[Davisgig] Community broadband agenda item, NC City Council meeting tomorrow Wed. night @ 6:30 pm, 1/8/2020

Robert Nickerson rob at omsoft.com
Tue Jan 14 20:57:59 PST 2020


Hi

It's great that this community has such breadth and knowledge, and that 
co-ops are part of the culture in several areas, so it seems like there 
is a cultural basket here already, that another coop could be placed in.

To the comments below I offer the following:

1) I know little to nothing about the operations, financial incentives, 
voting structures, or decision making in co-ops, I have other talents. 
I'm sure I'm naive about things in this area

2) The core ring and sub rings are the heavy lift, and will need other 
peoples money. Our efforts over the past years have shown, there are 
monetary options from private finance, to banks, to Private Equity get 
enough capital to build the core ring and sub rings, of a city wide 
community fiber coop. Once that is generating revenue, you use a demand 
aggregation platform like Cos Systems to achieve enough signups in a 
neighborhood to pay for the build cost before you ever build it, and 
grow it a neighborhood or two at a time. That way you already have all 
the financial arrangements seeded in your database, you take deposits, 
and you are collecting revenue on day 1 of the installation. ISP 
Financiers, PE, and people like CCG, Magellan Advisors and so forth see 
and help fund these all day. Even the president of Entry Point can get 
our financing, but we would be using his platform.

Building the core and sub rings, means a non profit coop could provide 
fiber connections to the schools for a one time cost, and if it hits low 
income areas and lots of MDUs it could see to Internet connection needs 
for students, a good grant generating tool and rallying point.

3) Coop builds with no prevailing wage requirements, so who knows what 
the ring could be built for in that case,  the city FSR was an estimated 
$10 MM with prevailing wage.

4) In places like Ammon Idaho, the ISP service over the fiber is 
surprisingly cheap. So while the residents pay around $20 in fiber 
installation amortization costs through their local improvement district 
monthly, and $17 or so to the City in M+O on the network, because 
competition =  the ISPs are selling 100 Mbps symmetric for $9.95 monthly.

So your total spend for coop member owners would be lower than what they 
pay incumbents.

5) Davis Community Cable  -  Maybe we can ask Bill Buchanan to do a 
Davisville and find some people that were involved or could say exactly 
went down there. I'm sure there are important things to learn, but that 
should not stop progress. Considering all the other benefits that were 
enumerated over this 4 year process, providing this is looked at and 
implemented cautiously., with good planning and engineering consulting 
it should work well.

Do more people feel its worthwhile though ?

