01-22-2016 BPU RPT 13 - Laserfiche WebLink

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W n i= R L N L R G v 1. 1 Jwl -- RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 13 File ID — 16 -0200 — D SUBJECT: FIBER BUSINESS PLAN — REVIEW OF MAGELLAN ADVISORS REPORT ON USE OF FIBER FOR ENHANCED COMMUNITY BROADBAND COMMUNICATION INFRASTRUCTURE; $300,000 IN STARTUP COSTS OFFSET BY CURRENT REVENUES OF $455,000 ISSUE: The issue for Board of Public Utilities consideration is discussion of the Magellan Advisors' Fiber Business Plan and staff recommendations for implementation of the broadband business plan. RECOMMENDATIONS: That the Board of Public Utilities: Receive and file a report from Magellan Advisors summarizing their work to develop a fiber business plan for Riverside Public Utilities; 2. Provide feedback to staff and the consultant on policy considerations relative to availability and expansion of broadband services in Riverside; 3. Approve in concept the roadmap for dark fiber deployment within the community; 4. Approve the expenditure of $300,000 to begin implementation of Phase 1 of the proposed roadmap which will formalize RPU's dark fiber leasing program; and 5. Direct staff to identify, through the ten -year proforma, an allocation of prior years' fiber revenue for future appropriation through the budget process. BACKGROUND: Riverside Public Utilities operates an advanced broadband fiber -optic cable based network to communicate between its substations and control centers for the operation of our electric grid. Fiber optic cable is normally installed in bundles of 96, 192, 288 or 576 fibers. A typical communication path requires 2 fibers. As a result, RPU has many locations and paths throughout the City where it owns excess fiber. This excess fiber is not connected to electronic switches at either end, rendering it "dark ". Currently, RPU leases some of these excess fibers to third parties who install the electronics and "light" the fiber for communication use. In July 2014, the City engaged the national consulting firm Magellan Advisors (Magellan) to develop a fiber business plan and roadmap for enhanced broadband communications in Riverside. Magellan has completed the attached draft report which outlines a three - phased plan for enhancement of RPU's business practices and expansion of our dark fiber offering. Magellan's scope of work included assessment of RPU's current practices around dark fiber leasing and opportunities for enhancement of the program supported by a business community survey, interviews with community anchor stakeholders, and review of peer agency fiber offerings. Magellan also assessed RPU's current fiber offerings, infrastructure, costs of construction, and opportunities for efficiency in how we deploy fiber infrastructure.