Loading...
HomeMy WebLinkAbout01-24-1995 s • i CITY COUNCIL AGENDA PACKET 1-24-95 ® 1 s s Q, Apendalle~- AGENDA hate ~--a~ CITY OF DENTON CITY COUNCIL O~ January 24, 1995 Closed Meeting of the City of Denton City Council on Tuesday, January 24, 1995 at 5:15 p.m. in the Civil Defense Room of City Hall, 215 E. McKinney, Denton, Texas, at which the following items will be considered: NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO CLOSED MEETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. 5:15 p.m. I 1. Closed Meeting: f A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Consider settlement demand in the claim of Frances Rodgers. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 1. Discussion regarding acquisition of property for expansion of the City's landfill. C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 1. Discuss City Attorney applicants and selection process. {fork Session of the City of Denton City Council on Tuesday, January 24, 1995 at 6:00 p.m. in the City Council Chambers of City Hall, 215 F. McKinney, Denton, Texas at which the following items will be considered: NOTE: A Work Session is used to explore matters of interest to one or more City Council Members or the City Manager • for the purpose of giving staff direction into whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal city action. At a work session, the City Council generally receives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council e or City Manager to participate in the session. Participation by • • individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not r.llowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. • 0 • • helms City of Denton City Council Agenda Agodalts l„-,,,W„„.. January 24, 19959^+~~ Page 2 1... L. off, 2 Should the Council direct the matter be placed on a regular meeting agenda, the staff will generally prepare a final report defining the proposed action, which will be made available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. 6:00 p.m. i 1. Presentation by Corgan Architect Associates and discussion on { City Hall Renovation Projects. 2. Presentation of the Compreher.-Ive Annual Financial Report for the year ended September 30, 1994. 3. Review and distribute the 1995-96 Budget Priority Questionnaire. 4. Receive a report, hold a discussion and give staff direction regarding the restructuring of landfill rates to provide adequate disposal capacity for the community until mid-1997. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of 1995 at o'clock (a.m.) (P.m.) CITY SECRETARY NOTE: THL CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACJ.. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF' THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS , ® DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO • THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. ACC00244 i i 1 • 0 ca . DENTON aooooo~ oo~Qooa13 D oo°~ 4 ° oo°~ 'o 00 © t~ ~ p 2d Q 00~o r o N ti 000 ~GaDDDafl~~° CITY COUNCIL 1 • ° • Q AgMId~No ® o1de /-oi - 9~ tG6 VTV of DENTON, TEXAS MUNICIPAL BUILDING i DENTON, TEXAS 7620f TELEPHONE (817) 566.8200 CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager DATE: January 19, 1995 SUBJECT: City Hall Renovation Project Brent Byers of Corgan Associate Architects, Betty McKean and Bruce Henington will be updating you on the status of the City Hall ..,~novation Project, We have been making major headway in the City's Facility Space Plan implementation. As you are aware, the Denton Municipal Complex was completed in July 1994. The next step in our comprehensive space plan is to complete the City Hall West Renovation Project by September 1995, Bids should be out by late February. Now its time to finalize planning on the existing City Hall and determine the scope of that project. The current budget for the City Hall Renovation Project is $324,025. These funds are to do limited relocation and renovation of interior offices, furniture/equipment for conference rooms and public areas, new restroom partitions, new electrical panels, renovation of lights, carpeting, oinor ADA renovations and a limited amount for improvements to the sound system in the Council Chambers. We will be using the vacant space created by the relocation of the Planning and Engineering ,-s;partments to temporarily house City Hall staff while their respective areas are being renovated. • Before proceeding, it will be necessary to hire an architect, determine the scope of work, and reach agreement on both the budget and the timeline. Since the space study was completed in December 1991, there have been numerous changes that could impact this project. Attachment A lists many of those issues which Council may wish to consider in determining the scope of this project. • O • Page Two AQenddNO.Q rJ--1-- City Hall Renovation Project Agerdalt ~ January 18, 1995 _ In order to proceed with this project staff is seeking direction as to the priorities desired by City Council. Staff recommends a steering committee be formed which would consist of representatives of the City Council and key city staff. The committee would evaluate renovation issues and come back to the City Council with recommendations. We are looking forward to starting this project and feel it will be equally successful as the Denton Municipal Complex Renovation Project. ?Lloyd 4arrell, City Mana r Attachments 1832.FM • i I 1 Y o ' v "ndaNo ~~gendaltem ,~,L_. ATTACEICNT A Mf Interior/Exterior Issues to be Considered 3 0~6 Interior Exterior Consideration of issues such Renovation of accesses which as life safety, sprinkler are appropriate for handicap. system and ADA renovations. How will the City Council Do parking lots or walkways operate in the future? need to be redesigned in order • executive sessions to improve access to City • briefings Hall? • council meetings Extent of technological and TIs it desire of the City acoustical renovations and/oouncil to have a public equipment additions for City laza, courtyard? Council Chamber. Possible changes in interior How should historical aspects functional concerns to be of the building be preserved? considered, • relationships ► communication • accessibility Are there City services that Should the main entrance to need to be added to or removed the building be relocated? from City Hall? Are there any modifications of Consideration of the addition the mechanical equipment that of flagpoles, signage, need to occur? exterior lighting and the extent of new landscaping needed. Are there current and future Consideration of issues such security considerations that as life safety and ADA need to be met? renovations. Temporary relocation of some Consideration of exterior departments, building treatments in order • to improve the exterior visual appeal of City Hall. Consideration of furniture, Should public art be part of fixture and equipment needs project scope? resulting from City Hall West move and City Hall renovation project, • • A 1830.FM January 15, 1995 • • NWdA No Agendaltem~c~~__ Dale[ CA P-S k Interior Exterior Signage and artwork needs resulting from renovation of building. Current/future telephone equipment, telecommunication or computer considerations that need to be met. 1 i • f 1830.FM January 15, 1995 • ea • I • Agendaftern- Date.,L S c96 CITY HALL EST.LMgTED TIMELINE JANUARY 1, 1995 - NOVEMBER 30, 1995 JANUARY F$BRUARY NARCS APRIL Present Obtain rough Issue RFP for tentative plan estimates on items architect. Xire architect. to Executive needing funding. staff on Start design of 1/10/94. Submit selected City Hall. 1 terns to Begin finalizing Council/staff list of items Building needing funding. Committee. Establish a City Council/staff "Building Committee" KAY JUN! JULY 11U(iU9T Present budget Present design Present design Work on to Council/staff drawing to drawings to entire specifications Building Council/staff City Council. and drawings. Committee with Building Obtain City Council firm firm estimates Committee. selected approval o^ make Present options, revisions to plans. specifications Receive and drawings to feedback. Present firm budget Council/staff estimates to entire Building City Council. Committee, SBPTMWZR OCTOB$R NOVMMWR D$C$if8$R Go to bid with Present bid to Begin construction, project in early Council/staff • September. Building Committee and entire City Council in late October, Note: Dates are based on a significantly expanded project scope of work which • • j • would include a number of the currently unfunded renovations. r 1A19.FM December 27, 1994 • 0 • c? 0 CITY COUNCIL C. oe o• QI 4. Nf • to O 4 i I i O ,p ♦ r • 0 ~ yrO ~Y' oo • Na ~ ~ Date l Date MY Of DENTON, TEXAS MUNICIPAL BUILDING s 216E. WKINNEY • DENTON, TEXAS 76201 (817) 566.8200 a DFW METRO 434.2529 MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Jon Fortune, Chief Finance Officer f}~ DATE: January 20, 1996 IIJJJ SUBJECT: 1996.96 CITY COUNCIL BUDGET PRIORITIES QUESTIONNAIRE In an effort to make sure that the City Council fully understands the Intent of the Budget Priorities Questionnaire, the distribution of the questionnaire has been delayed until a more thorough discussion has occurred. The questionnaire will be distributed during the worksession on Tuesday, January 24th and will be due back to the Budget Office by January 31 at, The questionnaire results are scheduled to be presented to Council on February 7th, If I can provide you with additional information please let me know. Thank You. • i AfF00099 "Dedleared to Quality Service" ~i~S~hS~t,jtc ,}jwt 4 n ; S~~ r /t • i S t ,''~''A7~9 ~Yy °VtMI Ji, . is t 4 DENTON pa~ooooaoQOOp co°~ °°°a 1, °oo 00 ~ op O o 00 ~ ~ p Q o { a ° c~ ° q D d oDp~ ~~Od oop~ro ~ ~ OHO oooa N , opo ooa~aaoo ~ h s ! i 1 ITV Co U® • AAM~d1 bo 4.-,L- I date Cs CITY of DENTON, TEXAS MUNICIPAL 80LOING OENTON, TEXAS 76201 # TELEPHONE {817) 566.8307 Office of Me City Manager MEMORANDUM TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager BATE: January 20, 1995 SUBJECT: Amendment. To Ordinance 94-074 - Official City Logo At the regular meeting of April 5, 1994, the Council approved Ordinance 94-074, officially adopting a City logo. Pursuant to this action, the logo was to appear on all materials, equipment, and supplies of the City of Denton. Upon adoption of the ordinance, Staff proceeded to implement the Council's direction, particularly in the area of new vehicle purchases. Traditionally, it has not been the practice to affix the official logo to emergency equipmEn.t. Principally, this is due to the need to designate such equipment for emergency purposes, to provide for th., safety of the police and fire personnel, and to clearly identify this equipment for the public. Therefore, Staff believes it is prudent to exempt emergency vehicles from the tenets of this ordinance. Essentially, all police and fire department vehicles would not display the official City logo as adopted. In reviewing the proposed amendment to the current ordinance, Staff investigated the history of the current identification on police and fire vehicles. In the Police Department, with the implementation of the COPS program, a number of philosophical changes were made. The shift in the Department's orientation to the issue of police service created a greater need to work with the community at large, to establish better relations between the Police Department and the citizens, and to develop a comprehensive understanding of the nature of safety and protection. I In accordance with this philosophy, the Police Department was encouraged to consider making visible changes, both internal and external, that really stated to the citizens of Denton that the officers and personnel were intent on being active participants in ` • j the process. Through various programs used to heighten public awareness of the need to be proponents of security and safe neighborhoods, the Police Department has been able to reass+ire the citizens of their own responsibility for protecting life and property. Thus, the internal changes have been reflected in the "Dedicated w Quality Sen'iee" • cy • ~gendaMo--=--.tni 1L_<~ p9B~daffe tc department personnel themselves in their approach h £o ) community relations. One example of the external changes includes the Police DARE Van which is colored in red and black with chrome wheels, The vehicle readily attracts audiences of school age children wherever it appears and is symbolic of the effort to deter drug abuse in ou: schools. A second example is the current color scheme used on existing Police vehicles. These cars have decals made of Scotch- Lite material, a highly reflective engineering tape that is also used for street signs. The effect of the scotch-Lite material is that it makes the police cars more visible at night providing additional safety for the officers and helping the public readily identify a police vehicle in the event of an emergency. The graphics are consistent with the current trends in law enforcement and fire service since most cities are implementing the use of Scotch-Lite reflective decals. Additionally, Police Department personnel participated in an extensive logo design effort to provide a new identity commensurate with the COPS strategy. The Chief determined that having the Officers participate in the creation of a new departmental logo would encourage a "buy in" of the COPS strategy. Ftir-'_her., this effort contributed significantly to the morale and new found esprit de corps