Request for Proposals

2021 REGIONAL BROADBAND NEEDS ASSESSMENT AND

FEASIBILITY STUDY

A PROPOSAL ISSUED BY:

TOWN OF BERTHOUD TOWN OF JOHNSTOWN

TOWN OF MEAD TOWN OF MILLIKEN

Town of Johnstown, Town Manager’s Office

450 S. PARISH AVENUE, JOHNSTOWN, CO 80534 PH: 970.587.4664

https://johnstown.colorado.gov

OPTIONAL PRE-BID MEETING: MARCH 4, 2021 10 A.M. AT JOHNSTOWN TOWN HALL

450 S. PARISH AVENUE JOHNSTOWN, CO 80534

DEADLINE FOR WRITTEN QUESTIONS: MARCH 17, 2021

PROPOSALS DUE: TUESDAY MARCH 23, 2021 BY 10 A.M. TENTATIVE AWARD DATE: APRIL 23, 2021

COMMUNITY OVERVIEWS & BACKGROUND

BERTHOUD

Situated in Northern Colorado, the Town of Berthoud, Colorado is strategically located between I-25 and

Highway 287. The Town has a population of approximately 9,000 residents and provides a wide range of

services and amenities. As a statutory municipality, the Town delivers core services and operates several

public facilities. A significant amount of the Town’s land area is dedicated to open space, parks, and

public spaces that the Town maintains. This includes a new 60-acre park and 54,000 square foot

recreation center, under construction in the heart of the Town. The mix of light industry with sole

proprietor retail operations and home-based businesses also make for a healthy local economy. On

November 3, 2020, Berthoud voters supported the override of Colorado Senate Bill 05-152, the bill that

prohibits local government supporting either directly or indirectly advanced telecom services, thus

authorizing the Town to investigate alternatives for promoting advanced telecom services to its Citizens.

JOHNSTOWN

Situated in Northern Colorado, the Town of Johnstown, Colorado is strategically located primarily

adjacent to I-25. The Town has a population of approximately 17,500 residents and provides a wide

range of services and amenities. Encompassing more than 15 square miles in area and a Growth

Management Area of approximately 44 square miles, Johnstown has ample room to grow in both size

and population. Johnstown is a home rule municipality, Council/Manager form of government with

more than 60 employees to serve its citizenry. The Town is a full service municipality providing a high

level of these core services and operates and/or owns several public facilities like the newly constructed

Johnstown YMCA Recreation Center, Town Senior Community Center, Historical Museum, and the

Johnstown Cemetery. While historically an agricultural Town, the community is rapidly growing and

welcoming new residents and commercial development along the I-25 corridor that is helping to create

a balanced, sustainable, and healthy local economy. On April 7, 2020, Johnstown voters supported the

override of Colorado Senate Bill 05-152, the bill that prohibits local government supporting either

directly or indirectly advanced telecom services, thus authorizing the Town to investigate alternatives

for promoting advanced telecom services to its Citizens.

MEAD

The Town of Mead is a family-friendly community ideally situated in the heard of Northern Colorado,

providing an easy commute to Denver, Fort Collins, Boulder and Longmont. Located in Weld County,

Mead is bisected by both Interstate 25 – the main north/south corridor along the Front Range, and

Highway 66 – the southern scenic gateway into Rocky Mountain National Park. Mead’s population is

approximately 4,500 and growing. Mead has recently seen new commercial projects including a regional

shipping facility for a nationally renowned firm and a world headquarters of a retail franchisee. On

November 5, 2019, Mead voters supported the override of Colorado Senate Bill 05-152, the bill that

prohibits local government supporting either directly or indirectly advanced telecom services, thus

authorizing the Town to investigate alternatives for promoting advanced telecom services to its Citizens.

MILLIKEN

Situated in Northern Colorado, the Town of Milliken, Colorado is strategically located on Highway 60,

between Highway 257 and Highway 85. The Town has a population of approximately 8,500 residents

and provides a wide range of services and amenities. Encompassing more than 12.9 square miles. And

a Growth Management Area of approximately 27.95 square miles. As a statutory municipality with

more than 35 employees to serve its citizenry, the Town delivers core services and operates several

public facilities like the Weld County RE-5J School Administration Building, Knowledge Quest Academy,

Milliken Middle School and Elementary School, Milliken Athletic Center, plus various small and large

Industrial users as well as Commercial users. The mix of large industry with sole proprietor retail

operations and home-based businesses also make for a healthy local economy. While Milliken voters

have yet to vote on a ballot measure to consider the override of Colorado Senate Bill 05-152, there is an

increased inquiry related to the viability of such a concept that the Town desires to investigate

alternatives for promoting advanced telecom services to its Citizens.

