20%
10%
0%
Internet Telephone Video Electric Water
The chart below compares the results of this study with over 30 other markets where Uptown has
completed similar quantitative research:
Ohio (3) Washington North Carolina Oregon (2)
Iowa Wisconsin Kansas (2) Alabama
Georgia Oklahoma (2) New York Arkansas
Tennessee (4) Michigan Kentucky Colorado (7)
Utah

(Mean Rating on a 1 to 10 Scale)
9
5
Video Internet Telephone Utility
9/23/2020 18
 While reliability and price are always important, Internet speed is perceived as very important
in Mapleton. Bundling and Brand are secondary in importance to other attributes…
Importance Rating of Select Broadband Service Attributes

4.8
5 4.5 4.5
4.2
3 2.6
1.9
2
0
Brand Service Bundle Customer Price Internet Speed Reliability
Service
Satisfaction Rating by Internet Attribute
Total Sample Definitely Subscribe
8
6.8 6.7
6.3 6.1
5.9
6 5.2 5.3
4.6
2
Price Service Reliability Speed

Mapleton residents see increased Internet speed and lower prices as the most important
dimension for improving their broadband…
Q29: “What would you like to see most improved from your current broadband
services?”
47%
Lower Prices 37%
26%
Increased Internet Speed 37%
13%
Improved Reliability 13%
3%
Customer Service 3% Total Sample
3% Definitely Subscribe
Service Availability 5%
6%
Nothing 4%

Fiber Broadband Market Potential
 47% of respondents, when given the choice, would prefer to receive high speed Internet
from the City, but 1 in 3 households are undecided…
Q27: “Among the following list of potential providers, who would you prefer to
receive high-speed Internet service from?”
47.1%
31.7%
13.9%
2.5% 1.1% 2.1% 1.6%
CenturyLink Comcast CentraCom Rise The City A New Don't Know

Broadband Provider
 71% of respondents indicated they would definitely or probably switch their Internet service to a fiber
system installed by the City…
Q24/Q27: Stated purchase intent for:

- Internet at $70/mo. for 1Gbps
- Voice at 10% Less than CenturyLink
100% Primary reason to switch 6%

(pie chart)
Don't 14%
Know, 1%
43%
75% Other, 16% 'Definitely Would'
14%
Prefer the
City, 12%
More 'Probably Would'
Capacity,
47% 22% 'Might/Might Not'
50%
Lower
28% Price, 27% 'Probably Would Not'
'Definitely Would Not'
25% 39% Don't Know
15%
7%
5%
0% 3% 5%
Internet Phone
 Uptown uses a ‘Likert Scale’ with Overstatement Adjustment
 Conservative research techniques from the Packaged Goods sector
 Clearly specify purchase intent vs. “interest” and removes overstatement bias
 Example: “How likely would you be to subscribe?”
 Definitely Would 21.5% x 70% = 15.0%
 Probably Would 35.6% x 30% = 10.7%
 Might/Might Not 20.0% x 10% = 2.0%
 Probably Would Not 10.4% 27.7% = Penetration Estimate
 Definitely Would Not 4.4%
 Don't Know 8.1%
Residential Research Small Business

(Terminal / Year 5 Eroded) (Terminal)
Internet 40% @ $70 40%
Telephone 10% / 8% @ 10% Less 35%

The survey results indicate strong interest in multi-Gig tiers. The resulting Average Revenue Per
User (ARPU) is $80 per month.…
Most Likely Subscribed Tier at Stated Price Points
5%
21%
1G @ $70
2G @ $100
4G @ $150
74%

10%
20%
30%
40%
50%
60%
0%
Market A
9/23/2020
Market B
Market C
Market D
Market E
Market F
Market G
2005
Market H
Market I
Market J
Market K
Market L
Market M
Market N
Video
Market O
Market P
Market Q
Market R
Internet
Market S
Actual vs
Research
Market T
Market U
(Across all Tested Price Points)
Market V
Study conducted by Uptown Services, LLC

