DRAFT
City of Mountain View
Fiber Network Study
Conceptual Design and Phasing
with Business Model
and Financial Analysis
ENTRUST Solutions Group, a Leidos Company
October 2, 2026
Attachment 1
Mountain View Fiber Network Study Page 2
ENTRUST Solutions Group October 2, 2026 Mountain View, CA EXECUTIVE SUMMARY ........................................................................................................... 3 STUDY PURPOSE AND APPROACH ...................................................................................... 4 PLANNING SCOPE AND METHODOLOGY ..................................................................................... 4 CONCEPTUAL NETWORK DESIGN ........................................................................................ 6 EXISTING CITY INFRASTRUCTURE ............................................................................................. 6 CITY PRIORITIZED SITES AND FACILITIES ................................................................................... 6 NETWORK RESILIENCE AND REDUNDANCY ................................................................................ 7 PHASED IMPLEMENTATION PLAN ........................................................................................ 9 PHASE 1A CIVIC CENTER LOOP ................................................................................................ 9 PHASE 1B REDUNDANT CITYWIDE BACKBONE EXPANSION.........................................................13 PHASE 2 COMMUNITY FACILITIES.............................................................................................18 PHASE 3 NETWORK ACCESS LATERALS....................................................................................21 CONSTRUCTION COST ESTIMATES.....................................................................................26 COST ASSUMPTIONS AND OPPORTUNITIES ...............................................................................26 FISCAL RESPONSIBILITY AND STRATEGIC INVESTMENT..............................................................27 PARTNERSHIP CONSIDERATIONS .............................................................................................27 APPENDIX A............................................................................................................................28 THEORETICAL BUSINESS MODEL AND FINANCIAL ANALYSIS ........................................28 RETAIL BROADBAND MODEL ....................................................................................................28 NETWORK PASSING ANALYSIS.................................................................................................28 FINANCIAL ASSUMPTIONS AND REPORTING BASIS.....................................................................29 SCENARIO 1 RETAIL SERVICE FOLLOWING PHASE 1..................................................................31 SCENARIO 2 RETAIL SERVICE FOLLOWING PHASES 1 AND 2 ......................................................34 SCENARIO 3 RETAIL SERVICE FOLLOWING PHASES 1 THROUGH 3..............................................37 DELIVERY MODEL AND PARTNERSHIP CONSIDERATIONS ..............................................40 Table of Contents
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Executive Summary
The City of Mountain View can theoretically develop a City-owned fiber backbone in phases to improve the reliability of municipal communications and extend connectivity to community facilities. The conceptual design provides a blueprint for potential future investment, prioritizing the public-service purpose of the backbone and allowing implementation to proceed incrementally as City needs, funding, and opportunities evolve.
The proposed backbone connects 82 prioritized sites through approximately 26.3 miles of fiber infrastructure, with a conceptual construction cost of $16.66 million. Phase 1a establishes a Civic Center loop; Phase 1b expands the backbone to critical facilities across the City; and Phases 2 and 3 extend connections to additional community facilities and network laterals.
Redundant routes prioritize essential City operations, while implementation can be divided into smaller projects to match budgets, grants, and coordinated construction opportunities.
The conceptual construction costs represent the physical fiber backbone and do not include the network electronics that would be required to activate and operate the network. Electronics requirements and associated costs will depend on the operating architecture ultimately selected by the City, including whether the network supports City facility connectivity, dark fiber, active transport, or other partnership models. These requirements would be developed during subsequent engineering.
The study also evaluates the theoretical use of the proposed backbone to provide municipal retail broadband service. None of the three modeled stand-alone municipal retail scenarios covers its operating costs under the assumptions evaluated, even before debt service on retail startup capital. Accordingly, the retail analysis is presented as a theoretical evaluation rather than a recommended implementation strategy. The detailed Business Model and Financial Analysis is provided in Appendix A.
The conceptual routes and construction cost estimates will ultimately require detailed engineering and field verification before implementation. As the backbone develops, opportunities may also emerge for coordination with other public agencies or private partners that could leverage City-owned infrastructure, subject to future City decisions and negotiated arrangements.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Study Purpose and Approach
The City of Mountain View contracted ENTRUST Solutions Group, a Leidos company, to conduct a Last Mile Broadband Deployment Design and Engineering Study. This study brings together the conceptual fiber network design, phased implementation approach, construction cost estimates, and theoretical business model and financial analysis for City Council consideration.
The City currently relies on INET, a Comcast-owned and maintained fiber network, for communications and interconnection between City sites. The conceptual design addresses the necessary transition to City-owned infrastructure as the legacy system ages and no longer meets all of the City’s connectivity and service needs. In addition, the study builds on the prior Broadband Needs Assessment and Gap Analysis, as well as City-provided information about infrastructure and priority locations.
PLANNING SCOPE AND METHODOLOGY
The conceptual network design provides a planning roadmap. It is not a full engineering study and does not resolve construction methods, building entry locations, or the side of a street where fiber would be installed. Individual projects would proceed through field surveys and standard engineering to verify assumptions, develop a High-Level Design (30 percent HLD), a Low-Level Design (60 percent LLD), and a Final Design.
The City Conceptual Design was created using the following factors to determine the route and phasing:
• Existing City infrastructure
• City prioritized sites, facilities, and locations
• Network resilience and redundancy
• Fiscal sustainability and strategic investment
The business model evaluation uses the proposed phased network framework, to estimate construction costs, develop a residential and business passings analysis, and estimate retail startup requirements. The report also considered joint-build opportunities, partnerships, regional collaboration, the competitive environment, and funding options. However, backbone construction is treated separately from the theoretical retail network launch capital and operating analysis.