of the Police Department, creating a more polished, professional image for public view. Obviously, the results to date have baen very impressive. Another consideration was the cost of conversion from the previous logo used on police vehicles. There are ninety (90) vehicles in the Police Department fleet, At present, all but thirteen (13) or seventy-seven (77) vehicles have the Scotch-Lite decal stream. Consequently, 853 of the existing fleet now display's the department decal. when the Police Department receives the next purchase of twelve (12) new vehicles in March, they will be f outfitted with the Scotch-Lite material as well. Therefore, there will only be one police vehicle that does not include the decals adopted by the department. The Fire Department has gone through an equally involved effort to shift the orientation of the fire personnel and create an identity • consistent with those changes. The current color scheme as it appears on fire vehicles is the traditional red which has always been reserved for emergency equipment. Historically, there have been very few if any deviations from this basic design. The Fire Department, has implemented some small changes in the decal stream on the fire tru^ks making them more reflective at night as well. ® In a survey of eight metroplex cities, Staff determined that six • of the eight cities do not employ the official City seal or logo r on their police equipment. Only four of those surveyed use such designation on their fire equipment, and only the City of Richardson uses the official city logo on their ambulance and fire truck. Clearly, more and more cities are moving away from • 0 , • • pAP~dalter~_ 9 requiring that emergency equipment display their city logo. 2~t~~t~~ basis for this approach is certainly one of tradition and partly one of a growing trend in law enforcement and fire protection to create a commitment to community service. Another reason for the proposed amendment concerns the issue of uniformity within the City fleet. The idea behind the new logo was to create a fresh identity for the City. As we replace the existing fleet with new equipment we are adding the new logo. However, prior to considering the action to officially designate a City logo, there was never any mention of having the Police or Fire Department vehicles to be designated as such. Thus, this concern arose when the adoption of the new logo was implemented. The cost to have converted the existing fleet would have been substantial and essentially there would have been three different decal streams on the street: the initial one with either the black or multi-colored (green, brown, maroon) logo; the adopted Scotch- Lite logo as adopted by the Police Departmenti and, the new City of Denton logo. It is important to note that all City departments, including Police and Fire, are using materials, equipment, and supplies with the officially adopted City logo. With the proposed exception of police and fire vehicles, all other newly purchased fleet vehicles have the official city logo. Consequently, Staff believes the placement of the adopted City Ingo on our emergency fleet would detract from the appearance of these vehicles and would not be in the best interests of the City of Denton. Please advise if I can provide additional information. RESPE ULLY SUBMITTED, ~W ell Llo V. Harrell City Manager Prepared by: osep Portugal Assistant to the Ci y Manager Attachments: 1. City Council Report, April 15, 1994 • 2. Survey Results, January 17, 1993 • J • • o Attachment 1 AordaNa 0l l ~I AQIAQiN Agendaltem o Agertda! 9) O W 0'6 /i C1Ty o! DIENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8307 Office of the City Manager CITY COUNCIL REPORT TO. Mayor and Members of the city council FROM; Lloyd V. Harrell, City Manager DATE: April 15, 1994 SUBJECT; Ordinance Adopting City of Denton Logo and Flag EECOMMEun a "0. Staff recommends the adoption of this ordinance. =tCGROUHD e On April 5, Council was briefed regarding the adoption of an official City of Denton flag, At that time, Staff reported that there had been no previous attempt to formally adopt an official flag. Following the briefing, Council directed staff to develop an ordinance formally adopting an official Flag. City of Denton Logo and Essentially, the Logo remains unchanged in form yet reflects a red, white, and blue theme. The Flag incorporates the city of Denton logo and utilizes the same red, white, and blue theme generally associated with the United States and State of Texas flags, The Flag will be 30 by 51 and composed of a poly dura material. This flcomaposition is more durable than Polyester, Additionally, "D NTON, TEXAS" will be placed underneathathe logo and should be easily seen at a distance. All existing city of Denton equipment, material, flags will reflect the new color theme supplies, and in the logo with the adoption of the ordinance. Current supplies including stationery, business cards, and promotional materials will h 1ned prior to implementing the new design, b • • All Departments within the City of Denton. "Dedicated to Quality Service" 0 0 • • ~Qertrfa Agendaits = Date ` - 5 FISCAL IMPACTS Costs associated with the City of Denton Flag involve an initial set up charge for the color theme and a cost per number of flags ordered. There are 14 locations where flags can be displayed including the Denton Municipal Complex. Of the 14 locations, the City Hall, DMC, Library, Senior Center, MLK Recreation Center, and Fire Stations 1, 5, and 6 could accommodate the new Flag. The cost to purchase flags for each location total $259.65 or $28.85 each. The set up charge is $120.00. Total estimated cost for the project is approximately $400. Please advise if I can provide additional information. RESPECTFULLY SUBMITTEDi Lloyd V. Harr-*-ff City Manager Prepared By: Jose Portuga Assistant to the City Manager • • • • r 1 1rI t . a ~'Cr> 'v r1 i{~~(/~r{7e yr i'S, 4~yi~}(1r~;yf~4Yi{r5y~,~ 'jl 0 .Y r SS lr~,Zt aY}14 "~YJli~~4~~t}'i°$';19'vF~k ,57{ e ra • erttlaNo_ ` AP*N0 l arlei3tlakerr~~a(,~,,,,, ApMdal a' 2) Cq CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8307 OBlce of the City Manager MEMORANDUM T0: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager DATE: April 1, 1994 SUBJECT( City of Denton Flag staff working in conjunction with the Mayor was asked to determine whether an official City of Denton Flag had ever been formally adopted. Following research into the official record and discussions with former Council members, no attempt had ever been made to adopt an official City flag. Consequently, Staff developed a model incorportating the red, white, and blue theme of the United States and State of Texas flags. Ray McLester of the Engineering Department designed the proposed flag which utilizes our existing City of Denton logo and includes themes of red, white, and blue. The flag as proposed would be 3' by 5' and is composed of a poly dura material. The poly dura composition is stronger and more durable than polyster, nylon, or cotton based flags. Additionally, "DENTON, TEXAS" would be placed underneath the logo to be displayed promoninently and should be easily seen at a distance. The cost of producing an official City of Denton Flag would involve a set up charge tied to the color theme and then a cost per number of flags ordered. Based on an estimate obtained from a local source by Purchasing (Attachment 1), the set up charge would be approximately $120.00 to accommodate the red, white, and blue • themes. In effect, we are charged for the red and blue colors to be used. Depending upon the number of flags ordered, the cost ranges from $17.50 for 25 or more flags to $28.85 for 6 to 11 flags. The City of Denton has 14 locations where flags can be displayed including the Denton Municipal Complex. Of the 14 locations, the City Hall, e DMC, Library, Senior Center, MLK Recreation Center, and Fire O • Stations 1, 30 5, and 6 could accommodate the new City flag. The remaining locations have flag poles that are too short for existing flags or need new poles. The cost to purchase flags for each of the nine locations would be $28.85 each or $259.65. With the "Dedicated to Quaflty SeMee" • 0 • w Nyanl~ wu . Agenda_lteni,IA-k Dale l` - 70$// additional $120 set up charge the total cost is approximately $A00 excluding shipping and handling. Once Council designates and adopts the official flag, Staff would then ensure that the red, white, and blue logo is used throughout the City. That is, the logo will be used on all City of Denton equipment, material, supplies, and flags. Essentially, the logo would be placed on cars, trucks, signs, and any other equipment or material used by the City to provide services and in clear view of the public. Supplies includes stationery, business cards, and promotional materials. All existing stook of logos and supplies in the Warehouse would be used prior to implementing the new design. A color rendering of the proposed flag is included in your packet. If Council approves, Staff can proceed to formally adopt the official flag and logo by ordinance at the next regularly scheduled meeting. Please advise if I can provide additional information. RESPECTFULLY SUBMITTEDt L oy arra City Manager Prepared Byt AAssip u ant to the City Manager • i { i (Y S } y 1 ~t F ,E n ~ t ~ ~11~ ` ~r tN1_1-jt / tlrt~l f! i~k~ • _ c► Ape1~No Agenda No Agenda!ten~ _1~:2. CITY bf DENTON, rM# PURCHASING DIVIS16N / 801.8 TEXAS STREET / DENTON, TEXAS MVI TO: Joseph Portugal, Assistant to City Maniger FROM: Tom Shaw, Purchasing nt DATE: February 3, 1994 SUBJECT: CITY OF DENTON FLAG The pricing information you requested for a new City of Denton flag is listed below. I have only contacted one local source for pricing. If it Is decided to proceed we will check other sources but are probably going to be pretty close. j 3' x 5' Poly Durs Exterior Flag One time set up charge: First Color $75.00 Second Color $45.00 i 6 - 11 pieces $.28.85 each + freight 12- 24 pieces $IS.90 each + freight 25- 50 places $17,50 each + freight Delivery is 4-5 weeks after receips: of ordor. We will need a "blue print" or equal drawing giving exact dimensions and layout, Let me know how to proceed. 1702. DOC 817/~11 D/Pw METRO 26T042 • G) • a' e:\5i00C 5\0110\1000.0 y-, r' c +pe~daltcn~ ~Ja Izlt~ .._i_=_a LL- r-~ r ORDINANCE NO. i AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING A CITY LOGO TO BE USED AS THE OFFICIAL LAGO OF THE CITY OF DENTON; PROHIBITING THE USE OF SUCH LOGO BY ANY PERSON, FIRM, CORPORATION, OR ORGANIZATION, OTHER THAN THE CITY OF DENTON WITHOUT WRITTEN APPROVAL OF THE CITY COUNCIL; PROVIDING FOR A PENALTY CL.AUSEI AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 5, 1994 the City Council approved the current official Logo which shall be used on all official city of Denton materials, equipment, and supplies; and WHEREAS, application shall be made to copyright this Logo as the property of the City of Dentonl and WHEREAS, as the official Logo of the City of Denton, the City council is of the opinion that the same should not be used by any other person, firm, or organization for any purpose without written approval of the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Logo as set forth in the attached Exhibit "A" is hereby approved and adopted as the official Logo of the City of Denton. This official Logo shall be used on all City of Denton flags from this day forward. All equipment, supplies, and materials ordered or purchased after the effective date of this ordinance shall reflect this Logo. SECTION II. That the Logo approved by the City Council of the City of Denton shall be affixed to the official City Flag and bear the words "Denton, T-exam" underneath the Logo to be displayed prominently for all to see. • ,SECTION III. That no person, firm, organization, or corpora- tion other than the City of Denton shall adopt, use, display, in- corporate, or appropriate the official Logo of the City of Denton as any part of any material, equipment, or other matter of such person, firm, organization, or corporation without written ap- plication to and approval of the City Council. • SECTION IV, That any person violating any provision of this • ordinance shall, upon conviction, he fined a sum not exceeding Two Hundred Dollars ($200.00). Each day that 4% provision of this ordinance is violated shall constitute a separate and distinct offense. • m • + endeMo_c~~`2.,. X1.1 . PASSED AND APPROVED this the. day of 1994. