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Q & A – Broadband Operations

Dated: July 2, 2020

Q:    How were competitive salaries determined for recommended staff positions to operate the network?
A:    Magellan did salary research from Glassdoor and Payscale for Dallas metro area.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

Q:    Where are the costs for computers and other necessary equipment are included?
A:    These costs are covered in the systems and tools capital budgets.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

Q:    Were there recommendations to the Cities of Mont Belvieu, Dayton, and other cities on how to cover indirect costs such as staffing?
A:    Working capital loans and interfund loans/contributions to cover first three – five years of OpEx including salaries.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

Q:    Is home equipment, such as routers, based on standardized consumer-grade equipment? The City of Mont Belvieu has shared that their network utilizes standardized equipment that is provided by the City to reduce issues.
A:     Concur.  We always suggest that a standard home equipment be installed by the City for easier support.  Also, the managed service is predicated on using the Calix home equipment we suggested.  If customers insist on using their own equipment, usually the provider lets it be known that they cannot supply support.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

Q:    Are there costs for adapting to a new telephone system?
A:    Basically, yes.  The fiber network gives you the infrastructure to utilize cloud-based VoIP system which would entail costs to install and use.  This would need to be looked at as a separate item.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

Q:    Due to the complexity of this type of project, and it’s scope that having a director with strong project management is key? Or would they advise hiring a project manager to oversee such?
A:    Having a Telecom Manager that understands all aspects of this project are key, including project management.  When a client does not have the expertise, or the person they hire doesn’t, Magellan fulfills this role, both in project management, and construction management/inspections.  (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)

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