HomeMy WebLinkAbout2016-0815 Study Session PACKET CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, August 15, 2016 Siskiyou Room, 51 Winburn Way 5:30 p.m. Study Session 1. Public Input (15 minutes maximum) 2. Look Ahead review 3. Discussion of the future of the Electric Utility (request of Mayor Stromberg) 4. Update from AFN Governance Structure ad hoc Committee Immediately following the study session the Council will hold an executive session for real property transaction pursuant to ORS 190.660(2)(e). In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST MEETINGS ON CHANNEL 180 OR 181. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US City of Ashland Council Meeting Look Ahead *****THIS IS A DRAFT AND SUBJECT TO CHANGE***** Departments Responsible cc SS cc SS cc SS cc 8/28 Volunteer Appreciation - Oak Knoll Golf Course 3 m 8/28 9/5 Stud Session canceled - Labor Da Holiday 9/5 9/6 Stud Session in Council Chambers - 7 .m. 9/6 1 Discussion of winter shelter modifications Da;e, LIa or Admin SS m Regular Council Meeting following stud session 9/6 2 Award of bid for Garfield Park project Michael Parks CONS 3 Continued discussion of Grandview Guardrail Mike PW UNF 4 Approval of Pioneer and Lithia Way downtown beautification project PW NEW Mike 5 Update of internal controls policy Lee Finance NEW 918 Budget Committee - Council Chambers - 6 .m. 9/8 9/19 Stud Session in Siski ou Room 9/19 6 Electric cost of service stud Mark Electric Ss 7 New storm drain requirements Mike Pw Ss 9/20 Regular Council Meeting 9/20 8 Annual presentation b Airport Commission Mike PW PRES 9 Public hearing regarding a zoning change at 150 N Pioneer Bill CD PH 10/3 Stud Session in Siski ou Room 10/3 10 Jackson County Vector Control concerns (request of Councilor Voisin) Admin SS 11 Presentation and discussion regarding Citizen Survey Ann Admin SS 12 Presentation regarding PAC mural guidelines Ann Admin SS 1014 Regular Council Meeting 10/4 13 10/17 Stud Session in Siski ou Room 10/17 14 Police staffing needs (Tighe) Police SS 15 ORW presentation on public facilities Mike PW Ss 10/18 Regular Council Meeting 10/18 16 10/31 Stud Session in Siski ou Room 10131 17 11/7 Regular Council Meeting - 11/1 18 SDC Update Mike PW RES 11/14 Stud Session in Siski ou Room 11/14 19 11/14 Executive Session immediate) following Stud Session 11/14 20 To consider the employment of a public employee, 192.660.2(a) EXEC 11/15 Regular Council Meeting 11/15 12/5 Stud Session in Siski you Room 12/5 12/6 Regular Council Meeting 12/6 Page 1 of 2 8/1012016 City of Ashland Council Meeting Look Ahead *****THIS IS A DRAFT AND SUBJECT TO CHANGE***** Departments Responsible Commission Presentation Dates - 2016 February 16 - Transportation Commission March 15 - Tree Commission A ril 19 - Historic Commission Ma 17 - Wildfire Mitigation Commission June 7 - Band Board Jul 19 - Forest Lands Commission August 16 - Conservation Commission September 20 - Airport Commission October 18 - Public Arts Commission November 15 - Housing and Human Services Commission December 6 - Planning Commission Discussion of Class & Compensation stud (request of Councilor Voisin Discussion of raising the temperature threshold for declaration of extreme weather emergency shelter (request of Councilor Voisin Discussion regarding the seismic code Page 2 of 2 811012016 CITY OF ^ASHLAND Council Communication August 15, 2016 Study Session Discussion of the Future of the Electric Utility FROM Mark Holden, director of IT and electric utility, mark. hoIdenAashland.or.us SUMMARY This is a discussion of the current state and future state of the City of Ashland's electric distribution utility. The outline also describes the Electric Utility's transition from current to future state and the anticipated barriers, hurdles and issues. The transition to a future state is being driven by the need for a net zero carbon future, customer expectations, developing markets, and evolving changes in generation, transmission and distribution system technologies. This presentation is brought forward at the request of the Mayor. BACKGROUND AND POLICY IMPLICATIONS: The City of Ashland Electric Utility (Utility) distributes a combination of power from local generation and the Bonneville Power Administration (BPA). The Utility focuses on providing power in a safe, reliable, affordable and environmentally responsible manner. Current State: The Utility operates within an interconnected northwest regional power supply system. Power is generated locally and externally (BPA). BPA uses transmission systems (BPA, Pacific Power) to supply power to the Utility. The Utility uses its distribution system to deliver the combined local and external power to the residents, businesses and other entities within the urban growth boundary. The electric generation, transmission and distribution industries are in an evolutionary period. While the details of the industry's future are still developing, the need to reduce carbon emissions is advancing these industries. Supporting and prescribing the changes are federal (PURPA1, Clean Power Plan), regional/federal (Seventh Northwest Power Plan - Northwest Power and Conservation Council), 1 "The Public Utility Regulatory Policies Act of 1978 (PURPA) was implemented to encourage... 