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY AY: APPROVED AS TO LEGAL FORMt DEBRA A. DRAYOVITCB, CITY ATTORNEY BY. PAGE 2 m Attachment 2 Agenda No Agaridaltem~,ua2=~ - oato~~-~~ ~ Cl" of DENTON, TEXAS MUNICIPAL BURDWG o DENTON, TEXAS 76201 # TELEPHONE (817} 566.8307 Office of the City Manager MEMORANDUM TO: Joseph Portugal, Assistant to the City Manager FROM: Veronica S. Oglesby, Administrative Assistant II DATE: January 17, 1995 . SUBJECT: Survey Results; Use of City Logo's on Police/Fire Vehicles I contacted several cities around the metroplex to if they currently display their official city log: on the police and fire vehicles. The table below outlines the results. CITY LOGO USED ON LOGO USED OM POLICE VESICLES FIRE VEHICLES ARLINGTON YES NO- Fire Trucks YES-Fire Prevention and Fire Inspector Vehicles CARROLLTON NO - not since NO 1991 DALLAS NO NO FARMAS BRANCH NO -Not official YES City Logo LENISVILLE YES NO NoRIMMEY YES-Small logo on YES- Ambulance trunk of vehicle !LANO NO - They use their NO j badge on vehicles i IRVING Yee/No - Currently NO displayed on older vehicles but not on now vehicles. GARLAND NO NO RICHARDSON YES YES- Ambulance and Fire O Truck/Bottom of Door S "Dedicated to Qualiq, Sen4ce" • v • Glenda 1Va agendag6 ~t9 t Should you have questions or need additional information let me know. , please Sincerely, Veronlcn 3. Oglesby _ Administrative Assistant. II vao\logo^avy • • t '~1 ~ ~{y~il ~ I Sr+' i iii .k 1 'S(v1d ~ ~ i; ~ S~. eP UY tr`rh i`~~'Sk~t#~1r1d(Ter1 v }F 1,~~~'~ • r~ • ~tldflNC o ~ ; agendalta~ 7 We Date: January 24,1995 DENTON CITY COUNCIL AGENDA ITEM TOt MAYOR AND MEMBERS OF THE CITY COUNCIL FROMi LLOYD V. HARRELL, CITY MANAGER SUBJECT: CONSIDER RESTRUCTURING LANDFILL RATES TO PROVIDE ADEQUATE DISPOSAL CAPACITY FOR THE COMMUNITY UNTIL MID 1997. RECOMMENDATION: At the Public Utilities Board meeting of January 6, 1994, the Board unanimously recommended increasing the rate for waste brought from outside the city limits from $6.00 per cubi ; yard to $15.00 per cubic yard and the rate for private haulers from $6.00 per cubic yard to $15.00 per cubic yard. SUMMARY: Until the new landfill expansion is completed in mid 1997, Denton has 500,000 cubic yards (in-place density) landfill space in the existing .landfill. Volumes from the City of Denton trucks between now and mid 1997 is expected to be 1,061,085 cubic yards at the gate. Previous projections of solid waste volumes from other non-city trucks, most of whom pick up solid waste from the rural areas and other Denton county cities, had been 214,358 cubic ya:-ds at the gate between now and mid 1997. However, in the past nine months solid waste volumes from non-city sources has increased tremendously, presumably due to iDenton's low landfill rates as compared to other landfills in Denton County, especially when transportation costs are added. Therefore, some action needs to be taken to reduce non-city of Denton solid waste volumes. Otherwise Denton's existing landfill will be full prior to mid 1997 and Denton's commercial and residential trucks will be ;.equired to travel to the landfills south of Lewisville in 1997. The waste stream at the City of Denton Landfill must be reduced by approximately 10,500 tons per year (based upon 0 FY 10,94 tonnage or 40,000-50,000 cubic yards) to last until r mid 1997 to coincide with the opening of the planned landfill expansion. A related problem is the amount of construc- tion/demolition (C&D) dabris brought to the landfill which has I i \QTI'Y_PAT\MA\4A0994C r 0 rrrr • a ~andaNo __~~.~2 Q• ~1' Agondaltern.. (j -CID CITY COUNCIL AGENDA ITEM Oate_ 9 January 6, 1995 Page 2 diminished the in-place density from 975-1000 pounds per cubic yard to 700.760 pounds per cubic yard. BACKGROUND: Opportunities for waste reduction focused upon the cash and contract categories which experienced a 53% and a 130% increase from FY 1993 to FY 1994. In FY 1994, the cash customer category ac(~ourted for 17% of the waste received at the landfill while contract customers brought approximately 146 of the total tonnage. Approximately 34% of the loads brought by cash customers originate outside the City of Denton. This percentage represents approximately 5,800 tons of waste per year. Approximately 55% of the cash customer loads are construe- tion/demolition (C&D) debris which represents about 9,386 tons per year generated both inside and outside the City. In FY 1994, contract customers brought a '.otal of 14,285 tons of waste to the Denton landfill. Three private commercial solid waste haulers bring over 80% of the contract customer waste, all from outside the City, while the remainder of the contract customers are primarily bringing construc- tion/demolition (C&D) debris from inside and outside the City. Landfill users with C&D debris, in all probability, are coming to the Denton Landfill because the BFI, Type IV, landfill has a rate of $9.50 per cubic yard for non-compactable waste and because the Waste Management DFW landfill is charging $13.30 per cubic yard for non-compactable waste, To drive these customers away, it is felt that a rate of $15.00 per cubic G yard is needed. If a landfill user has only C&D waste, they can go to the BFI landfill; however, if it is a mixed load with both C&D debris and putresible waste, the user must go to a Type I landfill which would be the DFW landfill and pay a rate of $13.30 per cubic yard. The travel time from Denton and Lewisville would add about $1.00 per cubic yard to the cost and, therefore, a rate of around $15,00 per cubic yard should be sufficient to drive these users to other landfills. The following options were carefully considered by the Board • as ways in which to address the waste reduction issue. The e • Board's primary concern was to recommend an option that had the least impact on Denton customers. J Io\CMTY 0AT\MA\MA0994C D-1 • CITY COUNCIL AGENDA ITEM January 6, 1.995 1 c Page 3 Ao nd&No II Agond3llWm .N 1~-9 1. Exclude or raise the rate to casA6t'6 mers from m outside the city, Advantages o Reduces waste by approximately 5,800 tons. o Reduces C&D debris. Disadvantages , o Could be enforced by requiring drivers license with Denton address at the landf.illl however, some disputes could arise in determining residency. 0 Value of waste reduction is ($133,000) at current rates. 0 Is not an adequate reduction of waste. 2. Exclude or raise the rate to cash customers and contract customers from outside the City except private commercial haulers. Advantages o Reduces waste by approximately 6,000 tons, o Reduces C&D debris. Disadvantages o Requires drivers license enforcement as stated above. 0 Value of waste reduction is • ($139,500) at current rates, o Not an adequate reduction of waste. 3. Exclude or raise the rate to C&D debris brought by cash and contract customers (includes inside and out of Denton). • Advantages • • 0 Reduces waste by approximately 6,000 tons because the cash/contract I.\01TY_DAT\M\vA0994C • C7fY COUNCIL AGENDA ITEM gendaNo Igenda!(pm~_ 5 J,muary 6, 1995 Pare 9 LfL !g customers in Denton would request City collection service. 0 No residency requirement. o Reduces C&D debris, Disadvantages o Value of waste reduction is ($139,500) at current rates. o Not an adequate reduction of waste. 4. Exclude or raise the rate to C&D debris and exclude or raise the rate to private commercial solid waste haulers, Advantages 0 Reduces waste by approximately 24,935 tons. o Reduces C&D debris. 0 No residency requirement to enforce. 0 Should provide adequate capacity until expansion is complete. Disadvantages o Value of waste reduction is (;389,422) at current rates. 5. Exclude or raise the rate to C&D debris and contract with private commercial solid waste haulers to bring a limited amount of waste to the Denton landfill. Advantages o Reduces waste to desired level of 10,500 tons. o Reduces C&D debris. • 0 No residency requirement to enforce. o Reduces financial impact when compared to Option 9, Disadvantages 0 Unknown as to whether private • haulers would continue to use Denton • Landfill. Iv\Q1TY_1)AT~MA\MF0991C • Agendallorrt,1aJ~ - CITY COUNCIL AGENDA ITEM WO _i_4) G_ M 1 5 January 6, 1995 D 0 Page 5 o Would require very careful monitor- ing of waste stream. o Uncertainty of ability to stay open to mid 1997 if there is significant additional construction occurring in the City. 0 Value of wasto reduction is ($153,615) at new rates. 6. Exclude or raise the rate to cash customers from outside the city and raise the rate to exclude private commercial haulers, Advantages o Does not adversely impact Denton residents. o Reduces waste by approximately 29,735 tons. 0 Should provide adequate capacity until expansion is complete. Disadvantages 0 Disputes over residency. o Does not target C&D debris. o Value of waste reduction is ($388,222) at current rates. The Hoard chose option 6 as having the least impact on private haulers of C&D debris and economic development inside the City of Denton. The recommended rate of $15.00 per cubic yard for private haulers from outside the City is designed to make other landfills more economically attractive than the Denton site. • PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED: Solid Waste Disposal, Solid Waste Department, Cash, Contract Customers, Private Commercial Haulers 1 ,\CM7Y_OAT\MA\MA09910 W f CITY COUNCIL AGENDA ITEM Vendak- Paagea6 6, 1995 Agendaltem C4 f~ Qate . 1 Flom IMPA The fiscal impact of the various options is shown above. Respectf ly submit e , Cloy V. Harrell Prepared by: City Manager Howard Martin, Director Environmental Operations Approved by: R. E. Nelson, Executive Director of utilities a \CMI Y_bAT1NR\M~0994C - i16 Y 1 ~,A ( l~Y~ S 4 ~p~ tot, 0 a 0 SOLID WASTE DEPARTMENT DISPOSAL DIVISION FY 1994 TOP FIVE CUSTOMER DISPOSALS TONS 8,000 8,340 6,000 3,607 4,000 1~ ,,tree - 2,000 789 379 t~ x 0 TONS J r~ I. c . TWM WMFW r ~1~ t , ' 1 0 ■ BARNEiT TWU I...: } UNT1 Management Ft. Worth Ffleaacmty_dAdspi loptons ~_Iv H O j • a► r enaanc _ CI.~_ 004 tigentlalrem~ - goa l8 ORIGIN OF CASH CUSTOMER LOADS (NOVEMBER 23-DECEMBER 3, 1994) DENTON 161 SANGER 22 AUBREY 9 KELLER g ARGYLE 5 KRUM 5 CORINTH 4 PILOT POINT 3 DALLAS 2 SHADY SHORES 2 CELINA 2 LAKE DALLAS 2 ROANOKE 2 LITTLE ELM 2 LEWISVILLE 1 JUSTIN 1 FLOWER MOUND 1 CARROLLTON 1 SOUTHLAKE 1 OAK POINT 1 FORT WORTH 1 SHERMAN 1 BARTONVILLE 1 ANNA 1 • DENISON 1 PROSPER 1 i ~i! h.y~l h,'id Sgtk lj • 4 IL1 i LANDFILL CONTRACT CUSTOMERS r~ TONS CU YDS AL"': TOTAL' TWM 5'S4Q "'fM WMFW-3 BARNETT t"98I! ' g tHM'. FRENCHY; O'NEAL RF 1'14421141 402 DISD .SdB TWU FOX/GAIL y STATE HWY WRENMORE MANNING UNT,. R&R w1. DENTON CO" DENTON £GLE DEN TRIN LEWIS' 1 AMER AIR' x • TAR CO TRANS FEUCHT GYP. 4 UNION PACIFI SHANNON air, ;y COLWICK".., a„ J i • 0 e w • • f METROPLEX AREA HAULING RATES , D - 4.60 PER CUBIC YARD OMPACTED- 5.30 PER CUBIC YARD OMPOSITIONSHINGlES ONCRETE 13.30 PER CUBIC YARD RGE STUMPS I MCKINNEY - WATER DISTRICT 18.00 PER TON i FT WORTH - SOUTHWEST PERTON I - '4.25 PER CUBIC YARD ON-COMPACTABLE(ie TREES, CONCRETE) - 8.50 PER CUBIC YARD ARLINGTON 00 PER TON (30,00 WM9U9r' • IRVING .00 PER TON . i 5 GARLAND ER TON FOR DUMP TRUCKS ONLY 00 PER TON FOR TRUCKS OTHER THAN DUMP 1 RUCKS + /C FOR CLEAN BRICK e • GRAND PRAIRIE 2.00 PER TON P RESIDENTSGET TWO U 8 E E MONTH WITH WATER BILL - :I~Auedy ~ "oN~AueBy • a • a GI r U L ,.IIUi: Vii ..--•1-~"" O~ I r~l~ NOW= k s ATV 4 1 an 4. BO EM=R 1 1.726 220 40 N 1 1 1 0 4 •1007 'OOt •~01 4 710 !OT OA$W ON 60 1204 1,007 007 470 T2 100 VAN, INFO 1,0N 1,070 770 1 100 1m 1 ION 1 V 107f 2,743 701 841 20 ;rj,ngm 77t M0 ,M 7284 OTIRMtA1pNTN 1,007 F O WLUO A "Am uar , 1,40T Iw p0 I TOTAL 10,770 20,001 012" O,MO 7.0" OM 71,004 AVOylA G I'm L174 "1 4" 4" " 01017 MAXW M1 11000 LM 1.007 ON 002 184 7.OM 0r1111AU11 1.270 0 0 0 0 0 4,710 01 WFMI 11M IO IM 4" I 1 , 1 414 11 44 1711 7272 7 T 1 74 MAY 84 Bela 3474 I 11 ItWI A I 21" IOH 1 11 e I 4 1K7 2471 11 i @ ~ TOTAL 1OM0 00084 mt 0T84 11"4 841 04T4i AV6RAO8 1841 OO00.7 010,0 470.0 WWI? 84,20 7M0,6fO MAIOMUM ION 0176 1184 1184 t0" M JIM • MINIMUM IOM an 4" O" ON O ONO J `i 1' ( Sy • to • T CDA&Acr aomAwr UNCOWAC r UNCOWAcr CY TONS 1- next rr .461 5,47U Z71 '210 67 NomVEMEW 3,363 6400 1044 27 4,407 26 3,379 4M JANUARY FEAUA€ Y-- ____-4 s Ain J44 31100 8 .6W 30. 4, AP~IC a i8~ d3 21641 3.2 7. 45 M MAY _ 5 ---i-eig 21 -250 i i JUG---- --_640 1 3,338 Im 27.. 4 JULY _f, 3451 0,7931 2 1 ti 112971 AUZilfif— 0,343 015121 &~V AL 65,474 17,932 261,364 40,072 76,791 18,269 3401146 53,325 TOT AVERAGE 6,466 1,494 21,790 3,389 8,66!; 1,104 28,346 4,444 MAXIMUM 6,427 1,643 23,086 3,619 10,421 1,680 93,607 6,200 MINIMUM 4 817 1 2 0 19.20 8912 &256 004- 2ILLM 3 • ~I --eleq i IepaaOy aNb 'i ';,Eij~'4a. ii,Y t~fSr f ♦ r ;5 L 1 • a+ • q n.' r'r_...\ r. iM. Y;v rnal "h `Y'Mq\ iVYTJYtnYr . NY..n„41 \EX4 wfn V S Aft ' ~,,a 3 i 1,0021 6Et~ --i0~ JANUARY--- - 7 g --5 7461 110 FERRUAi'~- , tow fwlAl APRiI: - - - 6 1 _ a 411 1, 9141 1, 3=m 1 4 - JUNE'- - 1191 a 4791 JULY - - j A.-S. 117481 Ml 11, 1 101 TOTAL 1,223 07 15,866 2,402 16,063 8,660 14,0618 8,133 14,243 8,84• AVERAGE 102 4 1,308 200 1,804 483 1,175 420 10107 321 MAXIMUM 134 8 1,728 200 1,060 731 1,800 080 1,690 an MINIMUM 74 3 748 110 060 300 076 ~ 040 206 • i 07'7°~r-T ~ - Ilepue9y aNeAlli6y t7 (7) • n t \ItxP! ~`\✓z7 i)y£i r t ~ yJ~Y nY j.. i • • 1994 . V t V ItI I a 01 .325 C~(,E~18€i~ o i .482 JANOAt~Y o 26 12 0 1,465 01 ol 4., MARCR -o 0 elm A~~IC--- - 0 0 01 6,42 f~AY- 0 01 -4, 1.41 JUNE- -`~a JULY- - AUGUST- - ~o 31 6 0 al SEP m - TOTAL 125 49 0 0 90 0 88,406 17,006 AVERAGE 10 4 0 0 8 1 5,290 1,422 MAXIMUM W 81 J 0 90 8 8,190 179 MiN MU 0 0 , i • ollepuah ~ •ot~epueb~ • • r t r'i °`~?`f l+vi it's.. lr j ~ '+,4W~r~r` a'ir 1 1 A 4~ • E f 1994 ~'P Cr:CEMBP- 38ml 1.2091 91 ~R - WAACF-- - APFUL--- - MA ,ate 1.2111 132 -----TO a JUNE- a oil 1 147 43 AUGIJST- 451~ 1,2231 121 SSEP"Trwzmarv 111411 2001 - 58 TOTAL 46,728 14,205 1,996 418 619,786 100,020 AVERAGE 84 49,814 MAXIMUM 121 49,679 MINIMw~1M 11 40AIS • ON it NF7 i~,t¢f k3'r i~ J .'M rt iyl({. • 1 ♦ ell, • • „IV ...r9.: Kn...rs 1" 9.l VP.r/n N1y •Y 4A'JrJ 9 1MYr1.M vµ'IMIMM.....'.. n-JA 1J.9 lNOF4OOY~RW9 pJ11p19K Taiiii aim w oil am 0 IRL s. n All 1, MI ~ - 61 -A Of IN WTI VKqJMSffw0T= ILIA REAKEEWAN i e f e ~4~91 ~ e~~eRuaBy e • an~~*I1 i;'r J r s~s7 ~Jtir S~ ~ a ~ ~ t It slr s + ~s~ Ar}+1! y tbr~~ ~ {'{r!~ S~R;Y: il}~~. 