9.c Fiber to the Premise Feasibility StudyInternet Options in Scandia
Access to reliable, high speed, internet is needed to allow Scandia to compete economically with our
surrounding communities. Schools are requiring students to use the internet in order to complete
homework assignments. More and more, homebuyers list internet access as one of their priorities when
choosing where to buy and as a factor of why they didn’t buy.
Every 2 years, the Federal Government reviews and adjusts the minimum acceptable levels of
broadband services. The three categories used to define access availability are:
Unserved – no internet access or access to internet with a maximum speed of 25/3 Mbps
Underserved – access to internet with speeds between 25/3 Mbps and 100/20 Mbps
Served – access to internet with speeds greater than 100/20 Mbps
High speed internet is currently unattainable for a large portion of Scandia’s population. The following
map shows Scandia is one of only a handful of unserved communities in the entire Metro Area.
High speed internet is important to everyone. In fact, Minnesota Statue §237.12 states:
“It is a state goal that (1) no later than 2022, all Minnesota businesses and homes have access to
high-speed broadband that provides minimum download speeds of at least 25 megabits per
second and minimum upload speeds of at least three megabits per second; and (2) no later than
2026, all Minnesota businesses and homes have access to at least one provider of broadband
with download speeds of at least 100 megabits per second and upload speeds of at least 20
megabits per second.”
The Scandia Internet Focus Group met with representatives from Frontier and Midcontinent and
learned:
Frontier serves every home in Scandia and received a Connect America Fund Grant to improve
access to broadband services. Using this money, they are expanding broadband access in
Scandia. However, at the time of the funding, the minimum speed requirement was 10/2. The
current plan calls for them to complete their upgrades sometime in 2020. They would be willing
to partner with Scandia and increase their minimum speed offering to 25/3 if Scandia would
acquire a MN DEED grant to pay for the cost increase.
Midcontinent serves about 20% of the homes in Scandia. They are willing to expand their
system, but only if required by our franchise agreement or if their cost per home was less than
$1,500. The franchise agreement requires Midcontinent to provide services to any area with 25
homes within in a linear mile of an existing “node”. Funding for any cost above th$1,500 would
need to come from other sources like a MN DEED Grant, City funding, or homeowner
assessments.
We feel Frontier’s offer is insufficient. Even though it comes at little, or no cost to the City, the result
would barely get Scandia up to the “Underservered” classification in 3 years. Some customers from
Frontier who are in the upgraded service areas still don’t receive the advertised speeds. Every other
wired provider is offering 1 Gbps speeds today.
We feel Midcontinent’s offer is insufficient. The expectation is that the cost to provide access will be
borne by other agencies and the resulting infrastructure will be handed over to them for free. We do not
feel this option would be a wise expenditure of Scandia’s taxpayer dollars.
The focus group also reached out to the Blandin Foundation. This organization helps communities, like
Scandia, explore their broadband options and find ways to expand service into their community. We
talked with Bill Coleman and explained what we had done and our plans for a Community Survey. Bill
was pleased to hear of our work and suggested we talk with Joe Buttweiler from the Consolidated
Telephone Company (CTC). CTC offers many services, including fiber to the home, in the rural
communities of Sullivan Lake, Randall, Pillager, Outing, Nokay Lake, Nisswa, Motley, Mission, Lincoln,
Leader, Freedhem, Little Falls, Brainerd, Baxter, and Crosby. CTC also has partnerships and access to
state-wide transport to work with businesses outside of these areas and to connect multi-location
businesses.
Commented [EM1]: Do they say they serve every household?
After the meeting with Joe, the Focus Group set a goal to provide “fiber to the home” for all homes and
businesses in Scandia. The next steps in this effort were determined to be:
1. Complete and publish a Community Survey with the help of the Blandin Foundation to
determine the specific level of interest in broadband service from the residents and business
owners in Scandia. All of the data collected would be given to the City upon completion of the
survey.
2. Perform a Feasibility Study to identify specific implementation plans, costs, and schedule.
3. Determine if the City would partner with CTC to provide “fiber to the home” to all residents and
businesses in Scandia.
In conclusion…. Scandia’s Internet Focus Group is asking the City Council to authorize $10,000 to pay for
the Feasibility Study, or set aside $5,000 and authorize the preparation and submission of a 1-to-1
matching grant application to the Blandin Foundation to pay for the Feasibility Study. A CTC
representative is unable to attend the June 6th meeting, but provided written information to help the
discussion about the services they provide.
