Table of Contents

ADnet has made significant progress since its inception in April, 1998. We have successfully achieved a number of key milestones on our way to providing "world-class" telecommunications at "world-class" prices. While at times I am sure many of us involved have felt we were making "negative progress" and wondered if it was worthwhile, I believe the payback will far exceed our investments of time and energy.

ADnet has grown from an idea to an incorporated organization that is on the verge of delivering the infrastructure that will enable the Algoma District to enter the new millennium ready to meet the challenges of the knowledge economy.

It is often said that people make an organization and ADnet, unquestionably, is an example of the truth of that statement. The dedicated participation of volunteers on ADnet working groups and, in particular, the contributions of the members of our founding Board of Directors is truly outstanding.

We acknowledge the strong support and financial backing of our partner organizations. They have donated numerous hours of staff time, meeting rooms, and other incidentals such as telephones and computers. On a personal note, I need to acknowledge the support and understanding of my employer. My official ties with ADnet are through my volunteer position with the Sault St. Marie EDC. However, my regular employer has accepted numerous adjustments to my working schedule to enable me to conduct ADnet business. They have also allowed ADnet to use meeting rooms and have provided me with the necessary business support tools (phones, faxes, email)

We are fortunate in having a great staff. Long hours and dedication are their hallmark. They have brought stability and foresight to an often-hectic endeavour. Indeed it is difficult to imagine how we survived the first 10-12 months without them.

We are grateful for the advice and financial support provided through our partnerships with FedNor, NOHFC and Human Resources Development Canada and we look forward to continuing and strengthening those partnerships.

Finally, while many people have been essential to ADnet’s progress, I would be remiss if I failed to mention the unwavering support and visionary leadership of Mayor Steve Butland of Sault Ste. Marie. He was the one who initially brought us to the table and he has been available to support critical communications with various government officials and funding agencies throughout this exciting but challenging process.

Looking ahead, we see a bright future. We are optimistic that we will soon receive final approval of Northern Ontario Heritage Fund Corporation funding and we anticipate the initial rollout of improved lower priced services within the next six months.

Charles C. Whitfield, P. Eng.

President

ADnet

Members

Sponsors

Chairman and President

Sault Ste. Marie Economic Development Corporation

Vice -President

Mamaweswen, the North Shore Tribal Council

Secretary-Treasurer

Chairman of the Finance Committee

Sault Ste. Marie Public Utilities Commission

* Term expires 1999 ** Term expires 2000

Annual Report

This report covers the period from April 1998 to November 1999.

ADnet has progressed from being an idea to being a corporate reality. It has become, in the opinion of many knowledgeable insiders, the leading Community Based Network (CBN) in Northern Ontario. The outcome has far exceeded the expectations of many of the people who met with Mayor Steve Butland of Sault Ste. Marie in April 1998 to initiate the activities that have brought us to this point.

In a year and one half filled with milestones, the following can be considered the highlights:

 

• Financial commitment from 18 initial members that has since grown to 24 members who have paid a $500/year fee, and two associate members.

 

• Receipt of initial funding from Federal Economic Development Initiative for Northern Ontario (FedNor) and Northern Ontario Heritage Fund Corporation (NOHFC) to enable the hiring of a consultant to prepare the feasibility study and initial Business Plan

 

• Completion of feasibility study and Business Plan

 

• Leadership in establishing the concept of a Northern Ontario Community Network (NOCN)

 

• Incorporation of ADnet as a not for profit organization

 

• The hiring of a full time staff

 

• Approval of NOHFC phase I request

 

• Completion of a Request for Proposal (RFP) process

 

• Submission of final Business Plan for NOHFC Phase II funding

Objectives and Progress 1998-1999

ADnet achieved three of the four objectives set for 1998/1999. The fourth objective was made redundant by external factors.

Objective One: Complete ADnet Business Plan, obtain funding and begin project implementation.

A consultant was hired to conduct a feasibility study and prepare the Business Plan. FedNor and NOHFC provided the majority of the funding for this endeavour.