0 s SOLID WASTE DEPARTMENT DISPOSAL DIVISION DISPOSAL TONNAGE BY YEAR TONS 140,000 120,000 103,020 $4, 100,000 780 I i9l y p 71.004 80,000 60,000 40,000 20,000 I { 0 t 1 _ FY 1992 FY 1993 FY 1994 File iacmty_d9t\dopt\tonconip ki Cj e SOLID WASTE DEPARTMENT ' 'DISPOSALS DIVISION CASH/CONTRACTS ANNUAL TONNAGE COMPARISON TONS 40,000 31,950 1;t'A°r fir:. VAI YY1 u F30,000 g t 1 17 e88 t , i 20 ('00 14."6,2............. t t 10,000 0 FY 1982 FY 1993 FY 1994 op Fue:ll:~cmty_datldeptlcashcon 0 c> • o r i I t CITY OF DENTON ELECTRIC UTILITIES TELECOMMUNICATIONS PROPOSAL r JANUARY, 1995 Prepared by THE SENECA QROUP INC. s o . • w . f INDEX Page Exhibit r Introduction 1 Executive Summary 2-3 Telecommunications Environment 4-8 j Competition 4 Legislation 5 Regulation 5-6 CAP Analysis 7-8 Service Criteria / Tariff Building / Governance 9-12 1 Business Development Strategy 13.17 { 1 i Phase 1 13-16 Phase It 16 Phase NI 17 Exhibits • Consultants Background - The Seneca Group Inc. 1 • Service Pricing Methods 2 0 Fiber Network Map 3 • Staff Structure & Requirements 4 • Potential Service Offerings 5 • Glossary 6 e ~ r. . r. • sa E INTRODUCTION Municipally owned utilities are deeply rooted In the histories of the United States and the City of Denton. These citizen owned, governed and operated utilities provide services that enrich the quality of Hfe of our communities at reasonable prices. The City of Denton Electric Utilities Department currently maintains and operates a 9 mile fiber optics based communications network. An additional 20 miles of fiber network will be constructed in 1995. The network provides the protective relay function for the City's electric system. The network Is also used as the City's information services platform and for trunking between the City's main telephone switch and remote locations. The City owns extensive rights of way, pole line and conduit facilities, customer service and billing systems and maintains a well trained staff experienced in the operations of telecommunications transmissk>n systems. The fiber cable network In place and under construction Is a well planned single and multi mode finer optics facility designed In a ring configuration. This ring platform will accommodate future telecommunications technologies and will allow the City to offer enhanced services with relic ble, feature rich capabilities. Should the City offer the use of Its existing and planned telecommunications network facillty to others and if so In what manner? The purpose of this document Is to address the issues Involved and to recommend a course of action. Service pricing and service marketing are primary considerations. The body of the report also Includes a review and comment on the competitive environment, system design, regulatory and operational issues, I~ • • • y. t t>'f~i i~.~~5't~'i ~EE1 ltn4(~F A` l~lih Ay ~~fy'v~. • • r i EXECUTIVE SUMMARY S By year end 1995 the City of Denton will own and operate a 29 mile state of the art fiber optic telecommunications network built primarily to provide a protective relay system for the electric utility to Increase system reliability. The network also ser;es the city's telephone and Information services network needs. The system has surplus capacity that can be made available to other users In a way that can provide slgnlicant short and long term services and opportunities to the entire Community of Denton. Making the City's high quality telecommunications system available to others will strengthen the City's economic development and educational efforts and enhance the quality of life for its citizens. Similar comprehensive networks railed CAPS {Competitive Access Providers} have been built or are being considered In the top 90 U.S. population centers. They are owned by private enterprise and compete with and compliment the services provided by traditional telephone companies franchised to serve these cities. The existence of a CAP brings wfth It many short term and long term benefits to the community and the citizens it serves. Comprehensive private CAPS are generally not economically feasible for cities below the top 90. Patchwork point-to-point systems will evolve instead { to benefit only the major users. Timing Is critical as once these patchwork I systems are built a second more comprehensive system cannot be economically justified. The City of Denton has a unique opportunity to set itself apart from other cities its size without significant financial risk and in a way that will benefit the community at large and create the potential for long term value. This opportunity is cunsistent with the mission and nature of other municipally owned services. Citizen owned assets can be used to enhance existing delivery systems for the medical, educational and crlminal justice communities. The City's economic development and community service programs will be strengthened because a comprehensive, high quality, • community owned information highway will be part of the area's infrastructure. The CAP business is highly competitive and quickly changing. Pricing, network quality and customer service will determine how successful a CAP will be. ~ I O A • { The dynamic competitive market place calls for pricing policies that create benchmarks and ranges rather than specific rates, Customers' specific needs are addressed quickly and on a customized basis. 2 • w i Each customer's business success will be affected by the reliability and quality of the network they use. The system's technology and ring design and the proposed central office will provide customers with the level of service they require. i Competitors will spend full-time marketing to and servicing their customers. Customers will expect immediate attention to their needs. Community based programs will require focused and sustained eff,.!:, to be successful. In order to realize the full potential of this opportunity it is strongly recommended that a small but full-time staff be de oted exclusively to ■ developing the business. A part-time effort will yield part-time results. Long term, the CAP market will include voice, video and data services, both point-to-point and switched. Its customers will be major businesses and long distance carriers as well as governmental, education, institutional and other community based users. It is recommended that the City of Denton offer its communications network services to the public in three phases. A phased approach will minimize costs and allow time for technology, regulation, services, systems, usage and personnel to develop. 1 Phase I would extend through 1995 and would Involve offering point-to- point intrastate services to governmental, educational, institutional and community based users and business customers when requested and if capabilities exist Phase I includes the creation of a small staff dedicated full time to the development of the CAP business. The acquisition of a facility to canhalize equipment and routing Is also included in this phase. Critical to the success of Phase I Is the City's commitment to dedicate sufficient persornel to business development and customer service. Service pricing is as critical. To be successful, CAPS should be able to establish pricing quickly in response to customer and competitive demands. Regulatory timing and overheads should be kept to a minimum. Prices must o be suff iciently low to attract the customer and at a level that will at a minimum cover the added cost of serving the customer. Phase II would extend over an 18-24 month period and would involve a network transition to a new generation of transmission technology avid would exparid service offerings to lung distance carriers and major O businesses. o • Phase III, 2 to 3 years from now, would consider offering of more universal and switched based services. 3 O 0 s . a 0 TELECOMMUNICATIONS ENVIRONMENT Competition The telecommunications industry has experienced significant changes over the past 100 years. The Industry evolved from an era where most towns were served by several telephone companies to a monopoly era where only one company served each town and then back again to the current competitive environment. Today we see competition In every sector of the business, to Include equipment, long distance, operator services, pay phones, yellow pages, billing, directory assistance, cable TV, paging and mobile services. Competition Is now being Introduced into the area of local distribution and local switching - the last bastion of monopoly services. Shared Tenant Services, Cable TV, Cellular, Personal Communications Services (PCS) and CAPS will provide increasing local competition to the traditional telephone company as well as choice to the communities they serve. CAPS construct fiber networks In the larger urban areas to connect major office buildings and large users. They provide point-to-point access to branch offices and long distance carriers. In the nea! future CAPs will interconner3 with Cable TV systems, LECS (the local telephone company) and cellular systems to provide the full range of swltcr.9d services to their customers. CAPs emerged because of LECs' high prices, slow response time and inability to meet the needs of customers with unique needs by providing LAN, video and other high bandwidth services. CAPS are either in operation or under construction in most of the top 90 cities in the country and systems are being considered on a piecemeal basis in m my other smaller cities. Regulations and laws are changing at the Federal and State levels to encourage local competition and to Insure that competitive systems are interconnected so that universal connections are available to all customers Ncter It Is not an Issue of whether rornpetltlon will occur - It Is only a question of who will be the competing provider of services and how and when will they enter the market. In the current competitive environment, timing of market entry Is critical, If the ® current window of opportunity is missed by the City, someone else will ` develop the market in a patchwork fashion that will benefit only a few large users. Denton is not of sufficient size to economically justif y more than one CAP. 1 r a 1 i • a Legislation General. Federal and state legislative, regulatory and judicial activities predominantly encourage Increased competition within the telecommunications industry, Federal. The law that governs telecommunications services at the Federal level was enacted in 1934 and has not changed significantly since then. Numerous bills have been introduced in the last several sessions. It is likely that new legislation will be adopted In the next two years that will remove the barriers to competition that exist today t creating better communications opportunlti,s for providers and customers alike ■ State. Most states have or are in the process of changing their i communications laws to foster competition. The last two legislative sessions in Texas have seriously considered rewriting telecommunications laws to foster competition. A bill will be Introduced again this session and it is likely that a new State Telecommunications Law will be in place in Texas within two years that will also encourage competition i i Reaulatlon General. New entrants into the telecommunications business seek to minimize regulatory oversight. Less regulation results in reduced costs and increased flexibility and response times in providing service. The type of service provided determines whether a CAP Is subject to Federal (FCC) or State (PUC) regulatory oversight. Federal. A CAP that provides interstate services as a common carrier for hire must file its tariffs at the Federal level with the Federal Communications Commission (FCC) and must offer uniform service rates and terms to all members of the public. It service is restricted to leasing point-to-point facilities within the State to a selected customers then the common carrier status does not apply. ii I State. On the state level a CAP is regulated by the Public Utilities ■ Commission (PUC) if the ',AP is classlfled as a dominant carrier or it ii provides local exchange service. If a CAP is not considered dominant l (i.e. price controlling market power) and if the CAP does not provide ' cf local exchange services, switching for example, then It need only M register and provide limited Information to the PUC. 5 • a • Note: These tests are being questioned at the State level. A more thorough assessment of applicable legislation and regulation is contained in a separate legal memorandum prepared by the Small, Craig and Werkenthin law firm, it is Important to note that CAPS are in operatlon in Texas and throughout the country. Technology, customer demand and legislative and regulatory momentum favors increased local competition. It is recommended that the staff be encouraged to stay abreast of issues being addressed at the State and Federal level and that a dialog be maintained with legislators. j 1 6 1 • eti CAP ANALYSIS } The telecommunications business is a rapidly growing one - CAP industry national revenues are expected to grow from $250 million In 1992 to $2.5 billion by the year 2000. Electric transmission companies are choosing to enter the telecommunications market to leverage their existing assets. The City of Denton has unique reasons to be THE CAP that provides w alternative telecommunications services in the Denton area. a • The City is primarily and exclusively interested in the well being of Denton i unlike companies that serve hundreds of other communitles. The quality and