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Home My WebLink About2025-08-18 Study Session MIN ASHLAND CITY COUNCIL STUDY SESSION MINUTES Monday,August 18,2025 Mayor Graham called the meeting to order at 5:30 p.m. Council Present: Mayor Graham, Councilors Bloom, Dahle, DuQuenne, Hansen, Kaplan, and Sherrell Council Absent: none Staff Present: Sabrina Cotta City Manager Alissa Kolodzinski City Recorder Chad Sabotka AFN Operations Manager Marianne Berry Finance Director Rocky Houston Parks and Recreation Director I. Call to Order II. Reports and Presentations a. Ashland Fiber Network Business Plan Update Cotta introduced the item as a follow up to a previous meeting. Berry and Sobotka presented an update on the business plan for Ashland Fiber Network (AFN) (presentation attached).The technical differences between the network technologies were explained: DOCSIS 3.1, G.hN, and PON (Passive Optical Network).The current legacy DOCSIS 3 network is 25 years old and supports only up to 250 Mbps download and 30 Mbps upload.A hybrid implementation approach was proposed, leveraging DOCSIS 3.1 to deliver gigabit speeds using existing coaxial infrastructure while strategically deploying PON in new developments and other targeted areas. The DOCSIS 3.1 upgrade would enable AFN to offer fiber-like speeds of 1 gigabit per second symmetrically (both download and upload) by replacing the 25-year-old active devices with new state-of-the-art equipment. It was expressed that reviewing the business plan earlier in the year revealed that implementing PON citywide would be too capital-intensive at approximately $15 million over two years. Instead,a hybrid approach of DOCSIS 3.1 and targeted PON deployment would allow AFN to provide gigabit internet to 90% of Ashland within existing cash flow capabilities. The capital plan for the current biennium includes a budget of$2.4 million,with $1.75 million allocated to DOCSIS 3.1 upgrades and plans for continued expansion of PON and bucket truck acquisition. For future biennia,the capital plan projected approximately $4.8 to $5.8 million in additional investments. The Council discussed whether the plan offered a competitive advantage for attracting enterprise customers. It was confirmed that AFN is focusing on downtown corridors for business,yet 90% of Ashland's electric meters are residential, making residential customers key. Inquiries about new housing developments confirmed that 100% PON implementation could happen in areas such as Caldera Oaks, Midtown Lofts, and Beach Creek subdivision. Questions arose concerning funding sources, marketing plans, and staffing, and it was clarified that funding would derive from the AFN enterprise fund's existing balance and operating revenues, not the general fund. Staffing will gradually increase,with 0.5 FTE already added and more planned for future years. Overall,the plan leverages City Council Study Session August 18,2025 Page I of 3 the strengths of the existing technology and explores strategic upgrades to maintain competitiveness in both residential and business markets. AFN's achievement of capturing a 50% market share in Midtown Lofts was highlighted as impressive, even without marketing efforts,given that competitors had already installed their equipment in advance.The plan's dependence on internal funds, including the contingency fund,and not external financing,was confirmed alongside being debt-free. It was noted that capital spending elements were adjusted for potential tariffs and that additional funds would first come from material and services transfers, resorting to a contingency draw if necessary. The Council reached a general consensus supporting the hybrid approach and