Fiber to the Premise Preliminary Design Estimate
City of Scandia
May 31, 2018
Proposed By:
Summary:
CTC is seeking to expand our cooperative Fiber to the Premise (FTTP) network in Minnesota and
we seek communities who match our mission, values and understanding of the economic and
social value symmetrical gigabit broadband brings to communities. Having met with the Scandia
Broadband group it is apparent there is a real need in the community for improved services, an
understanding of why Broadband is an important tool and a desire to keep Scandia a great
place to live.
In order to responsibly move forward with a FTTP project pre-design work must be completed
to identify the total project cost. This proposal accomplishes this first step which is necessary in
the event Scandia would like to proceed with engaging CTC to build, operate and offer our
symmetrical gigabit fiber optic services to residents, businesses and others in the community.
CTC in collaboration with our partners at Cooperative Network Services (CNS) will provide a
high level FTTP design to serve Scandia. The design shall include the service area boundaries,
estimate of probably cost to construct the FTTP network and other important basic summary
statistics such as route miles of fiber optic cable and establishments included in the project
area.
The area to be designed is generally defined by the following map with structure locations
shown:
Preliminarily, the project encompasses an estimated 148.97 mainline fiber optic cable miles and
122.35 service cable miles for a total of 1,700 potential establishments. Note that the initial of
GIS data provided by Washington County revealed 127.00 road miles and 1,830 structure points
within Scandia.
The design criteria will utilize CTC’s standard best practices used on all CTC FTTP construction
projects. The design will serve 100% of address locations in Scandia. Fiber optic cable routes will
follow public rights of way. Preliminary review indicates some routes along public roads outside
of Scandia will be necessary in order to reach all locations. The design will be available in GIS
and PDF formats. The design will also be hosted on password protected GIS servers and made
available online for 90 days following project completion.
The estimated project cost will include all project elements such as outside plant fiber optic
cable construction, construction of services to establishments, electronics, permitting,
engineering and miscellaneous related equipment/costs. Estimates to be based on cost per mile
derived from historical data of past construction projects of similar character.
Schedule:
Work shall be completed and delivered within 5 weeks of notice to proceed. The schedule may
be modified by mutual agreement in order to best meet the City’s needs.
Pricing:
The following fees shown below are based on the scope and assumptions included in this
proposal.
1. Fixed fee for proposed design services, due upon completion: $9,350.00
Acceptance:
Consolidated Telecommunications Company (CTC) City of Scandia
Joe Buttweiler
Name Name
Partnership Development Manager
Title Title
Signature Signature
05/31/2018
Date Date
About CTC:
CTC is a 60 year old telephone cooperative headquartered in Brainerd, MN with a tradition of
leading innovation in technology and telecommunications services. CTC provides fiber optic
broadband services to our members. These services include symmetrical internet (when the
download and upload speeds are the same), digital (HD) TV, voice and other services. T ypically
CTC offers our base residential internet service of 100Mbps (100Mb download and 100Mb
upload) for $50. Our Gigabit offering (1GB download and 1GB upload) is $150. CTC offers a
traditional TV service with multiple packages available including HD and DVR too. More
information about CTC can be found on our website www.goctc.com.
CTC is organized as a cooperative and our members elect the board of directors which provides
responsible fiduciary oversight as well as developing strategies to continually increase the value
the cooperative provides to its membership. Increasing member value while furthering our
mission to serve those who need service is CTC’s most important objective. CTC attains this goal
through multiple growing partnerships which we carefully evaluate prior to bringing a
community into our Cooperative.
A few of CTC’s Partners:
CTC is considered a pioneer in providing communications services and is no stranger to building
FTTP backbones and networks across Minnesota. In 1999 at a Tech Summit meeting, CEO Kevin
Larson of CTC learned from the Superintendent of ISD 181 that the Brainerd Lakes Area was
described as a technology “blackhole”. In 2002, ISD 181 completed a needs analysis and a bond
referendum was presented and passed. It included money for a technology investment due to
information learned at the Tech Summit. In 2003, ISD 181 put a 39 mile fiber optic project out
to bid. A competitor of CTC was selected as the successful bidder; however, it was later
determined this Company was unwilling to support ISD 181’s needs. In the wisdom of the
school board, they sought out a new partnership and a relationship with a company that shared
in similar long terms goals of the community. At this point, CTC was awarded the project and
within 6 months it was completed.