extent of the Information high,,dnv will set cities, and In this case Denton, apart. Businesses will lomte and expand in areas that create alternative, high quality, network choices through competition. Making the City's high quality network available to others will help to attract i information bused business and provide sufficient competition to encourage all providers to maintain competitive rates. ' • The Denton Municipal CAP already owns rights of way and has facilities, systems and personnel in place that will slgnlticantty reduce and spread the cost of building and maintaining a fiber optic based telecommunications system. The network will provide new opportunities and benefits to Denton area businesses, institutions and the citizens at large. • Providing selective new services to new customers is a sensible way to develop and leverage the City's existing assets for the benefit of Its citizens • The network already has its first anchor long term reliable customer - The City of Denton, itself. The network has already been justified based on Its existing needs. • • Denton will be one of the few communities Its size with an alternative, comprehensive Information highway. New business will be attracted to a city with a progressive telecommunications environment. Denton's CAP will be a defining feature helping to attract, expand and retain new business. a 7 • • Finally, by offering services today, the DsntOn City CAP will Insure that a comprehensive alternative Information highway exists in the Denton area Any other CAP entering Denton would likely build a patchwork system benefiting only a few major users, Note; While CAPS are not instant bottom-line producers, the City CAP will provide !ncremental revenues that can help defray existing network and personnel costs. The venture should be seen as a long term commitment that will grow r In value over the years and will add a significant asset to the community. i CAPS typically focus on the larger cities. In particular they focus on large users In clustered office buildings and otter access to compet tIve long ' distance carriers and redundant routing. For the most part they are seen as Investments In networks that wilt eventually be allowed to provide local switching services and when this occurs, the systems can become strong bottom-line contributors, For example, just 20% of the annual local switching revenue for Denton is estimated to be In the 2 to 4 million dollar range. A traditional CAP provider would view the Denton area as marginally profitable because of Its size and near tsrm potential customer base (especially without switching). However, the City of Denton possesses many unique advantages and interests that would justify offering its existing telecommunications network to the public. Over time, the CAP would see stepped up competition from the LEG cable N company and cellular type services. 1 i A 8 • CIN SERVICE CRITERIA / TARIFF BUILDING / GOVERNANCE Background. over the past 20 years regulators have sought to establish competition and customer choice in the Telecommunications Industry. Realizing that start up companies could not effectively compete with entrenched monopolies serving large established customers bases • the regulators establish rules that handicap the monopolies and give flexibility to new entrants until parity Is achieved. For example, CAPS are lightly regulated - they have the ability to pick and choose the customers they serve and rates charged, CAPS can change ■ rates quickly and can charge different rates to customers. LECs on the other r hand, must serve all customers in their certified serving areas, must charge the same rates to all customers with similar services and are required to go through a lengthy regulatory process to establish and change their rates. The competitive CAP environment creates a significant challenge for City policy makers who are also responsible for regulating traditional monopoly based utility services, The challenge is perhaps even greater for a municipally owned CAP. Regulated monopolies and governmental bodies providing traditional utility services allow for and require a process that Insures service to all users at rates and on terms and conditions that are the same for similar users. Public notice and hearings are required to change rates or terms or to Introduce or = discontinue services. Without competitors, pricing terms and conditions and financial results are open and available to all Interested parties. Marketing is not a necessity. The successful CAP, on the other hand, must be able to deal with each customer on a case by case basis, Rates and terms are driven by what the competitors have to offer, often times Influenced by potential future use by a particular customer or another potential customer In the area. In the competitive environment, pricing Is proprietary and confidential. Competition also makes the marketing functions more important. Rates, terms and conditions can be changed and new services offered an i • existing services discontinued through a streamlined process. While guidelines must still be established they are designed to be flexible yet fair. To build a customer base CAPS, provide high quality, value added customer services at a discount to that charged by the Local Exchange Carrier (LEC, i.e. the local telephone company). The successful CAPS • establish pricing flexabllity within certain ranges. • • 9 • O • industry Practice. A review of LEO and CAP service and pricing practices shows wide variations between companies and geographical areas. The variations are the result of pricing strategy driven by decades of regulation and monopoly as well as supply and demand characteristics within a given area. Access to CAPS pricing information Is difficult. Due to the competitive nature of the business, pricing is confidential and proprietary. Many CAP and LEC services are approached on an Individual Case Basis (ICB), Each customer is negotiated with separately based on volume, term, distance from the network, competitors' rates and availability and potential for future revenue streams from this customer or other likely customers along the same route. The general approach used by CAPS to gain market share Is to price their services 10% to 20°/* below the rate charged by the LEO serving the area. When a CAP provides a service not offered by the LEC (I.e. there is no market rate for the area) they attempt to negotiate a rate that is designed to recover the full cost of providing the services including an acceptable profit or contribution margin. If full cost recovery cannot be negotiated then a rate Is arrived at that covers the incremental cost of providing the service plus a contribution to the core system costs (i.e. sunk costs). In summary, rates are not always readily available or economically based and are often customer or route specific. However, as a general rule, CAPS adhere to certain benchmarks. First, the ability to charge 10% to 20% below the rates of the serving LEC as long as Incremental costs are covered, Second, for services or routes that are non-competitive, negotiated rates apply that recover incremental costs and make a contribution to core costs - preferrably fully recover the cost of the entire service and an acceptable return or contribution. • Service Criteria. The CAP should provide service only to those customers that they can economically serve. Length of the customers service commitment, rroximity to the network and likely future uses by the customer and expected future rustomers in the area are factors to be considered. • Special rate services that benefit the community would be considered on a r • • case by case basis and approved by the PUB and City Council. i 10 1 a o . • ca • Rate Development, Rate development would have one formula for competitive services (ex. DS3) and another formula for non-competitive services (ex. Dark Fiber). Competitive Services would be priced within a range of 10% - 20% below the rate charged by the LEC serving the area as long as that rate is sufficient to recover the CAP's incremental or added cost of providing the service. Service would not be provided if market rates were Insufficient to recover incremental cost unless the customer was willing to pay a higher rate to at least recover the incremental cost of the service desired. Minimum contract terms would vary depending upon the Investment Involved and price charged. Non-Competitive Services. The CAP will from time to time offer services that are not offered by the competition in their serving area (ex. Dark Fiber). Discounting from the competitive rates is not required to secure the customer. In these instances pricing should be established based upon the fully distributed costs of providing the service. Prices charged by CAPS or LECS, elsewhere for a simii3r service should also be considered in establishing rates for non-competitive services. Governance. Pricing strategy and results for specific customers would be reviewed quarterly with the PUB to assure that pricing guidelines are 1 functioning properly. 1 i Note: R Pricing- Exhibit 2, (pages 1-7) contains examples of incremental and fully distributed rates and contains example formulas to be used In establishing rates under either method. Prices charged by various LECs for Phase I services contained in Exhibit 4 (page 8) can be used as pricing guidelines for discounting calculations. LEC prices should be regularly reviewed and CAP pricing adjusted to reflect changes in market rates. A Dark Fiber. To lease or riot to lease dark fiber is always an Issue for LECS and CAPS. It is recommended that dark fiber leases be avoided except unde! limited circumstances. Leasing dark fiber allows others to resell excess capacity, offer value added services and often compete with the leasing entity. The fewer value added services a CAP offers, the less it is • able to justify the staff necessary to be a full service telecommunications ' • O supplier. Dark fibers and rights of way are hard to come by and should be managed accordingly. For reference purposes, Exhibit 4 (page 9) contains dark fiber rates charged by a large supplier. 1 II j 1 • s► • r r r Incremental Cost Rate Development The rates developed under the incremental cost methodology would be based on the additional costs needed to connect the customer to the existing network. Costa Include the Investment In fiber and equipment and other ongoing costs such as maintenance and administration. Installation costs are based on labor and equipment involved In connecting the customer to the network and can vary by customer, Rate development Is performed by circuit or service. Fully Dlslributed Cost Rate Development The rates developed under the fully distributed cost methodology would be based on the allocated cost of the complete clrcult required to connect the customer. Costs Include the Investment In fiber and equipment for the complete circuit and other ongoing costs such as maintenance and 1 administration. Installation costs would be based on Investment made to connect the customer to the network and can vary by customer. i I t • r 12 • ra BUSINESS DEVELOPMENT STRATEGY (PHASED APPROACH) It is recommended that the CAP network, services and staff be developed In phases in order to allow sufficient time for staffing, systems, technology and regulation to develop, During the initial phase, the staff will have the opportunity to grow and to test the pricing strategies. Responsiveness to customers' needs can be determined. Billing and customer service tracking systems can be developed or modified. Based on customer demand, later phases would add more sophisticated services and equipment and would require additional staffing. PHASE I. Would extend over a 12 month period (i.e. 1995) and could be stepped up as demand dictates. Services. Phase I will provide point-to-point transport to select customers for voice, data and video services. The Phase I network will provide the City with the ability to carry any point-to-point traffic and terminate it to any customer provided equipment at standard telecommunications protocols and Interfaces. In this manner the City CAP will not be classed as a common carrier, a dominant carrier or a provider of local exchange service - thus reducing regulations and service obligations in the Initial phase. Specific transport services follow. Other services to be offered based upon customer demand are described more fully in Exhibit 5. Data - digital data transport of point-to-point traffic at various rates and protocols that support LAN-to-LAN interconnections such as: 0 DS 3 (45 Mb/s) • 1.544Mb/s (T1) and any fraction there of • FDDI - 10OMb/s 0 Ethernet - 10Mb/s • Token ring - 4/161 • Frame Relay at various rates (56Kb/s to T1) ATM transport Voice - transport of point-to-point voice traffic at various rates for PBX or key system trunkAlnes: • • DS 3 (45 Mb/s) , • • • 1.544Mb/s (T1) • 64Kb/s (DSO) 13 • 0 womod • ca • 1 Video - analog or digital transport of point-to-point, one-way or two-way, video traffic. This provides for the transport of full motion or compressed video for distance learning, remote arraignment, remote medical services, business conferencing, and security monitoring. Customers Education - public schools, colleges and universities, private schools County - administration, jail, courthouse City Offices - administration, information services, library r Federal Agencies - FEMA State Agencies - Department of Public Safety Health Care Providers Business Sector when requested , Network. Phase 1 network is a single mode fiber digital facility utilizing existing asynchronous electronics for the transport of point- to-point traffic within the city's serving area. Multimode fiber now in place will be phased out over time. Fiber construction as set out in Exhibit 3 will be completed, Additional facilities will be required for connecting customers to the backbone. The cost of this investment will be determined as potential customers are Identified. When building these additional facilities, consideration should be given to other potential Phase 11 customers and the city's long range network plan. These facilities should be constructed with consideration of future routing and access to potential customers, 1 Customer Provided Equipment interface and bandwidth requirements such as frame relay, LAN's, or Asynchronous Transfer Mode (ATM) will be designed or specified as needed. Customers may be required to purchase equipment to convert their system protocol to the CAP network protocol • Co-Location Facility. Long distance carriers connect to the local telephone company's central office to originate and terminate long distance telephone calls for their customers. In the near future all communications carriers will interconnect with the local telephone company to complete local and long distance voice, data and video communications. ; 14 • ca The further a carrier Is from the LEC central office, the higher the cost of interconnection. Inefficiencies also arise If each of several carriers must incur the expense of a separate facility, support systems and physical cable entrance arrangements to the contra; office. An opportunity exists for the city CAP to acquire or retrofit an existing city owned building near the telephone company central office and in so doing meet several needs. The closer the facility the lower the interconnection costs. The facility can be used by the city CAP as a centralized location for its talecommunications systems Inciuding video platforms. Space support systems and Interconnection arrangements can be leased to other carriers wanting to connect to the local telephone company central office. The tacllity would also house the equipment and systems necessary to upgrade to Central Office Industry standards required as the business grows and adds more customers, services and switching capabilities. It is recommended that a facility acquired near the telephone I company central office to house the CAP operation and provide leased services to other carriers with interconnection requirements. I Stafflna. Phase I staffing should be minimal and yet sufficient to allow personnel to focus and develop expertise In a highly competitive, rapidly changing business. The success of this line of business will be dependent upon strong operational systems and high quallbj customer service. The focus of a small staff on a fu!I time basis will make the department more self sufficient and less dependent upon outside consultants. Staffing (set out in more detail on Exhibit 4) would include: • CAP Manager iesponsible for developing and maintaining the business strategy and business plan. Also responsible for services, staff, operating systems and customer satisfaction. • Stays abreast of regulatory environment. 1 • An Office Administrator/Gustomer Service Administrator would report to the Manager and function as an operationaUfinanciai comptroller. Performs budgeting, contract administration, pricing, system development or acquisition and customer • service functions, prepares marketing proposals and • • management and financial reports. 1 15 I • A Systam/Sales Engineer would also report to the Manager and would be responsible for the marketing and technical interface with prospective and existing customers, coordinates network maintenance, and construction with other City personnel and outside vendors. PHASE II, Would extend over an 18 to 24 month period (i.e. 1996-1997). Would entail migration to SONET transmission technology, the expansion of network services and the type of customer served as well as'additlons to staff as required. Pricing will change to reflect enhanced service quality. Customers. Provide dedicated telecommunications transport services to long distance carriers, government agencies, and commercial companies with high volume voice, data, and video requirements. The nature of the customers' business and services offered will require a more reliable network than the phase I services, ' Network, The fiber optic network will be converted to a protected, self-healing dual ring/star topology with Synchronous Optical Network (SONET) Transmission. The upgraded network will allow the city to provide Its customers with highly reliable value added transport services that minimize service outages. The topology of the network will be required and demanded by the type of customers targeted In phase ll. The SONET platform will allow the City to offer services with efficient migration to phase III services. r The SONET platform offers many advantages over the asynchronous platform. Some of which include muitl-vendor interoperab lity, higher capacity, reduced operating costs, higher system reliability and efficient addition of new customers at any network node. Affhough the investment for SONET is somewhat higher, the advantages far outweigh the lower initial investment for asynchronous equipment, The SONET platform is a vital component for growth and expansion of the network in phase ll. Improved network integrity and provider credibility result. • Phase II will feature a dual self-healing ring infrastructure witl- ■ alternate routing. The co-locatlon facility will be upgraded to muut ! Central Office Standards. • 16 • 0 • qa PHASE III. Phase III would be considered in the 1997 and 1988 time frame. During phase Ili, the City will develop enhanced flexible bandwidth products and services that will become a significant source of future revenue, Phase III switching services will likely be based on an ATM platform that will provide interconnection with other networks and/or the local exchange carrier's central office. With the addition of switching capabilities, the network will be capable of originating and terminating voice, data and video traffic, With the addition of a switch in this phase, the City can provide for an alternate back-up facility that will be avallabl^ as a disaster recovery facility should the LEC's local switch be out of service for a long period of time. A switching platform involves significant Investment In people and equipment. A business plan would be developed to determine If the expenditure was justified and If so the plan would be submitted to the City Council for their consideration. C~ C C C C i. ~J t7 t 1, s , y u • c;,a v r f , EXHIBITS ° r • a c5 ° Exhibit I CONSULTANT'S BACKGROUND The Seneca Group is an association of telecommunications executives, managers and 4ecnniclans with extensive analysis, planning and operational experience The key people involved in this Protect are: Jim penderaast - Principal. Accounting and Law Degrees - 20 years experience m telecommunications industry. President/CEO, VP Finance and General Counsel of a Regulated Telco and competitive affiliates with 25,000 access lines, $30 million in annual revenue% 50o employees, $6 million annual capital additions, fiber trunking and feeder routes, 100% digital. Developed competitive communications businesses - long distanc, paging, interactive television. Negotiated the acquisition of cel blare licensegor services, Developed long-term competitive strategies, knowledge of industry trends, and extensive relationships with various competitive Industry segments. Developed Joint ;r venture with public, private, and governmental groups. Merger, acquisition and legislative advocacy experience. John Stachowltz C,P,A. Twenty one years experience in telecummunications industry, as Director of Revenue and Regulatory Affairs and Comptroller. Performed cost studies, pricing, budgeting, and revenue settlement activities. Prepared rate cases. Developed special pricing studies analyses. Coordinated and maintained revenue and operating expense budgets and strategic plans, Monitored regulatory matters and served as liaison between the company and regulatory agencies. Prepared and flied all regulatory reports. Directed .and supervised ail accounting, payroll, fixed asset, budget, tax areas and financial statement presentation. Prepared cases and testified before Texas Public Utility Commission and Texas Legislature. Ronnie Stewart Twenty one years technical and management telecommunications industry experience. Managed network and technology planning and outside plant and transmission engineering for LEC and IXC. Extensive hands-on knowledge of fiber, radio and copper transmission and switching operations, power sequences, ° plant construction and required forecasting and administrative systems. Others in the rroup have extensive experience in designing and coordinating the implementation of digital networking facilities and the development and Implementation of numerous networking and trunking systems for broadband services, Including fiber optic based CATV trunking systems. Responsibility for development o and Installation of fiber optic LAN-based architectures, coordination of R&D efforts for Innovative projects including data and video services to the home, and designing two- way Interactive distance learning networks. Planning and engineering functions including ATM, cellular access, and broadband networking. f e e Exhlblt 2 SERVICE PRICING METHODS M e ~ ~ e e 1 Ir 2 • • Exhibit 2 INCREMENTAL PRICING. EXAMPLE The CAP is required to Install 1000 feet of fiber and requl!ad electronics to connect a customer to the existing ring network for a competitive service. Will the $200 monthly market rate established at a level 10% below the LEC rate be sufficient to recover the CAP's Incremental cost of providing the service? Assumptions 1. Investment FIBER Material - 1000' @ $3.00/ft - $3,000.00 Contracted Installs ion Labor $3,000,00 Total $6,000.00 i ELECTRONICS Material $5,000.00 Contracted Installation Labor $2,000.00 Total $7.000.00 2. Non-Recurring Installation Charge To Customer Q $900.00 Per End $1,800.00 3. City's Weighted Average Cost Of Borrowed Funds (Or Other Contribution Factors) 7.5% a Maintenance Expense Experience as a % of Total System Investment 5.0% 5. Administration Expense Experience as a % of Total System Investment 7,0% 6, Depreciation - Useful Life of Facilities (Assume no Salvage) Fiber 25 years Electronics 7 years • The attached calculations based on the above example and assumptions result in a monthly Incremental rate of $285,30, 1 • tr A Exhibit 2 Under the proposed methodology the proposed monthly rate Is insufficient to recover the CAP's cost of the additional Investment required to serve the customer. The CAP would decline the service request or if the customer still desired service from the CAP, the CAP would adjust the market rate or Increase the nonrecurring charge upward to arrive at a rate that recovers Incremental costs. Note; The forgoing is intended as an example of pricing components and r methodology, Components W. factors can vary. For example, different usoful f+ lives may be assigned to various types of electronic equipment. t 1 t A • 2 • ~ ! ~ j yr 4r , F,r~ i ~5; ~r'p • INCREMENTAL Exhlbit 2 PRICING COST STUDY (EXAMPLE) t 1 INVESTMENT. r 2 3 MATERIAL 8,000 4 LABOR 5,000 5 INSTALLATION CHARGE (1,800) B 7 11,200 a! 8 a , 10 COST OF MONEY @ 7.5 % 840 11 12 13 14 MAINTENANCE @ 5.0 % 580 15 1f3 ADMINISTRATION @ 7.0 % 784 117 18 18 20 DEPRECIATION @ 7 & 25 YRS 1,240 21 22 ANNUAL REQUIREMENT 3,424 23 crsaraosac 24 25 MONTHLY RATE 285.30 28 aama=~ • 3 .w. WYYWLYCIY0IY•fM 'MAY... t'4 • ao: INCREMENTAL Exhibit 2 PRICING COST STUDY r (EXAMPLE) 3 LINE 3 THE MATERIAL INVESTMENT. LINE 4 THE INSTALLATION COST. LINE 5 THE NONRECURRING UdSTALLATION CHARGE. LINE 10 THE COST OF MONEY IS THE CIlY'S WEIGHTED AVERAGE RATE FOR ALL BORROWED FUNDS OR OTHER COST OF MONEY i AND CONTRIBUTION HACTOR. ( LINE 14 THE MAINTENANCE FACTOR APPLIED TO THE INCREMENTAL INVESTMENT. LINE 16 THE ADMINISTRATION FACTOR APPLIED TO TF'E INCREMENTAL INVESTMENT. ADMINISTRATIVE FACTOR COVERS SUCH THINGS AS EXECUTIVE, ACCOUNTING, E i LINE 20 THE DEPRECIATION RATE APPLIED TO THE INCREMENTAL INVESTMENT. DEPRECIATION WILL RANGE FROM 7 YEARS FOR ELECTRONICS TO 25 YEARS FOR THE FIBER NETWORK. LINE 22 THE ANNUAL REQUIREMENT IS THE SUM OF THE COST OF MONEY THRU DEPRECIATION, LINE 25 THE MONTHLY RATE IS LINE 22 DIVIDED BY 12. l 1 4 ■ • 03 • Exhibit 2 FULLY DISTRIBUTED PRICING EXAMPLE The CAP is requested to provide a non-competitive service (i.e. the LEG does not offer the requested service) to a customer. The same Incremental investment set out in the Incremental Pricing Example Is required to connect the customer to the network ring. The service requires 2 five mile fiber strands. Compute the monthly rate required to fully recover the cost of end to erd service. r Assgmotlons 1. Monthl7 Incremental Rate per Incremental Example $285.30 2. Total System Fiber Cable Cost Distributed Fiber Strand Cost Per Mile - $4,000.00 Total System Fiber Cost Total Fiber Strand Miles (5 Miles X 2 Fibers X $4,000 1 mile) $40,000.00 ' 3. Total System Electronics Cost t Per Fiber Strand Mile is $2500.00 Per End (2 Fibers X 2 Ends X $2,500) $10,000.00 4. Contracted Installation Costs with Core System $1,000.00 5. Non-recurring Installation Charge to Customer $1,000.00 6. City's Weighted Average Cost of Borrowed Funds 7.5% 7. Maintenance Expense Experler,e as a % of Total System Investment 5.0% 8. Administrative Expense Experience as a % of Total System Investment 7.0% 9. Depreclatlon - Useful Life of Facllitles (Assume No Salvage) Fiber 26 years Y Electronics 7 years • 1 The attached calculations based on the above example and assumptions result in a monthly fully distributed rate of $1,362.10 comprised of the fully distributed core system ussn by the customer - $1,076.80 and the monthly incremental rate .