1. 1 Wide Area Network Project Information Technology Advisory Committee April 11, 2007

2. 2 WAN Project ITAC Update Deliverables From March 21 ITAC Meeting Bandwidth forecast based upon BVSD enrollment for each, high, middle and elementary school, Risk Assessment of original project approaches Progress to Date Review of Alternate RFP Approach High level budgetary financial analysis for shared fiber designs Shared fiber conceptual design maps RFP Construction Methods Documentation

3. 3 Can bond money be used to lease existing dark fiber? The general rule governing the use of tax- exempt bond proceeds, subject to a limited exception, requires they be applied to capital expenditures…….We do not believe that the lease of “dark fiber” would satisfy this exception. -- Calvin Hanson & Jim Lane; Sherman & Howard, LLC

4. 4 Bandwidth Analysis Forecast based upon BVSD enrollment for each student, high, middle and elementary school Existing Internet and future applications with existing staff workstations

5. 5 Future WAN Requirements Future high bandwidth educational applications: Discovery Learning – Streaming Media IP Television distribution Distance learning – video conferencing Web-Based Testing and Intervention Centralized Data Applications Off Site Data Warehousing Alternate Data Center – Disaster Recovery Centers Network Redundancy Internet II

6. 6 Bandwidth Analysis Current Estimated Needs -- Internet and Existing Applications (if bandwidth were available) –High School Average 36.5 M –Middle School Average19.7 M –K-8 Average28.4 M –Elementary Average12.5 M –Network Total 510.1M

7. 7 Bandwidth Analysis Estimated needs once future high bandwidth applications have been added. –High School Average 231.6 M –Middle School Average206.7 M –K-8 Average215.4 M –Elementary Average192.5 M –Total Network10.24 G

8. 8 Bandwidth Analysis With Existing and New Applications Digital Schools 2011 Estimates –High School Average 239 M –Middle School Average210 M –K-8 Average221 M –Elementary Average195 M –Network Total10.41 G

9. 9 Bandwidth Analysis With Existing and New Applications Greaves Group 2011 Estimates –High School Average 271.3 M –Middle School Average224.9 M –K-8 Average246.4 M –Elementary Average206.4 M –Network Total11.2 G

10. 10 Bandwidth Analysis Summary 2006 Current Applications 2006 Current I Rate With New Applications 2011 (DS) With New Applications 2011 (GG) With New Applications Elementary12.5192.5 M195 M206 M Middle19.7 M206.7 M210 M224.9 M K-828.4 M215.4 M221 M246.4 M High36.5 M231.6 M238.7 M271.3 M Total Network510.1 M10.2 G10.4 G11.2 G

11. 11 RFP Strategy Review From March 21, 2007 ITAC Meeting Option 1 - Greenfield build using the turnkey RFP approach $13M Option 2 - Greenfield build using the PM and material procurement RFP approach $9.3M Option 3 - Greenfield build with owners engineer approach RFP for construction only $8.5M Nederland Build$8.4M

12. 12 RFP Strategy Review Option 1 –Green field build, all underground with 288fc, two ring topology –Successful offeror offers underground solution specified by BVSD Option 2 –Green field build, hybrid aerial/underground construction methods with 288fc, two ring topology –Successful offeror used their expertise to determine most cost effective construction methods e.g. aerial vs. underground Option 3 –Option 3 owners engineers approach including electronics and CM –Multiple RFP’s –Engineering and permitting first –Purchase materials directly Option 4 (Additional Option) –Lease as much dark fiber and empty conduits via IGA’s from City, CU and BRAN –New Build lengths reduced, New Build segments - hybrid aerial/underground construction methods with 144fc, two ring topology –Successful offeror used their expertise to determine most cost effective construction methods for “New Build” segments of WAN –Must connect to all existing shared assets hand holes identified in RFP

13. 13 Risk Assessment Option 1 – Turnkey RFP Pros –Lowest risk Cons –Highest cost –15% to 30% markup on all components Engineering Procurement Contractors Project Management –BVSD verifies & approves Engineered drawings Materials BOM Test and acceptance Permitting -ROW Construction methods Work completed for payment

14. 14 Risk Assessment Option 2 and 4 – Less PM & BOM Pros 15% to 30% savings on PM & materials Slightly higher risk than option 1 –Lower over all cost to BVSD –Adds independent SME to BVSD staff, Verification of Inspection Drawings Permitting Test and acceptance Construction methods Work completed for payment As built drawings Eliminates mark-up and cost of money charges on materials Eliminates yard rentals Eliminates unnecessary “change orders” Allows BVSD to shop the BOM Offeror manages contractors Materials storage area Identified Eliminates engineering firm designing to win construction Cons BVSD must ensure materials delivered to on-site storage on time to avoid construction delays Recurring costs for option 4 increase due to lease

