SKAGIT COUNTY COMMUNITY FIBER OPTIC NETWORK STRATEGIC PLAN. March 10, 2017

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1 SKAGIT COUNTY COMMUNITY FIBER OPTIC NETWORK STRATEGIC PLAN March 10, 2017

2 1OVERVIEW CONSTRUCT FIBER BACKBONE APPLY FINANCIAL MODEL NEXT STEPS

3 Overview INTRODUCTION Skagit County, the Port of Skagit, and the Economic Development Alliance of Skagit County (EDASC) have jointly prepared this Community Fiber Optic Network Strategic Plan to serve as a guiding document for a publically owned, wholesale transport service network in Skagit County. The primary goal is to guide development of a countywide, carrier grade, open access fiber optic network that will deliver affordable high speed internet access to the citizens of Skagit County for the purposes of economic development, education, public health and safety, and transportation. It is our goal to deliver carrier grade fiber optic infrastructure from Anacortes to Concrete. The network will be operated as an open access, multi-provider environment, such that private telecommunications providers are allowed access to the system, providing consumer choice and competitive pricing for customers.

4 Overview BACKGROUND Skagit County is currently served by a telecommunications system that includes both private and publicly owned elements. Several governmental organizations within the county own and individually manage an interconnected fiber optic network. These organizations include the Port of Skagit, City of Mount Vernon, City of Burlington, and the Skagit PUD. Construction of the system began in 1999 and Skagit County has used 0.09 economic development grant funds to support the development of this network. In addition, several private telecommunications companies provide varying levels of broadband service to residences, schools, businesses, and other customers around the county. Skagit County has prepared a GIS based Story Map of the Skagit County Fiber Optic history.

5 Overview STATEMENT OF PROBLEM 1. Currently, the collective municipalities and public organizations lack a coordinated strategy for fiber optic deployment countywide. 2. As a result, local communities and municipal organizations are proceeding independently to develop their own strategy. City of Anacortes: Constructing a fiber optic connection to serve their water system telemetry needs and is exploring a community fiber network within their city limits. Town of La Conner: No room to expand their UGA. Exploring a fiber-to-the-home project.

6 Overview STATEMENT OF PROBLEM 3. Several rural areas and east county communities including Lyman, Hamilton, and Concrete lack access to fiber optics in significant ways and are desperately in need of economic opportunity growth. 4. In addition, the infrastructure that is currently in place has been built according to varying standards and specifications, and individual installations have been constructed to serve specific purposes rather than a broader network objective.

7 Overview STRATEGIC GOAL Countywide Fiber Network Carrier grade, open access fiber optic network. Consumer Choice Affordable high speed internet access to the citizens and businesses of Skagit County. Opportunity Growth Economic development, education, public health and safety, and transportation.

8 2 OVERVIEW CONSTRUCT FIBER BACKBONE APPLY FINANCIAL MODEL NEXT STEPS

9 Construct Fiber Backbone Build Bellingham Fiber Segments Placement Bay Fidalgo Bay Aerial Bore Buried Mount Legend Existing Fiber MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone AerialFiber, Distribution ConduitOnly, Backbone FiberInConduit, Backbone FiberInConduit, Distribution Skagit PUD Status Installed Padilla Bay BACKBONE (ALL SEGMENTS 1-6) Samish Bay POS_13 POS_14 POS_12 POS_11 POS_10 SEDRO-WOOLLEY SW_01 9 SW_02 S k a g i t C o u n t y 20 LYM_01 LYMAN HAMILTON POS_29 POS_25 POS_28 POS_15 POS_17 POS_22 POS_19 POS_26 POS_16 POS_23 POS_20 POS_34 POS_32 POS_37 POS_38 CONCRETE AN_01 ANACORTES Simlik Bay I s l a n d C o u n t y POS_01 POS_02 LC_02 Skagit Bay LACONNER POS_05A POS_05B POS_05 LC_01 POS_06 20 POS_09 Skagit Bank POS_07 POS_08A POS_ BURLINGTON POS-MV MV_01 MV City Hall POS-BUR 20 MOUNT VERNON MV_03 MV_ Mount Vernon Miles 9 9 All Segments 1-6 Placement Count Length Unit Cost Extended Cost FO Cable 1 335,417.3 $1.65 $553, Aerial ,712.8 $3.50 $446, Mou nt Ba ker-snoq ualmie National Forest Bore 36 4,630.3 $27.00 $125, Buried 38 69,795.4 $11.00 $767, Existing Fiber 5 98,482.7 $0.00 $0.00 Mount 2 4,303.7 $45.00 $193, Vaults 53 $1, $66, Sub Total $2,153, % Construction Contingency $215, % HDWRE/Splicing $107, % Estimated Engineering Cost $387, Total $2,864, See Appendix A for route model by segment.