acknowledged potential future budget supplemental needs to allocate funding within the AFN fund. It was confirmed that AFN can proceed with the $1,600,000 appropriation to roll out the hybrid expansion program of DOCSIS 3.1 and PON,with a mid-biennium review planned to assess the necessity of a budget supplemental. b. East Main Park Update Houston presented an update on the East Main Park project, explaining that the approved design from 2022 included a parking lot off East Main Street,dog parks, a pump track, skills park, restroom, playground, nature play area, sports court,trail system,and community garden. Since then,the projected cost had risen to over $5.5 million, substantially higher than the $2.5 million budgeted, and requiring project phasing. Phase One would focus on the pump track (which has a $1 million grant associated with it), parking lot,dog park, restroom, and a connecting trail. The Phase One cost estimate had subsequently increased from $2.5 million to $3 million, and presented several options to address the shortfall: • Reduce scope by eliminating or modifying restrooms or parking lot. • Increase funding by using reserves, removing other planned projects, or seeking additional grants. • Request a code change and revise the project to change access point from East Main to Abbott. • Apply for a variance from street improvement requirements. A public meeting was held the previous week with 78 attendees who expressed strong support for maintaining the original design and spoke that the Parks Commission would be reviewing options at their upcoming meetings on September 3rd and loth. Concerns were raised about escalating costs due to inflation and possible tariffs. Exploring variance options under AMC 18.5.0.5.05 was discussed as a way to proceed with the park without completing street improvements, aligning the project closer to budget.Although road improvements were estimated initially,they were not detailed early in the planning, resulting in a budgeting oversight. Separating street improvements from the park project, possibly through a Local Improvement District, was considered to ease financial strain while potentially enhancing safety and encouraging development in the area by improving road infrastructure,though such improvements are expensive. City Council Study Session August 18,2025 Page 2 of 3 Meeting Extended by 30 minutes by unanimous agreement. Public comment was received from citizens who expressed concern about safety for older residents and children regarding the pump track, support for the original concept, concern about funding and potential impacts on the neighborhood,and questioned whether the park would serve the immediate neighborhood or rather attract visitors from throughout Jackson County. It was clarified that while many bike enthusiasts attended the public meeting,there were also many residents from the neighborhood present. Further clarification was provided that this was planned as a community park rather than a neighborhood park, designed to serve both the immediate area and the broader community, like Garfield Park with its splash pad. The Council discussed further and acknowledged the complicated nature of the project and the difficulty in predicting costs in the current economic environment and looked forward to the Parks Commission recommendation. III. Adjournment of Study Session The meeting was adjourned at 7:24 p.m. City Recorder Alissa Kolodzinski Mayor Tonya Graham City Council Study Session August 18,2025 Page 3 of 3 .g i T Y O E SH d• ��• Now, PilotAFN •• • AugustBusiness Plan Update i , 2025 Need Council to provide guidance and approval of next steps for AFN Pilot Program and confirm Fiber Expansion