City Council Minutes 09-22-2014MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, September 22, 2014 — 7 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Torn Perrault, Glen Posusta, Brian Stumpf
Absent: None
1. Call to Order and Pledge of Allegiance
Mayor Herbst called the meeting to order at 7:03 p.m. and declared a quorum present.
The Pledge of Allegiance was recited.
2A. Approval of Minutes — September 8, 2014 Special Meeting
BRIAN STUMPF MOVED TO ACCEPT THE SEPTEMBER 8, 2014 SPECIAL
MEETING MINUTES AS PRESENTED. GLEN POSUSTA SECONDED THE
MOTION. MOTION CARRIED 5 -0.
2B. Approval of Minutes — September 8, 2014 Regular Meeting
Tom Perrault asked for clarification of the action taken on the severance clause in the
City Administrator's employment contract. Clint Herbst and Tracy Ergen explained that
their understanding was to amend the contract to make the City Administrator a "just
cause" employee and remove the three month severance pay clause. Lloyd Hilgart also
noted this would save the city some money, although it might take more effort to dismiss
the city administrator.
LLOYD HILGART MOVED TO ACCEPT THE SEPTEMBER 8, 2014 REGULAR
MEETING MINUTES AS PRESENTED. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED 4 -1 WITH GLEN POSUSTA VOTING IN
OPPOSITION.
3. Consideration of adding items t—o the agenda
• Policy for adding items to the agenda (Glen Posusta)
4. Citizen comments, public service announcements
A. Citizen Comments: Lori Hauge spoke to the Council about her experience with
the public transit system in Monticello. She lives at Mississippi Shores and likes
living in Monticello; however she is finding it difficult to get around without
public transit. She expressed a desire for more hours of service and asked for
consideration by Council to add better public transit. She would suggest a regular
route that stops at certain places on a routine basis. For example, Mississippi
Shore has many residents, that would like to get around town and don't drive,
City Council Minutes — September 22, 2014 Page 1
who could benefit from a good reliable service with longer hours and. possibly
weekend service.
B. Public Service Announcements:
1) IEDC Industry of the Year candidates — Angela Schumann discussed the
process for selecting a business for the Industry of the Year award. This
year's breakfast will be held on October 22nd from 7 to 8:30 a.m. The
three nominations for 2014 are Bondhus Corporation, Xcel Energy, and
WSI Industries. Angela Schumann talked about each of these industries
and how they contribute to the community.
Mayor Herbst commented on the high quality of the nominated industries.
2) Bertram Chain of Lakes Regional Park Photo Contest — Angela Schumann
announced the deadline of October Yd for the photo contest featuring
Bertram Chain of Lakes Park. Photo entries must be taken before
September 30th and from amateur photographers. Check out Friends of
Bertram Lakes website for more information and to submit entries.
3) Absentee voting (9/19 -11/3) — Rachel Leonard announced that absentee
voting is now open to all city residents who are qualified voters. Voters
can apply for a ballot and vote in person at city hall and can also request
ballots by mail. Rachel Leonard encouraged residents to check the city
web site for more information.
5. Consent Agenda:
A. Consideration of approving payment of bills for September 22nd. THIS ITEM
WAS REMOVED FROM THE CONSENT AGENDA.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and terminations for MCC, FiberNet,
Building, and Parks.
C. Consideration of appointing additional election judges to serve for the 2014
General election. Recommendation: Appoint additional election judges for the
General election: Glorie Balfanz, Lauren Henderson, Debby Manthei, Kathleen
Moll, Pam Peterson, and Sharon Scholl.
D. Consideration of establishing December 8t' for the Truth -In- Taxation public
hearing. Recommendation: Call for a Truth -in- Taxation public hearing for the
2015 property tax levy and budget on December 8, 2014 at 7 p.m.
E. Consideration of accepting quote and authorizing purchase of a Bobcat 5600
Toolcat for the Parks Department based on state contract pricing and funded
City Council Minutes — September 22, 2014 Page 2
through the Capital Equipment bond fund. THIS ITEM WAS REMOVED
FROM THE CONSENT AGENDA.