2010
Terminal Penetration by Service
Phone
Longmont
Market X
Market Y
Market Z
Ft Collins
10% Less
2015
Tested @
Market AB
Market AC
Market AD
Market AE
Market AF
Market AG
$70
Market AH
Tested @
2020
Salem
27
Mapleton
Six out of ten Mapleton households support the issuance of a revenue bond to help fund the
new fiber network…
Q30: “Without raising taxes, would you support the City of Mapleton issuing a Revenue
Bond to fund the construction of the fiber network, if the service subscription revenues were
used to pay off the bond?”
I would support 61%
I am neutral 16%
I would not support 14%
Don't Know 9%
9/23/2020 28
 Overall, 97% of households use Internet at home with Comcast as the dominant provider
 Internet and phone service satisfaction levels benchmark below average
 Improved Internet speed and lower prices are the predominant need for improvement with
current Internet service
 Forecasted residential take rates of 40% (Internet) and 10% (voice) with Gig Internet at $70
 Strong interest in multi-Gig tiers at higher price points resulting in ARPU of $80
 The City is the preferred provider versus over the current incumbent providers
 Nearly 2 out of 3 households support the issuance of a revenue bond to fund construction
September 20 29
Technology Analysis and Capital Budgeting
Evaluation of Current Network Capabilities
 City of Mapleton lacks applicable outside plant infrastructure
 Outside plant = aerial and underground pathway systems
 City does not operate a municipal electric system
 Rocky Mountain Power owns all utility poles in the City
 No existing fiber infrastructure
 City does not own or operate a fiber network currently
 There are limited fiber-based carrier options in the area
 Proximity to Spanish Fork is greatest asset
 City can easily connect via fiber to Spanish Fork
 Interconnecting facilities would be part of any last mile FTTP build

Technology Analysis and Capital Budgeting
Reference Architecture
 Provider Owned Premises Equipment
 Media Converter – indoor wall mount or desktop versions
 Add On Wi-Fi routers available
 Customer Owned Premises Equipment
 Router – may not be GigE capable
 All end user computing devices
 Standard telephones for telephone service
 Streaming video appliances – AppleTV, FireStick, Roku, etc.
 Inside Wire
 Phone services use the existing phone wiring
 Digital streaming services use new CAT6 wiring or Wi-Fi
 Data services delivered over new CAT6 cable or Wi-Fi

 Drop Terminal
 Drop terminals connect service drops to the distribution network
 One terminal serves between two and twelve passings
 Terminals allow for plug and play at the serving pedestal / pole
 Terminals attach directly to distribution fiber cable
 Service Drop and Test Access Point
 Drops only installed after subscriber orders service
 One fiber drop cable installed from terminal to each premises
 Fiber drop pushed or pulled in shallow drop conduit in underground
 Aerial drops are flat self support cable
 Drop fiber terminated in test access point (TAP) mounted on dwelling
 TAP provides demarcation between outside and inside fiber (bulkhead)

Drop Terminal T
T Distribution Fiber Cable PC
Drop Fiber Cable
T Wired Ethernet
TV
WiFi
Phone Wiring
T
Indoor Fiber Jumper A Phone
MC
Active T T
P
Equipment T
Node
• Service drops installed after subscriber orders first service

T • Drops plug into terminal with hardened connector (no splicing required)
• Connectorized drop terminates on Test Access Point (TAP)
• Media Converter (MC) placed in dwelling
• WiFi access points/routers can be connected to the MC
T • Streaming video supported using SmartTV or other appliance
 Distribution network
 Distribution fiber connects drop terminals to an active node
 One fiber per home and business passed by the distribution cable
 Neighborhood active equipment node
 Aggregates traffic for up to 200 homes and businesses
 Contains fiber termination panels for distribution and feeder fiber
 Houses Ethernet switches that are fed from primary network switch
 Feeder / backbone network
 Neighborhood nodes are fed by a new feeder network
 Feeder network is sized to feed each node with at least 12 fibers
 Network operations center (NOC)
 Mapleton would have a primary switching location in the City (NOC)
 One large switch in the NOC would aggregate all subtending node traffic
 NOC would then connect via dark fiber to SFCN
 Core Network – Layer 3
 Core network safely routes traffic to and from the outside world
 Border Gateway Protocol (BGP) routers connect to the Internet
 BGP routers deployed in pairs
 Typically installed on backbone network in physically diverse locations
 Each router connects to at least two Internet backbone providers
 Outside World – Content
 Two physically diverse Internet backbone connections desired
 Video content would come in over one or both Internet connections
 Phone would also route over one or both Internet connections
 Spanish Fork Community Network
 Mapleton will rely on SFCN for all Core Network functions
 Mapleton will connect to SFCN over high capacity Layer 2 links