10 Construct Fiber Backbone PARTNER SEGMENT GROUP Municipality Demographics* Segment Anacortes Mt. Vernon La Conner Burlington Sedro-Woolley Hamilton Concrete 3,897 Employed in Selection Area, Live Outside 4,255 Live in Selection Area, Employed Outside 1,966 Employed and Live in Selection Area 10,299 Employed in Selection Area, Live Outside 9,483 Live in Selection Area, Employed Outside 3,290 Employed and Live in Selection Area 668 Employed in Selection Area, Live Outside 323 Live in Selection Area, Employed Outside 19 Employed and Live in Selection Area 7,370 Employed in Selection Area, Live Outside 3,151 Live in Selection Area, Employed Outside 482 Employed and Live in Selection Area 2,698 Employed in Selection Area, Live Outside 3,999 Live in Selection Area, Employed Outside 590 Employed and Live in Selection Area 110 Employed in Selection Area, Live Outside 1,248 Live in Selection Area, Employed Outside 50 Employed and Live in Selection Area 146 Employed in Selection Area, Live Outside 294 Live in Selection Area, Employed Outside 9 Employed and Live in Selection Area 1: Anacortes to Burlington 2: Anacortes to Mt. Vernon 3. Anacortes to La Conner 4. Burlington to Sedro-Woolley 5. Sedro-Woolley to Hamilton 6. Hamilton to Concrete End. *Target Cities Employment Dynamics (Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics). See Appendix B.

11 Construct Fiber Backbone FIBER BACKBONE The fiber backbone solely provides carrier grade wholesale transport services; it does not provide retail service in any capacity. Each internet service provider (ISP) owns its own customer relationships, directly selling, marketing, and billing its customers. Competitive pricing for customers.

12 3 OVERVIEW CONSTRUCT FIBER BACKBONE APPLY FINANCIAL MODEL NEXT STEPS

13 Apply Financial Model EXPENSES... Construction Costs by Segment Segment 1 $533, Segment 2 $747, Segment 3 $723, Segment 4 $417, Segment 5 $0 Segment 6 $1,032, Total Construction Cost by Segment: $2,864, See Appendix C for a complete breakdown of fiber plant construction costs by segment (placement of fiber optic (FO) cable, aerial, bore, buried, existing fiber, bridge mount, and vaults.)... Annual Operating Cost by Segment Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 $0 Segment 6 $475 $3,025 $3,125 $5,275 $6,475 Total Annual Operating Cost by Segment: $18, Existing fiber construction pole counts are not calculated into operational costs. No as built drawings were provided as a deliverable from the entities who own the fiber. It is beyond the scope of this project to design existing plant....

14 Apply Financial Model REVENUE MODEL Fiber Plant Model (Backbone) % ROI Fiber Plant Community Model (Backbone + Cities + Towns) DATA ANALYSIS Reasonable Return Over 15 Years The financial model shows a positive return on fiber investments over a 15 year period. The Fiber Plant Community Model estimates revenue potential from both proposed fiber optic backbone and community fiber networks and demonstrates a positive ROI by year SEE FINANCIAL MODEL - APPENDIX D % ROI

15 4 OVERVIEW CONSTRUCT FIBER BACKBONE APPLY FINANCIAL MODEL NEXT STEPS

16 Next Steps POLICY RECOMMENDATIONS The following policies are recommended for adoption by Skagit County and all partners receiving county grant funds for construction of publically owned fiber optic networks in the county. Dig Once Policy Decrease the cost of laying fiber by organizing fiber and conduit installation with other capital projects or in joint trenching with other entities. Efficient and Effective Use of Public Funds Public investments in infrastructure in Skagit County should be used efficiently for the benefit of the community. Consistent Business Plan and Return on Investment A consistent business approach using an open access dark fiber optic lease model and partnership approach will enable all communities to meet their individual goals, while supporting build out of a stronger network over time. Carrier Grade System Commit to building to consistent standards (documentation, accessibility, maintenance and operations, support, response time, as-built drawings, strand count) to the level of service as prescribed by the carrier. Network Management Structure A partnership of public entities has potential to be an important catalyst in expanding access to telecommunications.