Plan. topicLast time - - -. ■ April 3, 2023: AFN Business and Technology Planning Presentation ■ January 16, 2024: Approval of GPON (Gigabit Passive Optical Network) vendor ■ April 30, 2025: AFN Budget Summary ■ June 2, 2025: Next Gen Fiber Pilot Project Update /r Download/ Installation Installation Installation Customers per Upload Speeds Type Cost Time Unit Best For 4--J O m Unlimited O kA -250 Mbps/ Emaiis, tA v -30 Mbps Coax (impact on speeds) Facebook Q M Unlimited H 1,000 Mbps/ $5 million Once city block Remote Work, Coax (no impact on V -1,000 Mbps (citywide) in 1 week speeds) Streaming 0 O O C C 1,000 Mbps/ Fiber up to the $100,000 One city block Max 64 High Density Z building,coax (targeted in 4 hours customers Residential or 1,000 Mbps to customer locations Commercial U only) l— Max128 Cloud Z 2,500 Mbps/ 100%Fiber $15 million One city block customers Computing, p0, 2,500 Mbps (citywide) in 2 months (recommended Online Gaming 64) (+Future Proof) Download/ Installation Installation Installation Customers per Deployment Upload Speeds Type Cost Time Unit Best For Strategy d—J M Unlimited O ,� -250 Mbps/ Emails, Legacy (ACoax - - (impact on U -30 Mbps speeds) Facebook 5y5tewl (n O Unlimited U 1,000 Mbps/ $5 million Once city block Remote Work, Coax (no impact on V -1,000 Mbps (citywide) in 1 week speeds) Streaming 17eploy to � c replace O leo&ICy O sys+etm C 1,000 Mbps Fiber up to the $100,000 One city block Max 64 High Density / t building,coax (targeted in 4 hours customers Residential or 1,000 Mbps to customer locations Commercial U only) Q� � I.7e�l0y IVl AYEAS Max 128 Cloud Wlo eX15-floo Z 2,500 Mbps/ 100%Fiber $15 million One city block customers Computing, Ih f rastYUctc4re Or p0, Z,500 Mbps (citywide) in 2 months (recommended Online Gaming W/ �)I/��l-bAVIdW idf'(/I 64) (+Future Proof) J dewlawd /r Node Mini-bridger (dollar for scale) (dollar for scale) Upstream fiber *= Coax Downstream fiber y x m 0 CMTS Router Head-end Sp6tter Legacy DOCSIS 3.0 x 0 U 4OP44 Ethernet Coax Coax Router Cable Modem Line Extender i!& (dollar far scale) Tap (dollar for scale) Mini-bridger Node (dollar for scale) Fiber to Head-end Coax Coax .�; • Splitter li ',1►..dlllUll lug o -.-W DOC S S 3.� ✓ Less costly & less time to deploy X ✓ Speeds of Up to 1 Gbps 0 Ethernet Coax Coax 44 Router Cable Modem Line Extender (dollar for scale) Tap (dollar for scale) Gigabit Home Networking (G.hn) ✓ Less costly to deploy but limited areas ✓ Speeds of up to 1 Gbps Fiber to Head-end Coax Coax Ethernet 104V � —i Splitter Endpoint Router Positron G.hn GAM Passive Optical Network (PON) Fiber to Head-end Fiber Fiber Ethernet ONT Router ✓ Deployment very costly and takes 8x longer than DOCSIS 3.1 ✓ Speeds of up to 2.5 Gbps ✓ Future-proof technology AFN Capital Plan BN 25-27 CapEx Summary Goals. Currently in budget $ 1,649,491 Requesting additional-Contingency draw 163,844 �- Provide Gigabit speed service to of Requesting additional-M&STransfer 563,156 Ashland by 2033, by 2027. TotalNeed $ 2,376,491 ➢ Capture of market share by 2033 Capital5pending Docsis 3.1 Ugrade 1,750,000 Y Reach 50/50 split between PON/DOCSIS PON Fiber Expansion 190,000 3.1 by 2033; fuller PON deployment 2029 Cable Modems 225,000 and beyond Bucket Truck+Maintenance 140,000 Rebranding&Target Marketing 70,000 Total capital expenditures $ 2,375,000 AFN Net Position Forecast Model updated: 18-Aug-25 ON 23.25 ON 25-27 6N 27-28 BN 2931 ON R Yew♦ 1 2 3 4 6 e 7 0 9 10 FIscat Yew Endinglune30, 2023 2024 202b 2026 2027 1. 