As the network expands beyond core municipal operations, the proposed phased design could potentially connect additional facilities that also play an important role in community life.
Schools, healthcare providers, transit facilities, and other civic locations benefit from improved connectivity that supports education, transportation coordination, and access to digital services.1 1 The inclusion of private facilities does not establish that the City has the ability to provide connectivity services to those facilities. These locations are identified for planning purposes only and do not represent a commitment to provide service.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Expanding the network to these facilities increases the overall value of the infrastructure investment while strengthening the City’s ability to support a wide range of public services.2 2 Municipal fiber backbones can provide a foundation for addressing unserved or underserved areas. For example, Santa Monica used its CityNet fiber network to connect affordable housing through a digital inclusion pilot. Further assessment would be needed to identify applicable opportunities in Mountain View. Source: City of Santa Monica, "Santa Monica’s Digital Inclusion Pilot Connects Residents with 10 Gigabit Broadband," December 1, 2015 (https://www.santamonica.gov/press/2015/12/02/santa-monica-s-digital-inclusion-pilot-connects-residents-with-10- gigabit-broadband).
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Conceptual Network Design
The network design translates the City’s facility priorities into a proposed backbone and subsequent connecting routes. It identifies where existing conduit could be used, which facilities could be reached, and how redundant paths could support continuity of essential services. The discussion below establishes the basis for the phased routes and cost estimates that follow.
EXISTING CITY INFRASTRUCTURE
The City of Mountain View currently maintains approximately 3.7 miles of conduit infrastructure within the public right-of-way. These conduit assets provide potential pathways that could support the installation of future fiber optic infrastructure without requiring additional trenching or roadway excavation.
Because conduit systems often support multiple municipal functions and may contain undocumented segments or varying levels of available capacity, a comprehensive review of existing conduit assets is recommended. Conducting a conduit inventory and condition assessment would help confirm available routes, identify unused capacity, and determine how the infrastructure could support future communications needs.
In addition, understanding the location, condition, and capacity of existing conduit infrastructure allows future fiber deployments to build upon existing pathways where feasible. Leveraging these assets can help reduce construction costs, minimize disruption to streets and sidewalks, and accelerate implementation timelines for future network expansion.
CITY PRIORITIZED SITES AND FACILITIES
Mountain View staff provided a list of 291 prioritized sites, facilities, and locations to guide potential network expansion. Each location was assigned a priority level from one (1) to three (3), reflecting its relative importance to City operations and community services. The list included a broad range of identifiable locations such as parking facilities, parks and recreation locations, civic buildings, schools, medical facilities, and other public-serving sites. It should be noted that some identified sites are either private entities or separate public agencies, but are important community assets. Their inclusion would ultimately be determined by the entity or agency seeking inclusion and by the successful negotiation of their inclusion.
Because not all locations require direct fiber connectivity in the initial deployment phases, the list was refined to focus on sites that best support logical network routing and near-term operational needs. Through this process, the original list of 291 locations was narrowed to a manageable set of 82 sites, which were ultimately incorporated into the final conceptual design.
Priority 1 sites included 21 locations that were determined to be the most essential City facilities, such as administrative buildings, fire and police locations, priority civic facilities, and public works facilities. Prioritizing these locations ensures that core government operations and critical public safety functions benefit first from secure, high-capacity connectivity, establishing the foundational network needed to support broader City services.
Priority 2 sites included 19 locations that, while not core-critical, provide strong public service value and have direct City involvement, such as other community facilities like the library, Transit Center, performing art center, and others. It also includes medical facilities and Mountain View High School.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Priority 3 sites included 42 additional sites, including community facilities like transit stations, medical facilities, mobile home parks, other public administration facilities, and school facilities.
These locations offer long-term value and can be integrated opportunistically, supported by inter-agency or public-private partnerships and potential Internet Service Provider (ISP) engagement. ISPs may find it economically beneficial to invest further in Mountain View where existing City-owned fiber could be leased to support their networks, should the City choose to make that fiber available under negotiated lease arrangements.
A breakdown of sites by category and priority is provided in Table 1.
Table 1 Number of Sites by Category and Priority
Category Priority 1 Priority 2 Priority 3 Total
Administration Buildings 3 2 5
Civic/Community Facilities 5 8 6 19
Fire and Police 8 8
City Works 5 1 6
Medical Facilities 2 1 3
Recreation 8 8
Schools 1 26 27
Mobile Home Parks 6 6
Total 21 19 42 82
The prioritization framework is used to guide the phasing of the network expansion plan. Sites with higher priority levels were addressed earlier in the design process to ensure that critical services and infrastructure are supported first, with path redundant routes. Lower-priority sites were incorporated in later phases, allowing the City to align deployment with operational needs and available resources or partnerships. This phased approach ensures that the network delivers the greatest value and impact from the outset.
NETWORK RESILIENCE AND REDUNDANCY
The conceptual fiber network design, shown in Figure 1, emphasizes a resilient architecture that incorporates redundant routing paths throughout each phase of implementation, most critically for the Priority 1 sites to ensure path diversity and full redundancy, ensuring that no single fiber cut can interrupt services. Rather than concentrating redundancy in a single stage, the phased plan intentionally includes segments in every phase that either establish new looped routes or reinforce existing backbone corridors. This layered approach reduces reliance on single-path connectivity and helps ensure that critical facilities can remain connected via alternate routes if individual fiber segments are disrupted by construction, maintenance, or unforeseen events.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 1 Conceptual Design Routes
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA The following phased implementation plan describes how the backbone and lateral routes connect priority facilities and reinforce network resilience.
