03 - February 11, 2021 Connectivity Committee Agenda Package
CONNECTIVITY COMMITTEE
MEETING
Thursday,February 11, 2021
2:00 p.m.
Meeting to be held electronically.
Agenda
1.Approval of Agenda
2.Adoption of January 28, 2021 Minutes
3.Disclosure of Pecuniary Interest and the General Nature Thereof
4.Connectivity Committee Action Plan – Reviewing the Connectivity Strategy
5.Canada Infrastructure Bank – Director of Financial Services
6.Correspondence
a.AMO Policy Update – Expanded Library Broadband
7.Date of Next Meeting
8.Adjournment
Meeting:Connectivity Committee
Date: January 28, 2021
Time: 2:00 p.m.
Location: Webex
Attendees: Tom Marks, WardenandCommitteeChair
Dominique Giguère, Councillor and Committee Vice Chair
Duncan McPhail, Councillor
Mike Andrews, Community Member
Regrets: Shawn Southern, Community Member
Justin Pennings, Community Member
Joshua Kiirya, Community Member
Staff:Julie Gonyou, Chief Administrative Officer
Jim Bundschuh, Director of Financial Services
Al Reitsma, Manager of IT
Jeremy Sharkey, IT Coordinator
Cecil Coxen, IT Manager – Township of Malahide
Katherine Thompson, Supervisor of Legislative Services
Carolyn Krahn, Legislative Services Coordinator
DRAFT MINUTES
1.Call to Order
th
The Connectivity Committee met this 28day of January, 2021. The meeting
was called to order at 2:00 p.m.
2.Approval of Agenda
Moved by: Mike Andrews
Seconded by:Councillor McPhail
RESOLVED THAT the agenda beapproved.
Recorded Vote
YesNo
CouncillorYes
CouncillorMcPhailYes
MikeAndrewsYes
WardenMarksYes
40
-Motion Carried.
3.Adoption of January 14, 2021 Minutes
Moved by:
Seconded by:Mike Andrews
Resolved that the minutes of the previous meeting be adopted.
Recorded Vote
YesNo
CouncillorYes
CouncillorMcPhailYes
MikeAndrewsYes
WardenMarksYes
40
-Motion Carried.
4.Disclosure of Pecuniary Interest and the General Nature Thereof
None.
5.Delegations – Brad Mousseau, UpLink Wireless
Brad Mousseau presented an Internet Solution Proposal for Elgin County. The
presentation provided an overview of UpLink’scurrent services and how they
would solve the connectivity problem in Elgin County, including what they would
need to implement a solution and how they would implement that solution.
Moved by: Councillor
Seconded by: Councillor McPhail
RESOLVED THAT the presentation from UpLink Wireless be received and filed.
Recorded Vote
YesNo
CouncillorYes
CouncillorMcPhailYes
MikeAndrewsYes
WardenMarksYes
40
-Motion Carried.
6.Connectivity Committee Action Plan – Developing a Strategy for 2021
The Chief Administrative Officer presented an overview of the Connectivity
Strategy: Discussion Guide. The Guide included sections for Committee follow-
up. The Committee agreed to review the document and provide feedback on the
follow-up sections at the next meeting.
7.Date of Next Meeting
TheCommittee will meet again onFebruary 11, 2021at 2:00 pm.
8.Adjournment
Moved by: Mike Andrews
Seconded by: Councillor McPhail
RESOLVED THAT the meetingbeadjourned at 2:53 pm.
Recorded Vote
YesNo
CouncillorYes
CouncillorMcPhailYes
MikeAndrewsYes
WardenMarksYes
40
-Motion Carried.
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REPORT TO CONNECTIVITY
STEERING COMMITTEE
FROM:Jim Bundschuh,Director of Financial
Services
DATE:February 11, 2021
SUBJECT: Canada Infrastructure Bank
RECOMMENDATION:
THAT theFebruary 11, 2021, report titled, Canada Infrastructure Bank,submitted by the
Director of Financial Servicesbereceived and filed for information.