F. Consideration of accepting quote and authorizing purchase of a portable air
compressor for the Public Works Department based on state contract pricing and
funded through the Capital Equipment bond fund. Recommendation: Accept
the quote and authorize the purchase of a Sullair 185cfin portable air compressor
from Zeigler Inc. for a total of $15,577 and sell the old air compressor at public
auction.
G. Consideration of adopting Resolution #2014 -092 authorizing preparation of the
Facility Plan amendment and preparation of plans and specifications, and
authorizing construction services for adding anaerobic digester improvements to
the Phosphorus Reduction Improvements for the Waste Water Treatment Facility,
City Project No. 14C002. Recommendation: Adopt Resolution #2014 -092
authorizing preparation of the Facility Plan amendment and preparation of plans
and specifications, and authorizing construction services for adding anaerobic
digester improvements to the Phosphorus Reduction Improvements for the Waste
Water Treatment Facility, City Project No. 14C002, with WSB & Associates, Inc.
serving as the engineer at a not -to- exceed fee of $182,984.
H. Consideration of adopting Resolution #2014 -091 accepting bids and awarding
contract for aeration blower installation and ancillary equipment for Phase 1 of
the Waste Water Treatment Facility Biosolids Improvements, City Project No.
12C003. Recommendation: Adopt Resolution #2014 -091 accepting bids and
awarding a contract to Magney Construction Co. in the amount of $297,400 for
aeration blower installation and ancillary equipment for Phase 1 of the Waste
Water Treatment Facility Biosolids Improvements, City Project No. 12C003.
I. Consideration of approving payment to the Coalition of Utility Cities for city
share of CUC membership fees. Recommendation: Approve payment to the
Coalition of Utility Cities in the amount of $19,878 for CUC membership dues
from July 1, 2014 to June 30, 2015.
J. Consideration of approving a Special Event Permit allowing use of city resources
for a carwash on October 5th to benefit the Monticello Foodshelff, Applicant:
Monticello Monarchs 4 -H Club. Recommendation: Approve a Special Event
Permit for the Monticello Monarchs 4 -H Club allowing temporary use of the city
parking lot on Block 34, water usage, and waiver of permit fee for a benefit
carwash on October 5a', 2014, contingent on the following:
• Continued site plan coordination with city staff
• Provide a certificate of insurance for the event, including general liability with
the City named as a second insured
City Council Minutes — September 22, 2014 Page 3
K. Consideration of approving payment of subscription -based fees relating to
FiberNet system management, billing, and technical support under the contract
with FiberConnect. THIS ITEM WAS REMOVED FROM THE CONSENT
AGENDA.
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEMS A, E, AND K. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED 5 -0.
6. Consideration of items removed from the consent agenda for discussion
5A. Consideration of approving payment of bills for September 22nd
Glen Posusta removed this item as he had several questions on the bills. He asked about
the rental of stanchions and ropes from General Rental. Cathy Shuman explained those
were for the primary election and noted the cost of rental versus purchase is quite a
significant difference. She also noted that stanchions will also be rented for the general
election. Shuman will make a note to research purchasing stanchions for the 2016
elections. Glen Posusta questioned a payment to Jeff Hoglund for custom vinyl lettering
for a mailbox. Wayne Oberg explained that is coming out of a deposit from the
developer designated for items such as this. Glen Posusta questioned a purchase of pallet
bricks from Specialty Turf &z Ag. Tom Pawelk explained that those are clay bricks used
on the ballfields and are placed in the batter's box and pitcher's mound to reduce
maintenance on the fields. These have to be replaced about every three years.
GLEN POSUSTA MOVED TO APPROVE PAYMENT OF BILL REGISTERS FOR
SEPTEMBER 22ND. LLOYD HILGART SECONDED THE MOTION. MOTION
CARRIED 5 -0.