1. The conservation of electric energy, 2. Increased efficiency in the use of facilities and resources by electric utilities, 3. Equitable retail rates for electric consumers," - What is a Qualifying Facility, (n.d), Federal Energy Regulatory Commission (FERC), https://www.ferc..gov/industries/electric/gen-info/qual-fac/what-is.asp, Accessed 05/17/2016 Page 1 of 3 ~r CITY OF ASHLAND state (SB 1547 also known as "Coal to Clean"), industry economics, technology, and community expectations. Current trends supporting the evolution and helping to move the electric utility industries forward are: a) conservation efforts (e.g. energy efficiency) - which reduce consumption b) demand response initiatives - which reduce capacity requirements c) availability of renewable resources - increasing capacity/displacing carbon based power d) developing technologies that integrate new resources (demand response, intermittent/variable renewable resources, storage) into the power supply chain a) developing/emerging balancing markets/associations - enabling a broader use of intermittent generation resources While the Utility does own and operate generation resources (small hydro and solar) and does acquire excess generation from customer owned solar installations through a net metering rate, the Utility is primarily a distribution utility. To meet the balance of the Utility's power requirements, the Utility contracts with BPA for generation and transmission services. The Utility is in a seventeen year, take or pay contract with BPA (expiration September 30, 2028). BPA acquires and plans its own generation resources. BPA owns/acquires, plans, manages and operates its own transmission resources. The Utility's own generation resources combined with BPA resources provide the Utility with ninety- five percent zero carbon power (eighty-five percent hydro, ten percent nuclear). The remaining five percent is variably sourced by BPA with market contracts (small hydro, wind, biomass, gas, other). Over the past five years the Utility has purchased qualifying renewal energy credits (RECs) in an effort to match the five percent variable supply from BPA. Through the combination of generation sources and RECs the Utility has provided the benefits of nearly one hundred percent carbon free energy. Ashland's projected energy consumption is flat to slightly up (one-half to one percent). This is consistent with regional and national trends. Since approximately 2007 the Utility has met any new consumption needs through conservation (efficiency) and the installation of local solar resources. Northwest regional planners anticipate conservation and demand response can provide the growth needs for the region for the next twenty years 2. The Utility currently supports ongoing conservation (efficiency) but does not have any developed demand response resources. The Utility (and industry) is continuing to migrate away from a simpler distribution utility to a more complex integrated utility. The future of the Utility is being shaped by the need for more conservation (efficiencies), gaining capacity through demand response and the incorporation of more distributed energy resources (DER - such as solar and storage resources). Other forces shaping the future are the economics of power generation, governmental requirements and community expectations. Future State: While the future is not certain, Ashland's integrated Utility will operate in an environment where existing zero carbon generation (BPA, solar, other) continues to play a key role but is blended with alternative grid attached and local resources (generation and storage). The integrated Utility will 2Summary of the Key Findings and Resource Strategy of the Seventh Plan, (n.d.), Northwest Power and Conservation Council, http://www.nwcouncil.org/media/7150142/ppseventhpl an summary 032816.pptx, Accessed 05/16/2016. Page 2 of 3 CITY OF ASHLAND experience a collaboration with customers where customer loads are more flexible and consumers are more empowered to make energy usage choices (consumption, demand response, generation). The integrated Utility will incorporate both grid based and local energy choices. The Utility will use distribution technology (smart grid, advanced metering infrastructure - AMI) to empower both the utility and consumers to plan, manage and more efficiently/effectively use electric energy. The changes will not occur overnight. The Utility (with the rest of the industry) is moving through a continuum of technologies, economic values, and consumer expectations where consumption changes as information and collaboration grow and where resources are developed and technology expands to provide additional economic value. As the Utility has done in the past, the Utility will navigate the technologies, economics and customer expectations with a focus on providing safe, reliable, affordable and environmentally responsible electric services. The attached "Outline of the Future of the Electric Utility" presents an overview of the current and future states of the Utility. The outline also provides a description for the transition from current to future state and the barriers, hurdles and issues facing the City's electric utility. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: N/A SUGGESTED MOTION: N/A ATTACHMENTS: Outline of the Future of the Electric Utility Page 3 of 3 IL411 Outline of Future of the Electric Utility Current State - Distribution System Utility Distribution System Utility (Utility) - Transmission Grid connected', purchases power, distributes power, supports energy efficiency for Utility and customers, adopter of distributed energy resources (renewable energy resources and consumers as source of renewable energy) Operational Priorities 1. Reliability 2. S afety 3. Affordability 4. Environmentally responsible a. BPA2 zero carbon (95% + 5% RECs) b. Efficiency - Utility and consumer c. Provide opportunity for renewable energies (residential/commercial/educational/other) i. Net metering; primary metering (SOU - demand and power) d. Provide opportunity to participate in renewable energy (e.g. Solar Pioneer 11 project) Future state - Integrated Utility Integrated Utility - Transmission Grid connected, distribution becomes more controllable and resilient, load becomes more interactive and dynamic, generation becomes more flexible, consumers/ communities continue as energy producers, the Utility and consumers gain real time knowledge and control of energy consumption. Operational Priorities 1. Reliability 2. Safety 3. Affordable/Economic a. Provide customer with further control of their energy usage (smart grid, smart homes) b. Maintain energy efficiencies and demand response c. Enabled customers (information for control, distributed generation, storage) d. Grid/utility level storage e. Manage cost drivers - consumption and peak usage (efficiency/conservation, demand response, energy resources/storage) 4. Environmentally responsible a. Efficiency - continued focus b. BPA zero carbon c. Integrated resources (energy resources) i. Resiliency 1. Renewable integration - intermittency solution(s) 2. Storage integration i Transmission Grid Connected value = reliability, voltage quality, frequency quality, resiliency, availability of renewable and zero carbon resources z BPA's 2015 power was a mix of 83.6% hydro, 9.9% nuclear, 6.5% mixed resources (4.8% non-specified purchases, 0.9% small hydro, 0.6% wind, 0.1% Biomass, 0.1% Natural Gas) Page 1 of 3 08152016-discussion-of-the-future-of-the electric_utility_atchl.docx Created: 10/28/2015 h:\my documents\_electric\projects\future of electric Last Maintained: 8/10/2016 11:03 AM Outline of Future of the Electric Utility ii. Emissions reduction 1. Offset localized carbon sources (e.g. electric vehicles) 2. Offset non-zero carbon based generation d. Integrate transportation (electrification of transportation) e. Demand response - level the shape of the demand curve i. Customers empowered to control their energy consumption ii. Utility enables and supports (time-of-use) f. Distribution optimization / Loss Reduction i. Provides opportunity for renewable energies - residential/commercial/educational/other ii. Provides opportunity to participate in renewable energy (grid connected renewables; community solar) How is the Electric Utility Transitioning from Current to Future State? 1. Transition is under way a. Nationally and regionally the industry is piloting a variety of solutions b. Maintain Ashland's head start i. Zero carbon energy - BPA (95%) ii. Efficiency programs - continuing education and offerings for single family residences iii. Developing infrastructure to support Demand Response iv. Distributed generation (customer solar, community solar) 1. Revise and expand Net metering policies/opportunities - "virtual net metering"/ "shared renewables" 2. Raise emphasis/underscore efficiency as a resource -most cost effective resource a. Continue energy efficiency programs b. Increase focus on multiple family residences c. Leverage BPA participation and direction i. Guided by regional energy efficiency goals d. Leverage/comply with regional plans and authorities i. BPA responsibilities within Seventh Power Plan (BPA Regional Technical Forum and Implementation Manual) ii. Seventh Regional Power Plan (Northwest Power and Conservation Council) iii. Federal Energy Regulatory Commission - FERC 3. Prioritize smart grid development a. Expand to include customers (AMI), knowledge is power (for customer and utility) b. Focus on conservation efficiencies (Utility and consumer) c. Develop demand response resources (match timing of conservation with supply capacity) 4. Continue to enable renewable power integration a. Utility attached distributed energy resources (DER) b. Investigate/develop Grid connected renewable resources, leverage most cost effective resources c. Invest in economically viable/proven solutions i. Benefit from industry lessons learned and national and regional plans and pilots