17 Next Steps NETWORK MANAGEMENT STRUCTURE Manager TBD. Manager Manager will oversee Outside Plant Committee and NOC. Outside Plant Committee Network Operating Center (NOC) Partnership of public entities (Anacortes, La Conner, Burlington, Mt. Vernon, Sedro-Woolley, Hamilton, Concrete, PUD #1, Port of Anacortes, Port of Skagit). Public Partners

18 Next Steps ACTION ITEMS The following action items are reccomended as next steps in the Strategic Plan. 1. Adopt Interlocal and see Scope of Work (Appendix E,F). 2. CERB Planning Grant will be used to refine business model inside communities. 3. Construct fiber network consistent with plan. 4. Incorporate strategic planning recommendations into partnership comprehensive planning documents.

19 SKAGIT COUNTY COMMUNITY FIBER OPTIC NETWORK STRATEGIC PLAN March 10, 2017

20 Farm To Market Rd Appendix A SEGMENT 1 AN_01 ANACORTES Legend Aerial Simlik Bay Bore Snee Oosh Rd Re servation Rd Build Fiber Segments Placement Buried Mount Existing Fiber MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone AerialFiber, Distribution Snee-Oosh ConduitOnly, Backbone Whitmarsh Junction POS_01 POS_02 POS_03 Padilla Bay POS_04 ST 20 Blind Blind Telegraph Telegraph Telegraph Higgins Bay View Whitney Indian Farm To Market Rd Farm To Market Rd Farm To Market Rd POS_05A POS_05B POS_05 Fredonia POS_06 Fiber Segment 1 Anacortes to Burlington Placement Count Length Unit Cost Extended Cost FO Cable 1 44,401.4 $1.65 $73, Aerial 9 34,910.0 $3.50 $122, Bore $27.00 $20, Buried 1 1,077.6 $11.00 $11, Existing Fiber 1 33,993.7 $0.00 $0.00 Bridge Mount 1 3,623.7 $45.00 $163, Best Rd ST 237 Josh Wilson Rd Skagit Regional Airport ST 20 POS_07 POS_08 Vaults 8 NA $1, $10, Sub Total $400, FiberInConduit, Backbone 10 % Construction Contingency $40, FiberInConduit, Distribution 5% HDWRE/Splicing $20, Skagit PUD 18% Estimated Engineering Cost $72, Status Total $533, Installed Segment 1 Joint Use Poles $25.00 = $3, Miles Higgins Airport Way Joe Leary ST 536 POS_08A Avon POS-MV Chuckanut Dr Memorial Hwy Britt ST 11 POS-BUR Gages Slou gh 5 ST 538 Freeway Dr Cameron Way W Rio Vista Ave Burlington BURLINGTON MV_01 MV_02 MOUNT VERNON ^_ S Burlington Blvd Riverside Dr MV City Hall S 2Nd St

