Borough of Collingswood: Municipal Wireless Service

WEL Associates, LLC

230 Haddon Avenue, Suite 220 Haddoneld, NJ 08033 T 856.383.4034 info@welassociates.co www.welassociates.co

WEL Associates, LLC

www.welassociates.co

The Future is here,...

Background
At the request of Mayor James Maley, William E. Lutz of WEL Associates was invited to share insight in regards to the possibility of the Borough of Collingswood installing a municipal-wide wireless service network (MWN). A meeting was held on May 23rd, 2013 with Major Maley, CIty Administrator Keith Hastings, Community Development Director Carol Sickler, of Collingswood and David McDevitt of the South Jersey Federal Credit Union. Given the importance of this matter and how it could potentially impact Collingswood positively, Mr. Lutz was all to happy to help out. The Borough of Collingswood consists of an area 1.82 square miles in size. Topographically speaking, the Borough is relatively at with minimal land contours impacting on any penetrable radio / carrier waves. In addition, there are no major waterways within its inner connes (which could lend to some signal bending) nor is it spread over a multi-boundary area (such as neighboring Haddon Township) which could lend to the need for signal bending / focusing. The average annual household income is approximately $60,505.00 and its likely primary wireless user age group (20 to 64 years of age) numbers approximately 8,809 (please note this does not take into account the number of devices each household could / would potentially use). In addition, Collingswood is ideally situated between several major trafc arterials (routes 30,130, 38 and 70 as well as Haddon Avenue, Collings Road, Newton Lake and Cooper River Park area - a notable locale for major sports events of some national signicance). It should also be noted that Collingswood is adjacent to signicant ber / cable ISP service connections.

Focus Points
One does not undertake installation of a municipal-wide wireless service lightly without facing potential loss of municipal budgetary revenue or public embarrassment owing to system failure and inability to maintain consistent, high speed service and activity. Several key considerations must thus be considered: 1) Learning From The Pasrt 2) Public Impact - both immediate and long-term 3) Cost Considerations 4) Project Implementation 5) Future Trends

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

Topographically speaking, The Borough of Collingswood is an ideal place to consider installation of an MWN. Given its physical location it also offers potential access points to possible clients who would be willing to utilize what services the borough could offer.

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

Learning From The Past

Following the debacles of the early 2000s, where a number of municipalities failed in their efforts to install wireless systems - notably, Philadelphia, Seattle and a host of other locales - municipal wireless networks are now making a quiet comeback, albeit in a different manner. Prior efforts to install such systems rested primarily upon offering direct public service, inclusive of programs offering computers and ISP services to the economically disadvantaged, low monthly costs along with a host of other measures. Some locales tried utilizing a CDC (Community Development Corporation) approach, using CDCs as a means to manage system installations and operations, leaving the municipal governments to step back. The result was a tangle of bureaucracy, mis-communications and nancial concerns, especially those raised by the leading corporate ISP / backhaul delivery entities (Comcast, Verizon, etc.) who rightfully felt that Municipal Wireless Networks (MWNs) were a direct threat to their own service offerings. In addition, one major assumption was that public support would be substantial in such undertakings, with some estimates reaching wildly optimistic levels at high as 25% of the potential using population of a given municipality (i.e., 25% of the total population would willingly sign up for public internet / wireless service) when in fact, the practical reality was 2% to 3%. Breaking these percentages down into the realm of the Borough, we thus note the following:

Likely User Base* 8,000

% of Users

Potential Users 240 560 800 1,200 1,600 2,000

3% 7% 10% 15% 20% 25%

* persons, not ISP accessible items.

In sum, MWNs failed during the early portions of the 2000s owing to poor - or simply nonexistent - practical business models detailing feasible cost breakdowns, possible venues of support and explicitly dened cost offsets. Now as we enter into 2014, MWNs are staging a comeback, albeit in a totally different format. Chicago, IL, Kansas City, MO, Alexandria, VA, Minneapolis, MN to name a few - are all in the process of installing their respective MWNs. Why the change?