ADnet hired the Northern Ontario based AGA consortium to conduct the consultant study. AGA consisted of Planned Approach Inc., of Timmins; Global Bridgeworks, Inc., of Hanmer; and AVITA Technologies Corp., of Oakville. They were assisted by WRS Communications of Bruce Mines, who provided first hand knowledge of the Algoma District and conducted many of the regional interviews. We acknowledge the strong leadership from Nick Micomonaco and Julian Piwowarski of our Technical Committee during the process of selecting the consultants and overseeing the study process itself.

The consultants conducted the study between August 1998 and March 8, 1999. They utilized a traditional methodology which included community meetings, site visits, survey interviews, data research and analysis, and issued formal Requests for Information (RFI). They provided background material to potential ADnet clients and organizations (private and public) interested in looking at new technology applications. They also performed a public relations and communications role on behalf of ADnet that included press releases and a press conference, placing information on the ADnet web page, and advertising community meetings in local newspapers.

The outcome was a four-volume report: Current Status Assessment, Infrastructure Strategy Report, Technology Plan and.

The Business Plan was submitted to NOHFC on March 8, 1999. On April 27, 1999 NOHFC announced approval in principle of funding in the amount of $2.7 million for the ADnet Business Plan subject to the selection of a service provider through a fair and open RFP process.

The RFP process was completed and a final draft of the Business Plan was submitted to NOHFC on November 5, 1999.

Objective Two: Obtain funding and hire staff needed to implement the ADnet Business Plan.

Early in 1999, Human Resources Development Canada (HRDC) approved funding to hire three full time staff for one year. David Court of ADSS assisted with the application process and, as noted below, contributed office space and support services for our "head office". The Sault Ste. Marie Economic Development Corporation (SSM EDC) agreed to act as the staffing agency (special thanks to Debbie Lafleur) and administer the process. Advertisements were placed in the media. ADnet Executive Committee members conducted interviews with the potential candidates. The selection process was completed in March, 1999 with the hiring of Mr.Wilf Lefresne of Goulais River as Program Manager, Mr. Randy Sweetnam of Bruce Mines as Market Development Officer, and Mrs. Darlene Walsh of Thessalon as Administrative Assistant. A permanent office for the Program Manager and the Administrative Assistant was set up in Little Rapids near Thessalon in space donated in kind by the Algoma District Social Services (ADSS), subsequently the Algoma District Services Administration Board (ADSAB). After occupying temporary offices at Sault Community Career Centre courtesy of Mr. John Meadows, the Market Development Officer moved into a permanent office at Algoma University College. Wayne Lamming was instrumental in providing technical support for the office set up.

An official office opening of the Thessalon office took place in June 1999 with Mr. Mike Brown, MPP Algoma –Manitoulin, and other local dignitaries in attendance.

The contributions of Mr. Matt Di Flumeri of the Sault Ste. Marie EDC who provided technical and administrative support from the inception of ADnet until we had our staff in place is gratefully acknowledged.

Objective Three: Finalize the start up of ADnet by establishing a budget, expanding membership, sponsor updates and develop a communications strategy.

The annual budget for ADnet is identified in the Business Plan. The budget is based on a five-year forecast covering the period 2000 –2005. For the period 1998-1999, all budget commitments were met from funding provided by FedNor, NOHFC, HRDC, membership fees and contribution in kind by the members. The transition from an interim funding situation to a sustainable funding model is expected to occur by the end of 2000. The contribution in kind by the members was crucial to the success ADnet has experienced to date. Particular notice is given to the organizations that are represented on the Board of Directors. They contributed countless personnel hours and travel expenses. The efforts of Alan Frederick, Darlene Jones, and Greg Punch of the Finance Committee were invaluable in managing the financial and budgeting processes.

Membership in ADnet has increased by eight members since March, 1999. An active recruitment drive was given a low priority pending the selection of a vendor and the production of a comprehensive marketing package. The development of an attractive product was considered essential to a successful recruitment campaign.