By 2004, CTC, along with ISD 181 and four other community organizations, had constructed a
10G fiber optic ring around the Brainerd and Baxter communities. This fiber ring connected all
of our area schools, government buildings, and the local hospital. Brainerd Lakes is no longer a
technology “black hole”. This collaborative project has improved educational opportunities,
interconnectivity and efficiency of local law enforcement and healthcare entities within the
community. “From an educational standpoint it has opened doors to learning, research, and
collaboration that would not otherwise be available. CTC’s efforts have brought technolo gy
literacy to our community that would not otherwise have existed.” - Jerry Walseth, Retired ISD
181 Superintendent.
Seeing the success in Brainerd, Baxter and Nisswa the City of Little Falls faced a different
problem. The City was about to lose key employers due to the lack of Broadband availability
and was unsuccessful in their attempts to encourage incumbent providers to improve services.
As a service provider partner CTC joined the Little Falls Community Development team as they
assembled a financial plan to bring fiber optics to the Little Falls Business Community. This
effort led to no just the retention of a key business but it now thrives and other businesses have
located in Little Falls. CTC and the City are now discussing how to further grow the FTTP
network within the City to begin offering services to residents.
In 2012 Arrowhead Electric Cooperative in remote Lutsen, MN sought assistance with the
deployment of its FTTP network as part of its RUS BIP award. CTC was quick to offer assistance
in the form of knowledge transfer and project recommendations based upon the current stage
of the FTTP project. CTC provided Arrowhead access to all of its employees to begin planning
for the deployment of FTTP services. Transport and access networks were modified,
provisioning systems deployed, support systems configured and sales and marketing assistance
utilized. Arrowhead successfully closed out its BIP project on time and today is exceeding the
original goals set by the Cooperative Board of Directors. With CTC’s assistance Arrowhead is
currently updating all of its customers to faster internet speeds and reaching out to more and
more businesses explaining the value of fiber optics to each. Arrowhead will serve
approximately 3,000 members in Cook County, Minnesota with FTTP by the end of 2018
propelling it from once being 87th out of 87 Minnesota Counties lacking Broadband to near
number 1.
Crosslake Communications was one of if not the first City owned Telephone Company’s in
Minnesota. The City worked hard to build a telephone network for its citizen and eventually
began offering internet and TV along with its phone service over its copper facilities. Crosslake
made modest investments into the network but margins generally were allocated back to the
City’s general fund for many years in a row. In 2013 Crosslake began the search for a new
general manager and CTC submitted an application to provide management services. CTC’s
proposal to the City was accepted and the entire management team immediately conducted a
detailed audit of the state of the operations. It was clear to CTC that the City needed to make
investments into the network in the form of new fiber optics and equipment or quickly the
network would succumb to competition or financial loss due to high cos ts of operation
supporting outdated equipment. Having the support of the City following substantial
discussions CTC reconstructed the central operations and network of Crosslake
communications. However, this left the outside plant still requiring investmen t to take
advantage of improved services to be made available. Collaboratively CTC and the City of
Crosslake determined it would be in the interest of the City to find a private investor to
purchase the network. Crosslake was successful with its sale of the network and today
additional private investments are being made to take advantage of CTC’s work to ensure
residents have access to world class broadband.
The State of Minnesota has long recognized that Broadband is a key development tool for the
entire State to be successful. Having started by first creating the Governor’s Broadband
Taskforce the State soon after created an Office of Broadband Development (OBD) within the
Department of Employment and Economic Development (DEED). One of OBD’s many importan t
tasks is to oversee the State’s Broadband grant program. CTC was an awardee of State grant
funds in 2014 and 2015. The projects provided FTTP services to unserved areas of Eastview
Township and Fort Ripley Township. Combined the two projects totaled more than $5.8M and
passed 663 establishments (391 establishments, $4.2M 2014 and 272 establishments, $1.6M
2015). CTC is recognized by OBD as being one of the premier providers in Minnesota having
successfully closed both grant contracts with the State ahead of schedule.
Long Prairie has struggled to secure broadband for its citizens for many years. Having
attempted to work with incumbent providers proved time consuming and action was never
taken by incumbents. In 2016 the City in partnership with CTC submitted a grant application to
fund a FTTP network to the State of Minnesota’s Broadband grant program. The grant
application was challenged by both the incumbent telephone company and incumbent cable
company. Despite substantial data collected showing the City was in fact not served the grant
challenge of the incumbents was successful and the grant application went unfunded. Left
discouraged CTC felt compelled predicated on our mission to find a way to serve the residents
of Long Prairie. Jointly the entities came to an agreement and the City issued bonds to finance
the construction of a FTTP network. The project cost exceeded $4M and passes over 1,200
establishments. Trusting in CTC’s sound reputation and dedication in the grant application
process the City requested CTC manage the construction of the FTTP network. Today, CTC
offers the residents of Long Prairie all available CTC services on a network owned by the City.