Phased Implementation Plan
PHASE 1A CIVIC CENTER LOOP
Phase 1a is designed as the City’s initial transition from reliance on the legacy INET system to a City-owned fiber backbone. This phase represents the smallest capital investment ($1,096,128) within the overall implementation plan and serves as the starting point for moving municipal communications onto infrastructure owned and controlled by the City.
By concentrating on a compact loop within the Civic Center area and connecting several highpriority facilities, the City can begin migrating critical communications services while limiting initial construction scope and cost. This early deployment also provides the opportunity to establish construction standards and operational procedures that will guide future network expansion. Once these transition processes are established, subsequent phases can expand the backbone to additional sites and service areas, building on the operational experience gained during the initial deployment.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 2 Phase 1a Conceptual Design Routes
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Note: Construction phasing and site prioritization serve different purposes and do not necessarily align. A Phase 1 route may pass a Priority 3 site that could be efficient to connect if the City chooses to do so. Inclusion along an early-phase route does not change a site’s assigned priority or commit the City to provide connectivity.3 Phase 1a includes the installation of approximately 1.72 miles of new fiber backbone from City Hall to connect critical City facilities like Fire Station-1 and the Police-Fire Administration Building utilizing 2,088 feet of existing conduit along S. Shoreline Boulevard between Church Street and Villa Street as shown in Figure 2. The proposed route passes the City Parking Garage and Parking Lot 11 before closing a redundant loop path back to City Hall along Castro Street.
This Phase 1a loop was designed with specific consideration to establish a core redundant ring around the Mountain View Civic Center which includes city facilities such as City Hall, the Center for Performing Arts, Public Library and Civic Center Plaza. Eleven priority sites are contained within this design, passing within less than 150 feet of the loop (See Table 2). The design focuses on creating a redundant loop architecture by directly connecting high-priority sites along with adjacent Priority 2 and 3 sites and improving overall network reliability.4 In addition to providing initial connectivity for critical facilities, the design incorporates multiple redundant connection paths that allow subsequent phases to interconnect with the backbone, including at least four connection points for Phase 1b routes and a designated lateral connection to support a future Phase 3 extension.
Table 2 Phase 1a Sites
Site Segment Priority
City Hall Civic Center Loop 1
Fire Station 1 Civic Center Loop 1
Police-Fire Administration Building Civic Center Loop 1 City Parking Lot 11 Civic Center Loop 1
Library Civic Center Loop 2
Performing Arts Center Civic Center Loop 2
City Parking Garage 1 Civic Center Loop 2
Eagle Swimming Pool Complex Civic Center Loop 2
Mountain View Medical Offices Civic Center Loop 2
Mountain View Chamber of Commerce Civic Center Loop 3
3 Site priorities, including those assigned to parking facilities, are flexible planning designations and may be revised at any point during the planning process as City needs, opportunities, and decisions evolve. 4 The conceptual design assumes existing City-maintained connectivity pathways between facilities within the Civic Center Plaza campus, which were treated as existing infrastructure for purposes of the network layout.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Site Segment Priority
Mountain View Academy Civic Center Loop 3
The Phase 1a routing also positions the City to take advantage of the anticipated California Middle Mile Broadband Initiative (MMBI) alignment expected to pass immediately adjacent to portions of the Civic Center area.5 While the MMBI will provide a public-access long-haul fiber corridor capable of connecting Mountain View to regional interconnection points and data centers in Los Angeles, Sacramento, and other major exchange locations, the City’s proposed routing maintains a degree of physical separation from the anticipated state alignment. This provides a measure of path diversity in the event of a construction cut or outage along the state middle-mile route.
Because the Phase 1a loop passes near several potential interconnection locations, the design preserves flexibility for future tie-ins to the MMBI as construction of both networks progresses.
Depending on the timing of middle-mile construction, the City could establish an interconnection during Phase 1a or incorporate a connection point during Phase 1b or Phase 2 expansions.
This approach allows the City to benefit from the long-haul transport capabilities of the statewide network while maintaining multiple local routing options that support redundancy and future backbone expansion.
With the Civic Center backbone established, the next phase of implementation focuses on expanding the network beyond the civic core to reach additional operational and public safety facilities across the City.
5 The California Middle-Mile Broadband Initiative (MMBI) was authorized through California Senate Bill 156 (2021) and includes approximately $3.25 billion in state funding to construct an open-access middle-mile fiber network across California. Deployment of the statewide network is ongoing, with segments expected to become operational through 2026 as construction progresses. California Department of Technology, Middle-Mile Broadband Initiative (MMBI), available at: https://broadbandforall.cdt.ca.gov/middle-mile-broadband-initiative/ Mountain View Fiber Network Study Page 13
ENTRUST Solutions Group October 2, 2026 Mountain View, CA PHASE 1B REDUNDANT CITYWIDE BACKBONE EXPANSION
Phase 1b represents the first major expansion of the City’s fiber backbone beyond the Civic Center area established in Phase 1a. With an estimated construction cost of $6,836,544 and approximately 10.79 miles of new fiber infrastructure, this phase would extend the network along key corridors to reach additional critical facilities and operational centers across the City as shown in Figure 3. While significantly larger in scale than the initial deployment, the design builds directly on the backbone architecture established in Phase 1a by expanding redundant connectivity across multiple areas of the City.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 3 Phase 1b Conceptual Design Routes
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA The first and most critical segment extends redundant service to several high-priority public safety and operational facilities, including Fire Station 4, the Police Department Men’s Dormitory, Police Department Women’s Dormitory, the Municipal Operations Center, Fleet Services, and the City Warehouse (Operations Center Loop). This segment not only passes additional Priority 1 sites but also efficiently connects some Priority 2 sites, while creating a redundant ring that connects back to the Phase 1 backbone at two locations near West Evelyn Avenue and Castro Street. These dual interconnection points provide multiple routing options between the Civic Center backbone and the expanded network, improving overall system resiliency and ensuring that critical operational facilities maintain redundant connectivity paths.