5E. Consideration of accepting quote and authorizing purchase of a Bobcat 5600
T'oolcat for the Parks Department based on state contract pricing and funded through
the Capital Equipment bond fund
Glen Posusta pulled this item because he did not feel that the cost of almost $60,000 is
justified for the purchase of this equipment. If this equipment is justified, he would
prefer to have the Parks Department rent this equipment for a season first to make sure
that it performs as they expect. Tom Pawelk explained that they were able to try out this
machine several years ago and it worked extremely well. The machine would fit some of
the attachments they already have in the shop. They intend to use it for things such as
rink and pathway maintenance, crack filling, and fog sealing. The Toolcat has the
horsepower they need, yet is small enough for use on the trail systems. Tom Pawelk had
asked the company for references and there are over 15 entities in this area that utilize
this type of vehicle for regular maintenance in parks and pathways.
Tom Perrault asked about a possible trade -in of existing equipment to reduce the cost.
Tom Pawelk explained that next year's street budget will include a trade -in of several old
City Council Minutes — September 22, 2014 Page 4
pieces of equipment that are used at times for pathway maintenance. Tom Moores will
use the old equipment as a trade -in for the coming year. The new Toolcat would replace
the use of that equipment.
Clint Herbst stated that he was not convinced that the cost of this equipment is worth it;
he suggested that there may be other pieces of equipment that could serve equally as well
at a lower price. Glen Posusta concurred with that and suggested that a small truck
would cost less and serve a similar purpose as the Toolcat.
BRIAN STUMPF MOVED TO TABLE THE ITEM AT THIS TIME AND HAVE
STAFF PRESENT MORE INFORMATION OR PROPOSE ALTERNATE
EQUIPMENT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED
5 -0.
Glen Posusta suggested that it might be advisable to bring the Toolcat in so that Council
can take a look at it.
SK. Consideration of approving payment of subscription -based fees relating to
FiberNet system management, billing, and technical support under the contract with
FiberConnect
Tom Perrault pulled this item because he wanted to hear what the City Attorney had to
say regarding the proposed payout of the FiberConnect contract. Jeff O'Neill noted that
Joel Jamnik was not able to be here, but was involved with the entire process of
reviewing the contract, negotiating, and making the recommendation for this payment.
The calculated amount has been reduced to $163,621.25 and this is what the City feels is
a fair amount to be paid. Brian Stumpf asked if there were more details to be provided.
Clint Herbst explained that this amount is based on subscription fees for phone, internet,
and video. Wayne Oberg explained that the items that are being paid were due under the
contract and a copy of the subscription numbers was included with the supporting data.
The payment was not paid during the contract period and was delayed until the city could
properly calculate the payment.
LLOYD HILGART MOVED TO APPROVE I'A i�/IENT OF CERTAIN TEES
RELATED TO THE CONTRACT WITH FIBERCONNECT IN THE AMOUNT OF
$163,621.25. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED 5-
0.
7. Regular Agenda:
A. Public Hearing - Consideration of adopting Resolution #2014 -093 for the issuance
of revenue bonds by the City of St. Cloud on behalf of CentraCare Health System
Wayne Oberg introduced this item and explained that a public hearing is required
because St. Benedict's Center is located within the City of Monticello and this
building is included in the CentraCare bond issuance.
City Council Minutes — September 22, 2014 Page 5
Mayor Herbst opened the public hearing. As there were no comments, the public
hearing was closed.
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT
RESOLUTION #2014 -093 APPROVING ISSUANCE OF BONDS BY THE
CITY OF ST. CLOUD ON BEHALF OF CENTRACARE HEALTH SYSTEM.
GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0.
B. Consideration of adopting Resolution #2014 -094 setting the 2015 preliminary tax
l
lv
Wayne Oberg presented slides informing Council about their options for
establishing a 2015 preliminary tax levy. He pointed out that a budget is not set at
this time. The amount of the levy that is adopted can be decreased but not
increased at the time that the final levy is set in December. The preliminary levy
amount is used for tax notices sent out by the County in late November.