The success of Arrowhead Electric Cooperative and CTC’s reputation of completing projects
ahead of schedule led to CTC’s second strong electric cooperative partnership. Mille Lacs
Energy Cooperative (MLEC) headquartered in Aitkin, MN with assistance from CTC was the first
electric cooperative in Minnesota to submit and be awarded State of Minnesota Broadband
grant funds. CTC took the lead role in developing the project for MLEC. Jointly the cooperative
partners wrote the grant and were awarded funding. M LEC began constructing Phase I of its
FTTP project in 2017. CTC managed construction, installations, provides wholesale internet and
retail voice services to the MLEC membership which now has over 200 customers. Construction
of Phase I the MLEC project will wrap-up in the second quarter of 2018. MLEC is actively
pursuing additional funding to grow its FTTP network in partnership with CTC.
Management & Key Personnel Assigned to Scandia Partnership:
Chief Executive Officer/General Manager | Kevin T. Larson holds the position of CEO/G M and
has over 40 years of industry experience. Responsibilities include overseeing all operations and
management of CTC. Experiences have been in the public, private, municipal, and Cooperative
business environments. Active involvement in industry associations and organizations and
knowledgeable in all areas of the industry and has served on numerous local, state and national
committees and Boards of Directors in the industry as well as in the Brainerd Lakes community.
Extremely well networked in the telecommunications industry and looks for out -of-the-box
opportunities for the CTC cooperative to review in order to continue growth along with
broadband deployments across Minnesota.
Chief Financial Officer | Mark N. Roach holds the position of CFO and has 35 years of industry
experience.
Certified Public Accountant and a member of the Minnesota Society of CPAs. Graduated magna
cum laude from St. Cloud State University with a Bachelor’s of Science degree in Accounting.
Extensive experience in both public and private accounting and was the President and Chief
Financial Officer of Midwest Information Systems, Inc. (parent company of three ILECs) for six
years prior to joining CTC in 2005. Responsible for all accounting functions, end user billing,
CABS processing, financing, budgeting, and all financial reporting. Serves on the Minnesota
Telecom Alliance Regulatory, Tariffs and Services Committee, and is on the Board, and serves as
Treasurer, of Central Transport Group, LLC.
Assistant General Manager/Chief Operating Officer | Kristi K. Westbrock holds the position of
Assistant General Manager/COO and has 19 years of industry experience and has been with the
Cooperative since 2007. Strong background in Human Resources, Sales and Marketing and
Business Operations, Strategic Planning and Product Development. Earned her SPHR (Senior
Professional of Human Resources) as well as her Society of Human Resources Management
SCP. Passion for organizational management, effective communication and creating unique
work environments/experiences while driving business revenues. Integral role in the
Cooperative development and partnerships with new opportunities at CTC in the past five
years. Has served on numerous local and state committees and board of directors within the
industry and Brainerd Lakes community in addition to being a Trustee on a national board.
Marketing Manager | Andy Isackson holds the position of Marketing Manager and has 17
years of industry experience with the last 12 being at CTC. Has managed the Customer Service
Team for the past three years. Graduated from the College of St. Scholastica with a B.A. Degree
in Business Management. Previously worked at USLink/TDS Metrocom for 5 years as the
Regional Marketing Manager. Vital role in rebranding of CTC and creating new residential
packages, website development, and numerous ILEC and CLEC business and residential
marketing campaigns and sales promotions. Lead the rollout of CTC’s new third party level one
help desk, assisted with product rollouts, and has helped to improve operational processes.
Chaired the MTA Telco Marketing Group for two years and is currently on the NTCA Marketing
Committee, current Board Member on the St. Joseph’s Foundation, and past Board Member of
the Brainerd Sertoma Group. Andy has presented at the 2013 Calix User Group Conference,
2014 Minnesota Telecom Alliance Annual Convention, 2014 Minnesota Telecom Alliance
Customer Service Peer Group Conference and the 2016 NTCA PR and Marketing Conference.
Technology Manager | Ryan R. Rosenwald holds the position of Technology Manager and has
been with the Cooperative since 2004 and brings with him 13 years industry experience plus 5
years of IT experience prior to that. Positions with CTC include Netw ork Administrator in which
he consulted with area businesses on setting up and maintaining their corporate network
infrastructures, promoted to Sales Manager in 2007 and to Technology Manager in 2011.
Responsible for planning, engineering, and building the voice, video, and data networks used to
provide competitive services to CTC customers, developing new products, and setting the
architectural direction for the network as CTC continues to remain one of the premier providers
of communications solutions. Graduated with a BS in Secondary Education in Social Studies
from Gustavus Adolphus College.