Neighborhood
Spanish Node A
Fork
Community
Network
Neighborhood
Node B
Aggregation
Switch
Mapleton Network Neighborhood

Operations Center Node C
* Preliminary design calls for (16) Nodes within the City limits of Mapleton
9/23/2020 Study conducted by Uptown Services, LLC
Technology Analysis
Sample Designs
 100% Active Ethernet standards based
 Based on SFCN network architecture
 Delivers 40Gig capacity to every neighborhood node
 Delivers up to 10Gig capacity from each neighborhood node to any
premises
 Distribution fiber network allocation (from each node)
 One fiber per home and business from each node for FTTP
 At least 10% spare fibers in each distribution cable
 Feeder fiber network allocation (to each node)
 At least 12 fibers per node to feed FTTP equipment
 At least 10% spare fibers in each feeder cable
 Design assumes the use of standard cable technology
 Single jacket, light armor cable for aerial (com zone)
 Single jacket all dielectric for underground

 New underground path creation
 $15.10 per foot composite for conduit placement (primarily boring)
 $1.13 per foot for conduit materials
 Per structure adder for all vaults, pedestals and handholes
 Fiber placement
 $1.25 per foot labor to install fiber cable in new conduit system
 $0.75 per foot average fiber material cost
 Aerial construction costs
 $1.75 per foot composite rate to install new messenger in com zone
 $1.25 per foot to lash each cable to strand in com zone
 Technical services
 $30 per fusion splice
 $250 - $450 closure prep for terminals, splice points and feeder taps
 Material pricing assumptions
 Fiber, terminal and structure pricing based on recent client bids
 Pricing subject to change over time
 10% contingency added for all materials and labor estimates

Design Metric Value
New Aerial Plant Miles 23.4
Underground Plant Miles 42.1
Total Poles 625
% Aerial 36%
% UG 64%
Passings 3,292
Nodes 16
Passings per Mile of Plant 50
Materials Cost per Passing $325
Labor Cost per Passing $1,499
Total Cost per Passing $1,824
Total Materials (no drops) $1.1M
Total Labor (no drops) $4.9M
Total Cost $6.0M
* - Does not include engineering, fixed

equipment, subscriber capital and
installation costs.
 SFCN crews may be less than 3rd party contractors
 All work assumed to be completed by contractors
 SFCN is willing to do certain technical services tasks node by node
 Fiber placement (aerial and underground)
 Closure prep, splicing and testing
 Apples to apples cost comparison was not achievable for this study
 Soil conditions may drive higher construction costs
 Boring assumed for 75% of all underground path creation
 Cobble adder ($18/foot) applied to drilling rate for 15% of footage
 Trenching assumed for 10% of footage
 Aerial construction
 Rocky Mountain Power pole attachment process looks to be okay
 Pole attachment process introduces significant cost and schedule risk
 Additional expenses for survey, administration, design and construction
 Schedule risk introduced by 3rd party review and approval of attachments

Incumbent and Proposed FTTP Service Offerings
Internet and Data Services
Download Upload Price Technology
60M $55.00
CenturyLink 5M DSL
100M $65.00
1st Year / Month-Month

25M 2M $19.99 / $29.99
Cable Modem
100M 5M $34.99 / $55.00
(DOCSIS 3.0)
200M 10M $49.99 / $70.00
300M 25M $64.99 / $80.00
Comcast
1st Year / Month-Month

600M* $74.99 / $90.00 Cable Modem
-
1G* $84.99 / $100.00 (DOCSIS 3.1)
2G* $299.95 (monthly only)
Prices reflect subscription to Internet service at non-promotional rates. CenturyLink pricing per centurylink.com as of March 2020.
Comcast pricing from xfinity.com as of March 2020.
*DOCSIS3.1 is not available in all areas that Comcast currently serves.