$285,30. 1 The rate should be sensitivity tested with the cost of similar services if any are © offered by other carriers elsewhere In the country, • Note; The forgoing Is intended as an example of pricing components and methodology. Components and factors can vary. For example, different useful i lives may be assigned to various types of electronic equipment. 5 o i 1 a~ 0 FULLY DISTRIBUTED Exhibit 2 PRICING COST STUDY (EXAMPLE) 1 INVESTMENT: 2 3 MATERIAL(Flber40,000,Elect.10,000) 50,000 4 LABOR 1,000 6 INSTALLATION CHARGE (11000) 1 6 50,000 i 8 e:cavasea 9 10 COST OF MONEY @ 7.5 % 3,750 11 12 13 14 MAINTENANCE @ 5,0 % 2,600 16 16 ADMINISTRATION @ 7.0 % 3,600 17 18 19 20 DEPRECIATION @ 7 & 25 YRS 3,171 21 22 ANNUAL REQUIREMENT _ 12,921 23 aaaxeanaa 24 25 MONTHLY CORE SYSTEM RATE 1,075.80 26 27 MONTHLY INCREMENTAL RATE 285,30 28 29 MO. FULLY DISTRIBUTED RATE 1,362.10 30 OtlG: ¢C.C. 6 i S f t , i ~ F E t 1 • ! FULLY DISTRIBUTED EXhlbit 2 ■ PRICING COST STUDY (EXAMPLE) LINE 3 THE MATERIAL INVES i NIENT. LINE 4 THE INSTALLATION COS". LINE 5 THE NONRECURRING INSTALLATION CHARGE. LINE 10 THE COST OF MONEY IS THE CITY'S WEIGHTED AVERAGE RATE FOR ALL BORROWED FUNDS OR OTHER COST OF MONEY ( AND CONTRIBUTION FACTOR. r LINE 14 THE MAINTENANCE FACTOR APPLIED TO THE CORE SYSTEM INVESTMENT. LINE 16 THE ADMINISTRATION FACTOR APPLIED TO THE CORE SYSTEM INVESTMENT. ADMINISTRATIVE FACTOR COVERS SUCH THINGS AS EXECUTIVE, ACCOUNTING, ETC.. LINE 20 THE DEPRECIATION RATE APPLIED TO THE INCREMENTAL CORE SYSTEM DEPRECIATION WILL RANGE FROM 7 YEARS FOR ELECTRONICS TO 25 YEARS FOR THE FIBER NETWORK. LINE 22 THE ANNUAL REQUIREMENT IS THE SUM OF HE COST OF MONEY *';iU DEPRECIATION. LINE 25 THE MONTHLY RATE IS LINE 22 DIVIDED BY 12, LINE 27 INCREMENTAL. RATE FORM EXHIBIT 1A, LINO 29 TOTAL COST • LINE 25 + LINE 27. e I 7 e • • I r I r l I ~ t. ~ 1 r ( I r i r c~ ~ ~ cVaenxavstocarn2.wk4 _MARKELP-E3ICM 15 4 _ Ge a Hill NRC Monthly Recurring Monthly Mlles _QTE - - SW8 OTE SW8 OTC SWB i T1 (1.544Mb/e) $1,600 $1,280 $696 $411 InlrastatellMrsexchange rates. NRC waived & diact. , rontracl $300 $290 month-to-month $1, son $508 Price fore rates, , DS1s (assumes 2. ends) i yr. contract E1,800 $O IXC Interstate rattes, (Assumes 2 ends) II e $600 $0 IXC Interstate rates, (assumes 2 ends) 3 yr. contract $1,800 $420 $0 IXC Interstate rates, (assumes 2 ends) 5 yr. contract $1,800 $360 SO tXC Interstate rates. (assumes 2 ends) Fractional T1 266Kb1s $400 $280 Intralalallntroexchangs Services Tariff 384 56Kbls $400 $320 Intralata/Intraexchenge Services Tariff 2 $400 $360 Intralstallntrsexchange Services Tariff D53 (45Mbls) $1,300 $3,900 + el»clal wrist, (eat 6 miles)- Intrastate $3,624 National Exchange Carrier's Aseoclatlon Interstate rate 1 yr, contract $1,800 $1,800 $0 IXC Interstate rates, (assumes 2 er,Js) 3 yr, contract $1,800 $1,400 $0 IXC interstate rates. (assumes 2 ends) 5 yr. contract $1,800 $1,300 $0 IXC Interstale rates, (assumus 2 ends) 7 yr. contract $1,800 $1,220 $0 IXC Interstate rates. (assumes 2 nn; c) Ethemel (10Mble) 12 month contract $3,300 $750 $0 per site charges. Discounts for 2nd data link 36 month contract $3,300 $7100 $0 r site charges. Discounts for 2nd dale link 60 month contract $3,300 $650 $0 per site charges, Discountr. for 2nd data Ilnk • Token Ring (4118 Mbls) 12 month contract $3,300 $760 $0 Per site charges . Discounts for 2nd date link 36 month contract $3,300 $700 par site ohs 60 month contract $3,300 $850 $0 per 8110 charges. Discounts for 2nnd d dadate link ta link Single Channel Analog Video 12 month contract ;3,000 • 36 month contract ,000 :400 r 11% ch~• Requira tat data link, $3 80 month contract $3,000 $380 Per $11o charges, Rwlros 1st data Nnk, W site charges. Requires 1st data link. Business Video I (3841KI $1,718 $1,810 / 36 morNh min contract. Codes Fa not In rate, Business Video II (1,544Mb/s) $1,716 $1,820 8 Monti min contact, Codso Is not In rate. Dark Fiber A S1,30Q, $214 N • 4J 0 • DARK FIBER RATE SHEET Tariff Reference: SW8 FCC No. 73 $215.00 Rer Strands Per Mlle AIR FIBERS M_IL_E_S _ _2_ 4 6 8 10 12 14 16 18 20 22 24 31 19, 951 39,903 69, 854 79, 805 99, 758 119, 708 139, 859 169, 610 179,661 199,513 21-9,464'-Y39,41 5 32 20,595 41,190 61,785 82,379 102,974 123,669 144,184 164,759 185,354 205,949 226,544 247,138 33 21,238 42,477 63,715 84,954 106,192 127,431 148,669 169,908 191,146 212,385 233,623 254,861 34 21,882 43,764 65,646 87,528 109,410 131,292 153,174 176,056 196,938 218,820 240,703 262,585 35 22,526 45,051 67,577 90,103 112,628 135,164 157,679 180,205 202,731 225,266 247,782 270,308 36 23,169 48,338 69,508 92,677 115,846 139,015 162,185 185,354 208,523 231,692 254,861 278,031 37 23,813 47,626 71,438 95,251 119,064 142,877 166,690 190,503 214,316 238,128 261,941 285,764 38 24,456 48,913 73,369 97,826 122,282 146,738 171,195 195,651 220,108 244,W 269,020 293,477 39 26,100 50,200 75,300 100,400 125,500 150,600 175,700 200,800 226,900 261,000 276,100 301,200 40 25,744 51,487 77,231 102,974 128,718 164,462 180,205 205,949 231,692 257,436 283,179 308,923 41 26,387 52,774 79,162 105,549 131,936 158,323 184,710 211,097 237,485 263,872 290,269 316,646 42 27,031 54,062 81,092 108,123 135,154 162,185 199,216 216,248 243,277 270,308 207,338 324,389 43 27,674 55,349 83,023 110,697 138,372 166,046 193,720 221,395 249,069 276,744 304,418 332,092 44 28,318 56,836 84,954 113,272 141,690 169,908 198,226 226,644 254,861 283,179 311,497 339,815 45 28,962 57,923 86,885 115,846 144,808 173,769 202,731 231,692 260,654 289,615 318,577 347,538 46 29,605 59,210 88,815 118,420 148,026 177,631 207,236 236,841 286,446 296,051 325,656 355,261 47 30,249 60,497 90,746 120,995 151,244 181,492 211,741 241,990 272,238 302,487 332,736 362,985 48 30,892 61,785 92,677 123,569 154,462 185,354 216,246 247,138 278,031 308,023 339,815 370,708 49 31,536 63,072 94,608 126,144 167,679 189,215 220,751 252,287 283,823 315,359 346,895 378,431 50 32,179 64,359 96,538 128,718 160,897 193,077 225,256 257,436 289,615 321,795 353,974 386,154 51 32,823 65,646 98,469 131,292 164,115 196,938 229,761 262,685 295,408 328,231 361,064 393,877 j 52 33,467 66,933 100,400 133,867 167,333 200,800 234,267 267,733 301,200 334,687 368,133 401,600 53 34,110 88,220 102,331 136,441 170,551 204,661 238,772 272,882 306,992 341,102 376,213 409,323 54 34,754 69,508 104,262 139,015 173,769 208,523 243,277 278,031 312,785 347,538 362,292 417,046 d 55 35,397 70,795 106,192 141,590 176,987 212,385 247,782 283,179 318,577 353,974 389,372 424,769 k6 36,041 72,082 108,123 144,164 180,205 216,246 262,287 288,328 324,369 360,410 398,451 432,492 57 36,685 73,369 110,054 146,738 183,423 220,108 266,792 293,477 330,161 366,846 403,631 440,216 58 37,328 74,656 111,985 149,313 186,641 223,969 261,297 298,626 335,954 373,282 410,610 447,938 59 37,972 76,944 113,915 161,887 189,869 227,831 265,803 303,774 341,746 379,718 417,690 455,661 60 38,616 77,231 115,846 164,462 193,077 231,692 270,308 308,923 347,638 388,164 424,769 463,385 a "Air mile to cable tulle factor of 1.49672 used In above rates Installation - $850 oer Terminatlon • w Exhlblt 3 A i TELECOMMUNICATIONS FACILITIES MAP • f .i i • CI T Y OF DEN TON FIBER S YSTEM I M MI OIM PIA /Or. 0- SUBSIINTERCNANOES tlooorT ta,ooo/r KA M^ CITY FACILITIES too Tr OFF CITY LIBRARIES A. UNIVERSITY SUBS /r'eoa Pr O` PATCH PANEL ua no wrror"3r 7 nw LOOP A" u,ooo Pt AP ON T r, loo Pr Na Vol SCHEDULE IIUSTINU SYSTEM MULTIMODI 9,00 R 1RISTINO OYMM SINOLMODI ruASE I PNASL a W► • FUTURE PHASES LO us TT 10.000 Fr . u i 0.000 rr CrrY OF DENTON, TX COMMUNICATIONS DEPT DN~IP.IB.IrI,ORW now 136W W W 1010 z - ~uv~lle t1aLa W d .w~w.....r-..• «..wrr.-.'"'. ~ ' r wr. r. rr,. WuYllo:',' ~ x .w-rr.... ' • 1 r Exhibit 4 r r r STAFF STRUCTURE AND REQUIREMENTS • x • • ~ i i ~ ~ i i dwN~~:V~~ 1~ 1 i {"f 6tlv'~'~. 1dQ}4 ~~1 1~ ~~7~~J T.• 1y ~ ~ ~ rj ~i; sf~1 ~ G'S~ ~~Y ~i4~~~ ~ rileA T~~P' A • r ( Exhibit 4 t PHASE r ORGANIZATION CHART 4 CAP Manager Office/Customer Service AdministrlInstall/Repair m/Se;Techniolan • A ~ • "Function contracted to city technicians and/or outside vendors as required I O • i 1 • ; rt c Ilk ~~~~i ki I~ N;V}~4N?~i~~Y,V,{~1 Cal Exhibit 4 Can Manager Develop Staff Develop Market, Joint Ventures, Grants Business Strategy and Plan Regulating Compliance Develop Operating and Reporting Systems Network Strategy Offloe / Customer Services Administrator Service Order Entry/Tracking via System Trouble Report Entry / Tracking via System ( Billing - Issues bills via billing system, responds to and resolves billing issues L Systems / Solog Inglneer Customer contact with technical Integration Issues Assist in repalrfinstallation technical support Responsible for monitoring capacity of network and Initiating regular additions ` to network ( Construction oversight Installation / Repair Technician (OSP S IV)* Install Backbone F,O. equipment and F.O. cable Maintain Backbone F.O. equipment and F,O. cable l Be capable of diagnostics on ISP and OSP l Knowledgeable of technical specs for Installing, testing On-call for response to outages Dispatched on trouble reports 'Function - Contracted to existing city technicians and/or outside vendors as required, i I f 1 ~ A ~ ~ N 2 1 i ,.~..r~.w._...~r.....~.r-..,. ' ru~r.rw. r•1gYL1'r. .r1 ,r.... ! { y l~{r, ~t'i ` 1 d 1 yfj r 5` i t;V 1,z f tb. r • Exhibit 5 1 1 1 t POTENTIAL SERVICE OFFERINGS 1 , . wr~w..r..,,,..y..,iy,.... r. • ~,.:WyW.nOilYiMry /r w/i. , i 'li ! 4 +yi/ti~~ • • ~i,,, t. Tip i ~ !°ti14 i, +1 ~+'"4 `y 46,4E 'r', ~,iY1l~~~ i ' • • 1 i POTENTIAL SERVICE OFFERINOS Exhibit ti L Lit Fiber Offerings 1. Transparent Network Transport (TNT) provides a Local Area Network (LAN) connection at each location and the equipment necessary for the transport of network traffic at or near native bandwidth over the fiber optic network. 1 A. TNT Ethernet provides transport of Ethernet LAN traffic at or near 10 Mbps (megabits per second). Customer would provide either a 10baseT, 10base2, or an AUI port for interface to the fiber optic r equipment. Demand is currently Identified for TNT Ethernet services 1 and will be offered in phase one. ` 18. TNT Token Ring provides ;ransport of 16 Mbps LAN traffic at or near { 16 Mbps. Customer provides P. lobe or Ringln/RingOut connection to the local MAU at each location. Interest In TNT Token Ring has been 1 expressed and will be offerf d in phase one. Future TNT Offerings 1 C. Fiber Distributed Date Interface (FDDI) provides transport of FDDI traffic at 100 Mbps. TNT FDDI service has not been requested as an offering In current marketing contacts and will not be offered until an interest Is expressed, Phase one of the project will prepare us to make this offering. 1 D. Asynchronous Transfer Mode (ATM) provides transport of the developing ATM format. Current definitions call for a SONET platform at Optic Carrier 3 (003) of 150 Mbpe. Further definition of Industry standards will be required before rating and offering. Plans call for City CAP to be ready with a SONET platform In place for service offering In phase two. • 2, Telecommunication Standard Service offered to telecommunication companies and end users. These offerings of telecommunication standard services will provide transport for voice and data services. Telecommunication Standard Service may be offered to other Competitive Access Providers offering Dial Torte and Long Distance Services. , I • o • f Exhibit 5 2A, Digital Signal Level 1 (DS1), also known as T1, this service provides transport for both voice and data at 1.544 Megabits per second, The customer would be responsible for the equipment necessary to conform to the DS1 standards. This service will be offered in phase one of the project. 29. Digital Signal Level 3 (DS3) is used for both voice and data traffic but traditionally provides transport for 28 DS1s. The customer would be responsible for the equipment necessary to conform to the DS3 standard. Current marketing contacts do call for DS3 offerings and will be offered In phase one. 2C. Synchronous Opilcaf Network Optic Carrier 1 (SONET OC1) provides transport for both voice and data at 50 Mbps. SONET standards replace the North American Digital Hierarchy standards (DS1 and DS3). OCi can be used to transport DS3 compliant signals. The SONET standards' offerings may completely replace offerings 2A and 213; but at this time SONET equipment is considerably more expensive than DS3 compliant equipment. Additional offerings will be defined for multiple Optical + Carrier offerings (OC3, CO etc..). The customer would be responsible for the equipment necessary to conform to the SONET standards. Current ( marketing contacts do require SONET offerings and phase two of the fiber ( project will call for the installation of a SONET Platform. 