Wayne Oberg talked about various sources of revenue that the City receives each
year of which property taxes make up 82/0. Glen Posusta noted that Local
Government Aid is received by many cities but not Monticello. Wayne Oberg
discussed his tax levy recommendation starting with the base of $8.15 million for
2014 and adding an inflation increase of 2.1 %, four hours of law enforcement
($94,000), pathway maintenance ($40,000), stormwater maintenance ($40,000),
and transit service ($40,000). A levy increase of 4.7% would fund those
additional items.
Wayne Oberg discussed the impact of the Xcel power plant on the 2015 tax
capacity with an increase in total market value of 72 %. Wayne Oberg pointed out
that the Xcel market value increase gives the city a lot of flexibility in setting their
tax levy for 2015. Wayne Oberg displayed a chart showing possible levy amounts
and the corresponding tax rate, noting that the levy could be increased by $2.5
million and not increase the city taxes. Wayne Oberg presented a summary of
various impacts to residential and commercial property taxes.
Clint Herbst asked if council members had any questions for Wayne Oberg and
for comments on the levy for 2015.
Tom Perrault stated he would not go above the recommendation of $8,535,000.
Lloyd Hilgart indicated that he would like to go somewhat higher to take
advantage of some of the increased tax capacity, in order to get some things done
that are not included at this time. Clint Herbst noted that the Council has kept the
levy very even over the past years and this is an opportunity to take advantage of
increased market values without affecting the levy.
City Council Minutes —September 22, 2014 Page 6
Wayne Oberg pointed out that the truth in taxation notices will not go out until
after the November election. The notices will likely show different impacts for
different taxpayers depending on their market valuation. The amounts would also
be impacted by the county and school district portion of the levy. Jeff O'Neill
noted that over the past ten years, inflation has increased by about 25% and the
city has grown during that time. The property tax levy has only increased by a
very small percentage in comparison.
Brian Stumpf thinks that this is an opportunity for the City to take care of some
projects that are needed but have not been proposed to be included in the levy at
this time. Clint Herbst commented that the public could expect a tax decrease
from the city no matter what is decided. He would like to see some other projects
get done such as street improvements and infrastructure maintenance.
Glen Posusta feels that he would like to approve a levy of less than a 4.7%
increase and stay about where they've been. Brian Stumpf also stated that he
would like to stay below 4.7% for an increase. Clint Herbst reiterated that this is
a good opportunity for the city to include some needed projects and still decrease
taxes; he would be in favor of an increase greater than 4.7 %. Glen Posusta noted
that there will be a bond issue for the FiberNet settlement and he feels that should
be taken into consideration.
Wayne Oberg noted that the levy increase of 4.7% only includes operational
adjustments. He recommended that Council consider setting the levy with some
room to make adjustments for larger projects that are not in the budget. If they set
the preliminary levy higher, that gives time to gauge public reaction before the
final levy is set. Glen Posusta feels that it is not necessary to increase the levy
much and still be able to get everything done.
CLINT HERBST MOVED TO INCREASE THE LEVY BY $800,000 OVER
2014 AND SET THE PRELIMINARY LEVY AT $8,950,000. MOTION
FAILED FOR LACK OF A SECOND.
Guilt Herbst noted that an increase of $800,000 still decreases the city share of
property taxes for city residents and businesses. Glen Posusta is concerned that
once they increase the levy by that much, it will never go back down again.
Wayne Oberg noted that an increase at this rate, city taxes would drop by about
16 %.
Angela Schumann asked Wayne Oberg to comment on how the FiberNet bond fits
in with the 4.7% levy proposal he made. Wayne Oberg noted that they could
structure the 2015 bond payment outside of the levy increase; however, future
levies would need to accommodate future year payments. Glen Posusta feels that,
by keeping the levy lower, this would help businesses to invest in their own
business by hiring more employees, adding equipment, or making other
improvements if they realize a significant tax decrease.
City Council Minutes — September 22, 2014 Page 7
TOM PERRAULT MOVED FOR ESTABLISHING A PRELIMINARY TAX
LEVY OF $8.5 MILLION. MOTION FAILED FOR LACK OF A SECOND.