From the same connection point at West Evelyn Avenue, a separate segment extends approximately 2.31 miles north, utilizing 1.27 miles of existing conduit, toward North Shoreline Boulevard (Northern Shoreline Extension). This route expands the City network toward the Shoreline area, passing Amphitheatre Parkway and several additional Priority 1 facilities including Fire Station 5, the City Maintenance Facility on North Shoreline Boulevard, and the Shoreline Amphitheatre. Extending the network toward this portion of the city establishes a backbone corridor that supports additional connectivity opportunities while improving overall geographic diversity of the City network.
A third segment extends approximately 1.65 miles south along Castro Street to Miramonte Avenue, before continuing east along Cuesta Drive to Fire Station 2, passing two additional City priority sites along the route (Southern Extension). In addition to connecting this critical facility, the route establishes a backbone corridor that supports future redundancy planning in the southern portion of the City.
The final segment extends from South Shoreline Boulevard to connect additional Priority 1 facilities including the Administrative Offices for the Community Services Department Recreation Division, while passing both the Mountain View Senior Center and the Mountain View Community Center (North Rengstorff Avenue Extension). The route then proceeds north along North Rengstorff Avenue, connecting Fire Station 3 and the Immigrant House, before continuing toward Amphitheatre Parkway where it connects with the northern Shoreline segment to complete the northern loop of the City network.
Phase 1b connects 17 Priority 1 sites and passes additional Priority 2 and 3 locations along the proposed routes, as shown in Table 3.
Table 3 Phase 1b Sites6
Site Segment Priority
Fire Station 4 Operations Center Loop 1
6 Private institutions, including Google Day Care and Waldorf School of the Peninsula, are shown as potential planning opportunities because of their location and community-serving functions. Their inclusion does not commit the City to connect or serve them. Any participation would depend on the City’s determination of public benefit, the institution’s interest, and mutually agreed arrangements.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Site Segment Priority
Municipal Operations Center Administration Operations Center Loop 1 PD Women’s Dorm Operations Center Loop 1
PD Men’s Dorm Operations Center Loop 1
City Warehouse Operations Center Loop 1
Fleet Services Operations Center Loop 1
Mountain View Transit Center Operations Center Loop 2
Jose Vargas Elementary Operations Center Loop 3
Google Day Care Operations Center Loop 3
Yew Chung International School Operations Center Loop 3 Whisman Elementary School Operations Center Loop 3
Moffet Mobile Home Park Operations Center Loop 3
Adobe Building Operations Center Loop 3
VTA Bus Terminal Operations Center Loop 3
Fire Station 5 Northern Shoreline Extension 1
Shoreline Maintenance Facility Northern Shoreline Extension 1 Fuel Station Northern Shoreline Extension 1
Shoreline Amphitheatre Northern Shoreline Extension 1
Flare Station Northern Shoreline Extension 1
Immigrant House North Rengstorff Extension 1
Fire Station 3 North Rengstorff Extension 1
Community Center North Rengstorff Extension 1
Mountain View Senior Center North Rengstorff Extension 1 Administrative Offices, CSD Recreation
Division North Rengstorff Extension 1
The View Teen Center North Rengstorff Extension 2
Rengstorff Pool House North Rengstorff Extension 2
Shoreline Gate House North Rengstorff Extension 2
Waldorf School of the Peninsula North Rengstorff Extension 3 Mountain View Fiber Network Study Page 17
ENTRUST Solutions Group October 2, 2026 Mountain View, CA Site Segment Priority
Learning Links Preschool North Rengstorff Extension 3
Avenidas Rose Kleiner Center -Senior Day
Care North Rengstorff Extension 3
Fire Station 2 Fire Station 2 Extension 1
Mountain View Sports Pavillion Fire Station 2 Extension 2 Grahm Middle School Fore Station 2 Extension 3
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA PHASE 2 COMMUNITY FACILITIES
As shown in Figure 4, Phase 2 continues the expansion of the City’s fiber backbone by extending connectivity to 12 additional civic, transportation, and recreational facilities within the City (See Table 4). With an estimated construction cost of $3,624,192 and approximately 5.72 miles of new fiber infrastructure, this phase focuses on connecting additional municipal and community facilities while strengthening redundancy along several existing backbone corridors.
The first segment extends south from Fire Station 2 along Grant Road, utilizing approximately 8,026 feet of existing conduit, to reach Mountain View High School and the Sutter Health Mountain View Center. From Fire Station 2, the segment also extends north along Sylvan Avenue and west along East Evelyn Avenue, creating a redundant segment that improves network resiliency for facilities located along this corridor while reinforcing the broader backbone architecture established in the earlier phases (Grant Road Connector).
A second segment connects at two points along the North Rengstorff Avenue Extension constructed in Phase 1b and extends south toward the San Antonio Caltrain Station and the San Antonio Transit Center (San Antonio Connector). This segment expands the City network into an important regional transportation corridor while creating additional interconnection opportunities between the City backbone and nearby transportation facilities.