3. Frame Relay Is a second generation packet switched protocol. Banks and financial Institutions are probably the major uFers of this tenhnology. It will be necessary to Interconnect with other telecommunication companies off airing this service for Interconnection to larger Frame Relay networks serving larger geographic areas, The offering calls for City CAP to provide the local service and resell the LATA and InterLATA traffic. Rates would be traffic sensitive. Current marketing contacts have expressed Interest in Frame Relay as an alternative and the service will be offered, as more active interest Is Identified In phase one. 4. Video Services will probabl;, be offered In more variety than outlined • below. A mature network will require installation of a Video Switching Center for dynamic routing of Video Conference Calls and interface to long distance companies and Video Conference networks. Interest Is active In video service offerings and will be offered as further interest requires in phase one. 2 3 ~ f • c~ • f Exhibit 5 4A. Broadcast Ouallty Video Is a video service offering a quality of video meeting FCC regulations for Broadcast by a TV station. Users of this service may include the Cable Company, Television Network Remote operations at UNT or TWU, Distance Learning by the ISD or the universities, and possible medical applications (i.e. Telemedicine), Customer provides City CAP a composite video signal for transport. This may be offered in a I duplex or bi-directional configuration for some requirements such as video arraignment or medical requirements. I 4B. Video Conference Local is offered to those services where video conferencing is required between locations serviced by City CAP Fiber Network. Applications include Distance Learning and Video Arraignment. On a local basis City CAP can offer full motion video that Is not necessarily broadcast quality 4C. Video Conferencing outside the Denton Service Center will require coding the Video Signals for transmission via telecommunication standard digital formats (sub DS1, DS1, DS3, or SONET). Interconnection can then be made to other telecommunication providers. By placing the expensive coding equipment at the Central Video Switching Center the CAP fiber services can offer this service to all users of the Broadcast Quality Video Service or the Video Conferencing Local customers, 11. Dark Fiber services are provided to other telecommunication cornpanles that require Integration into their existing fiber optic network for network management reasons. City CAP will provide only the actual fiber and the customer will provide a!I electronics for these services. These services will be restricted to telecommunication companies with service personnel and expertise in place. Restrictions will be developed to insure that CAP service will not be adversely affected. III. Co Location services provide floor space and power in a building close to 1 the Local Exchange Carrier Central Office allowing access to the LEC CO for long distance companies and CAPS providing exchange or switched • services. This building will need to be as close as possible to the GTE Central Office, preferably within one mile, Central Office procedures will need to be followed for power, fire suppression, air conditioning, and other environment and securlty Issues. The building will need to be acquired In phase one su that fiber conSIFIXI on can be routed Into the building. The uporade of the building to Central Office Procedures and construction of a fiber to the GTE Central Office will be placed In phase two. • • 3 • 1 1 Exhibit 5 IV. Switched Services can be provided to customers via Asynchronous Transfer Mode (ATM) technology. This service will require purchasing a Cent►at Office Switch and associated equipment. Offerings will include Integrated Services Digital Network (ISDN) offering 128 Kilobits per second data service and digital voice service to the subscriber. Distribution to the customers by way of the fiber optic network providing advanced telecommunications for long distance and local service. If City CAP telecommunications chooses to enter the switched services market, it would represent phase three, 1 I { t 1 1 i • 1. • t f 4 i ' 0 . w f Exhibit 6 I E I I GLOSSARY . I • . ` V~ Yi~.~~~~~~'~~rM1 ~~(c (fi.~~~ l~li ~ .tai ~ ~Ly~ ~.~T . ~ '+R~i~, a'T.2 • L. ~ • i GLOSSARY Exhibit 6 Asynchrono is - Not synchronous - no fixed time Interval between the characters or blocks of information. Each character or block has a start and stop element which defines Its beginning or end. Asynchronous Transfer Mode (ATM) - A developing high-bandwidth, packet-based switching and multiplexing technology that can deliver data, video and voice in the samE, packet stream and transmit it at speeds ranging from 45 MI to 600 Mb/s. Backbone Network - The distribution path designed to carry the majority of telecommunications traffic. Includes fiber, copper, radio and other transmission mediums. Bandwidth - The range of difference between highest and lowest frequencies In a channel or facility. Competitlve Access Carrier (CAP) - Entity that constructs or leases a telecommunications distribution network and provides access to branch offices, other customers, long distance carriers and the local exchange company in competition with the serving telephone company. Cellular Service - Radio based telecommunication technology using a cell design to provide portable wireless service to many users simultaneously. Co-Location (Virtual Co-Location) - Allows other carriers the opportunity to place their equipment in the telephone company central office. Virtual co-location provides other carriors the benefits of being in the central office white their equipment Is actualty housed off site. t Common Carrier - A private data communications utility company or a government organization that furnishes communications services Indifferently to all potential customers In the general public and is usually regulated by local, state, or federal 1 agencies. Core System - The distribution network and electronics put in place to provide the city with • its telecommunications needs and access to other areas where potential users are clustered. Dark Fiber - A strand of fiber without optical electronics attached. The light wave medium I of transmission Is not provided hence the fiber strand Is dark. ® Distance Arraignment - See Video Teleconferencing. • • Digital Signal, Level 3 (DS3) - 44.736 Mb/s North American rate. Consists of 28 D Sts i plus overhead. 1 i 1 e,+ , Dominant/Non-Dominant Telecommunications Utilities - Dominant Exhibit 6 telecommunications entities are those who elther, because of their market dominance, have the ability to control prices for a particular service or provide local exchange service. The rates and services of dominant telecommunications utilities are fully regulated, at least as to the services in which they are dominant. All other entities engaged in the provision of telecommunlcations are classified as non-dominant telecommunications utilities. Dual Self-Healing Ring - The telecommunications network Is designed in a figure eight fashion. This design provides users with more reliable service. If one portion of the route is out of service, the customers are automatically routed in the other direction. Electronics - Equipment attached to the ends of the distribution medium (fiber, copper, coax) to transmit and receive voice, data or video traffic. Ethernet - 1. A defacto standard, developed first by Xerox and then sponsored by Xerox, Intel, and DEC. An Ethernet Local Area Network (LAN) uses coaxial cables and CSMA/CD (Carrier Sense Multiple Access with Collision Detection). Ethernet Is similar to an IEEE 802.3 LAN (they can share the same cable and can communicate 1 with each other). 2. A 10 Million bits per second baseband LAN. Federal Communications Commission (FCC) - A USA government board of seven presidential appointees established by the Communications Act of 1934 that has the power to regulate all USA interstate communications systems that originate or f terminate in the USA. ` FDDI (Fiber Distributed Data Interface) - Fiber version of 802.5 stnndard for a 100 Mb/s token passing LAN protocol. Used for LAN transport and interconnection, Fiber Network - A transmission distribution medium composed of hollow glass fibers designed to carry light waves used as the transmission medium for voice, video and data traffic. ' Fiber Optics - A term commonly used to describe the technology and equipment used to transmit and receive voice, video and data over a light wave (beam of light) medium. Frame Relay - A high-speed, packet-based data trap transmitted in variable-length sport method In which data Is packets at speeds ranging from 56 kb/s to 1.544 Mb/s. Fully Distributed Pricing - Method used to establish the price of a product or service based upon the full cost to produce the product or service divided by the units o produced or capacity of units that could be produced. O O GTE - General Telephone and Electronics Company 2 i O • - c~ 1 Exhibit 6 HUB - A point in the telecommunications distribution network where transmission facilities interconnect. Incremental Pricing - Method used to establish the price of a product or service based only upon the additional costs needed to produce the product or service. Information Highway - High capacity, high speed Interconnected telecommunications network that transmits and receives voice, video and data and allows access to numerous data bases. Interactive Video - See Video Teleconferencing. Interstate Services - Occurs when a customer using the service in question can communicate across state lines, either wholly on the carrier's facilities or through interconnection with one or more other carriers, such as a long distance company like AT&T. Intrastate Services- Refers to point-to-point and switched services that originate and terminate wholly within a state. Includes - voice, data and video services. I Interexchange Carrier (IXCAEC) - A long distance company such as AT&T, MCI, US Sprint, or hundreds of smaller companies. Local Area Network (LAN) - A private computer network connecting computers In the same building or campus. Local Exchange Carrier (LEC) - Local telephone company. Bell company or independent such as GTE. These companies are not allowed to carry long distance calls across state or LATA boundaries. Multi-Mode - Less expensive, thicker, lower capacity, shorter distance optical system where light rays can travel multiple paths (modes). Personal Communications Services (PCS) - A broad range of communications services that enable communications with persons, wherever they are. Radio • transmission based. Similar to and will compete with cellular service In existence today. Private Branch Exchange (PBX) - A customer premises telephone switch connecting customer telephone sets to each other, to the public network, and to a private network. Point-to-Point Service - A communications path between one location and another or • • ® multiple locations. Switching between customers does not take place. Protocols - Standards or rules that govern how information is transmitted. 3 • 0 • a+ Exhibit 6 Public Utility Board (PUB) - The municipal board that regulates the provision of services by the city. Ring Platform - A telecommunications distribution network built In a circular design with counter rotating transmission channels. Spurs are built from the ring platform to provide service to users along the ring. Shared Tenant Services - Tenants sharing equipment, facilities and other resources within a building campus or office complex. f Single-Mode - Thinner, higher capacity, longer distance optic system where light rays can only travel a single path (mode). Synchronous Optical Network (SONET) - A new family of optical transmission ! channels for speeds from about DS3 (45 Mbls) to 2.4 Gb/s (2400 Mb/s) today and higher in the future, "SONET is to broadband what Ti carrier was to digital," SWB - Southwestern Bell Telephone Company I Switch (Switching) - The primary function of a switching system is to interconnect circuits [ allowing one point to communicate with another. T Carrier (T1) - A system using time division multiplexing to carry 24 digital voice or data channels each at 64 Kbls over copper wire. Total speed is 1.544 Mb/s which Is called DS1. Ono pair of wire carries the channels in one direction. A second pair of copper wire in another binder group carries the signals In the other direction. Repeaters are required every 6000 feet. Tarlf fed Service - Telephone service for which charges are made In accordance with the use made of the line. The rates, terms and conditions for these services are filed with a regulating body as a tariff. Telemedlcine Video - See Video Teleconferencing. Token Ring - A Local Area Network protocol suite commonly known as Token Ring. • y Trunking - A high capacity medium (ex. copper fiber, coax) that connects one point In a 11 telecommunications network with another, For example, a trunk connects a central switching center with a remote switching center. Video Teleconferencing - Teleconferencing refers to two-way video and audlo • communications. Examples of current applications include education for distance • • I learning, remote video arraignment for the criminal justice system and medical analysis and treatment. J 4 1 A oa • r . w { d ~ ' • • i ~::1 i j i i i ~ d