INTRODUCTION

The residents and businesses within the four Towns require and deserve high-speed, reliable and cost-

effective broadband services. The four Towns being in very close proximity to each other have

determined it may be advantageous for the communities to work together, thinking regionally; and are

seeking proposals collectively from qualified firms to perform a broadband assessment and feasibility

analysis and to develop a plan, to be presented to and delivered in written form to the respective Town

Council/Town Boards and Town Staffs.

The Towns will consider proposals from a single firm or multiple firms working as a Team. The Team

approach will only be considered if a single firm is identified as the prime contractor. The ideal firm will

have excellent technical and analytical depth in areas of interest to the Towns as identified in this RFP;

and must be highly effective communicators, particularly in translating technical concepts to non-

technical audiences. The Town prefers firms with experience working with municipal organizations, both

smaller and larger than each of the four communities.

The Feasibility work will focus on creating a structured evaluation of the wide range of strategies

available to the Towns for Next Generation broadband services in the community. This section of the

study will also evaluate options on a financial level as well. Other municipal broadband projects suggest

that Next Generation broadband services have a net positive economic and social impact to local

economies; while enhancing a community’s quality of life through expanded innovation opportunities,

workforce development and training, narrowing of the digital and/or economic divide, and improved

organization efficiencies.

GOALS AND OBJECTIVES

Collectively, the Towns have the four primary objectives:

1. Inclusivity - To provide the opportunity for high speed broadband service to all residents,

businesses, schools, local government, non-profit organizations, healthcare service providers, and

multi-tenant properties within the four (4) communities and possibly the areas between the four

Towns that are unincorporated.

2. High Speed – Requires at least 1 Gigabit symmetrical broadband connection for residential

and up to 10 Gigabit symmetrical broadband connection for non-residential, with the ability to

potentially grow into 25/50GbE or other service types available in the next five to seven years.

3. Reliable – The service needs to be able to be depended upon as it will have many uses

requiring high availability. Some examples are businesses - both storefront and home,

residents, students, and healthcare professionals. A focus on redundancy should be a key

element in the study to ensure reliability.

4. Reasonable cost – The monthly charges for such service should be reasonable and affordable.

Concurrently, it should also provide for the ability to meet debt service obligations should

construction of a network be a feasible option.

Business Models at a minimum that should be considered for the assessment include the following:

1. Infrastructure Provider/Dark fiber Leasing

2. Open Access Provider

3. A Regional/Municipal-owned and operated utility (An Authority) – Businesses and Residences

a. Individually owned and operated utility – In case one or more of the Towns does not

continue participation or the municipal corporations venture into this project as a

single municipal service within their respective jurisdiction.

4. Public-Private Partnerships

SCOPE OF WORK

In this Scope of Work, the evaluation should focus on a regional project, but also provide an assessment

on the individual communities in the case that one or multiple communities decide not to move forward

beyond this phase of the study, moving toward an implementation phase.

1. Community Engagement Process to educate and define a communications and outreach strategy to include the

following:

a. Development of the Community Engagement Plan: Coordinate with representatives from

the governmental entities in regard to a comprehensive community engagement plan to

capture current and future needs of the community. The engagement plan will include

education and background information for community members, as well as online

resources.

b. Support community discussion and document:

i. Community’s desire for broadband service;

ii. Willingness to pay, and at what price, for high speed broadband service; and

iii. Citizens view on the role that the municipal government should take in

providing broadband service.

c. Proposal must clearly define their stakeholder evaluation process including their

recommended participant level in order to reach statistically reliable results.

2. Conduct Business Case Needs Assessment

Gather, evaluate, and analyze information on broadband‐dependent Next Generation high-

speed needs from users within the potential service areas (i.e. residents, businesses, town,

county, healthcare, and public safety and educational institutions) via industry‐ accepted

evaluation methods. The needs assessment should include current and future needs of these

users.