Download Upload Price Technology
10M $49.95
15M $59.95
Utah
20M - $69.95
Broadband
35M $79.95
60M $89.95
Rise 25M ($3.50/10GB) $34.95 + $10.99 equipment rental Fixed Wireless
-
Broadband 25M (unlimited data) $54.95 + $10.99 equipment rental
20M $35.95 + $2.95 equipment rental
40M $55.95+ $2.95 equipment rental
CentraCom -
Prices reflect subscription to Internet service at non-promotional rates. UBB pricing from utahbroadband.com as of March 2020. Rise
Broadband pricing from risebroadband.com as of March 2020. CentraCom pricing from centracom.com as of March 2020.

Media Converter
Internet Tier Download / Upload Monthly Price Model(s) / Cost
1G / 1G $70 $35 for Media Converter
2G / 2G $100
$345 for Media Converter
4G / 4G $150
Wireless Gateway Upgrade Adds $160 for Plume

Resell Plume managed WiFi Add $10
($2/sub/mo.)*
wireless device
* Requires $2,000 monthly minimum but can be pooled with SFCN.

Internet Downstream Throughput and Price per Mbps
(Wireline Incumbents and Proposed FTTP Tiers)
4000 $5.00
3500
Monthly Price per Mbps Download

Downstream Throughput (Mbps)
3000
2500
2000
1500
$1.20
1000 $1.00
$0.92
$0.65
$0.55
500 $0.35 $0.27
$0.15 $0.10 $0.15 $0.07 $0.05 $0.04
0 $0.00
Comcast Comcast Comcast Comcast Comcast Comcast Comcast CL 60M CL 100M FTTP FTTP 1G FTTP 2G FTTP 4G
25M 100M 200M 300M 600M 1G 2G 50M
Throughput $/Meg
Media Converter
Internet Tier Download / Upload Monthly Price Model(s) / Cost
1G / 1G $80 $35 for Media Converter
2G / 2G $130
$345 for Media Converter
4G / 4G $250
Wireless Gateway Upgrade Adds $160 for Plume

Resell Plume managed WiFi Add $10
($2/sub/mo.)*
wireless device

Function Operational Responsibility FTTP System CLEC
Capital Local Loop and Premises NIU 
Fiber MUX, Transport, and Switch 
LNP, Operator Services, PSAP, IC
Interconnect 
Agreements
Marketing & Sales Advertising, Sales 
Brand, Pricing  
Provisioning Work Order Creation 
Bell Processes 
Switch Provisioning 
Customer Install 
Billing Bill Fulfillment 
Call Detail Record (LD), Taxes & Fees 
Internet Backbone Interconnection 

With the below retail voice pricing, net revenue per line (retail less wholesale voice fees)
will be the following at current CLEC wholesale market rates:
• Residential: $28 per month
• Commercial: $16 per month
Segment Service With Internet Rates Without Internet Rates
Access Line, Features, &

Residential • Monthly: $35 Not Offered
Unlimited LD
• Monthly: $30 • Monthly: $40

Access Line, Features, &
• 2 Year: $26 • 2 Year: $36
Unlimited LD
• 3 Year: $24 • 3 Year: $34
Digital SIP Trunk • 2 Year: $25 • 2 Year: $30

Commercial (per channel) • 3 Year: $23 • 3 Year: $28
Requires Internet and minimum 3 year term:

• 1-5 Seats: $25
Hosted PBX
• 6-24 Seats: $23
(per seat)
• 25-49 Seats: $22
• 50+ Seats: $21
Potential Business Models & Funding Sources
 OPTION 1: City as stand-alone Operator
 All customer and network operation functions performed with incremental staff
positions (Total of 8 FTEs in Year 5)
 Voice service provided by CLEC partner
 OPTION 2: Operating partnership with Spanish Fork Community Network (SFCN)

 SFCN performs customer operations and Internet Service Provider tasks
 City staff positions reduced from 8 FTE → 2 FTE
 System GM
 Account Rep/Customer Service Coordinator
 RECOMMENDATION: SFCN Partnership Model

 Utilize SFCN expertise to construct and operate a broadband system
 Efficient use of existing SFCN personnel and equipment
 Significantly lower total funding requirement