The final segment utilizes the existing Phase 1b backbone along North Shoreline Boulevard to extend connectivity to several Priority 2 locations associated with the Shoreline recreational and waterfront area, including facilities supporting boating, dining, and other public recreational activities (Shoreline Recreation Lateral). This extension allows the City network to reach key community-serving destinations while leveraging the backbone infrastructure established during earlier phases.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 4 Phase 2 Conceptual Design Routes
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Table 4 Phase 2 Sites
Site Segment Priority
Mountain View High School Grant Road Connector 2
Sutter Health Mountain View Center7 Grant Road Connector 2 School District Admin Building Grant Road Connector 3
Maintenance Building Grant Road Connector 3
Suset Estates Mobile Home Park Grant Road Connector 3
New Frontier Mobile Home Park Grant Road Connector 3
San Antonio Transit Center San Antonio Connector 2
San Antonio Cal Tran Station San Antonio Connector 2
Michaels Restaurant Shoreline Recreational Lateral 2
Shoreline Golf Pro Shop Shoreline Recreational Lateral 2 Rengstorff House Shoreline Recreational Lateral 2
Shoreline Boathouse & American Bistro Shoreline Recreational Lateral 2 7 Inclusion of this private institution establishes neither an obligation nor an intent for the City to become a service provider to private industry. Future Internet service providers may see value in leasing dark fiber strands from the City to serve such facilities, should the City choose to make that fiber available under negotiated lease arrangements.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA PHASE 3 NETWORK ACCESS LATERALS
As shown in Figure 5, Phase 3 focuses on extending the City’s fiber network through a series of shorter lateral connections designed to reach additional community-serving facilities throughout the City. Because most of these sites were Priority 3, many of these laterals are just that – single routes extending to a site without providing the redundant path that mission-critical sites require. With an estimated construction cost of $5,100,480 and approximately 8.1 miles of new fiber infrastructure, this phase connects a total of 26 facilities, many of which include non-city sites such as educational, childcare, and other community-oriented sites that were not directly served by the backbone routes established in earlier phases (See Table 5).
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 5 Phase 3 Conceptual Design Routes
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA The largest segment within Phase 3 creates a southern loop beginning from the Alta Vista High School, extending slightly north and west along Eunice Avenue to connect with the Phase 2 Fire Station 2 Connector at Grant Road (Eunice Connector). Another larger segment connects from that same point along Grant Road and connects El Camino Hospital Mountain View and St.
Francis High School, before connecting to the Phase 1b backbone along Miramonte Avenue (Miramonte Connector). A third large segment connects all the way out to Springer Elementary.
These segments extend the network into the southern portion of the City while also creating an additional loop connection that strengthens overall network resiliency.
A separate segment extends from the San Antonio Station area to connect with the Phase 1b backbone along California Street, establishing a secondary path between these corridors and improving routing diversity for facilities served in this portion of the City (California Connector).
Beyond these larger connections, Phase 3 consists primarily of a series of shorter lateral segments designed to connect individual community facilities to the existing backbone network.
In total, approximately 20 separate segments, each generally less than 0.5 miles in length, extend service to additional school district facilities, childcare centers, and other communityserving locations throughout the City.
Table 5 Phase 3 Sites
Site Segment Priority
Alta Vista High School Eunice Connector 3
Action Day Primary Plus School Eunice Connector 3
El Camino Hospital Miramonte Connector 3
St Francis High School Miramonte Connector 3
Community School of Music & Arts California Connector 3 Springer Elementary Lateral Connection 3
Middlefield Station Lateral Connection 3
Whisman Sports Complex Lateral Connection 2
Crittenden Middle school Lateral Connection 3
Whisman Station Lateral Connection 3
Stevenson Elementary Lateral Connection 3
Theuerkauf Elementary Lateral Connection 3
Tiny Einstein Child Development Center Lateral Connection 3 Palo Alto Preparatory Lateral Connection 3
St Stephen Lutheran School Lateral Connection 3
Moorpark Mobile Home Park Lateral Connection 3
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Site Segment Priority
Gabriela Mistral Elementary Lateral Connection 3
Mariano Castro Elementary Lateral Connection 3
Amy Imai Elementary Lateral Connection 3
Sahara Mobile Village Lateral Connection 3
Benjamin Bubb Elementary Lateral Connection 3
Edith Landels Elementary Lateral Connection 3
Post Office Lateral Connection 3
Monta Loma Elementary Lateral Connection 3
Santiago Villa Mobile Home Park Lateral Connection 3
St. Joseph’s Catholic School Lateral Connection 3
Together, these lateral connections expand the reach of the City network to a broader set of public facilities while leveraging the backbone infrastructure established in earlier phases.
However, it is yet to be determined if these non-city agencies would seek to join the network and fund the associated costs of joining.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 6 Complete Conceptual Design
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Construction Cost Estimates
Table 6 presents the conceptual construction estimate for the City backbone. The total is $16,657,344 for approximately 138,810 linear feet of fiber infrastructure. Phase 1a and Phase 1b together total $7,932,672; the cumulative estimate after Phase 2 is $11,556,864. These costs are separate from the theoretical retail network launch capital analyzed later in this study.