Thanks

RAN



On 1/10/2020 8:53 PM, Douglas A. Walter wrote:
> So, stop me if I start being boring or too far inside the subject.
>
> A consumer co-op is composed of owners who use the service(s) that the 
> co-op offers. They usually contribute some amount of capital to the 
> cooperative. At the Davis Food Co-op, you can withdraw all that 
> capital when you resign from membership (although you haven't earned 
> any interest on it); in some other co-ops, you give some capital that 
> belongs exclusively to the co-op.
>
> A consumer co-op that was going to build the core ring and gradually 
> expand would be doing so with Other People's Money – there's no way 
> that member capital could finance that initial construction, and still 
> be affordable to any number of Davisites. If it wasn't affordable, 
> that would make the competition with other forms of Internet service – 
> some of which are broadband – even more difficult. Because, unless I'm 
> missing something, there would be a cost of ownership that would be 
> separable from your monthly service bill for an ISP. (Let me know if 
> I've made any unreasonable assumptions or leaps here.)
>
> There are ways that a co-op could raise additional capital from 
> (wealthy) member/owners. And whatever capital the co-op had would be a 
> nice lever for getting Other People's Money, from whatever source.
>
> But I don't really know that this is a business case that would be 
> very attractive to loan funds, banks, or credit unions. Just as Davis 
> is a city of cooperatives, it is also a city with some history of 
> failed co-ops – with the Davis Cable Co-op coming to mind. Perhaps 
> there are veterans of that experiment who would care to comment?
>
>
> On Jan 10, 2020, at 5:20 PM, Robert Nickerson <rob at omsoft.com 
> <mailto:rob at omsoft.com>> wrote:
>
>> Hi All
>>
>> Sorry the company we met with was ENTRY POINT Networks, a company 
>> that has been interested in the DavisGIG project, and spoken at 
>> events several times, not Encore Networks.
>>
>> Also to Doug's question, not a co-op for our small project, but for 
>> Davis as a whole.
>>
>> The CO-OP would get together to build the core ring and sub rings 
>> that was part of the City funded feasibility study, and then the 
>> neighborhoods based on participation or take rate. The ring would 
>> allow the community to see to the network needs of schools, help 
>> students, and provide better price options and business models to 
>> serve to our Apartment Complexes, businesses and homes.
>>
>> We will have the opportunity to see the construction, cable 
>> placement, and lighting and get a good idea of how this could work 
>> for the City as a whole.
>>
>> There are a lot of benefits to a community owning the infrastructure 
>> that don't disappear, even though the City gov doesnt see it as a 
>> priority.
>>
>> Thanks
>>
>> RAN
>>
>>
>> On 1/10/2020 8:42 AM, Douglas A. Walter wrote:
>>> Hi. I read through the Council packet, looking for a description of 
>>> the cooperative. The relevant sentence (!) is on pages 100-101 of 
>>> the packet, where they say it is a member-based organization, with 
>>> no physical boundaries, with bylaws based on those of the 
>>> Plumas-Sierra Rural Electric Cooperative. That's a good source to 
>>> clone from, but it doesn't tell us too much.
>>>
>>> Rural Electric Co-ops are usually consumer co-ops, and highly 
>>> dependent on professional staff (appropriate for that industry).
>>>
>>> Throughout, I could tell that the "author" of the pieces of the 
>>> packet wasn't a cooperator. There are a few little things, but the 
>>> big one is "...with no physical boundaries." In general, 
>>> cooperatives incorporate in one state, and don't sell memberships 
>>> across state lines. It's a minor point in this context, but not when 
>>> it comes to operations, IMO. But maybe there are new laws, or something.
>>>
>>> To answer your question, Rob, I have another question: are you 
>>> looking for a co-op to operate the small fiber deployment project, 
>>> or would that be just the start?
>>>
>>> On Jan 9, 2020, at 4:05 PM, Robert Nickerson <rob at omsoft.com 