Exploratory discussions with SFCN leadership have generated a preliminary framework for how
the operating partnership could be structured…
• City funds capex for fiber build (FTTP), working capital, and all operating
Ownership Role of
expenses
the City
• City is 100% owner of the FTTP system.
Operating Role of the • City is the service provider and performs some administrative functions (e.g.
City billing), general management, and on-site account support.
• Customer Operations: SFCN provides customer care, customer installs and

Operating Role of provisioning, service truck rolls, and network maintenance.
SFCN • Data Network Services: Network configuration/administration,
hardware/software platform, bandwidth , system monitoring.
Services Offered • Internet and Voice (SFCN video would not be offered)
• All revenue retained by the City
Services Revenue
• Partner compensated with monthly fee per connected end-user.
• Initial term commitment of 5 or 10 years
• Monthly fee per connected premises (household or business) of $15 (years 1-5)
Partnership Terms and $25 (years 6-10)
• Transport circuit fixed fee of $200/month
• Bandwidth fee at current SFCN cost of $.57/Mbps starting at 10Gbps
The total FTE requirement levels at 8 in Year 4. Under the Operating Partner model, this is
reduced to 2 FTE by moving the shaded functions to the operating partner…
Salary
Position Title Year1 Year2 Year3 Year4 Year5
(unloaded)
System GM $125,000 1.0 1.0 1.0 1.0 1.0
Comm./MDU Account Manager $65,000 1.0 1.0 1.0 1.0 1.0
Network Engineer $75,000 0.5 1.0 1.0 1.0 1.0
CSRs $50,000 - 1.0 1.0 1.0 1.0
TSRs $55,000 - 1.0 1.0 1.0 1.0
Install Techs $55,000 - - - 1.0 1.0
Maintenance Techs $65,000 - 1.0 1.0 1.0 1.0
Service Techs $55,000 - 1.0 1.0 1.0 1.0
Total Headcount: Stand-Alone Model 2.5 7.0 7.0 8.0 8.0
Total Headcount: Operating Partner Model 2.0 2.0 2.0 2.0 2.0

In exchange for the ongoing monthly fee to be paid to SFCN, the following impacts to the
financial analysis are incorporated into the pro forma…
• Monthly fee per connected premises (household or business) of $15 (Years 1-5)
Revenue and then $25 (Years 6-10) as contra-revenue
• Years 11-20: Insource all operations (baseline) or continue at reduced fee
• Staffing requirement reduced to 2 full-time employees

• Transport circuit fixed fee of $200/month
Operating Expense
• Bandwidth fee at current SFCN cost of $.57/Mbps starting at 10Gbps
• Billing system integration to Caselle previously developed by SFCN
• Generator/UPS is not required

• Core switch/router of $200k is not required
• Internet service back-office platform of $100k is not required
• Testing equipment of $50k is not required
Capital Expense
• Splicing trailer of $25k is not required
• Field technician tools of $23k is not required
• Service van ($45k) and bucket truck ($90k) is not required
• Customer installs of $500 each is not required (avoided contractor fee)

Pro Forma Financial Analysis
SFCN Operating Partner Model
Revenue Forecast
 Pro forma take-rate projections were evaluated via quantitative market research and reflect
ongoing wireless (voice) substitution within the residential segment…
Service Penetration
(By Year Since Launch)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Residential Voice Residential Internet Commercial Voice Commercial Data
Subscribers by Service
(End of Period)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year Year Year Year Year Year Year Year Year Year Year
10 11 12 13 14 15 16 17 18 19 20
Residential Internet Residential Voice Commercial Data Commercial Voice High Cap Accounts