21 Far m T Mar ke t Appendix A SEGMENT 2 20 Fidalgo Bay Similk Beach Gibraltar AN_01 Legend Build Fiber Segments Placement Aerial Bore Buried Mount Existing Fiber Simlik Bay MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone ConduitOnly, Backbone Skagit Island State FiberInConduit, Park Backbone Skagit PUD Skagit Bay Status ANACORTES AerialFiber, Distribution FiberInConduit, Distribution Re se rv at io n R d Snee-Oosh Sn ee O os h Rd Whitmarsh Junction POS_01 POS_03 POS_02 Padilla Bay POS_04 Blind Blind 20 Telegraph Telegraph LC_02 La Conner Higg Mor r is St ins LC_01 Su livan Indian S lough Whitney Chi l be rg R d 20 Far m To Market Rd Far m To Market Rd Fredonia Best Rd Chilberg Ln 237 Skagit Re gio nal Airp ort Installed LACONNER Miles POS_05A POS_05B POS_05 POS_06 POS_07 POS_08 Higgins Airport Way Fiber Segment 2 Anacortes to Mt Vernon City Hall Placement Count Length Unit Cost Extended Cost FO Cable 1 80,053.3 $1.65 $132, Aerial 12 62,500.5 $3.50 $218, Bore 4 1,356.0 $27.00 $36, Buried 4 4,615.5 $11.00 $50, Bridge Mount 2 4,303.7 $45.00 $193, Vaults 14 NA $1, $17, Sub Total $649, % Construction Contingency $64, % HDWRE/Splicing $32, % Estimated Engineering Cost $116, Total $747, Segment 2 Joint Use Poles: $25.00 = $6, POS_08A Avon North Skagit Fork River POS-MV Mem or i al Hwy Ga ges Sl ough Britt Fr ee wa y Dr Cam er on Wa y S 2N d St S Burlington Blvd Burlington POS-BUR MOUNT VERNON MV City Hall Ol d Hi gh wa y 9 9 S Rd S Bu rl in gt o n Bl vd Ri ve rs id e D r MV_01 MV_02

22 Appendix A SEGMENT 3 AN_01 Simlik Bay ANACORTES Re servation Rd Whitmarsh Junction POS_01 POS_02 POS_03 ST 20 Padilla Bay POS_04 Blind Blind Telegraph Telegraph Higgins Whitney Indian ST 20 Farm To Market Rd Farm To Market Rd ST 237 POS_05A POS_05B POS_05 Fredonia POS_06 Skagit Regional Airport POS_07 POS_08 Higgins Airport Way ST 536 POS_08A Avon BURLINGTON POS-BUR Gages 5 5 ST 538 Legend Skagit MV_Fiber_BB_Dist Island State Location, Park TYPE Snee-Oosh Build Fiber Segments Placement Aerial Bore Buried Mount Existing Fiber AerialFiber, Backbone Snee Oosh Rd AerialFiber, Distribution ConduitOnly, Backbone FiberInConduit, Backbone FiberInConduit, Skagit Bay Distribution Skagit PUD Status Installed Maple Ave LC_02 Mor ris St LACONNER LC_01 La Conner Sullivan Chilberg Rd Best Rd Fiber Segment 3 Anacortes to La Conner Placement Count Length Unit Cost Extended Cost FO Cable 1 83,786.9 $1.65 $138, Aerial $3.50 $236, Bore $27.00 $36, Buried $11.00 $41, Bridge Mount $45.00 $163, Vaults 11 NA $1, $13, SubTotal $629, % Construction Contingency $62, % HDWRE/Splicing $31, % Estimated Engineering Cost $113, Total $723, Chilberg Ln Miles Dry North Skagit Fork River POS-MV Memor ial Hwy MOUNT VERNON Skagit City MV_01 MV_02 Britt Cameron Way Freeway Dr MV City Hall ^_ S 2Nd St Old Highway 99 S Rd

23 N Township St Appendix A SEGMENT 4 Ediso n Legend Build Fiber Segments Placement Aerial Bore Buried Mount Existing Fiber MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone Samish River Chuckanut Dr AerialFiber, Distribution ConduitOnly, Backbone Old Highway 99 North Rd Fiber Segment 4 Burlington to Sedro-Woolley Placement Count Length Unit Cost Extended Cost FO Cable 1 41,387.4 $1.65 $68, Avalon Golf Club Aerial 1 27,511.2 $3.50 $96, Bore 4 1,804.8 $27.00 $48, Buried 3 8,308.8 $11.00 $91, Vaults 7 NA $1, $8, Sub Total $313, Thomas F And S Grade Rd Wollard 10 % Construction Contingency $31, % HDWRE/Splicing $15, % Estimated Engineering Cost $56, Total $417, SEDRO-WOOLLEY ST 20 SW_02 Hansen Cr ek FiberInConduit, Backbone FiberInConduit, Distribution ST 11 Skagit PUD Status Installed 5 POS_13 POS_14 POS_12 Cook Rd Brickyard Borseth St W State St Batey Rd ST 9 Moore St Sedro-Woolley State St Jameson St Township St Moore St E State St Railroad Ave Railroad St Minkler Rd Joe Leary POS_11 Sterling SW_01 Hart Hansen 5 POS_10 Hart Chuckanut Junction N Burlington Blvd N Garl St POS_09 Skagit Bank ^_ Avon Ave ST 20 Cascade Hwy BURLINGTON Hart Skagit River ST 9 ST 20 S Burlington Blvd Burlington Gages MOUNT VERNON Nookachamps Miles