A series of well-attended sponsor updates was held in the form of Chief Executive Officer (CEO) briefings in the fall of 1998 and the spring of 1999. A final update for 1999 will take place in conjunction with the Annual General Meeting on November 25,1999.

A communications strategy and plan was developed and put in place. Mr. Leo Lajunen, of Bruce Mines created a complete and effective visual communications plan. We gratefully acknowledge the contribution of time and effort by Mr. Lajunen.

ADnet received favourable coverage in all the local media from the initial announcement of FedNor funding in November 1998 up to the present time. ADnet was the subject of a positive editorial in the Sault Star on April 12,1999 and received front-page coverage in the Sault This Week on June 26,1999. We acknowledge the efforts of the media to provide significant exposure for our initiative.

Randy Sweetnam, Intkhab Ali, Klaus Peltsch and Matt Di Flumeri made special contributions to the Communications and Membership recruitment processes.

Objective Four: Integrate the Northern Ontario Community Network (NOCN) Business Plan with the ADnet Business Plan.

The NOCN was initiated as a result of meetings in Sault Ste. Marie in October 1998 – Steve Butland and Ron Batenchuk played a key role in this process. However, the 1999 goal of "integrating" ADnet efforts with those of the NOCN was over taken by events. Further development of the NOCN concept was placed on hold when the NOHFC failed to extend approval in principle for the NOCN funding request at the Phase II level. The reason given was that technology would alleviate the need for a separate NOCN backbone network. Nevertheless, there is a strong feeling amongst the Northern Ontario CBNs there is a role for a coordinating body acting under the name of NOCN to coordinate activities in the five regions. ADnet will pursue this requirement in the coming year as a staff activity.

Incorporation

ADnet was incorporated by the Ontario Department of Consumer and Commercial Relations on December 04, 1998 as Ontario Corporation Number 1316455. The leadership shown by Bruce Visitor made the process almost painless.

Request for Proposal Process

When NOHFC approved in principle the ADnet Phase II funding request, it directed that vendor selection be made by means of a public Request for Proposal (RFP). In accordance with Board procedure and past practice, Allan Frederick and Jim Deluzio declared a conflict of interest and did not take part in any activities involving the RFP process. However, their continued contribution to the business and management aspect of ADnet was appreciated.

The five Northern Ontario CBNs formed a Request for Proposal Working Group (RFP WG) in May 1999 under the chairmanship of ADnet. With membership from each CBN, the task of the RFP WG was to execute the RFP process from the drafting stage to the vendor selection stage and to ensure that the process was fair, open and above reproach.

A public briefing on the RFP, followed by a question and answer (Q&A) period, was held at Sudbury's Collége Boréal on July 8,1999. Representatives from over twenty vendors attended in person or took part via teleconference. In response to the extended interest shown by thirteen vendors, the response closing date was twice extended to September 8, 1999. On closing day, four responses were received. It should be noted that by the closing date many of the vendors who had attended the first briefing in Sudbury had joined forces and formed consortia for the response phase.

A RFP Evaluation Team (ET) convened in Toronto on September 19, 1999 for a three-day evaluation. The ET consisted of 2 voting members from each CBN. Mr. Stu Everett of MNDM acted as the chairman and facilitator. Non-voting advisors from the Ministry of Education, Science and Technology (MEST), the Communication Research Council (CRC), FedNor and consultants supporting the CBNs attended all sessions. The evaluation was conducted in accordance with an evaluation plan, criteria score sheet, criteria worksheet and marking guide prepared in advance of the final RFP closing date.

During the first go around, two of the four responses were removed from further consideration as they were found not to be in compliance. The responses by Bell Canada and O.N.Tel were fully evaluated. First, they were evaluated on technical merit and rated. They were then evaluated on financial merit. As a result of the two evaluations, some thirty plus questioned were submitted to each vendor seeking clarifications or additional information. After the answers were received on October 8, 1999, the ET conducted a teleconference on October 14, 1999 to resolve any lingering questions. At that point the ET role came to an end and responsibility for the final vendor selection devolved onto the Board of Directors of each CBN.