3. Conduct Local Broadband and Telecommunications Market Assessment

Identify existing broadband and telecommunication options and costs across the community,

particularly those users identified in the Business Case Needs Assessment. Profile the four

communities and provide an assessment of the telecommunications environment detailing the

types of services, pricing, availability and limitations. Identify potential areas for partnership

between the Towns and incumbent providers and provide assistance to the Towns in creating

dialogue with these providers. Consultant should perform a detailed SWOT analysis and

include an analysis diagram.

4. Implement a mapping Tool that Provides a GIS‐Based Analysis for the Project

Build a comprehensive map in a GIS‐based tool (using ESRI ArcGIS 10.3 in the

NAD_1983_HARN_StatePlane_Colorado_North_FIPS_0501_Feet coordinate system) that

provides analysis of the Towns’ broadband environment, including current availability,

penetration and usage of broadband services, service territories, backhaul routes, capacity,

providers and other relevant information for the project.

5. Perform a Gap Analysis of the Current Broadband Environment

Evaluate the current environment against the current and future needs of the four Towns,

including all stakeholders defined in the project. Determine what economic and community

impact broadband issues are having on each community. The Gap Analysis should include an

evaluation of key issues limiting broadband expansion.

7. Assess each of the Town’s Regulatory Environment

Analyze and report on the Colorado regulatory environment and the impact to the Town in

developing its network for potential broadband services. Consultant must have proven

telecommunications regulatory experience working with communities on municipal broadband

issues. Please state experience working with Colorado communities or alternative satisfactory

experience in the municipal regulatory environment.

8. Development of Market‐Driven Demand Planning Tools

Develop a GIS‐based demand planning tool (using ESRI ArcGIS 10.3 in the

NAD_1983_HARN_StatePlane_Colorado_North_FIPS_0501_Feet coordinate system) that

identifies customer segments across the community and estimates demand for services. This

tool(s) should identify physical locations of all customers across multiple segments and

identify the potential volume and demand that may be utilized to forecast the priority of

building into different areas of each Town.

9. Development of Sound Business Models

Develop a market‐driven demand planning tool (including physical location of users and their

demand) and evaluate viable business models for the Towns collectively and individually to

consider in expanding its existing fiber network either independently or through partnerships.

Business models must be based on sound and reasonable business cases that can be

demonstrated quantitatively through the development of a comprehensive financial model.

Business models must also be tied back to market assessment data to determine uptake,

ARPU, churn and other key metrics. Present the various business models to the project team

and the potential benefits and risks of each to the Towns collectively and individually.

Business models must also provide at a minimum but not limited to the detailed information as

outlined below. The business models must evaluate the information as individual communities and

as a collective partnership among the four Towns collectively and individually:

• Capital investment required (amount, timeframe, responsible party, etc.)

• Additional assets required (alignment with asset inventory)

• Potential services and partners (aligned with assessment and identifying strategic impact and cash flows)

• Operations and maintenance (amount, timeframe, responsible party, etc.)

• Repair

• Customer Service

• Installation

Marketing

• Selling, General, & Administrative costs (personnel, professional services, supplies, etc.)

• Financials (Net Income, Balance Sheet, & Cash Flow) over 10 years

• Additional Items: o Due diligence on revenue and uptake rates o Forecasts for future utilization o Competition impact (risk) o In-depth cost analysis and leverage opportunities o ROI, breakeven, and NPV analysis o Opportunity cost analysis

The Towns are only interested in business models that are developed using reasonable or

conservative assumptions and are prepared by companies that have proven financial planning

experience for broadband fiber networks. Resulting financial analysis model developed by the

consultant will become the property of the Towns and should be structured so it can be used

for future “what if” scenarios. Any considerations for cybersecurity should be identified for

each model.

10. Recommendation on Broadband Strategy

Based on consultant’s analysis in steps 1‐9 and feedback from the Towns, prepare a

broadband strategy for the Towns that creates the greatest opportunity to implement a

network that is capable of meeting current and long‐term community needs. The strategy

should include six (6) recommended approaches to broadband implementation. The

recommended approaches should be as follows:

1. Two (2) recommended approaches to broadband implementation for a regional

partnership among all four entities, that is scalable in case one or two entities decline to

move forward.

