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Home My WebLink AboutReg 2004-01-20 Item 2 - Presentation - Tukwila Fiber Network Connectivity Project1LA w9 COUNCIL AGENDA SYNOPSIS r O sy 1 e e� \..sr. =O J i ii 2 19 08 CAS Number: 04-003 Original Sponsor: Timeline: Sponsor's Summary: Meeting Date 1 1/20/04 Meeting Date 1/20/04 Council Recommendations: Sponsor: Approve briefing to Council. Committee: Administration: Cost Impact (if known): I Fund Source (if known): Initials Prepared by 1 Mayor's review 1 Council review F I Agenda Item Title: Special Presentation Connectivity Project Admin. Meeting bate 1 1/20/04 Information Memo dated January 13, 2004 TFN Business Case Expected TFN Cost Breakdown Network Design Maps ENDICE Attachments 0 003 I Original Agenda Date: January 20, 2004 Public Works ITEMNO. 02) Asset Analytics in conjunction with Public Works, will brief the Council on the proposed deployment of theTukwila Fiber Network (TFN). TFN will provide all Tukwila residents and businesses with access to extremely high -speed connectivity. The objective of the presentation is to provide an update of the connectivity project including network design, and projected deployment costs and seek Council's approval to move forward with the the actual TFN deployment. To: Council Members From: Asset Analytics (AAI) Date: January 13, 2004 Subject: Tukwila Fiber Network (TFN) ISSUE BACKGROUND AAI Anti INFORMATION MEMO AAI in conjunction with the Mayor and Public Works, will provide an update presentation with respect to deploying the Tukwila Fiber Network (TFN). The Network will provide all Tukwila residents and businesses with access to extremely high speed (gigabit Ethernet) connectivity and third party telecommunications services. The objective of the presentation is to provide an update, answer any questions, and seek Council's approval to move forward with the actual deployment of the Network. The City has been investigating the feasibility of implementing one of its economic development goals, that of making available gigabit Ethernet bandwidth to all Tukwila citizens and businesses. Specifically, in its 2001 long range economic development plan, the City and Council agreed to "take action to become the first City on the Earth to guarantee gigabit Ethernet availability at every address in the City, and every classroom of every school as well as at Internet kiosks in public places." For perspective, DSL broadband speeds can reach around 1.0 megabits per second (Mbps) of speed roughly 17 times the speed of a fast 56k dial up modem. Gigabit Ethernet is roughly 1000 times that of DSL. To date, we have been engaged on two fronts. The first has been to prepare the City's network infrastructure. This entailed designing the fiber network and identifying the components required to create and operate the TFN. The second has been to quantify the costs involved with such an endeavor, solidify the ability to finance the construction and recapture the capital outlay over time. DISCUSSION Since we last met, a number of tasks have been completed to bring Tukwila's Fiber Network project to a point where the Council can decide to take steps to move forward toward completion of the initial phase of the system in 2004. In the last twelve months, both businesses and residents of the City have been polled for interest in the City undertaking this course of action, as well as to gauge potential customers of the completed network. Most individually surveyed residents and businesses were supportive of the project and indicated they were likely to be customers. Over 40% of businesses and residents were extremely positive about becoming a customer, others were very likely to become customers. The system is financially structured to pay for itself over the life of a 20 -year bond see Attachment 1 TFN Business Case). The poll numbers indicate there is sufficient interest to make the financial model work. Other areas of the Northwest, such as Grant County in 16004 Tualatin Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 AA1 Ana A4.Rl c t c. Washington and Provo in Utah are actually experiencing the same rates of conversion and more in some cases. An initial network has been designed (see Attachments 2 -3) to be able to connect every residence and business in the City should they choose to become a customer. From this design, a Bill of Materials (see Attachment 4 Expected TFN Cost Breakdown) was created listing all the labor and materials required for completing the Network. AAI went to vendors and obtained general pricing for network materials such as fiber, conduit, electronics etc, as well as labor prices for such items as trenching, boring and fiber splicing. In summary, we have a network design, a conservative expected cost estimate, interest in the City moving forward and a method to fund the project. RECOMMENDATION Present to Council for questions, guidance, and decision to approve /disapprove the project. Attachments: 1. TFN Business Case 2. Network Design Map 3. Network Design Map 4. Expected TFN Cost Breakdown 16004 Tualatin-Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 441 Ana AteAt z, L. Tukwila Fiber Network Business Case Cash flows Assume 4365 customers (45% take rate) $25.00 revenue per subscriber from service providers to City Network costs Electronics 3,500,000 Outside Plant 8,200,000 Total Costs $11,700,000 Expenses Monthly Annual Bond