Table 6 Estimated Construction Costs by Phase
Component Linear Feet Unit Cost Total Cost
Phase 1a Civic Center 9,134 $120 $1,096,128
Phase 1b Redundant Network Expansion 56,971 $120 $6,836,544 Phase 2 Community Facilities 30,201 $120 $3,624,192
Phase 3 Network Access Laterals 42,504 $120 $5,100,480
TOTAL 138,810 $120 $16,657,344
COST ASSUMPTIONS AND OPPORTUNITIES
The construction cost estimates presented for the conceptual network design are preliminary and based on current market conditions. These estimates should be refined as a project phase progresses through detailed design engineering and the competitive public bidding process. At the conceptual planning stage, assumptions must be made regarding construction methods and routing conditions that cannot be fully verified until detailed engineering is completed. For purposes of this analysis, all new fiber construction has been assumed to be underground, which represents a conservative (yet the costliest) assumption. The first work in a high-level design (HLD) of design engineering would determine where existing utility poles exist, and if they can be used to attach cable, which would substantially reduce the anticipated construction cost by as much as 50-75%.
Where existing conduit infrastructure is known to be available along the proposed routes, the conceptual design cost estimate assumes that these assets will be utilized where practical, thereby reducing the amount of new construction required.
As future phases advance into design engineering and field surveying, existing infrastructure assets will be verified and documented in greater detail. This process may identify additional conduit, fiber pathways, or other infrastructure that could be utilized, reducing the need for new construction. Design engineering may also identify alternative routing strategies or construction techniques that could lower the overall project cost.
Construction costs may also be reduced through effective coordination with other utilities, private entities, and public agencies. Programs such as dig once or joint trenching, as well as coordination with other capital improvement projects involving excavation within the City’s rightof-way (ROW), can significantly reduce costs. Labor associated with underground excavation Mountain View Fiber Network Study Page 27
ENTRUST Solutions Group October 2, 2026 Mountain View, CA typically represents 50 to 70 percent of total construction costs, making coordinated construction activities an important opportunity to reduce overall project expenses.
FISCAL RESPONSIBILITY AND STRATEGIC INVESTMENT
Implementation can be divided into phases, sub-phases, or individual segments to align investment with available budgets, grant opportunities, and changing operational priorities.
Coordination with Capital Improvement Program (CIP) projects, utilities, and other construction partners can reduce excavation costs and allow the City to build incrementally. Later phases can be adjusted as new development occurs or opportunities emerge, while maintaining priority for critical City facilities.
PARTNERSHIP CONSIDERATIONS
As the City-owned backbone develops, opportunities may emerge to partner with qualified Internet service providers or other private entities that can leverage portions of the City’s fiber infrastructure. Potential arrangements could include dark-fiber leases, shared infrastructure, or other negotiated partnerships that allow the City to retain ownership of strategic infrastructure while supporting additional private investment.
The value and structure of any potential partnership would depend on the interests of individual providers, the assets made available by the City, and the terms of a negotiated agreement.
Further evaluation of partnership structures should therefore occur through future discussions with qualified providers as the backbone develops.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Appendix A
Theoretical Business Model and Financial Analysis
The following theoretical financial analysis evaluates the estimated operational revenues and expenses, as well as the necessary start-up capital, if the City were to consider to monetize its current and/or potential future publicly owned fiber-optic network by selling retail subscriber data services to residents and businesses as a stand-alone public enterprise.
The analysis is intended to help the City understand the costs of monetizing a public asset, the potential value of a private partner, the need to attract capital, and how projected revenues could inform any negotiations. It is a theoretical evaluation of potential revenues, expenses, and business model implications, rather than a business plan, feasibility study, definitive financial statement, or pro forma.
RETAIL BROADBAND MODEL
The financial scenarios presented below are evaluated within the context of a theoretical phased retail deployment framework, in which the City pursues hypothetical retail broadband services served by its independently funded backbone network. Under this framework, service would be introduced incrementally in alignment with backbone construction, rather than as a full systemwide deployment. For example, following completion of an initial backbone phase (Phase 1), the City could launch service within the areas served by that phase to assess operational performance, customer demand, and financial outcomes. Subsequent backbone expansions would enable additional service area launches (Phase 2 and Phase 3). This approach is intended to illustrate a practical theoretical implementation pathway for a retail model, while allowing results to be evaluated at each stage before underwriting further investment.
New stand-alone broadband enterprises require significant direct costs to deliver services, as well as a minimum level of staffing and industry expertise. Some municipalities, particularly ones that already operate an electric utility, may already have some of the support staff and infrastructure in place that can be leveraged for a broadband enterprise, such as billing support and software, fleet vehicles and maintenance, and even field staff. However, broadband typically has specific requirements with respect to equipment and technical expertise and is prohibited from being subsidized by any electric utility, which means new staff and assets specifically for broadband still must be acquired.
Examining the anticipated revenues and expenses of such an endeavor can give the City a realistic understanding of the risks and investment needed to transform a public fiber network into a functioning, competitive retail broadband enterprise. Most of the cost drivers, staffing needs, and equipment listed in these estimates will be required whether the network is operated directly by the City or by a private ISP through a P3.
NETWORK PASSING ANALYSIS
Placing a 175-foot buffer on either side of the conceptual backbone network and crossreferencing it with City-provided address point data allows for quantification of the network’s potential service area. This approach identifies residential and business locations that fall within a distance generally considered feasible for standard service drop connections, without Mountain View Fiber Network Study Page 29
ENTRUST Solutions Group October 2, 2026 Mountain View, CA requiring significant additional lateral construction. As such, the resulting passings represent the portion of the community that could be served in a cost-effective manner under a hypothetical typical retail deployment model.
The number and distribution of these passings are a primary driver of the network’s financial performance, as it defines the base of potential subscribers from which revenues could be derived. Areas outside of this buffer would require additional infrastructure investment to serve, increasing the cost per connection and potentially impacting overall project viability. The results of this analysis are summarized in Table 7.
