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City hears draft SandyNet master plan calling for depreciation savings, a second data center and modest rate changes
Summary
Consultants presented a draft SandyNet master plan recommending a depreciation reserve (~$550,000/year), a one‑time telecom data center (~$500,000), incremental staff hires and pricing changes to raise average revenue per user by $12 to sustain service and support expansion.
The City of Sandy heard a draft SandyNet master plan that urges the city‑owned Internet service to formalize reserve funding and modestly adjust pricing to sustain long‑term operations. Greg (SandyNet staff) introduced the plan and Ali, who leads the broadband consulting team at Global Education Strategies Inc., walked council through financial, operational and deployment recommendations.
Ali said the plan shows SandyNet is “an incredible asset to the Sandy community” but warned the utility must budget for replacement of network equipment. “We’re recommending that SandyNet better account for the depreciation of the assets … and budget for a telecom data center upgrade,” Ali said, adding an industry‑standard schedule would assume electronics last about seven years and fiber about 30 years. The consultants recommended setting aside roughly $550,000 a year for depreciation and noted a one‑time estimated cost for a separate data center in the neighborhood of $500,000.
The plan also recommends modest staff growth to reduce turnover and burnout, and separating the SandyNet general manager role from the city IT role to provide clearer operational focus. On pricing, the consultants proposed a variety of levers — including higher business rates and tiered residential increases — to raise average revenue per user (ARPU) by about $12. "That $12 increase in ARPU is designed to account for staff increases and asset depreciation," Ali said.
Councilors pressed for detail on timing and scope. One councilor questioned whether the $500,000 data center estimate included facility acquisition and office space; consultants clarified the $500,000 figure was a rough estimate for the technical build and that acquisition/timing could change based on bids and sequencing. Staff offered to phase changes so rate increases could be implemented before capital outlays, allowing cash to accrue prior to major construction.
The presentation also covered deployment strategy. Consultants noted SandyNet has reached roughly 4,000 subscribers and observed that, beyond that scale, incremental growth can improve financial outcomes if expansions are chosen where payback periods are reasonable. Council asked staff to continue refining the plan’s financial tool and return with specifics before any rate change decisions.
The council received the draft for review; staff said they will incorporate feedback and return with a revised document and an adoption timeline in early 2025.