Page 2 of 3 08152016-discussion-of-the-future-of-the electric_utility_atchl.dou Created: 10/28/2015 h:\my documents\_electric\projects\future of electric Last Maintained: 8/10/2016 11:03 AM Outline of Future of the Electric Utility Barriers, Hurdles, Issues 1. Technology a. Smart Grid (data to action - grid and consumer) i. Distribution system metrics, identifying issues and opportunities 1. Implementation of additional SCADA technology ii. Provide consumer information knowledge to modify personal consumption, participate in demand response 1. Implement AMP technology and provide customer information to control usage b. Reliability of DER versus Grid attached c. Electrification of transportation, infrastructure impact is vague/unknown, esp. fast charging d. Solar, Storage (how to enter) 2. Cost/Benefit a. Cost/benefit of DER b. Cost of DER environment - instantaneous/long term standby/backup, ancillary resources (voltage, frequency), managing the "duck curve", other c. Solar, Storage (when to enter) - BPA contract, ancillary resources (voltage, frequency), managing the "duck curve", other 3. Rates a. Decoupling of rates - maintaining the reliability, safety, and affordability i. Variable rate - consumption (kwh) ii. Fixed rate - fixed costs iii. Demand b. Develop relationship between rates, efficiency/conservation and demand response (e.g. time of use rates) c. Solar incentive programs i. Purpose, fairness ii. Sustainable - purchase power agreement vs. incentive/rebate 3 AMI -Advanced Metering Infrastructure: technology for gathering and disseminating information at an individual utility meter. Page 3 of 3 08152016-discussion-of-the-future-of-the electric_utility_atchl.docx Created: 10/28/2015 h:\my documents\_electric\projects\future of electric Last Maintained: 8/10/2016 11:03 AM CITY OF ASHLAND Council Communication August 15, 2016 Study Session Update on conclusions and recommendations of the ad hoc Committee on AFN Governance FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY This is an update for the Council on the conclusions and recommendations of the ad hoc Committee on Ashland Fiber Network (AFN) Governance, as requested by the Council at the March 1, 2016, Council meeting. Councilor Marsh will present this report. BACKGROUND AND POLICY IMPLICATIONS: Following the acceptance of the AFN Business Plan last year, the Council agreed to appoint an ad hoc committee to study the question of whether the current governance model is most appropriate for AFN, given the extremely competitive nature of its business. The eight-member committee was appointed by the Mayor and confirmed by the Council on May 5, 2015. Councilor Pam Marsh served as chair. The committee's charge is as follows: The ad hoc Committee on Ashland Fiber Network Governance Structure is charged with examining alternatives to the current AFN governance structure (a City department, budgeted as an enterprise fund) and recommending an alternative to the City Council if such an alternative is deemed preferable. In examining various alternatives, the Committee shall consider: 1. The fiscal stability of the AFN enterprise and whether an alternative governance structure would impair the enterprise's ability to make debt service payments; 2. AFN's ability to react quickly to changing market conditions, including the need to make rate and service decisions outside of the City's normal rate-setting process; and 3. Impacts on other aspects of City operations that may be intertwined with AFN. The Committee may also recommend maintaining the existing governance structure, with or without modification. The Committee shall, in the course of its work provide ample opportunity for public input and present its recommendation(s) to the City Council no later than November 3, 2015. The Committee met 11 times in 2015 and 2016 after requesting and receiving from the Council permission to extend its work beyond the November 2015 deadline provided in the charge. The Committee reported back to the Council on March 1 and requested that the Committee's scope of work be expanded to include working with City staff on the development and implementation of a marketing and communications plan for AFN. Council approved that request and asked for a report on the committee's other conclusions and recommendations. That report is being presented at this meeting. Page 1 of 2 ILVI CITY OF ^ASHLAND COUNCIL GOALS SUPPORTED 17. Market and further develop the Ashland Fiber Network. FISCAL IMPLICATIONS: AFN has budgeted $45,000 in each year of the biennium for advertising and marketing. Biennium to date, the City has spent about $25,000 on advertising and marketing and has entered into a contract with a local marketing consultant, Susan Unger (dba "Master Strategy), for the development of a marketing plan. STAFF RECOMMENDATION AND REQUESTED ACTION: N/A. This item is for information only. SUGGESTED MOTION: N/A ATTACHMENTS: AFN Governance, interim report AFN organizational models Page 2 of 2 ~r AFN Governance Structure Pagel of 3 Ad Hoc Ashland Fiber Network Governance Structure Committee