Tom Perrault understands that the city is growing but feels that they need to keep
the levy under control.
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT
RESOLUTION #2014 -094 SETTING THE PRELIMINARY TAX LEVY AT
$8,535,000, A 4.7% INCREASE. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED 3 -2 WITH GLEN POSUSTA AND TOM
PERRAULT VOTING IN OPPOSITION.
C. Consideration of approving a multi -year contract with A+ Taxi of Monticello for
public transit services within Monticello
Jeff O'Neill asked Council to consider approving a contract with A+ Taxi, a
Hoglund company, at a cost to the city of $40,000 per year. Jeff O'Neill reviewed
some of the provisions of the contract and noted that the bus has been ordered and
is pretty much ready to go.
Clint Herbst asked Joe Kounkel to share his thoughts on comments from Lori
Hauge (the lady that spoke at the beginning of the meeting). Joe said they give
her a lot of rides and she relies on public transit to get around. They plan on
running ten hours a day using one driver for the entire day. Clint Herbst
suggested that perhaps they might want to experiment with some Saturday hours.
Joe recommended that they work within the hours that are proposed in the
contract and see if the city can find ways to offer more opportunities for seniors
during daytime hours. Joe stated they are willing to try some routes that would
pick up and go to places like Walmart and Target on a targeted day and time. Joe
indicated that they will continue to utilize the taxi service until the bus is ready to
go. Brian Stumpf commented on a phone call that he received about the taxi
service; the caller complained that the taxi wasn't being run in a professional
manner compared to bus service they previously experienced. Joe Kounkel
indicated that the new bus service would be better than the taxi service, which
often serves a different clientele. The bus driver will assist riders and the bus can
handle wheelchairs.
Jeff O'Neill commented on the proposed cost of service and noted that there may
be other opportunities to raise funds to help support the bus service such as
advertising and charitable donations.
Jeff O'Neill asked if there were any suggestions for a name for the transit service.
Currently, it is referred to as the Monti Shuttle, but feels that could be changed to
a better name.
City Council Minutes — September 22, 2014 Page 8
Tom Perrault asked why the State of Minnesota is listed in the contract and noted
several clauses in the contract that reference the State. Joe Kounkel noted that
those clauses are legal requirements in areas such as insurance and drug testing,
which need to be in a contract like this. Tom Perrault commented that he was not
comfortable with the citizens of Monticello paying to subsidize a public transit
system.
BRIAN STUMPF MOVED FOR ALTERNATIVE #1 TO APPROVE A
CONTRACT WITH A+ TAXI FOR PUBLIC TRANSIT SERVICES IN THE
AMOUNT OF $40,000 ANNUALLY FOR 2015 AND 2016, AND $10,000 FOR
FUNDING THE OPERATION FOR THE BALANCE OF 2014, CONTINGENT
ON FINAL REVIEW OF THE CONTRACT BY THE CITY ATTORNEY.
LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -1
WITH TOM PERRAULT VOTING IN OPPOSITION.
D. _Consideration of reviewing ptions for amending rental licensing and nuisance
code violations and providing direction to staff
#1. Discussion and comments related to review of rough draft amendment to the
Rental Licensing enforcement ordinance
DJ Hennessey introduced this item by explaining some of the issues that
have come up regarding the rental licensing rules. The rental license code
was put into place to provide a process for dealing with housing violations.
Under the current rules, a landlord is allowed up to three violations (3
strikes) within a 12 month period. All three violations must occur in the
same 12 month period for action to be taken against the license.
City Attorney Joel Jamnik has written some proposed amendments to the
code in an attempt to involve the property owner more directly in a
resolution of licensing violations and take away some of the ambiguity in
the "3 strike" rule. DJ Hennessey pointed out some of the proposed changes
that may make it easier to enforce the code and still comply with state law.
Under the proposed amendment, 'landlords are expected to take steps
following a single violation. However, the 3 -strike rule is cumulative and a
12 month probation is added after each strike.
Brian Stumpf indicated that he would like to see a "1 strike" rule for major
violations. He does not feel that criminal activity should be tolerated at all.