>>> <mailto:rob at omsoft.com>> wrote:
>>>
>>>> HI All
>>>>
>>>> I met with Mike Anderson and the President of Encore Networks in 
>>>> Davis in November. At that meeting, I was telling my woes about 
>>>> getting the City to participate in a community broadband 
>>>> deployment, and they recommended the COOP model to achieve the same 
>>>> ends, without directly involving City of Davis in the process. 
>>>> There seems to be a lot of community support for controlling the 
>>>> network locally, and making it open access to multiple providers.
>>>>
>>>> Omsoft is embarking on the construction phase a small fiber 
>>>> deployment project north of the City limits  with a Woodland 
>>>> construction company. We should be done by July 2020, and will have 
>>>> first hand experience to share as to the feasibility of leading an 
>>>> effort in the town.
>>>>
>>>> Looks like Michael is proceeding with a cooperative effort in 
>>>> Nevada City.
>>>>
>>>> Is anyone up for participating /organizing a fiber optic community 
>>>> coop for our area?
>>>>
>>>>
>>>> Thanks
>>>>
>>>> RAN
>>>>
>>>>
>>>>
>>>> -------- Forwarded Message --------
>>>> Subject: 	Community broadband agenda item, NC City Council meeting 
>>>> tomorrow Wed. night @ 6:30 pm, 1/8/2020
>>>> Date: 	Wed, 8 Jan 2020 05:13:07 +0000
>>>> From: 	Michael Anderson <mikea at clientworks.com>
>>>> To: 	Michael Anderson <mikea at clientworks.com>
>>>>
>>>>
>>>>
>>>> 
>>>> Hello,
>>>>
>>>> You are receiving this email because I have discussed with you the 
>>>> concept of community broadband sometime in the past months or 
>>>> years. If you know of anyone else who is interested in community 
>>>> broadband, please feel free to pass along this email.
>>>>
>>>> Nevada County has a broadband grant opportunity currently in 
>>>> process and I have submitted a grant application on behalf of the 
>>>> nascent Northern Sierra Fiber Broadband Cooperative. To learn more, 
>>>> please come to tomorrow night's meeting.
>>>>
>>>>
>>>> Here are the details, from the agenda--
>>>>
>>>> https://www.nevadacityca.gov/files/documents/CityCouncilAgenda01-08-20050359010320PM1315.pdf
>>>> "5. DEPARTMENT REQUESTED ACTION ITEMS AND UPDATE REPORTS:
>>>> A.Subject: Nevada County Last-Mile Broadband Grant Application 
>>>> Recommendation:City Council to review and consider the Nevada 
>>>> County Last Mile Broadband Project information provided and provide 
>>>> staff direction as to how the Council may or may not want to 
>>>> support the proposed project."
>>>>
>>>> Project details / supporting information are in the packet--
>>>> https://www.nevadacityca.gov/files/documents/CityCouncilPacket01-08-20050359010320PM1315.pdf
>>>> Pages 46-112
>>>>
>>>> www.nevadacityca.gov 
>>>> <https://www.nevadacityca.gov/files/documents/CityCouncilPacket01-08-20050359010320PM1315.pdf>
>>>> REGULAR CITY COUNCIL MEETING WEDNESDAY, JANUARY 8 , 2019 Regular 
>>>> Meeting - 6:30 PM City Hall – Beryl P. Robinson, Jr. Conference 
>>>> Room 317 Broad Street, Nevada City, CA 95959 MIS
>>>> www.nevadacityca.gov
>>>>
>>>>
>>>> If you have any questions please feel free to call me directly on 
>>>> my cell phone tomorrow. Thank you!
>>>>
>>>> */Michael P. Anderson/*
>>>> President
>>>> Clientworks, Inc.
>>>> 721 Zion St
>>>> Nevada City, CA 95959
>>>> www.clientworks.com <http://www.clientworks.com/>
>>>> 530.470.0104 x102 - office
>>>> 530.902.3549 - cell
>>>>
>>>> ____________________________________________________________________________
>>>>
>>>> REPORT TO CITY COUNCIL City of Nevada City 317 Broad Street Nevada 
>>>> City CA 95959 January 8, 2020 www.nevadacityca.gov 
>>>> <http://www.nevadacityca.gov/>
>>>> ___________________________________________________________________________
>>>> TITLE: Nevada County Last-Mile Broadband Grant Application
>>>> RECOMMENDATION: City Council to reviewand considerthe Nevada County 
>>>> Last Mile Broadband Project information provided and provide staff 
>>>> direction as to how the Council may or may not want to support the 
>>>> proposed project.
>>>> CONTACT: Catrina Olson, City Manager Bryan McAlister, City Engineer