2028 2030 2031 2032 2033 Subscribers 4,075 4.250 4,313 4,563 4,90 5,363 5,713 6,013 6,313 6,613 6,913 Increase 175 63 3- 300 300 300 Average Rate $55 $55 $55 $55 $56 $57 $% $60 $61 $62 Market Snare 12,500 34% 35% 37% 40% 43% 46% 48% 51% 53% 55% Gigabit Coverage(3.1,G.nn.PON) 20% 60% 90% Inflationary escalator 0% 0% 2% 2% 2% 2% 2% 2% Estimated Revenue $ 2,805.000 S 2,846,580 $ 3.011.580 S 3.275,580 $ 3.610.372 $ 3,922,911 S 4,211.489 S 4.510,040 t 4,818,849 S 5,138.206 Financial Forecast Actual/Forecasted Revenue $ 2.789,598 S 2.799,594 $ 3,060.390 $ 3,075.391 S 3,610.372 S 3,922,911 S 4.211,489 $ 4.510.040 $ 4.818,949 $ 5,138,206 Inteestlrominvesbnents 142.511 132.733 110,000 100,000 130.000 130,000 130.000 130,000 130,000 130,000 ActuatiForecasted Expenditures Personnel Costs- 33% B47,016 951,365 1,159,709 1,207,093 1,227.165 1,333,398 1,431,485 1,532,963 1,637,927 1,746,476 Added Personnel• 116.250 359,213 369,989 382.089 392,521 404,297 416,426 Materials&Services 45% 1,252,332 1,358,651 1,175,397 1,192,285 1,624,667 1.765.310 1,895,170 2.029,518 2.168,482 2,312,193 Capital Outlay(actuaVadopted) 337.802 289,467 980.344 689,147 capital Outlay proposed... 363.500 36$500 1,0a0.000 3-n.9 r so0,0a, S Cr?) 8Dv..1) BUO.OGo Debt 517,445 517,445 - - - - - - - Contingency Total Expenditures 2.954.595 3,115.928 3.678.950 3.548.275 4,211,045 4,IM697 4.507.744 4,755,002 5,010,706 5,275,095 Net Excess/(Deficiency) (22,486) (183,601) (508.%0) (372.884) 1470,673) (215.785) (166,255) (114,962) (61,857) (6,889) Beginning Fund Balance 3,175,716 3,153,230 2,969,629 2,461.069 2,068,185 1,617.512 1,401.726 1.235,472 1,120,510 1,058.653 Ending Fund BaWtca f 3.1W.230 $ 2.980.020 S 2461.0119 S ZDW.305 S 1.627,512 S 1.401.n6 $ 1,225,472 S 2,140AI0 $ 1,060,653 S 1,061.786 Minimum EF8(2D%avg exp) S 649.965 S 689.544 $ 762,551 S 901.868 $ 865.832 $ 902,096 S 951.563 Excess of minimum EFB S 1.438.220 $ 927,968 $ 639,175 $ 433.604 $ 254,678 $ 156,557 $ 100,201 Total BN 25-27 Budget $ 7,274,819 Contingency $ 163,944 FTE 7.0 7.5 8-5 10.5 10.5 10.5 10.5 10.5 10.5 0 ASHLAND FIBER NETWORK .A iviunlcipul Broudbund Utility ➢ Supports City Government ■ Franchise fees, internal service delivery, IT/network expertise ➢ Provides a Public Service ■ Reliable and affordable internet access for residents/businesses ■ Wireless public networks ■ Low-cost hosting for school district, college and larger businesses ■ Assistance programs for low-income residents ➢ Economic Development Goals ■ Supports remote-work offices & provides low-cost Gigabit high-speed service for businesses in existing and future commerce districts ➢ Supports City's Emergency Coordination Efforts QUESTIONS? i s Technology Snapshot Legacy System Net Generation Gigabit High Speed Service DOCSIS3.0 DOCSIS3.1 Mom- ' (Data Over Cable Service Interface Specification) (Gigabit Home Networking) (Passive Optical Network) 25 years old Current generation cable system, Related to DOCSIS 3.1 100%Fiber(future-proof) significantly more reliable than 3.0 Download speeds up to-250 Mbs Download speeds-1,000 Mbs Dowload speeds-1000 Mbps Download speeds-2,500 Mbps Upload speeds up to-30 Mbps Upload speeds-1,000 Mbps Upload speeds-1000 Mbps Upload speeds-2,500 Mbps Limited upgrade options Brand new active devices(nodes, Fiber to Bldg,Coax to customer(no Does not require electricity mini bridgers,line extenders) drilling) Installation time fast Significantly more reliable than Reliability of fiber,installation Can be easily upgraded DOCSIS 3.0 speed of coax Installation time is very fast Max of 64 customers per G.hn GAM Max 128 customer per port (recommended limit is 64) Can support unlimited#of Fastupgradetime(cityblock-4hrs Customer intallationtakes2Xas customers at full speed wi30 min downtime) coax(must drill holes) Can support unlimited#of Primarily multi-dwelling units Deployment is very expensive and ,� customers at full speed time-consuming