Fiber Enterprise Strategy & Pro Forma

The City of Palo Alto Utilities seeks qualified consulting services to develop an updateable Fiber Enterprise Pro Forma and related decision-support analysis. The work will help the City evaluate the financial sustainability and future direction of its fiber enterprise, including existing dark fiber services, backbone investments, internal City use, residential fiber internet service, and potential future service offerings and expansion.

The consultant will develop a transparent, staff-maintainable financial model that supports scenario analysis and informed planning decisions. Supporting market, customer, operating, and future-service analysis should be focused on validating key model assumptions and evaluating the financial implications of potential future investments, including the timing, sequencing, scale, and operating approach for potential future fiber expansion phases.

The City has provided dark fiber services for more than 20 years and began offering residential fiber internet service in May 2026. The City is updating its fiber enterprise planning using a business-planning framework that considers fiber infrastructure, services, and a phased FTTP buildout.

City Council has directed staff to advance a Fiber Backbone Rebuild and Expansion project and Phase 1 of a multi-phased FTTP approach. Staff began with a smaller pilot area to gather lessons before broader expansion. The City is now evaluating how best to strengthen the existing dark fiber business and plan for future service offerings.

The City is interested in an updateable pro forma that supports scenario analysis and ongoing financial management, along with recommendations that can inform in-house business planning and future Fiber Enterprise Plan development. The City expects the Pro Forma to serve as an planning and decision-support tool that staff can update as actual performance, market conditions, and City priorities evolve.