15. 15 Risk Assessment Option 3 – Owners Engineer Pros 15% to 30% savings on PM & materials and construction Highest risk Lowest over all cost to BVSD –Adds independent SME to BVSD staff, Verification of Construction management team Drawings Permitting Test and acceptance Construction methods Work completed for payment As built drawings –Eliminates mark-up and cost of money charges on materials and construction –Eliminates yard rentals –Eliminates unnecessary “change orders” –Allows BVSD to shop the BOM –Materials storage area Identified –Engineering up front allows BVSD to changes coarse to option 4 if needed Cons BVSD must ensure materials delivered to storage on time to avoid construction delays BVSD published 2 RFP’s –Engineering & Permitting –Construction BVSD manages multiple contractors Bonding issues for smaller contactors Financial issues smaller contractors Weather factors for smaller contractor w/o prime contractor covering costs presents a high risk

16. 16 10-year Financial Analysis Assumptions Customer provided FTP enclosure, funded separately All locations on fiber WAN (except 4 mountain schools) Recurring costs include: –Internet with estimated 10 year increases –Locates –Break/fix escrow @ $1,000 per month –Mountain schools service @ $8,000 per month –Voice Trunks and 911 POTS to PTSN included (VoIP) Program and construction management costs included Cost recovery from existing WAN calculated WAN electronics included Dark fiber - conduit availability - BRAN, CU and City of Boulder All locations at 10G speeds (except mountain schools)

17. 17 10-year Financial Analysis Lease Optical Services From Telecommunications Carrier –Gigabit service is available now –No future date or pricing for 10 Gigabit service –Carrier would need long term contract to build network –$19,070,040 - Estimated Recurring 10 Year Costs –No Cost Recovery, Increase in recurring expenses

18. 18 10-year Financial Analysis Option 1 including electronics and CM. –Two Ring - 288fc –Linear Lengths 460,799 LFT –$15.3M - Estimated NRC Cost to Build and Equip $13M - original build estimate $2M - electronics $337K - program construction management –$1.6M - Estimated Recurring 10 Year Costs –$17M - TCO –$4.2M - 10 Year Cost Recovery

19. 19 10-year Financial Analysis Option 2 including electronics and CM. –Two Ring - 288fc –Linear Lengths 460,799 LFT –$11.2M - Estimated NRC Cost to Build and Equip $9.3M - build $2M - electronics $337K – program construction management –$1.6M - Estimate Recurring 10 Year Costs –$14.2M – TCO –$4.2M - Cost Recovery

20. 20 10-year Financial Analysis Option 3 owners engineers approach including electronics and CM. –Two Ring - 288fc –Linear Lengths 460799 LFT –$11.6M - Estimated NRC Cost to Build and Equip $8.5M - build $2M - electronics $337K – program construction management $525K CM $495K Engineering and permitting –$1.6M - Estimate Recurring 10 Year Costs –$13.1M – TCO –$4.2M - Cost Recovery

21. 21 10-year Financial Analysis Option 4 - Lease (IGA) Dark Fiber/Conduits & New Build Aerial & Underground –EPC RFP Approach, Engineering Determines Construction Methods and BOM on New Build Sections Only –Two Rings - 144fc –Linear Lengths New Build 319,396 LFT –Linear IGA Lease Length 105,000 @ $72 PFSPMPM –$9.8M - Estimated NRC Cost to Build and Equip $7.5M - build $2M - electronics $337K– program construction management –$1.8M - Estimate Recurring 10 Year Costs –$11.5M - TCO – 10 Year Estimate @ 10G –$4M - Cost Recovery

22. 22 Financial Summary Budgetary Estimates Option 1Option 2Option 3Option 4 NRC Build- Equipment 10G $15.3M$11.2M$11.6M$9.8M 10 Year Recurring 10G $1.6M $1.8M 10 Year TCO 10G $17M$14.2M$13.1M$11.5M 10 Year CR 10G $4.2M $4M 10 Year FO Service 1G $19.1M

23. 23 Next Steps RFP Strategy Considerations for Options 2 & 4 Single RFP Engineer, Procure & Construct (EPC) with 2 alternative designs EPC (base offer) approach components: –Engineering & Permitting/ROW –Materials –Construction –Construction Management Offer must provide pricing for each component individually as well as a turn-key EPC pricing Menu style pricing allows the district the ability to negotiate costs and pick best solution(s) as a package or as individual components Minimizes risk to BVSD Publishing RFP with these strategies will eliminate negotiation leverage for option 3

24. 24 Next Steps RFP Strategy Considerations for Option 3 “Owners Engineer” Multiple RFP’s –Engineering & Permitting/ROW –Construction –Construction Management/ Materials purchased by BVSD Engineering in advance will provide accurate pricing models for construction, upon completion of the engineering, design adjustments can be made if necessary e.g. build all or build lease Existing conduits can be utilized in all options to reduce construction cost, these need to be identified Pre-RFP

25. 25 ITAC Discussion Steps RFP Strategy Discussion – Chris Puccio Option 4 Determine Ring Topology Utilizing Shared Dark Fiber Assets Services Connecting west ring to DF facilities Process to identify available DF strands Process to identify available DF slicing points and hand holes with slack loops Process to identify aerial and underground facilities Agencies needs and requirements Agencies availability to assist in discovery process

26. 26 Next Meeting Set date and agenda for next ITAC meeting Open issues from ITAC Closing Comments