24 C reek Hansen Cumberland Appendix A SEGMENT 5 Legend Build Fiber Segments Placement Hansen Entire Segment is Existing Skagit PUD Fiber. 55,557 Feet of Aerial Fiber Roa D Jones Aerial Bore Buried Mount Existing Fiber Wise man C reek MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone J o n es C re ek AerialFiber, Distribution Childs ConduitOnly, Backbone FiberInConduit, Backbone FiberInConduit, Distribution Wiseman Skagit PUD Status Installed Coal Manser R ed Cabin D avis Muddy SEDRO-WOOLLEY Brickyard SW_02 Hansen Minkler Rd Cokedale Powell 20 Minkler Ly ma n Ham il t on Hwy Ly ma n Ha mi lt on H wy Ly ma n Ha mi lt on H wy Lyman LYM_01 LYMAN E Ma in S t Jims S lough HAMILTON 1S t St Rai lr oa d Av e Skiyou Skiyou Mor gan Day Day Cr eek Sorenson Loretta Miles

25 Quartz Appendix A SEGMENT 6 R ed C abin Cre ek Davis Legend Build Fiber Segments Placement Aerial Bore Buried Mount Existing Fiber MV_Fiber_BB_Dist Location, TYPE AerialFiber, Backbone AerialFiber, Distribution ConduitOnly, Backbone FiberInConduit, Backbone FiberInConduit, Distribution Skagit PUD Status Installed Pettit St Muddy Careys Careys Lake POS_15 Hamilton POS_18 POS_19 POS_20 Junction POS_16 POS_17 Baker St HAMILTON Hamilton Alder Fiber Segment 6 Hamilton to Concrete Placement Count Length Unit Cost Extended Cost FO Cable 1 64,651.2 $1.65 $106, Aerial 3 3,508.6 $3.50 $12, Bore 27 1,140.0 $27.00 $30, Buried 30 54,125.3 $11.00 $595, Vaults 25 NA $1, $31, Sub Total $776, % Construction Contingency $77, % HDWRE/Splicing $38, % Estimated Engineering Cost $139, Total $1,032, Grandy POS_36 POS_31 POS_30 POS_32 POS_33 POS_34 POS_35 POS_37 POS_29 ST 20 POS_28 POS_38 POS_27 POS_26 POS_25 POS_24 POS_23 POS_22 POS_21 Birdsview Finney CON_01 CONCRETE Concrete Municipal Airport Cumberland Mount Baker-Snoqualmie National Forest O Toole Boyd Mill Pressentin Miles Hatchery