KEY INPUTS Baseline Revenue
Year 1 Premises $1.9
• (in millions)
• Residential: 2,800
• Commercial: 60
• Household Growth: 4.3% Yrs. 2-5, then 2.2%
• Commercial Growth: 2% Yrs. 2-5, then 1%
• Year 5 Penetration $1.4
• Internet: 39.8% Res / 40% Com Middle Mile/Other Revenue
• Voice (eroded): 6.1% / 35% Com High Capacity Services
• Residential Internet
Commercial Video
• 3 Tiers (1G/2G/4G): $70-$150
• Wireless Gateway: $10 ($8 net) $0.9 Residential Video
• Commercial Internet Commercial Internet
• 3 Tiers (1G/2G/4G): $80-$250 Residential Internet
• Wireless Gateway: $10 ($8 net)
• Voice Commercial Phone
• Residential: $28 net wholesale $0.4 Residential Phone
• Commercial: $16 net per line SFCN Fees
• Inter-Departmental Lease Fee
• 21% of annual debt service ($56k in Yr. 2
increasing to $165k in Yr. 7)
• Install Fees
($0.1) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
• Residential: $100
• Commercial: $100
• SFCN Fees
• Treated as Contra-Revenue
• Annual fees per detail slide
($0.6)

Operating Budget
 Mapleton City New FTTP Positions (full-time)
 Years 1-20: System General Manager (1), Commercial/MDU Account Rep (1)
 Years 11-20: Network Engineer (1), CSRs (2), Field Techs (2)
 Position salaries based on SFCN wages
 52% benefits loading and 2.5% annual salary increase
 SFCN Functions (Years 1-10)

 Customer Care (help desk, sales, billing support, work orders)
 Customer Installs and service calls (truck rolls)
 Network administration (inside plant)
 Network maintenance (outside plant)

Cost Monthly
Sourcing Details
Requirement Recurring Cost
Dedicated fiber route to SFCN headend at $200/month

• Existing fiber: SFCN network to edge of Mapleton City limits
Transport $200
• New fiber: SFCN will construct to 125 W 400 North (10’ x 10’
equipment room)
Bandwidth via SFC starting at $0.57/Mbps/month and declining every 3

Access $5,700 in Year 2
years to reflect market conditions
Varies with
Other Fees IP Addresses: $.50 each/month
subscriber growth
Bandwidth Residential: 3M in Year 1 growing at 25%/year reducing to 10% by Year 10

Usage Per Commercial: 1.5M in Year 1 growing at flat 10%/year
Subscriber High Capacity: 1M in Year 1 growing at flat 10%/year

100,000 $45.00
$40.00
Bandwidth Required
80,000
Bandwidth $/Sub $35.00
Bandwidth $/Subscriber
$30.00
Total Bandwidth (Mbps)
60,000
$25.00
$20.00
40,000
$15.00
$10.00
20,000
$5.00
0 $0.00
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20
$1.6 100% $0.10 100%
Internet Revenue & COGS Voice Revenue & COGS
(in millions) 90% $0.09 (in millions) 90%
$1.4
80% $0.08 80%

$1.2
70% $0.07 70%
$1.0
60% $0.06 60%
$0.8 50% $0.05 50%
40% $0.04 40%

$0.6
30% $0.03 30%

$0.4
20% $0.02 20%
$0.2
10% $0.01 10%
$0.0 0% $0.00 0%
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
COGS Gross Margin $ Gross Margin % COGS Gross Margin $ Gross Margin %

KEY INPUTS $1.4
Baseline Opex
• Transport/Bandwidth/IP Addresses (in millions)
• Fees and usage per detail slide
$1.2
• Staffing
• Headcount per detail slide
• 2.5% annual wage increase $1.0
• 52% benefits loading
• Vendor Maintenance
• $25k/year for FTTP electronics $0.8
(starts Yr. 1)
• Professional Services
$0.6
• Implementation Support: $180k
• Legal/Acct: $30k (Yr. 1) → $5k/year
• Locates & ROW Fees $0.4
• Year 5 total attachments: 616
• Annual cost per attachment: $5.76
• Annual fee increase: 5% $0.2
• Application fee of $56/pole
included in OSP construction
capex $0.0
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Internet Backbone/IPAddresses Professional Services
Staffing Expenses Vendor Maintenance
Locates & Right of Way Fees

KEY INPUTS $120
• Marketing Baseline SG&A
• Year 1: $0k (in 000’s)
• Year 2: $40k $100
• Year 3: $20k
• Years 4-5: $10k
• Year 6+: 1% of revenues $80
• Billing
• No incremental cost given
broadband services fees added to $60
electric billing statement
• Overhead
• Broadband imputes an allocation $40
of administrative overhead costs
as an enterprise fund
• $57k in Year 1 $20
• Increases 3% annually
• Facilities & Workspace
• No incremental budget required $0
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Marketing Expenses Administrative Overhead