Interim Report August 10, 2016 The AFN Governance Structure Committee was appointed by Mayor John Stromberg and confirmed by the Ashland City Council in May 2015. While we have completed the bulk of our assignment, we are not yet ready to issue final recommendations. This abbreviated report to the council is intended to bring you up to date on our work thus far. For much more detail, we encourage you to examine the full record of our agendas, minutes and working documents on the city's website. Mission and membership The Working Group is charged with identifying, analyzing and recommending potential changes to the AFN organizational structure to best ensure the entity's long-term viability. The group was comprised of councilors Pam Marsh (chair) and Rich Rosenthal, Bryan Almquist, Dennis Slattery, Matthew Beers, Susan Alderson, Vicki Griesinger and Jim Teece (ex officio). Identification of criteria After extensive discussion of current conditions, including a SWOT analysis of status quo operations, the committee articulated a mission statement to guide our work and a set of criteria to be used to evaluate potential organizational models: Mission: Ashland Fiber Network (AFN) enhances duality of life, economic opportunity and community vitality by enabling citizens and businesses to receive affordable, reliable telecommunications services. Criteria: We agreed that any option considered must: 1) Provide high-quality, reliable and customer-focused services. 2) Enable AFN to make timely adjustments in a competitive marketplace. 3) Be governed by stable, focused and knowledgeable leadership. 4) Be financially viable, with ability to pay off debts, and to justify new investment. 5) Provide competitive products committed to community connectivity, digital technology, education and economic development. 6) Be resistant to political change. AFN Governance Structure Page 2 of 3 Models With criteria in hand, the committee developed a long list of possible organizational configurations to be evaluated, including: • Status quo - AFN remains as is. • Airport model Status quo with addition of a strong commission to provide oversight • Airport model with contractor - AFN central operations subcontracted; strong commission provides oversight • Franchise - AFN subcontracted to franchisee. • Utility - Council governs and utility payers fund costs of service • Spin off - AFN retains assets and becomes sole shareholder in a new entity. • Hybrid - AFN acts as wholesaler; retail sales through ISP(s) • City monopoly - ISPs eliminated, with all sales directly from AFN • Sold - AFN is sold to another entity. Using a ranking of 1-5, we analyzed each of these alternatives against the evaluation criteria. Findings were summarized on the attached template (Ashland Fiber Network Organizational Models), with the addition of an abbreviated look at the conduct of business functions inherent in each model. After extensive discussion, the group began to focus on what we view as the fundamental problem with the status quo: the AFN product is now being sold to consumers by AFN as a retailer, as well as by multiple, competing ISPs. Our contracts with the ISPs do not contain performance requirements; on the other hand, the ISPs have no hand in producing or pricing the products they are supposed to sell. The result is a confusing and splintered approach to the internet market; overall, we are failing to effectively compete with Charter. Initial findings Unfortunately, when we looked closely at the proposed models, we encountered significant barriers that prevent implementation to many of the more radical approaches. For example, the utility model, which has generated significant interest, is unlikely to pass legal challenge. Recent state law places severe restrictions on the ability of cities to subcontract services currently performed by municipal employees, effectively eliminating several models from consideration. The city's responsibility for the existing $10 million AFN debt creates grave concerns regarding models (the spin off) that would minimize the city's authority for operations. AFN Governance Structure Page 3 of 3 With City Attorney Dave Lohman's assistance, we contracted with an outside attorney to help us look at prospects for moving to a single ISP model. That analysis identified financial and legal obstacles that the working group views as insurmountable. Current status We continue to consider these fundamental issues: • The value of creating an AFN Commission to advise the City Council on decisions regarding operations, marketing, investment, etc. and to provide more hands on leadership than the council can manage. • The conflict created when AFN serves as both a wholesaler and a retailer, effectively competing with our partner ISPs. • The challenges of marketing internet services to the community with an organizational structure that lacks cohesion and clarity. Next steps Several months ago we asked for the council's approval to extend our mandate to allow committee members to serve as a sounding board for Susan Unger, the marketing professional on contract to AFN. In turn, Susan's final report may provide guidance for the committee's final recommendations to the council. We anticipate that our final report to the council should be complete by December 2016. Submitted by: Pam Marsh and Rich Rosenthal Ashland Fiber Network Organizational Models Organizational Strengths Weaknesses Who sets budget? LV n ides Who develsos Who markets? 