26 Appendix B SEDRO-WOOLLEY LYMAN HAMILTON CONCRETE ANACORTES Total Primary Jobs Count Share LACONNER BURLINGTON MOUNT VERNON Hamilton/Lyman CDP 1, % Jobs by Earnings Count Share $1,250 per month or less % $1,251 to $3,333 per month % More than $3,333 per month % Selection Area Labor Market Count Share Size (Primary Jobs) Employed in the Selection Area % Living in the Selection Area 1, % Net Job Inflow (+) or Outflow (-) -1,138 - In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area 1, % Living and Employed in the Selection Area % Living in the Selection Area but Employed Outside 1, % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area % Employed and Living in the Selection Area % Employed in the Selection Area but Living Outside % Content may not reflect National Geographic's current map policy. Sources: National Geographic, Esri, DeLorme, HERE, UNEP-WCMC, USGS, NASA, ESA, METI, NRCAN, GEBCO, NOAA, increment P Corp. Anacortes Total Primary Jobs Count Share 6, % Jobs by Earnings Count Share $1,250 per month or less 1, % $1,251 to $3,333 per month 2, % More than $3,333 per month 2, % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area 5, % Living in the Selection Area 6, % Net Job Inflow (+) or Outflow (-) In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area 6, % Living and Employed in the Selection Area 1, % Living in the Selection Area but Employed Outside 4, % In-Area Employment Efficiency (Primary Jobs) Employed in the Selection Area 5, % Employed and Living in the Selection Area 1, % Employed in the Selection Area but Living Outside 3, % Burlington Total Primary Jobs Count Share 3, % Jobs by Earnings Count Share $1,250 per month or less % $1,251 to $3,333 per month 1, % More than $3,333 per month 1, % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area 7, % Living in the Selection Area 3, % Net Job Inflow (+) or Outflow (-) 4,219 - In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area 3, % Living and Employed in the Selection Area % Living in the Selection Area but Employed Outside 3, % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area 7, % Employed and Living in the Selection Area % Employed in the Selection Area but Living Outside 7, % Sedro-Woolley Total Primary Jobs Count Share 4, % Jobs by Earnings Count Share $1,250 per month or less % $1,251 to $3,333 per month 1, % More than $3,333 per month 1, % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area 3, % Living in the Selection Area 4, % Net Job Inflow (+) or Outflow (-) -1,301 - In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area 4, % Living and Employed in the Selection Area % Living in the Selection Area but Employed Outside 3, % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area 3, % Employed and Living in the Selection Area % Employed in the Selection Area but Living Outside 2, % La Conner Total Primary Jobs Count Share Total Primary Jobs % Jobs by Earnings Count Share $1,250 per month or less % $1,251 to $3,333 per month % More than $3,333 per month % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area % Living in the Selection Area % Net Job Inflow (+) or Outflow (-) In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area % Living and Employed in the Selection Area % Living in the Selection Area but Employed Outside % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area % Employed and Living in the Selection Area % Employed in the Selection Area but Living Outside % Mount Vernon Total Primary Jobs Count Share 12, % Jobs by Earnings Count Share $1,250 per month or less 2, % $1,251 to $3,333 per month 5, % More than $3,333 per month 4, % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area 13, % Living in the Selection Area 12, % Net Job Inflow (+) or Outflow (-) In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area 12, % Living and Employed in the Selection Area 3, % Living in the Selection Area but Employed Outside 9, % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area 13, % Employed and Living in the Selection Area 3, % Employed in the Selection Area but Living Outside 10, % Concrete Total Primary Jobs Count Share % Jobs by Earnings Count Share $1,250 per month or less % $1,251 to $3,333 per month % More than $3,333 per month % Selection Area Labor Market Size (Primary Jobs) Count Share Employed in the Selection Area % Living in the Selection Area % Net Job Inflow (+) or Outflow (-) In-Area Labor Force Efficiency (Primary Jobs) Count Share Living in the Selection Area % Living and Employed in the Selection Area 9 3.0% Living in the Selection Area but Employed Outside % In-Area Employment Efficiency (Primary Jobs) Count Share Employed in the Selection Area % Employed and Living in the Selection Area 9 5.8% Employed in the Selection Area but Living Outside %

27 Appendix C Fiber Segment 1 Anacortes to Burlington Placement Count Length Unit Cost Extended Cost FO Cable 1 44,401.4 $1.65 $73, Aerial 9 34,910.0 $3.50 $122, Bore $27.00 $20, Buried 1 1,077.6 $11.00 $11, Existing Fiber 1 33,993.7 $0.00 $0.00 Bridge Mount 1 3,623.7 $45.00 $163, Vaults 8 NA $1, $10, SubTotal $400, % Construction Contingency $40, % HDWRE/Splicing $20, % Estimated Engineering Cost $72, Total $533, Fiber Segment 2 Anacortes to Mt. Vernon City Hall Placement Count Length Unit Cost Extended Cost FO Cable 1 80,053.3 $1.65 $132, Aerial 12 62,500.5 $3.50 $218, Bore 4 1,356.0 $27.00 $36, Buried 4 4,615.5 $11.00 $50, Bridge Mount 2 4,303.7 $45.00 $193, Vaults 14 NA $1, $17, Sub Total $649, % Construction Contingency $64, % HDWRE/Splicing $32, % Estimated Engineering Cost $116, Total $747,005.74