Engineering Manager | Steve Gilbert holds the position of Engineering Manager and has 22
years of industry experience and has been with the Cooperative since 2006. Graduated from
Northwest Technical College (M-State) with a degree in Electronics Engineering. Extensive
knowledge in Engineering, Central Office Design, Outside Plant Construction, Fiber Splicing,
Inventory, and Buildings and Facilities. Chairman of the MTA Plant Managers and
Superintendents Peer Group in addition to Board Director for the United Way of Crow Wing
and Southern Cass Counties. Experience in numerous projects including RUS loans, fiber -to-
the-home and business build-outs, ISD 181 fiber connection, CO power plant upgrades and
installations, and backup generator power plant upgrades and installations.
Business Sales Manager | Eryk Haapajoki holds the position of Business Sales Manager, has 20
years of industry experience and has been with CTC since 2009. Plethora of sales experience
and knowledge in the technology industry and great success driving revenues wherever he goes
all while being extremely well-networked in the Lakes Area. Past Board Director and currently
President for the Brainerd Public Schools Foundation, Board Member of Brainerd Community
Action, previous multiple-year member of the Brainerd Jaycees, past Board Director of Mid-
Minnesota Federal Credit Union and Brainerd Basketball Association as well as the Brainerd
Youth Athletic Association. Current President of This One’s for Hop, Inc. Past coach of multiple
youth sports including football and baseball.
Operations Manager | Jason Atwater holds the position of Product Manager and has 22 years
of industry experience and 19 years with CTC. Graduated from Inver Hills College with a
Telecommunications Degree and from Dakota County Technical School with a
Telecommunications Diploma. Extensive knowledge and experience in wireless, video
programming/video integration, fiber-to-the-home projects, and numerous other special
projects. Previous positions with CTC include Combination Technician and Supervisor of
Combination Technicians (managing Outside Plant Technicians and Repair Department).
Responsible for product development and rollout. Well networked in the telecommunications
industry and active in the Brainerd community.
Partnership Development Manager | Joe Buttweiler joined the CTC team in 2015 as the
Partnership Development Manager. New to the telecom industry with his e xperience being in
the electric industry as General Manager at Arrowhead Electric in Lutsen, MN. Led the
development and implementation of the $21 M fiber optic broadband network in the
Arrowhead Region of MN. Graduated from Bemidji State University with a Bachelor’s of Science
in Geography and an MBA from Cardinal Stritch University. Works on long-term business
development plans with local, state and regional partners to secure partnership agreements for
CTC to continue to support.
Member Services Supervisor | Carrie Lowe holds the position of Member Services Supervisor
and has been with CTC for 26 years. Served on the ISD 181 Community Education Advisory
Committee and the Minnesota Telecom Alliance OM/HR Planning Committee. Currently serves
as Treasurer on the Board of Directors for Crisis Line and Referral Service, serving 6 Minnesota
counties. Extensive Industry knowledge. Instrumental in CTC’s recent successful Operating
Systems conversion. Responsibilities include NRUF and CIC filings, various reporting, and
supervising CTC’s Member Services Staff ensuring accurate records, billing, and outstanding
Customer Service to CTC’s membership.
Supervisor, Technicians | Eric Gibson holds the position of Supervisor, Technicians and has 23
years of industry experience and 9 years at CTC. Graduated from Wadena Technical College
(M-State) with a degree in Telephone Service. Extensive knowledge in telephony, switches,
switch conversions, troubleshooting, Central Office, outside plant and DC power. Member of
Mid-MN Builders Association. Youth wrestling and football coach.
Accounting Supervisor | Greg Springer holds the position of Accounting Supervisor and has 19
years of industry experience and has been with the Cooperative since 2008. Graduated from
Bemidji State University with a Bachelor’s of Science Degree in Accounting. Performs all types
of accounting related functions, including preparing and posting journal entries, payroll
processing, bank reconciliations, and account analysis. Manages the Carrier Access Billing
system, video programmer contracts, E-rate program and is responsible for preparing FCC
reports. Provides supervision over the customer billing and accounts payable/receivable
functions. Was part of a team that converted the billing and f inancials programs to a new
vendor, and continues to work on projects that increase the efficiency and accuracy of those
programs.
Supervisor Service Assurance Technicians | Roxi Grimsley holds the position of Supervisor
Service Assurance Technicians and has 19 years of industry experience and has been with the
Cooperative since 1999. Responsible for managing the daily operations of CTC Service
Assurance Technicians, prepares and dispatches work for the Member Service Technicians
according to orders and trouble calls, works closely with all CTC staff to ensure ultimate
member satisfaction. Previously worked in Customer Service, Accounting and most recently
Plant and Provisioning Lead