INTRODUCTION:
Canada Infrastructure Bank (CIB) has a mandate to provide affordable financing to
large scale broadband projects.By CIB’s definition, large scale projects have a
minimum investment of $50 million. This poses challenges for smaller ISPs that would
be interested in investing in our region. As it is unlikely that local ISPs have the
resources to launch a project of that scale, a collaboration involving multiple ISPs
spanning the four corners of the county might be able to achieve the scale to attract CIB
debt financing.
DISCUSSION:
Aaron Berg, a local consultant that has been working on projects with CIB facilitated
arranging a meeting with James Wan, Director of Investments. James was able to
provide an overview of their broadband program and would be willing to make a
presentation to the Committee.
CIB has dedicated 30 investment professionals to manage broadband projects across
the countrywith thegoal of providing 50/10 service to underserved households. Unlike
other government connectivity programs, CIB does not provide grants, but rather is
seeking to make investments in projects.Their investments are structured as low-cost
flexible financing with rates approaching 1%. Because of CIB’s attractive rates, ISPs
would have greater success building a successful business model usingCIB financing
2
as compared to normal private sector debt financing. In addition to affordable rates,
CIB also will work with ISPs to structure the terms to suit their projects. Construction
loans are available, permanent loans can have terms in the 15-20 year range. In
addition, the loans can be structured to haveinterest only periods and sculpted
amortization.
CIB, just as other lenders, will expect the ISPs to invest their own money in the project
to complement the funding obtained via debt. CIB’s rule is that an ISP must invest $1 of
their own money, net of grants, for every $1 of financing CIB provides. This percentage
of self-financing requirement combined withthe requirement for projects larger than $50
million means that an ISP (or consortium) would need significant cash on hand to be
eligible for CIB financing.
The issue of lack of scale of any local individual ISP would mean that they will be
excluded from CIB project funding. The question arises if Elgin could play a role in
facilitating discussion amongst local ISPs, encouraging them to form a consortium.
Although not common, CIB has previously provided funding for a consortium. McKenzie
Valley Fibre was a special purpose vehicle, financed by CIB, that was formed to provide
fibre from Fort Simpson to Inuvik.
There is a rolling intake process for CIB projects. An initial submission would include
number of households, the funding plan, GIS mapsand public sponsorship. The first
phase of review typically takes about one month. The second phase, lasting about 2 –
4 months, involves due diligence. This includes financial modelingof cashflow
sensitivities, reviewing the construction and operations approachesandinvestigating
environmental concerns. At the end of this process, the technical advisor will score the
project to determine if it is eligible for financing.
FINANCIAL IMPLICATIONS:
None.
3
ALIGNMENT WITH STRATEGIC PRIORITIES:
Serving ElginGrowing ElginInvesting in Elgin
Ensuring alignment of Planning for and Ensuring we have the
current programs and facilitating commercial, necessary tools,
services with community industrial, residential, resources, and
need.and agricultural growth. infrastructure to deliver
programs and services
now and in the future.
Exploring different Fostering a healthy
ways of addressing environment.
Delivering mandated
community need.
programs and services
Enhancing quality of
efficiently and
Engaging with our
place.
effectively.
community and other
stakeholders.
LOCAL MUNICIPAL PARTNER IMPACT:
None.
COMMUNICATION REQUIREMENTS:
None.
CONCLUSION:
Leveraging the potential funds on offer at CIB will be challenging given the relatively
small population base in Elgin. At the same time,if a special purpose vehicle could be
organized to invest $50 million, a significant portion of Elgin’s broadband deficiencies
would be addressed. James Wan would be willing to come to a future meeting if the
Committee wishes to learn more about CIB’s program.
All of which is Respectfully Submitted Approved for Submission
Julie Gonyou
Jim Bundschuh
Chief Administrative Officer
Director of Financial Services