15' 0sells? g' o tufts? Models investments' product? Status quo Commitment to community service; Vulnerable to political whim; operations subject AFN staff AFN staff,/Council I AFN staff AFN and AFN as a wholesaler AFN retains system AFN remains as is, generating current debt payment of to requirements of public agency (transparency, City budget officers participating ISPs and retailer; ISPs as profits; ISPs retain $409,000/year. requirements of public process); inattentive Council (Ashland Home retailer, retail profit. leadership. Net) Airport (Public) Dedicated leadership; current debt Leadership predicated on council's willingness Commission Commission Commission AFN and AFN as a wholesaler AFN retains system strong commission provides payment maintained. Commitment to to delegate; operations subject to requirements AFN staff AFN staff AFN staff participating ISPs and retailer; ISPs as profits; ISPs retain oversight,AFNcontinues as community service. Could provide more of public agency. City budget officers City budget officers retailer retail profit a city dept. timely and less political decision-making. Council Council Airport w/contracter Dedicated leadership; decision-making Community benefit to be defined in contract. City determines City and/or Contractor. Contractor Contractor City and contractor. Strong commission AFN independent of public process; motivated contract terms; contractor. cen tra 1 op era tion s contractor. contractor subcontracted. Role of ISPs determines project budget. TBD. Franchise Decision-m a king independent of public Community benefit to be defined in contract. City determines City and/or Franchisee. Franchisee. Franchisee. City and franchisee. Council subcontractsAFN process and political whim; motivated contract terms; franchisee. central operations. AFN franchisee. franchisee operated by franchisee, determines project Role of ISPs TBD., budget Utility Commitment to community service; Likely legal and political challenges; operations Commission? Commission? AFN staff AFN AFN City Council governs; utility strong, predictable cash flow addresses subject to requirements of public agency Council Council payers fund cost of service. debt and supports new investment. (transparency, requirements of public process); AFN staff AFN staff AFN continues as a city dept. implementation challenges. City budget officers Role of ISPs TBD. Spin Off Dedicated leadership; operations Community oversight diminishes over time Spin off Spin off Spin off Spin off Spin off City and spin off City retains assets and independent of public process and leaving AFN debt and commitment to becomes sole shareholder in political whim. Community service vulnerable; significant initial new entity. AFN operated by effort. new entity. Leadership initially appointed by mayor, later becomes self- appointed. Role of ISPs TBD. Hybrid Motivated ISPs; possible increase in Loss of current AFN retail revenue . AFN staff AFN staff ISPs? ISps ISPs City retains system AFN becomes wholesaler; competition and customer choice; clear City budget officers Council profits; ISPs retain ISPs responsiblefor all lines of responsibility between city and Council ISPs? retail profit. customer contact ISPs. City monopoly Commitment to community service; Vulnerable to political whim; operations subject Commission? Commission? AFN staff AFN AFN City ISPs eliminated, AFN possible increase in cash flow. to requirements of public agency (transparency, AFN staff Council continues as a city dept. requirements of public process); inattentive City budget officers AFN staff Could include a dedicated leadership; implementation challenges. Council commission. Sold No political or leadership issues. Financial impact on debt and current operations Owner. Owner. Owner Owner Owner Owner Motivated owner. unknown. Commitment to community service vulnerable. Summary of Models Criteria Status Sold Public Public Franchise Utility Spin Off Hybrid city Quo Entirely w/advisory w/advisory Owned comm. and comm. no Only independent contractor contractor 1 2-4 ? ? 2-4 ? ? ? ? ? 2 1 ? 3 2-3 4.5 1 4-5 3 3 3 1-2 5 4-5 3.5 3+ 4 4-5 1 1-2 4 3 ? 3+ 3+ 3+ 4-5 3+ 3+ 3 5 1-2 ? 3 3+ 3+ 1 3++ 4 3+ 6 1 5 3 3 4 1 4-5 1-2 1 Any option considered must: 1) Provide high-quality, reliable and customer-focused services. 2) Enable AFN to make timely adjustments in a competitive marketplace. 3) Be governed by stable, focused and knowledgeable leadership. 4) Be financially viable, with ability to pay off debts, and to justify new investment. 5) Provide competitive products committed to community connectivity, digital technology education and economic development. 6) Be resistant to political change.