for $11,700,000 at 3.0% for 20 years 64,887 778,644 Network Operations 50,000 600,000 Total Outflow 114,887 1,378,644 Revenue Monthly Annual Content revenue 109,125 1,309,500 Advertising 15,000 180,000 Total Inflow Cash Flow Summary Monthly Annual Total cash flow out 114,887 1,378,644 Total cash flow in 124,125 1,489,500 Difference 9.238 110.856 16004 Tualatin-Sherwood ltd. Suite 505 Sherwood, OR 97140 503.625.8900 124,125 1,489,500 .4 4e NA/ enr NETWORK ELECTRONICS $3,400,000 PASSING MATERIALS $1,906,664 PASSING LABOR $5,205,449 SERVING MATERIALS 148,347 SERVING LABOR $1,077,696 PROJECT COST $11,738,156 DEFINITIONS AA, A44a i4i.4zci, l ac. Expected Tukwila Fiber Network Cost Breakdown The above project costs assume a 45% take rate. Passing Materials Materials needed to bring the fiber from the network operations center to points in Tukwila where its available to all businesses and residents in Tukwila Passing Labor Labor required to deploy the passing materials and configure the network to be able to provide services to all businesses and residents in Tukwila Serving Materials Materials required to connect 45% of all available Tukwila residents and businesses Serving Labor Labor required to connect 45% of all available Tukwila residents and businesses NOTE: The full deployment cost to all residents and businesses in Tukwila, regardless of whether they are customers or not is estimated to be approximately $17 million. 16004 Tualatin-Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 19774ctvfair rf AAI A44a A+.4lytza, L. PASSING MATERIALS Cabinet Enclosure Pinnacle RM 3KVA UPS, 120VAC, 60Hz Pinnacle Internal SNMP Agent Card Pinnacle Rackmount, 3K Extended Battery Pack(x4 Vertical rail with hook loop belts- 48" 36" Vertical Fiber manager for slack storage Splicing Module Four port Cable End Plate Assembly Vault Concrete 5' x 7' Vault Concrete 4' x 4' Optivault Fiber Optic Cable Storage Vault Optivault Fiber Optic Cable Storage Vault Lid Grade Level Box w /Lid (one fiber pull -box every 600') FOSC400- A8- 12 -1 -NGV IAI R- FOSC -B -G E N -12 -2 FOSC450- B6- 6- NT -0 -BOV FOSC- ACC -B- TRAY -24 FOSC ACC -450- AERIAL CLAMPS F O S C -ACC -450 M U LT D R O P Reliable 1V-60 Drop Pedestal, 6 "x6 "x21" Tall 192 Singlemode Fiber LT Cable 144 Singlemode Fiber LT Cable 96 Singlemode Fiber LT Cable 72 Singlemode Fiber LT Cable 148 Singlemode Fiber LT Cable 36 Singlemode Fiber LT Cable 24 Singlemode Fiber LT Cable 12 Singlemode Fiber LT Cable 144 Singlemode Fiber ADSS Cable 96 Singlemode Fiber ADSS Cable 72 Singlemode Fiber ADSS Cable 148 Singlemode Fiber ADSS Cable 36 Singlemode Fiber ADSS Cable 24 Singlemode Fiber ADSS Cable 12 Singlemode Fiber ADSS Cable Strand Cable Strand Tangent Assembly Strand Dead -End Assembly Ground Rod (one per cabinet) Ground Rod Clamp (one per cabinet) lib Copper Ground Wire (6' per rod) Conduit Marker Sign (one sign every 150' of UG) UG Marker Tape ConQuest 1.25" SDR -13.5 Smooth Wall Duct 16004 Tualatin-Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 »Tr r 9 AA1 Aix A4410:(4, Imo. 14" x 10' PVC Duct (for trunk with distribution cable runs) PASSING LABOR Cabinet Installation, pad mounted, concrete, and optivault fiber storage system Cabinet installation, pole mounted Electrical hook -up, metered installation Install Hand -hole (Access Chamber) Install Drop Pedestal Install strand and hardware Water tight splice closure installation (includes Ring cut) jWater Proof splice closure installation (includes Ring cut) L ash one cable L ash two cables L ash three cables L ash four cables I nstall ADSS Cable Directional Drilling Utility Pot -hole 36" Trench and Backfill (Native Backfill) 36" CDF Materials and Backfill 36" Select Fill (Crushed Rock) 36" Native Material Haul -off ($6 /cubic yard) Saw Cut Sidewalk ($0.45 /inch -foot) Saw Cut 15' Driveway ($0.45 /inch -foot) Saw Cut 30' Roadway ($0.45 /inch -foot) Saw Cut Roadway ($0.45 /inch -foot 3 "deep) Asphalt Replacement (3' wide patch) Concrete Sidewalk Replacement Curb and Gutter Replacement MCS Saw Cut IMCS Seal and Clean IVaccum and Dump Fees Install one PVC duct in open trench Install one cable in duct Install riser U- guards Fusion splicing SERVING MATERIALS Drop Cable 2 Fiber, Singlemode [Aerial Splice Closure, Supports Tube Splicing, 3M Slic Splice Closure, Raychem -3A, Supports Tube or Fiber Splicing LC Direct Fiber Termination Connector, Avaya or Equivalent Network Interface Device (NID) (for premise demarcation) Bonding Clamp (for steel messenger drop cable) Strain Relief Clamp (one at pole /strand, one at premise) Ground Rod with Clamp, 4' IN Copper Ground Wire (6' per ground rod) 16004 Tualatin-Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 ,q 77lC4ttyt-.✓r 4 2 IUG Drop Duct MI AL•x A4•41# 4, (SERVING LABOR (Water tight splice closure installation (includes Ring cut) (Water Proof splice closure installation (includes Ring cut) Install aerial drop (pole to premise) Install aerial drop (two poles to premise) Install aerial drop (three poles to premise) Plow Drop Cable /Conduit (ped to ped or ped to premise) Driveway /Sidewalk Push Install UG drop (ped to premise) Install UG drop (2 peds to premise) Install UG drop (3 peds to premise) Fusion Splice Field connectorization (subscriber runs, outdoor cabinet premise) IMCS Saw Cut MCS Seal and Clean (Vaccum and Dump Fees 16004 Tualatin-Sherwood Rd. Suite 505 Sherwood, OR 97140 503.625.8900 Ar7"RcfMtrivr 'f -3