Council discussed how the City might account for criminal activity at rental
properties. DJ Hennessey suggested that it would probably be better to have
a "2 strike" rule for major violations and give the property owner a chance
to respond and take care of the problem before they have to appear before
Council.
City Council Minutes — September 22, 2014 Page 9
Clint Herbst suggested that perhaps there should be some discretion at staff
level to determine at what point the rental property owner should be
required to appear in a hearing before Council.
Lloyd Hilgart mentioned how St. Cloud deals with property violations and
noted that the fees and fines are quite hefty and the time frame is very
limited for compliance. DJ Hennessey asked for input from Council on
what they would like to see for amending the rental licensing code. Clint
Herbst indicated that the most important is to put some teeth into the
ordinance and reduce the time to achieve compliance for a violation. He
suggested that some discretion be given to staff to determine what action is
needed when there is a violation.
TOM PERRAULT MOVED FOR ALTERNATIVE #1 AUTHORIZING
THE CITY ATTORNEY AND CITY STAFF TO PROCEED WITH
PREPARING AMENDMENTS TO MONTICELLO CITY CODE, TITLE
3, CHAPTER 16 — RENTAL HOUSING LICENSING, AND PRESENT
THE AMENDMENTS TO COUNCIL FOR FURTHER
CONSIDERATION. BRIAN STUMPF SECONDED THE MOTION.
MOTION CARRIED 5 -0.
#2. Review and discuss options for amending nuisance code regarding
enforcement of long grass /weeds
Ron Hackenmueller discussed the concerns brought up by Council in regard
to the enforcement process for long grass or weeds. Ron Hackenmueller
reviewed the process that the Building Department currently uses for first
notice and subsequent violations. The current ordinance was recommended
by the City Attorney in order to meet legal compliance for assessing
delinquent accounts.
Ron Hackenmueller noted that the City of Albertville was challenged on
their process which involves one notice per season for offending properties.
Albertville decided to waive the fee for the offender rather than deal with
the challenge.
Glen Posusta talked about his regl]PSt to have staff look at the code and
noted that 12 cities were contacted to check their procedure; 11 of those
cities only give one notice per season. He feels that if 11 cities can get by
with one notice, it should be sufficient for Monticello.
After further discussion, Council recommended changes to include one 5-
day notice for the initial violation, removing the 48 hour posting
requirement for subsequent violations, and changing the maximum length of
nuisance vegetation from 6 inches to 8 inches.
City Council Minutes — September 22, 2014 Page 10
BRIAN STUMPF MOVED FOR ALTERNATIVE #1 DIRECTING THE
CITY ATTORNEY AND CITY STAFF TO DRAFT AMENDMENTS TO
THE MONTICELLO CITY CODE, TITLE 7, CHAPTER 1 — PUBLIC
NUISANCES, AS RECOMMENDED BY COUNCIL, AND PRESENT
THE PROPOSED AMENDMENTS TO COUNCIL FOR FINAL
CONSIDERATION AND APPROVAL. GLEN POSUSTA SECONDED
THE MOTION. MOTION CARRIED 5 -0.
E. Update on FiberNet system and consideration of authorizing broadband upgrades
for FiberNet customers
Jeff O'Neill explained that Council is being asked to authorize broadband and
service upgrades for FiberNet customers, following a review of the history of
FiberNet. Jeff O'Neill introduced the other presenters: Dan Olsen from
Windomnet (general manager), Todd Vojta from Paragon, Rachel Leonard, and
Bryan Rabe (lead technician).
Jeff O'Neill gave a presentation about FiberNet concentrating on the strengths of
the system such as the broadband network, staff resources, and reasonable pricing.
Jeff O'Neill highlighted the efforts of Dan Olsen, Brian Estrem and Bryan Rabe
to make improvements to the system starting in April of this year. Dan Olsen
discussed some of the operational accomplishments: cost efficient billing system,
improved documentation, reduction of operating costs, and formation of a public
broadband alliance. Bryan talked about some of the cost savings realized by
recent system changes, especially in the video component which is now using a
video feed from other sources. Dan Olsen reviewed some changes made to
streamline processes and areas where they are looking to make improvements.