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

Public Impact
Wireless systems within a municipal system setting offers positive impact in terms of encouraging local (especially small) businesses, offering a greater value for their residents as well as lessening the costs of what is now regarded as an invaluable utility: readily available information access. Some immediate key benets of a MWNs are as follows: * Security cameras in high trac / public areas (such as those being implemented in Haddon Township) used to reduce and/or discourage property or personal crimes; * Automatic meter reading (for water meters or for any other meters, including those being utilized now and for future usage: what is automatically monitored now through roving monitors and personnel would instead be possible through a MWN, offering reduced stafng and equipment costs). * AVL (Automatic Vehicle Locators) for police, re, public works or any other Borough property. * Park activities - Utilizing the MWN for entertainment could be realized through the usage of wireless DVRs, sound systems (eliminating the need for wires for public access or for public concerts); wireless cameras to broadcast little league baseball, soccer or other sports.

Wireless distribution equipment - such as the Motorola AP 7161 would need to be installed. Costs for such an item can be between $2,000 to $2,300 per unit. Given that installation of an MWN will likely utilize a mesh network design, a number of these units - depending upon user base - will be required, with signal overlapping designed to insure against service degradation / service failure. Estimates - and costs - can vary widely, depending upon system implementation approach and the population being served.

* Trac control - In the event of special events or heightened trafc, trafc lights could be remotely controlled and adjusted accordingly. Similarly, trafc monitoring is also enabled through cameras and/or remote monitoring services. * Sound system - Presently, the Borough already has a series of speakers installed, but it is not truly efcacious, as Collingswood could obtain a series of wireless speakers and by working with local youth and/or adults, create Collingswood Hot Spot - which would enable Collingswood to offer direct advertising for special events such as Cruise Nights, Mayfair, etc. - which would then be directly returned back into the Boroughs coffers.

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

* Meeting access - Borough meetings, along with any other public or quasi-public entity could utilize the wireless system as a means to encourage greater public participation and community activities * Public Internet access - Over time, as the system becomes more and more successful, public access could also be offered, either for free as a value for residents or along the lines of a low-cost / high speed Internet access with an annual subscription - similar to what is offered for other Borough services (swimming pool, sports activities, etc.). A MWN offers a true ROI (Return On Investment) and can be readily justied as a viable means to access Federal, State, County or Local funding mechanisms thus alleviating the need for up front budgetary cash or bonding issuance.

Internet TV (radio, podcasts, etc.) is now a rising market phenomenon, with Internet TV providers seeking captive and/or focused audiences. Collingswood could offer such through broadcast of local games, special public events, live concerts as well as host its own radio / TV service. Simply by creating series of playlists for broadcasts, these could be made for public venues (street speakers, etc.) with advertisement costs offering yet another offset to pay for the system.

Cost Considerations
It must be rst understood that if any municipality is to undertake installation of a MWN, it should be rightfully regarded in the same light as a municipal utility as a MWN is no different than that of sewer, water or any other utility. But unlike any other utility, MWNs offer tremendous advantages in terms of immediate cost returns and positive long-term investment without (if approached correctly) incurring long-term bond servicing or large debt loads, while offering a degree of added valuation to a municipality. Why a phased approach? Many assumptions are made regarding such systems but the fact remains, there are costs associated with any MWNs, inclusive of transmitter installations, programming, maintenance and ISP access. But most of these costs could be initially borne out through Homeland Security and FEMA grants via a variety of justications and services which would, in turn, enable the Borough to establish a system not only benetting the public trust, but more importantly enable the Borough to offer more public / added services for Borough operations couched within the context of cost savings and enhanced service deliverables. Corporate sponsorship is also most desirable, especially in light of the need for linking with existing ISP / backhaul providers; this too, would be largely dependent upon having a predened number of participants, for unless specics are clearly and rationally dened, ISPs may not be so willing to initially offer any signicant service discounts without incurring some sort of long-term arrangement offering little advantage to the municipality.

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

One option to consider is that of a municipal service fee approach, wherein subscribers would pay a fee to enjoin the Collingswood MWN. We review the potential revenue as another offset (preferable for equipment maintenance) and using a 15% participation rate of the total likely population, we note the following:

Monthly Fees $1.00 $5.00 $10.00 $15.00 $20.00

Annual Revenue $12.00 $60.00 $120.00 $180.00 $240.00

# of Users Annual Cash @ 15% of Receipts potential pop. 1,200 $14,400.00 1,200 $72,000.00 1,200 $144,000.00 1,200 $216,000.00 1,200 $288,000.00

Naturally, these gures are subject to review and/or adjustments.

