List of Possible Pros and Cons for the City Regarding CWC Proposal

May 2011

Possible Pros

Possibility of increased revenue over time as the CWC services grow

Leveraging access to increased connectivity through CWC infrastructure

Additional video/internet service offerings for the public through CWC

Avoidance of providing grant match for fiber build out

Support for locally-owned company

Savings of $6000 per year in current video service fees related to water tower monitoring by CWC

Administrative ease/efficiency related to consolidation of agreements

Possible Cons

Less-than-market rate for infrastructure access, at least initially

Loss of control related to some of the City’s infrastructure unless bank collateral issue and security concerns can be resolved

Disparate treatment of for-profit companies and potential liability as a result

Operational challenges and coordination issues if fiber is shared or owned by another entity other than the City.