ADnet had taken advantage of a clause in the RFP, and requested a briefing by each vendor on October 5 and 6, 1999. Board of Directors representatives attended these briefings. The Board forwarded its recommendation to NOHFC in the form of a Business Plan on November 05, 1999 and now awaits the NOHFC decision. It is expected prior to the year’s end. The results are confidential until released by NOHFC.

Wilf Lefresne, as the Chair of the RFP Working Group, exhibited excellent leadership. The invaluable role he played was acknowledged by senior representatives of the NOHFC at an update meeting held in Thunder Bay in October 1999.

Smart Community

Early in 1999, Industry Canada announced a programme called Smart Communities. This federal government initiative invited communities across Canada to enter a competition to gain public and private funding to assist in the establishment of a demonstration community in each province and territory to showcase the positive influence of modern technology on the daily lives of Canadians.

At the request of Mayor Steve Butland of Sault Ste. Marie, and in line with ADnet’s mandate to facilitate telecommunication education and growth in the Algoma District, ADnet agreed to act as the sponsor of record for a submission on behalf of the Algoma District. ADnet put together a management team lead by the three Community Development Corporations in the District and garnered support from communities through out the District.

It was obvious from the start that regardless of the outcome of the submission, the exercise would offer long term benefits in the form of bringing the various stakeholders in the District together and affording them the opportunity to formulate a unified way ahead for the application of telecommunications and information technology. In the end, the submission failed to make the short selection list but it did give birth to the initiative that has become known as ACE.

Randy Sweetnam of the ADnet staff took it on as a personal initiative to drive this process and it is a credit to his abilities that a quality proposal was put forward in a very short period of time.

Algoma Community Extraordinaire (ACE)

Algoma Community Extraordinaire (ACE) is a long-term, District-wide information and computer technology (ICT) progamme with an outcome of augmenting an industrial and resource economy with a knowledge economy. The objective is to marshal the assets of the District in a coordinated effort to assist people in making the transition.

The ACE initiative is about people. We need to provide better mechanisms throughout the District to learn the new elements of our economy and participate in influencing the forces that shape our environment, both locally and globally. We need to learn what it takes to market to the world in the new media. On-going District consensus building and cohesiveness is critical, particularly with recently amalgamated provincial government services. A greater part of the answer is to learn new strategies and to engage new learners in how to use the new tools of the knowledge economy.

ADnet, in partnership with the three Community Development Corporations (CDC) in the Algoma District participate in the management of the ACE project. The strategy group includes a much broader base of District participation.

Community Contact

An important part of the 1999 Marketing Plan was the community contact programme. This programme was added to the marketing plan as a means of establishing ADnet’s presence and mandate, answering community questions about ADnet’s role and addressing any community concerns.

The communities or organizations visited from May to November were:

The municipalities of Shedden and Johnson/Tarbutt are scheduled for the near future.

This presentation list is only for the District and does not include groups in Sault Ste. Marie, including the City Council, Innovation Centre, Algoma District Information Network (ADIN) and Algoma Training Board amongst others.

ADnet also participated in and had exhibition booths at the Federation of Northern Ontario Municipalities (FONOM) meeting in Elliot Lake and the Great Lakes Business Conference in the twin cities of Sault Ste. Marie Ontario and Michigan.

ADnet held Board of Directors meetings in Thessalon and Wawa that included meet and greet opportunities with the local interest groups and community leaders.

This community presentation plan proved valuable in terms of acceptance and information feedback to the ADnet Board of Directors and staff.

Darlene Walsh provided invaluable service in coordinating the requirements for all the presentations and meetings as well as keeping the Thessalon office functioning in an efficient and professional manner.

As ADnet moves into its second year of operation as an incorporated entity, it will move from the planning and funding stage to the implementation and expansion stage. ADnet will continue to act as a community leader both in the development of telecommunications and information technology infrastructure and education on the benefits of the knowledge economy. It will build on the foundation in place and pursue its role in the identification of applications and the formation of partnerships.