Table 7 Address Passings within 175 Feet by Phase
Phase Passings
Phase 1 4,082
Phase 2 1,530
Phase 3 3,180
Total 8,792
FINANCIAL ASSUMPTIONS AND REPORTING BASIS
ENTRUST estimated potential revenues and operating expenses, as well as enterprise start-up capital expenses required to connect and serve retail customers, such as customer equipment, installation, and networking equipment. Notably, these retail broadband model start-up capital expenses are separate from initial network backbone and plant construction (shown in Table 6), that would be necessary to construct the three-phase conceptual design.
The model uses the following assumptions and reporting conventions:
• 30% take rate (subscribers) reached in Year 3, with 3% annual residential churn • $52.50 average monthly service revenue per subscriber, based on the modeled service-tier mix
• Network maintenance = 4% of network value
• Staffing levels assume a new, stand-alone enterprise and use fully loaded costs • Excludes debt service on start-up CAPEX.
• Excludes the City backbone network construction costs. • Annual revenue, operating expense, and EBITDA results represent Year 10, not a 20-year average.
• Financial estimates are expressed in today’s dollars with 0 percent inflation or cost-of-living adjustment, as described in the Executive Summary.
• Bad debt is estimated at 1% of total revenue and is included in operating expenses.8 • Gross revenue includes recurring service charges and installation fees. 8 Bad debt represents accounts receivable recognized as revenue but subsequently determined to be uncollectible; therefore, these amounts are included in total reported revenue.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) represents operating performance before these expenses and is shown as a loss in every scenario. Annual revenue, operating expense, and EBITDA figures are Year 10 estimates, rounded to the nearest dollar.
The model excludes debt service on both the City backbone and retail network launch capital.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA SCENARIO 1 RETAIL SERVICE FOLLOWING PHASE 1
Scenario 1 assumes that Phase 1 of the City backbone has been completed and evaluates retail service within that footprint. Table 8 summarizes the modeled network scale, subscribers, Year 10 operating results, and retail network launch capital.
Table 8 Scenario 1 Phase 1 Summary
Parameter Value
Total Network Length (miles) 12.51
Total Passings 4,082
Total Subscribers (30% take rate) 1,224
Estimated Annual Gross Revenues (Year 10) $775,135
Estimated Annual OPEX (Year 10) $1,718,457
Estimated Annual EBITDA (Loss) (Year 10) 9($943,322)
Network Launch CAPEX $ 3,370,00010
However, the requisite operational expenses (OPEX) - staffing and annual direct expenses to operate a retail network of that size - are estimated at $1,718,457, broken down into various cost drivers as shown in Figure 7.
11 9 Excludes debt service on $3.37M of network launch CAPEX 10 Excludes City network backbone costs of $7.9M.
11 Staffing reflects the portion of each employee’s duties allocated to this function, including both part-time and fulltime assignments, totaling the equivalent of approximately 7 full-time positions (FTEs).
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 7 Scenario 1 Year 10 Revenue and Operating Expenses Estimate The estimated EBITDA is a loss of $943,322, which – even if construction and network launch capital is fully funded – would not make the network viable as a stand-alone enterprise. This is primarily due to the low-density customer base in and around the existing network in the Phase 1 design.
Additionally, the successful startup and launch of the retail network will require more than $3.37 million in capital expenses (CAPEX) to connect customers, as shown in Figure 8. The network launch CAPEX required speaks to the need for additional investment in the City’s network to transform it into a functional, sustainable retail subscriber network. This capital could be secured through debt, a General Fund loan/subsidy, or private investment. However, as noted, the EBITDA estimate would not support any debt service.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 8 Scenario 1 Network Launch CAPEX Estimate of $3.37 Million Mountain View Fiber Network Study Page 34
ENTRUST Solutions Group October 2, 2026 Mountain View, CA SCENARIO 2 RETAIL SERVICE FOLLOWING PHASES 1 AND 2
Scenario #2 integrates the existing Phases 1 and 2 City backbone network, resulting in an additional 1,530 passings over 5.7+ miles of new backbone relative to Scenario #1 (see Table 7).
Table 9 Scenario 2 Phases 1 and 2 Summary
Parameter Value
Total Network Length (miles) 18.23
Total Passings 5,612
Total Subscribers (30% take rate) 1,684
Estimated Annual Gross Revenues (Year 10) $1,065,668
Estimated Annual OPEX (Year 10) $1,894,593
Estimated Annual EBITDA (Loss) (Year 10) ($828,925)12
Network Launch CAPEX $ 4,330,00013
The modeled customer base reaches 1,684 subscribers. Figure 9 shows the Year 10 revenue and operating expense estimates; Figure 10 shows the required retail network launch capital. 12 Excludes debt service on $4.33M of network launch CAPEX 13 Excludes additional City network backbone construction costs of approximately $3.6 million for Phase 2, bringing the cumulative backbone cost for Phases 1 and 2 to approximately $11.56 million.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 9 Scenario 2 Year 10 Revenue and Operating Expenses Estimate The estimated negative EBITDA of $828,925 indicates that the network is still not profitable as a stand-alone entity, even with additional subscribers.
It is important to note that in Scenario #2, while gross revenues increase, the rise in direct service and administrative costs does not increase by the same rate, reflecting the early stages of economies of scale as the network expands. Scenario #2 increases the customer base by approximately 38% and network launch capital requirements by approximately 29%, while only modestly reducing the negative EBITDA. This trend is driven by the fixed nature of many operational expenses, which do not scale linearly with the customer base. Staffing requirements also increase over the forecast period as the network matures, but personnel are added based on operational workload and capacity requirements rather than in direct proportion to subscriber growth.14 As subscribers increase, these fixed costs are distributed across a larger base, improving overall operating efficiency, although not yet to the point of achieving positive net income.