2. One (4 total) recommendations for each entity if the Towns determine to approach the

projects culmination individually (not a joint partnership).

For each recommended approach, include customer billing alternatives that meet all federal,

state, and local requirements.

With both implementation approaches:

a. Do you recommend the network be done in geographic phases or all at once

community wide?

b. Using your experience and expertise, identify possible funding opportunities for each

of the options identified.

PROPOSER REQUIREMENTS

1. Proposer must have experience conducting community broadband feasibility studies of

similar size and scope to the project area and population. If an ultimate project is realized, it

may include the four Towns or as small as one of the communities. Therefore, proposer must

demonstrate its capabilities providing these services to municipalities that may be as large as

40,000 with significant vacant land that is sure to develop or as small as 5,000, again with ample

land available to continue to grow. The proposer should also describe its ability to work

creatively with incumbent providers and other key stakeholders.

2. Proposer’s organization must have been in business providing community broadband

planning services for a minimum of 4 years.

3. The four Towns believes that direct industry experience is a fundamental requirement of the

consultant to ensure business viability of the proposed strategies. Proposer must have direct

past experience working within the telecommunications or broadband industry (carrier or

Internet service provider) in a network planning, engineering and business development

capacity. This experience must be documented specifically in the proposal. Work on successful

projects that have been implemented is preferred.

4. Proposer must have direct and demonstrable regulatory experience working with

Colorado communities in regard to State statutes concerning municipal broadband

providers, or satisfactorily demonstrate alternative results.

5. Proposer and the project Team must have conducted broadband planning projects

with municipalities and demonstrate this through its proposal.

6. Proposer and the project Team must have implemented and/or operated community

broadband networks and demonstrate such experience through its proposal, citing

specific networks that are currently in operation and the length of time the network

has been in operation.

7. Proposer must have extensive financial planning experience with municipal

broadband providers and maintain on staff at least one certified financial professional

such as Certified Financial Analysis (CFA) or Certified Financial Planner (CFP).

8. Proposer must be able to demonstrate its ability to work quickly and thoroughly with

adequate resources. The entities believe time is of the essence and an emphasis will

be given to those who can complete all aspects of the scope of work in its entirety in

the shortest timeline.

D. Proposal Submittal Requirements

1. Each scope of work section (items 1‐10) should be listed and answered separately.

2. Estimated timeframe for each scope of work item shall be provided.

3. A separate bid (cost estimate) shall be provided for each scope of work item. The cost estimates for each scope item should be of sufficient detail to provide accurate preliminary cost estimates when comparing the different options.

4. The four Towns reserves the right to remove or modify any scope of work item.

5. Overall project timeline (Gantt chart) shall be provided showing overall project timeline. Emphasis will be given to those who can demonstrate timeliness.

6. Project team member’s biographies shall be provided to include their work as Team members on similar projects.

7. A minimum of three references shall be provided of similar projects that have been completed in the past 3 to 5 years. References should include contact name, role or title of contact, organization, phone number, and email address.

8. The selected Consultant shall be required to sign a single Contract developed by the four Towns having all four entities as a signatory to the agreement.

E. Evaluation Criteria The Towns will appoint a committee to review and rank each firm based on the proposal submitted. The Towns may short-list approximately three to five contractors that it deems, in its sole discretion, to be most qualified to perform the work required for this specific project. The Towns reserve the right to interview the top ranking firm(s).

The contract will be awarded to the proposer the Towns believe, in its joint discretion, have demonstrated the expertise to provide the end result the Towns desire using their broadband and municipal experience along with Citizen engagement that will guide the study and analysis toward the Scope of Work Objective described in Section 10 of this agreement. The Towns feel time is of essence and an emphasis will be given

to those who can complete this project in the most reasonable timeframe while accomplishing all the identified objectives identified. The Towns will not reimburse proposers for costs incurred in the preparation and presentation of proposals.

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Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community

LegendBerthoud GMA

Town of Berthoud

Johnstown GMA

Town of Johnstown

Mead GMA

Town of Mead

Milliken GMA

Town of Milliken

1 in = 1 miles

Broadband Service Request for ProposalsService Area Map

Includes Towns of Johnsown, Berthoud, Milliken, and Mead, and their respective municipal boundaries and growth management areas

I0 2.5 51.25

Miles