>>>> Michael Anderson, Clientworks
>>>> BACKGROUND/DISCUSSION: City Council and City staff have discussed 
>>>> the necessity for the City to explore opportunities to provide 
>>>> fiber technology in the City of Nevada City. The City Engineer, 
>>>> Bryan McAlister and City Manager, Catrina Olson metwith Michael 
>>>> Anderson of Clientworks, Inc. on December 17, 2019 to discuss the 
>>>> Nevada County Last-Mile Broadband Project (a fiber project), The 
>>>> Northern Sierra Fiber Broadband Coop., a utility cooperative and a 
>>>> grant application that was submitted for the project. The name of 
>>>> the project is the Nevada City Fiber Hub for Base Industry and 
>>>> Opportunity Residential. The project will utilize single-mode fiber 
>>>> to the premise technology. The project will be 100% underground, 
>>>> with an active Ethernet topology and fuel cell backup power to 
>>>> provide continuous uptime capability during power outages. The POP 
>>>> (point of presence) will be located in a vault at the corner of 
>>>> Reward and Zion Street in the Seven Hills District of Nevada City, 
>>>> with a mini-NOC (network operation center) located in the Liberty 
>>>> Hill Building.The boundary streets for the project are Zion Street 
>>>> to the east, the service loop road for the old Grass Valley Group 
>>>> buildings to the west, Reward Street to the north, and Providence 
>>>> Mine Road to the south (a map is provided in the grant 
>>>> application). If implemented the installation of this broadband 
>>>> infrastructure could potentially provide service to approximately 
>>>> 75 households, 100 businesses and 5 anchors. The Northern Sierra 
>>>> Fiber Broadband Coop is the grant applicant and the entitythat 
>>>> would be initiating the project and once complete managing the 
>>>> utility as a cooperative.The projects estimated cost is $924,800 
>>>> and the grant request from Nevada Countyis for $25,000. Staff is 
>>>> seeking Council direction on how the City may or may not want to 
>>>> support the proposed project.
>>>> ENVIRONMENTAL CONSIDERATIONS: None.
>>>> FINANCIAL CONSIDERATIONS: None.
>>>> ATTACHMENT:
>>>> Nevada County Broadband Strategy– Approved by the Board of 
>>>> Supervisors October 2019
>>>> Nevada County Broadband Strategy Appendix
>>>> Nevada County Broadband Grant Application –Northern Sierra Fiber 
>>>> Broadband Cooperative
>>>> Nevada County Broadband Grant Application
>>>> Nevada County Broadband Grant Guidelines
>>>>
>>>> _______________________________________________
>>>>
>>>> Please ref our wiki for details, documents and contacts:
>>>>
>>>> http://www.dcn.davis.ca.us/~help/dokuwiki/doku.php?id=start
>>>>
>>>> Davisgig mailing list
>>>> Davisgig at list.omsoft.com
>>>> http://list.omsoft.com/mailman/listinfo/davisgig
>>>
>>> Doug Walter (home account)
>>> dawalter at dcn.org <mailto:dawalter at dcn.org>
>>> "Wag more, bark less"
>>>
>>>
>>> _______________________________________________
>>>
>>> Please ref our wiki for details, documents and contacts:
>>>
>>> http://www.dcn.davis.ca.us/~help/dokuwiki/doku.php?id=start
>>>
>>> Davisgig mailing list
>>> Davisgig at list.omsoft.com
>>> http://list.omsoft.com/mailman/listinfo/davisgig
>> -- 
>> Robert Nickerson
>> UCD Class of 1996
>> CEO, Om Networks
>>
>> cell: 5308483865
>> www.omsoft.com
>>
>> _______________________________________________
>>
>> Please ref our wiki for details, documents and contacts:
>>
>> http://www.dcn.davis.ca.us/~help/dokuwiki/doku.php?id=start
>>
>> Davisgig mailing list
>> Davisgig at list.omsoft.com
>> http://list.omsoft.com/mailman/listinfo/davisgig
>
> Doug Walter (home account)
> dawalter at dcn.org <mailto:dawalter at dcn.org>
> "Wag more, bark less"
>
>
> _______________________________________________
>
> Please ref our wiki for details, documents and contacts:
>
> http://www.dcn.davis.ca.us/~help/dokuwiki/doku.php?id=start
>
> Davisgig mailing list
> Davisgig at list.omsoft.com
> http://list.omsoft.com/mailman/listinfo/davisgig

-- 
Robert Nickerson
UCD Class of 1996
CEO, Om Networks

cell: 5308483865
www.omsoft.com

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