Capital Budget
 Network Construction
 OSP Construction: $1,824 composite cost per premise passed
 Subsequent plant extensions: $300/meter passed
 Neighborhood Node cost: $210/meter passed
 Make ready cost: $700/pole (may be lower depending on state of RMP poles)
 Pole attachment application fee: $55.64/pole
 Year 10 Network electronics upgrade: $75/premise passed
 Software
 Fiber Management & Network Management: $50k
 Media Converters (MCs)

 Media Converter for 1G tier: $35 each
 Media Converter for 10G tier: $345 each
 Plume Wireless Device: $160 each
 Year 7 MC upgrade: $45k ($35/ea.)

 Fiber Drop & Customer Equipment
 Fiber drop and connectors: $125 each
 Power cord and UPS: $52 each ($12 for non-voice install without UPS)
 Engineering and Integration

 GPS Walkout and Survey of RMP Poles: $500 per mile
 Make ready engineering: $500 per mile
 FTTP design: $1,500 per mile
 Construction Management Services: $5,000 per mile
 As-built drawings: $250 per mile

 Fixed Equipment
 Generator (Year 11): $25,000
 Core HE switch/router: $200k
 Internet systems back office: $100k
 Field Tech Equipment/Tools: $98k
 Software
 OSS/BSS: $250k
 Vehicles
 Service Vans Per Install Technician: 1.0
 Heavy Service Trucks Per Maintenance Technician: 1.0
 Service vans: 1 at $45k each
 Heavy Service Trucks (non-insulated): 1 at $90k each
 Install Rigs: 1 per Install Technician at $20k each
 Vehicles replaced at 6 year intervals

Five Year Capex = $8.3M
$213,242
$224,448
$255,086
$50,000
$501,186
Outside Plant Construction
Other Capital Costs
Back Office Systems
Media Converters
Fiber Drop and Powering

$7,091,007
Engineering & Inspection Services

$4,000,000
$3,500,000
$3,000,000
Start-Up
$2,500,000 Tasks
$2,000,000
$1,500,000 Electronics
MC Upgrade
Upgrade
$1,000,000
Insource
Network Operations
$500,000 Construction
$0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Outside Plant Construction Backup Power
Other Capital Costs Back Office Systems
FTTP MCs Fiber Drop and Powering
Engineering & Inspection Services Vehicles
Pro Forma Outcomes
1. Equity
 City provides $1,000,000 contribution in Year 1
 As equity, no imputed interest rate
2. Long Term Bond
 Single round of financing (Year 1) via 20-year tax exempt bond
 Backed by taxing authority of the City (sales tax & energy sales tax)
 Interest rate of 2.75% and five years of capitalized interest
 Principal payments starting in Year 6
 2.0% issuance cost, $0 reserve requirement
3. Working Capital Loan
 Provides for cash needs not covered by long term financing
 15 year term with interest rate of 2.0% based upon current PTIF* rate
 Interest accumulates over first 5 years with Year 6 balloon payment
 Level payments begin in Year 6 and complete in Year 15
* Public Treasurers Investment Fund

Insource staffing in Additional Funding
$4.0 Year 11 Required in Year 13
Positive Oper.
Income in Year 3
$2.0
$0.0
($2.0)
($4.0)
($6.0)
($8.0)
Net Cash is
Negative in Year 20
($10.0)
Line of Credit Operating Income Debt Service Net Cash Revenue
9/23/2020 78
Baseline View: Scenario: Breakeven Scenario: Breakeven Scenario: 1G at $50
Input/Outcome Insource in Year 11 Penetration Cost/Passing (Longmont Strategy)
Construction Cost / Passing $1,824 $1,824 $1,100 $1,824
Internet Penetration (residential) 39.8% 44.0% 39.8% 54%
Price for 1G Tier (residential) $70/month $70/month $70/month $50/month
Years 1-5: $15 Years 1-5: $15 Years 1-5: $15 Years 1-5: $15
SFCN Fee Per Sub/Month
Years 6-10: $25 Years 6-10: $25 Years 6-10: $25 Years 6-10: $25
Equity $1.0M $1.0M $1.0M $1.0M
Long Term Bond $10.4M $10.4M $7.6M $10.5M
Working Capital Loan $0.3M $0.3M $0.3M $0.3M
Line of Credit $3.0M - - -
Total Funding $14.6M $11.7M $8.9M $11.8M
Net Cash – Year 20 ($3.0M) $0.1M $0.1M $0.3M
Project Break Even > 20 20 20 20
Financially Feasible? NO YES YES YES