28 Appendix C Fiber Segment 3 Anacortes to La Conner Placement Count Length Unit Cost Extended Cost FO Cable 1 83,786.9 $1.65 $138, Aerial $3.50 $236, Bore $27.00 $36, Buried $11.00 $41, Bridge Mount $45.00 $163, Vaults 11 NA $1, $13, SubTotal $629, % Construction Contingency $62, % HDWRE/Splicing $31, % Estimated Engineering Cost $113, Total $723, Fiber Segment 4 Burlington to Sedro-Woolley Placement Count Length Unit Cost Extended Cost FO Cable 1 41,387.4 $1.65 $68, Aerial 1 27,511.2 $3.50 $96, Bore 4 1,804.8 $27.00 $48, Buried 3 8,308.8 $11.00 $91, Vaults 7 NA $1, $8, Sub Total $313, % Construction Contingency $31, % HDWRE/Splicing $15, % Estimated Engineering Cost $56, Total $417,017.91

29 Appendix C Fiber Segment 5 Sedro-Woolley to Hamilton Placement Count Length Unit Cost Extended Cost Entire Segment is Existing Skagit PUD Fiber 55,557 Feet of Buried Fiber Sub Total $ % Construction Contingency $0.00 5% HDWRE/Splicing $ % Estimated Engineering Cost $0.00 Total $0.00 Fiber Segment 6 Hamilton to Concrete Placement Count Length Unit Cost Extended Cost FO Cable 1 64,651.2 $1.65 $106, Aerial 3 3,508.6 $3.50 $12, Bore 27 1,140.0 $27.00 $30, Buried 30 54,125.3 $11.00 $595, Vaults 25 NA $1, $31, Sub Total $776, % Construction Contingency $77, % HDWRE/Splicing $38, % Estimated Engineering Cost $139, Total $1,032,993.85

30 Appendix C All Segments 1-6 Placement Count Length Unit Cost Extended Cost FO Cable 1 335,417.4 $1.65 $553, Aerial ,712.8 $3.50 $446, Bore 36 4,630.3 $27.00 $125, Buried 38 69,795.4 $11.00 $767, Existing Fiber 5 98,482.7 $0.00 $0.00 Mount 2 4,303.7 $45.00 $193, Vaults 53 $1, $66, Sub Total $2,153, % Construction Contingency $215, % HDWRE/Splicing $107, % Estimated Engineering Cost $387, Total $2,864, Pole Attachments Yearly Pole Attachment Fees Count Unit Cost Extended Cost Segment $25.00 $3, Segment $25.00 $5, Segment $25.00 $6, Segment $25.00 $3, Segment 5 0 $0.00 $0.00 Segment 6 19 $25.00 $ All Segments 735 $25.00 $18,375.00

31 Appendix D Segment 1 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $50.00 $ $8, CLEC $50.00 $ $8, CLEC $50.00 $ $8, CLEC $50.00 $ $8, ISP $50.00 $ $8, ISP $50.00 $ $8, Total $4, $50, Segment 2 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $50.00 $ $8, ISP $50.00 $ $8, ISP $50.00 $ $8, Total $2, $24, Segment 3 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $50.00 $ $8, CLEC $50.00 $ $8, ISP $50.00 $ $8, ISP $50.00 $ $8, Total $2, $34,608.00

32 Appendix D Segment 4 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $50.00 $ $4, ISP $50.00 $ $4, ISP $50.00 $ $4, Total $1, $12, Segment 5 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $50.00 $ $3, CLEC $50.00 $ $3, ISP $50.00 $ $3, ISP $50.00 $ $3, Total $1, $15, Segment 6 Footage Mileage Unit Cost Total Monthly Total Annual CLEC $15.84 $ $2, ISP $15.84 $ $2, Total $1, $19, Total Annual Revenue $158,067.16

33 Appendix D Segment ROI Cost/Return Segment + Community Revenue Year -2,969, ROI Year ROI 2018 $158, $523, $158, $523, $158, $523, $158, $523, $158, $523, $158, $523, $158, $523, $158, $523, $158, % 2026 $523, % $158, % 2027 $523, % $158, % 2028 $523, % $158, % 2029 $523, % $158, % 2030 $523, % $158, % 2031 $523, % $158, % 2032 $523, % 2032 Annual Community Revenue Assumptions: Total $365,000.00

34 Appendix E INTERLOCAL AGREEMENT (This page intentionally left blank)

35 Appendix E SCOPE OF WORK (This page intentionally left blank)