Dan explained that they have financed quite a bit of the system improvements by
selling off equipment and supplies that were ordered and are no longer needed.
Brian Stumpf asked about specific cost savings that have been realized. Jeff
O'Neill explained that there are savings with recent staffing changes for the short
tern. Glen Posusta asked if FiberNet has been successful in getting new
customers. Bryan Rabe stated that they have not really been marketing because
they are still working on getting the system stabilized. Jeff O'Neill indicated that
there have been some big improvements and they will be introducing some
products that they wish to implement to their customers fairly soon. Dan and
Bryan mentioned that the improvements they have been working on have resulted
in huge increases in the internet speed.
Rachel Leonard unveiled the changes that are planned for implementation to the
FiberNet customer base. Rachel Leonard pointed out that existing customers with
internet of 10 to 20 mbps will be going to 50 mbps and customers with internet of
30 to 50 mbps will be going to 100 mbps with no cost increase. New customers
can receive internet services at 50 mbps for $35.95 and 100 mbps for $45.95 per
City Council Minutes — September 22, 2014 Page 11
month. Rachel Leonard talked about the broadband goals for the state and noted
that Monticello will greatly exceed those.
Rachel Leonard introduced Todd Vojta from Paragon, a company that is hoping
to partner with FiberNet. Paragon is an IT integrator, providing connectivity and
protection for facilities, people, and data in both the public and private sectors.
Some of the services they provide are: IP Managed Services, IP Data Services, IP
Communications, IP Physical Security, Hosted Solutions, and digital Video. Glen
Posusta asked how Paragon will fit in with FiberNet. Jeff and Todd explained
that FiberNet will provide internet, television, and limited phone services.
Paragon would provide advanced phone, IP security, network solutions, and data
center services using FiberNet's network. Monticello businesses can utilize
Paragon for their services needs. Paragon could perform troubleshooting in
partnership with FiberNet. Todd Vojta commented on some issues that his
company has been investigating for some FiberNet customers. Todd Vojta
explained some ways that they can partner with FiberNet to provide financial
benefits for both FiberNet (transport carrier) and Paragon (customer assistance).
Todd Vojta noted that their main offices are in Plymouth and they would connect
to FiberNet's data center to assist their customers. Bryan Rabe explained that
there are potential FiberNet customers in Monticello, and FiberNet cannot provide
the level of services that they need. Paragon could step in as the service provider
for those customers, utilizing FiberNet's broadband network as their base.
Glen Posusta asked if this would be a contractual agreement for a certain length of
time. Jeff O'Neill explained that this is still a work in progress. Todd Vojta
indicated that there would be terms worked out governing shared revenues,
connectivity costs, delineation of responsibilities of partners, etc.
Dan Olsen and Bryan Rabe introduced some new opportunities that are coming in
the future: a 10 gig ring for provision of high -speed broadband to a network of
providers, transition to Calix E7 upgrade, and RF (radio frequency) /Quam
initiative for video.
Jeff O'Neill summarized the status of FiberNet noting that there are
approximately 1,500 customers for a 33 % penetration rate and FiberNet continues
to strive to provide premier services for internet, phone, and cable.
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO AUTHORIZE
BROADBAND SYSTEM UPGRADES FOR FIBERNET CUSTOMERS AS
STATED IN THE PRESENTATION. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED 5 -0.
8. Added items
• Polia for adding items to the agenda — Glen Posusta suggesting putting a policy
in place to address how an item should be handled when added to the agenda the
City Council Minutes — September 22, 2014 Page 12
night of the Council meeting. He feels that items added the same night should be
tabled for more information if there is not unanimous agreement. Jeff O'Neill
was directed to research how such a policy might read and bring back to the
council.
9. Ad
iournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 10:14 P.M. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman
Approved: October 27, 2014
Attest:
X ministrator
City Council Minutes — September 22, 2014 Page 13