 To achieve financial self-sufficiency, the fiber system performance would
need to exceed our ‘most likely’ take rate estimates
 Goal: Prior to the retirement of the debt in year 20, cash flow is sufficient to
cover debt service without any additional funding after Year 1
 The residential Internet penetration rate needs to reach 44% versus our
research-based estimate of 39.8%
 However, the SFCN partnership presents a tremendous opportunity for
Mapleton City given their existing broadband operation and operating
expertise
 Key Next Steps

 Review with Citizen Committee
 Legal review of HB149 requirements
 Validate financing terms and pro forma review by Zions Public Finance
 Initial presentation to City Council prior to June 30th

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Request for Proposal (RFP) for a Strategic Internet Network Consultant

The Need/Goals: As Mapleton City continues to grow, we recognize that fiber

3. As per the Attached Feasibility Study completed by Uptown Services what

Posted Date: 09/21/2020

1. Estimate construction cost

Uptown Services, LLC

Survey Survey Online Survey Client Report

Uptown, SDR &

9/23/2020 Study conducted by Uptown Services, LLC 4

9/23/2020 Study conducted by Uptown Services, LLC 5

5 days 3-4 days

9/23/2020 Study conducted by Uptown Services, LLC 10

Monthly Voice Spending

30% Households Without Wireline Phone Service by

Incidence of Triple Play Bundle

9/23/2020 Study conducted by Uptown Services, LLC 12

150 Average Households

Source: OpenVault Q2 2019 OVBI Report

9/23/2020 Study conducted by Uptown Services, LLC 14

Satisfaction Rating by Service/Service Provider

Importance Rating of Select Broadband Service Attributes

Total Sample Definitely Subscribe

9/23/2020 Study conducted by Uptown Services, LLC 20

9/23/2020 Study conducted by Uptown Services, LLC 21

2.5% 1.1% 2.1% 1.6%

CenturyLink Comcast CentraCom Rise The City A New Don't Know

Q24/Q27: Stated purchase intent for:

100% Primary reason to switch 6%

Residential Research Small Business

Internet 40% @ $70 40%

Telephone 10% / 8% @ 10% Less 35%

9/23/2020 Study conducted by Uptown Services, LLC 25

Most Likely Subscribed Tier at Stated Price Points

9/23/2020 Study conducted by Uptown Services, LLC 26

Study conducted by Uptown Services, LLC

I would support 61%

I would not support 14%

 Internet and phone service satisfaction levels benchmark below average

current Internet service

9/23/2020 Study conducted by Uptown Services, LLC 31

9/23/2020 Study conducted by Uptown Services, LLC 33

9/23/2020 Study conducted by Uptown Services, LLC 34

• Service drops installed after subscriber orders first service

9/23/2020 Study conducted by Uptown Services, LLC 37

Mapleton Network Neighborhood

9/23/2020 Study conducted by Uptown Services, LLC 40

9/23/2020 Study conducted by Uptown Services, LLC 41

* - Does not include engineering, fixed

9/23/2020 Study conducted by Uptown Services, LLC 44

1st Year / Month-Month

1st Year / Month-Month

*DOCSIS3.1 is not available in all areas that Comcast currently serves.

9/23/2020 Study conducted by Uptown Services, LLC 46

9/23/2020 Study conducted by Uptown Services, LLC 47

1G / 1G $70 $35 for Media Converter

Wireless Gateway Upgrade Adds $160 for Plume

* Requires $2,000 monthly minimum but can be pooled with SFCN.

9/23/2020 Study conducted by Uptown Services, LLC 48