In particular, ADnet has set the following goals and objectives for the year 2000:

 

• To work with the selected vendor to put in place the necessary infrastructure to establish high speed, high bandwidth access points of presence in the population centres of the Algoma District.

 

• To work with the membership, potential membership and community interest groups to develop proposals and identify applications in either the stand alone or partnership mode.

 

• To place ADnet on a firm financial footing that will ensure long term sustainability.

 

• To promote telecommunications education within the District with respect to opportunities for implementing value added applications

 

• To support the development of economy growth in the District.

 

• To actively promote the ACE initiative.

Departing Directors

It is with regret and gratitude that ADnet acknowledges the departure from the Board of Directors of Mr. Bruce Visitor. Bruce was instrumental in the development of the ADnet governance model and worked long hours in his quiet but forceful manner. Not only did he ably represent Mamaweswen, the North Short Tribal Council, but served as ADnet Vice President. Bruce accepted a new position with Matawa First Nation in Thunder Bay, Ontario

We also regret to announce that Mr. David Court has been unable to stand for a second term on the Board. David was a key member of the ADnet Working Group. He used the good offices of his employer, the Algoma District Social Services, now the Algoma District Services Administration Board, to represent ADnet in the initial funding applications with FedNor and NOHFC. His dedicated efforts were a major contribution to getting ADnet off the ground and incorporated. He served as chairman of the Marketing Committee and was a member of the Executive Committee. The workload of his job in this time of provincial restructuring precludes him from dedicating the time and effort that he feels a directorship requires. David's wise counsel and can do attitude will be sorely missed.

Funding Agencies

ADnet would not exist as the vibrant organization it is today without the support and advice of our major funding agencies and their hard working staffs. A special vote of thanks is extended to Mr. Gary Mauracher and Mr. John Henry Commanda at Human Resources Development Canada, Mr. Tom Dodds and Carl Seibel at FedNor and Mr. Royal Poulin at NOHFC and the NOHFC support staff at MNDM headed by Mr. Stu Everett.

Significant Supporters and Contributors

ADnet wishes to acknowledge the support and encouragement of the following individuals and organizations:

Mayor Steve Butland, the City of Sault Ste. Marie Council and the municipal staff

Mr. Carmen Provenzano, MP Sault Ste. Marie

Mr. Brent St. Denis, MP Algoma-Manitoulin

Mr. Tony Martin, MPP Sault Ste. Marie

Mr. Bud Wildman, former MPP, Algoma

Mr. Mike Brown, MPP, Algoma-Manitoulin

Mr. Bruce Strapp and the staff of the Sault Ste. Marie Economic Development Corporation with a special mention to Mr. Matt Di Flumeri and Ms. Debbie Lafleur

Ms. Debbie MacIntyre of the Sault Ste. Marie Public Utilities Commission

The Community Development Corporation of Sault Ste. Marie

The Algoma District Information Network

The Algoma District Services Administration Board with a special mention to Mr. Eugene Latulippe, Mr. Harry Stewart and Ms. Sharon Moreau.

The parent organizations of all the ADnet Board of Directors members

The Boards of Directors and staff of 807 Northwest Network, NeoNet, NetCentral, and NipNet with special mention to Mr. Les Mayes, Mr. Jim Green, Ms. Christy Marinig, Mr. Bruno Mangiardi and Mr. Steve Lafontaine.

Sault Ste. Marie Community Computer Network and Mr. Klaus Peltsch.

Bank $30,800.90

GST Receivable 1,439.00

Total Assets $32,239.90

========

A/P Holdback $ 3,572.50

Deferred Membership Fee 7,800.00

Total Liabilities $11,372.50

Total Liabilities & Equity $32,239.90

========

FedNor - Grant $ 91,000.00

Membership Fees 9,000.00

Bank Charges $ 4.83

Miscellaneous Supplies 198.59

Meeting Expenses 1,524.34

Consultants' Fees 74,177.40

Advertising 2,827.44

Legal Fees 400.00