Palm Coast’s Municipal Fiber-Optic Network: Project Update

Prosperity 2021

Economic Development Tool to Recruit Businesses

Competitive Advantage to Neighboring Communities

What Is FiberNET?

Palm Coast FiberNET is a City-owned municipal broadband network. Originally proposed to replace City telecommunication costs, the network now offers a secure, fast, and cost effective fiber optic network to other government agencies and businesses located in Palm Coast.

The state of the art network provides the opportunity to integrate data, voice, and video. We currently offer connections from 2 Mb/s up to 10 Gb/s but future bandwidth is virtually unlimited.

Our topology typically follows one of two models:

Internet Access Wide Area Network

What Is FiberNET?

What Is FiberNET?

What Is FiberNET?

What Is FiberNET?

FiberNET = Transport

FiberNet Milestones

2005 Council Approves FiberNet Proposal

2007 Consultant Design Nine Retained

March 2010 Colocation Facility Opens

May 2010 FiberNet Available For Commercial Customers

October 2010 Florida Hospital Flagler Comes Online

July 2011 Flagler School District Comes Online

2007-08 = YEAR 1City Facilities Connected:

• Old City Hall (11 Commerce Blvd)• Water Treatment Plant 1• Waste Water Treatment Plant 1• Fire Station 21• Utility Office• Community Center

FiberNet Build-Out Year1

2008-09 = YEAR 2City Facilities Connected:• Public Works (Streets)• City Offices at Cypress Point Pkway• Linear Park• Frieda Zamba Pool• Water Treatment Plant 3

FiberNet Build-out Year 2

2009-2010 = YEAR 3City Facilities Connected:• Fire Station 25• Fire Station 24• Tennis Center• Palm Harbor Golf Course

FiberNet Build-Out Year 3

2010-11 = YEAR 4City Facilities Connected:• Ralph Carter Park• Indian Trails Sports Complex• Fire Station 23• Central Park - Town Center

FiberNet Build-Out Year 4

FiberNet Today

City of Palm CoastFiberNET today (09/2012) 50 miles of fiber

Current Status

50+ Miles of Fiber Optic Cable

21 Municipal Facilities15 School District Sites5 Medical Buildings28 Local Businesses2 County Libraries

Financials

Revenue and ExpensesReturn on Investment (ROI)

City of Palm Coast Municipal Facilities

Flagler County School District

Florida Hospital FlaglerInternet Service ProvidersFibernet As A Whole

Financials

Fibernet Expenditures and SavingsMunicipal Facilities

$1,8

09,7

90

$722

,376

$73,

509

$406

,514

$49,

778

$155

,541

$0$0 $17,

400

$55,

600

$79,

600

$118

,580

$155

,940

$158

,940

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

2006 2007 2008 2009 2010 2011 2012

Expenditures

Savings

Total Expenditures To Date = $3,217,508

Total Savings To Date = $586,060

Financials

Fibernet Return on Investment (ROI)Municipal Facilities

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

Expenses

SavingsExpected Break Even Point = 16.56 YearsAs Of 10/1/2012

Benefits to the City: Current and Future

City-Owned Communications

Allows City to own and operate nearly all necessary communications infrastructure

Disaster-Recovery Enables continued operations between connected sites during Hurricanes/Disasters

Municipal Wi-Fi Provides City with necessary backbone infrastructure to support Municipal Wireless

Internal Applications: Operational Support and Enhancements

Traffic Signalization & ITS

Supports enhancements to traffic signaling systems, enhancing City operations

Financials

Fibernet Expenses and RevenueFlagler County School District

$306,516

$71,500

$288,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2011 2012

Expenses

Revenue

Total Expenditures = $306,516

Total Revenue = $359,500

Financials

Fibernet Return On Investment (ROI)Flagler County School District

0

100000

200000

300000

400000

500000

600000

700000

2011 2012 2013

Expenses

Revenue

Return On Investment Realized July 2012

Financials

Fibernet Expenses and RevenueFlorida Hospital Flagler

$79,141

$54,191

$20,000

$50,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2011 2012

Expenses

Revenue

Total Expenses To Date = $133,332

Total Revenue To Date = $70,000

Financials

Fibernet Return On Investment (ROI)Florida Hospital Flagler

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2011 2012 2013 2014 2015

Expenses

Revenue

Expected Break Even Point = 1.27 Years As Of 10/1/2012

Financials

Fibernet Expenses and RevenueInternet Service Providers (LUX & Palm

Coast Internet)

$61,330

$163,478

$107,069

$1,525

$16,450$26,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

2010 2011 2012

Expenses

Revenue

Total Expenses = $331,877

Total Revenue = $43,975

Financials

Fibernet Return On Investment (ROI)Internet Service Providers (LUX & Palm

Coast Internet)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Expenses

Revenue

Expected Break Even Point For Current Customers = 11.07 Years As Of 10/1/2012

Financials

Fibernet Total Expenses and Revenue$1

,809

,790

$722

,376

$73,

509

$406

,514

$111

,108

$704

,676

$161

,260

$0 $17,

400

$55,

600

$79,

600

$120

,105

$263

,890 $5

22,9

40

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

2006 2007 2008 2009 2010 2011 2012

Expenses

Revenue

Total Expenses = $3,989,233

Total Revenue = $1,059,535

Financials

FiberNet Total Return On Investment (ROI)

Includes City, School District, Hospital, & ISPs

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Expenses

RevenueExpected Break Even Point = 5.6 Years As Of 10/1/2012

Financials

FiberNet Financial Summary

AgencyTotal

Expenses To Date

Total Revenue or Savings To

Date

Monthly Revenue Or

Savings

Expected Break Even Point

(As Of 10/1/2012)

City of Palm Coast $3,217,508 $586,060 $13,245 16.56 Years

Flagler School District $306,516 $359,500 $24,000

Realized July 2012

Florida Hospital Flagler

$133,332 $70,000 $4,167 1.27 Years

Internet Service Providers

$331,877 $43,975 $2,167 11.07 Years

Totals $3,989,233 $1,059,535 $43,579 5.6 Years

Business Plan Update

Original consultant Design Nine contracted for follow up visit

Internal staff meetings

Meetings with Internet Service Providers and Installers

Summary of Business Plan Update

Reducing CostsSimplifying Processes

Aggressive PricingMarketing

Reducing Costs

Reduce drop installation costs Use of direct burial cable Install cable at shallower depth

Separate backbone cost when calculating ROI

Contract with additional installerUse of less expensive CPE

Simplifying Processes

Eliminate existing easement agreements

Eliminate need for Notary

Implement proposed Connection Agreement

Aggressive Pricing

New pricing with symmetric bandwidth Multi-tenant discounts Construction costs over max will be responsibility of

the ISPBandwidth Price Max. City Construction Contribution

10/10 Mbps $50 $5,000

15/15 Mbps* $100 $10,000

20/20 Mbps* $200 $17,000

30/30 Mbps* $350 $30,000

50/50 Mbps* $450 $38,000

100/100 Mbps* $1,000 n/a

1 Gbps* $2,000 n/a

10 Gbps* $5,000 n/a

* Includes UPS for CPE

Marketing

Palm Coast Business Assistance Center

Dedicated Fibernet websiteDirected marketing

Chamber of Commerce Commercial Realtors Property Management Companies Building owners Window decals

Contract buy out optionsIdentify target sites/businesses

Potential Sites

Town Center

B. Paul Katz Professional Center

Potential Sites

Westpointe Plaza

FiberNet Project Update

Questions

FiberNet Project Update

Thank You