It is also important to note that the Scenario 2 CAPEX figure includes approximately $4.33 million in network launch capital required to connect customers, which would require significant annual debt service that cannot be supported by the net operational income. As a result, additional capital investment would be required to fully implement this scenario and support service delivery at the projected scale, as illustrated in Figure 10. 14 Core management, administrative, and engineering functions are assumed to support growth within their available capacity, while additional customer support, NOC, field service, or other operational personnel may be added as subscriber levels and associated workload require additional staffing capacity.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 10 Scenario 2 Network Launch CAPEX Estimate of $4.33 Million Mountain View Fiber Network Study Page 37
ENTRUST Solutions Group October 2, 2026 Mountain View, CA SCENARIO 3 RETAIL SERVICE FOLLOWING PHASES 1 THROUGH 3
Scenario #3 integrates the existing backbone from Phases 1, 2 & 3, resulting in total of 8,792 passings (see Table 7).
Table 10 Scenario 3 Phases 1 through 3 Summary
Parameter Value
Total Network Length (miles) 26.33
Total Passings 8,792
Total Subscribers (30% take rate) 2,637
Estimated Annual Gross Revenues (Year 10) $1,669,522
Estimated Annual OPEX (Year 10) $2,163,393
Estimated Annual EBITDA (Loss) (Year 10) ($493,871)15
Total Start-up CAPEX $ 6,314,15716
The modeled customer base reaches 2,637 subscribers, an increase of 1,413 subscribers over Scenario 1. Figure 11 shows the Year 10 revenue and operating expense estimates; Figure 12 shows retail network launch capital.
15 Excludes debt service on $6.31M of start-up CAPEX.
16 Excludes additional City network backbone construction costs of approximately $5.1 million for Phase 3, bringing the cumulative backbone cost for Phases 1, 2, and 3 to approximately $16.66 million.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 11 Scenario 3 Year 10 Revenue and Operating Expenses Estimate Despite the increase in subscribers and revenues, the model continues to reflect negative EBITDA of approximately $493,871, indicating that the network is not financially viable as a stand-alone enterprise at this stage. In addition, more than $6.31 million in network launch CAPEX would be required to connect the projected customer base, as shown in Figure 12, which would further burden the project with significant annual debt service.
While revenues increase as the network expands, the proportional growth in direct service and administrative costs remains more moderate, reflecting the continued impact of fixed operational expenses. As described in Scenario #2, staffing increases as operational demands require additional capacity but does not increase in direct proportion to subscriber growth. Scenario #3 increases the customer base by approximately 115% and network launch capital requirements by approximately 87% relative to Scenario #1, while reducing the annual EBITDA loss by approximately 48%. This scenario demonstrates a more pronounced scaling effect compared to earlier phases, as the operating cost structure supports a larger subscriber base. As a result, operating efficiency improves meaningfully, although not yet to the point of achieving positive net income under a stand-alone model.
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ENTRUST Solutions Group October 2, 2026 Mountain View, CA Figure 12 Scenario 3 Network Launch CAPEX Estimate of $6.31 Million It is important to note that Scenario #3 assumes the City backbone network has already been constructed and does not include the debt service associated with that investment. As a result, the total capital required to fully implement this scenario is higher than reflected in the model and would require additional funding to support the projected level of service, particularly in the current interest rate environment and given private capital return expectations Mountain View Fiber Network Study Page 40
ENTRUST Solutions Group October 2, 2026 Mountain View, CA Delivery Model and Partnership Considerations
Across all scenarios, financial performance improves as the network expands, primarily because many operational costs are fixed and do not scale linearly with the number of subscribers. However, the results indicate that scale alone is not sufficient to achieve financial viability under any of the stand-alone municipal retail models.
In addition, the retail model scenarios depicted do not include the debt service needed to cover the core backbone network construction, nor the network launch CAPEX, which could present challenges in securing the necessary initial funding. This is especially true with currently elevated interest rates, and the ROI demands for private capital are even higher.
Soliciting a public-private partnership (P3) with a qualified ISP is one approach that could significantly reduce annual expenses by taking advantage of existing ISP operations, staffing, and experience. It is difficult to gauge the level of any cost savings that individual ISPs can realize without knowing the terms of any potential partnership and access to proprietary financial data, but some general assumptions can be made.
ISPs typically already have many of the support staff already in place for other neighboring markets (billing, network operations and engineering, etc.), and can share these costs across multiple markets, thus eliminating the need for new hires. An ISP that is already working within the Bay Area may be able to reduce the annual staffing costs discussed by as much as 50-70%.
ISPs have standard operating procedures and processes and often have many of the technical field staff already in place, which can significantly reduce the costs of ongoing network maintenance by over 50%. Additionally, some of the bigger ISPs often have proprietary operational approaches and favored equipment and material pricing from vendors that allow them to significantly reduce network launch CAPEX.
While there may be opportunities for additional cost savings, any potential savings will hinge on the individual ISP and their unique existing markets, equipment, staff, and resources. Any cost-reduction strategies are dependent on the terms of any partnership which will only be identified through detailed negotiations and analysis in coordination with potential ISP partners.
In addition to operational efficiencies, a private partner may also bring access to capital, vendor pricing advantages, and potential eligibility for additional grant funding. These factors could reduce both operating and capital costs, improving the overall feasibility of the network and supporting a more scalable and sustainable deployment approach. Further evaluation of partnership structures and cost-sharing opportunities should be explored through detailed discussions with qualified ISPs.