Project Implementation
Experience has proven that a multi-stage approach is always advisable, as this enables network schematic corrections, system tweaking as well as better insure funding - unless were assuming all costs have already been considered and that a pool of money is readily available for immediate spending. Additionally, it must be noted that one of the key failures point of prior efforts in other municipal locales was not undertaking a full, comprehensive - and more vital - rational trafc analysis. Budgets rest upon assumptions, but from a practical standpoint, assumptions can become costly affairs. Knowing exactly what your trafc load / numbers of users is going to be at the beginning of a project is fundamental in preventing cost overruns or project delays owing to programming considerations or installation services. Expecting to service, say, 2,000 users but in time only 300 or so sign up leaves a substantial - and unnecessary - cost gap. Knowing precisely - to the best of ones abilities - what the likely trafc load will be (especially during times of great usage) while also factoring in a exible margin (i.e., additional back-up equipment / transmitters in the event of storm damage, emergency usage, or having a series of mobile units able to roll out during special public events while serving as a back-up, etc.) is fundamental to any project of this magnitude.

\ Borough of Collingswood: Municipal Wireless Service May 2013 6

WEL Associates, LLC

www.welassociates.co

Thus, as discussed, it is recommended that a phased construction be undertaken within the following context: Phase I: Haddon Avenue and Collings Avenue Build Out Building out rst along Haddon Avenue and Collings Avenue is logical, as it immediately introduces the concept of an MWN to the major business / trafc arterials, encouraging vital stakeholders: local businesses and the Knights Park Association. Businesses along the Haddon Avenue / Collings Avenue arterials would be encouraged to join in, either through sponsorships of security cameras (such as those being undertaken in Haddon Township) along with offering Knights Park and Roberts Pool for transmitting various public / park activities. Concurrently, with this build out would be installation of wireless receivers for major public installations - CIty Hall, Police / Fire and Public Works - which are directly adjacent to those areas, and thus readily available for grant funding. FEMA and Homeland Security grants would be available, as arguments for funding could be readily given to justify purchase and installation of a emergency wireless service backbone. Phase II: Installation in other public installations: Collingswood Public Schools This phase would be taking place concurrently with the Phase I installation, but would be segregated as a separate effort for ease of grant justication and funding as the school board possesses its own funding / taxpayer source. Phase III: Oering Public Access Once the public backbone has been installed, fully tested and is fully functional and operational for a testing period, simple trafc studies to determine potential public usage should be undertaken as then we would then need to consider adding more transmitters, should the pubic need be such (Otherwise, by system denition in an emergency, all priority would automatically go to public safety / public usage). At this point, public outreach could take place to determine what, if any, interest is available - and more importantly, to what extent. Phase IV.: Shared Service Agreements Other neighboring towns and/or entities (Camden County, DRPA, NJ Transit) could be enjoined to participate in this project while also serving as possible co-signers or potential offsets to help mitigate overall system costs. As but one example, Camden County Park events could also be enhanced through the usage of an Internet / wireless service for park / special events (broadcasting live concerts, reworks, shows, boat races, etc.) eliminating the need for wires, etc.

Future Trends
Rising costs are a part of any utility services; Internet access is no exception. WIth the rising dependance upon Internet for both private and public access needs, installing and maintaining a reliable, sustainable and somewhat independent wireless service becomes vital and similar in nature as one expects from any other utility service. Utilizing a MWN as a separate municipal asset enables the Borough to hold a more stronger negotiating position in terms of ISP service fees with outside providers (Comcast, Verizon top among them) as well as offers greater outside funding potential while inviting and encouraging both commercial and public involvement. Public safety entities, local businesses and the general public would benet from a dedicated wireless backbone obtained through public / grant nancing, while the Borough could offer a means for public / civic involvement as well as public Internet usage while allowing for future expansion. The Borough of Collingswood holds a strong hand to take advantage of a growing and viable option.

Borough of Collingswood: Municipal Wireless Service

May 2013

WEL Associates, LLC

www.welassociates.co

Who We Are
WEL Associates, LLC offers a variety of solutions including project management, records services, technical reports, grant writing and research / trend analysis. Weve successfully obtained grant funding exceeding over $50 million over the past twenty ve years as well as managed project installations including (but not limited to) advanced radio / wireless systems, shared services and document imaging / records management systems. To learn more, visit our website at http://www.welassociates.co.

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Borough of Collingswood: Municipal Wireless Service

May 2013