FiberNet Advisory Board Minutes 02-21-2012MINUTES
FIBERNET MONTICELLO ADVISORY BOARD MEETING
Tuesday, February 21, 2012 — 6 p.m.
2"d Floor Conference Room, Prairie Center Building
Present: Clint Herbst, Glen Posusta, Jon Morphew, Wayne Mayer, Dennis Sullivan
Absent: None
Non - voting: Jeff O'Neill, Ben Ranft (HBC)
Others: Jerry Olson, Lynne Dahl- Fleming, Paul Ruffin
1. Call to Order
Chair Clint Herbst called the meeting to order at 6:02 p.m.
2. Additions to Agenda
3. Consideration of Approval of Meeting Minutes — December 13, 2011
WAYNE MAYER MOVED TO ACCEPT THE MINUTES FROM THE DECEMBER
135 2011 MEETING AS PRESENTED. JON MORPHEW SECONDED THE MOTION.
MOTION CARRIED 5 -0.
4. Revenue Bond Refinancing — Business Plan Update Report ( Ben/Jeff Report)
Jeff O'Neill summarized the meeting held with Springsted involving Clint Herbst, Lloyd
Hilgart, City staff, and HBC personnel to work on a new business plan. Next meeting of
the small group will look closer at revenue sources and fine tune that before meeting with
investors to discuss financing options. The group is also looking at other ways to market
the business in order to increase the revenues.
5. Marketing Report (Ben Ranft, Brett Demarais, Jeff O'Neill)
• HBC Marketing Meeting — Ben Ranft talked about the Marketing meeting he
attended at HBC to look at some types of things that could be done here in
Monticello. Some of the ideas discussed:
• credit to existing customers for trying out new services
• Continue cold calls to residents that have drops but have not signed up for
any service
• Letter from Mayor to city residents and /or customers; ad in local paper
• Cross promotion with other city entities (i.e. MCC, Liquor Store) - Liquor
store is distributing FNM flyers to customers
• Jon Morphew suggested possibly could set up rewards program with
commercial businesses that would honor a FNM discount for customers
• Cash Mob — involve customer service representatives in setting this up on
a regular basis and market it to the whole community
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o Wayne Mayer suggested using a current FNM bill or coupons in bill as
verification to get discount at city businesses - suggested having Brett
Desmarais take charge of the discount program.
Dennis Sullivan asked how FNM promotes the various cable packages. Ben
Ranft explained that they start with the $99 package and present the package
options with new customers. Clint Herbst suggested using a large portable sign
when FNM adds new channels or services.
• Cross Promotional Marketing Report — Jeff O'Neill talked about an upcoming
request to Council to purchase some TV screens and digital sign software to scroll
city services and promotions; looking at placing these at DMV, MCC, Liquor
Store. The Advisory Board wants this on the February 27th Council agenda.
Swan Cam — Ben Ranft explained that the camera is operating and can be
streamed on the internet or viewed on FNM local TV channels 6, 14 and 19. He
talked about some of the issues they encountered and what is being planned to
enhance this in the future.
• Utility Page Listing of FNM — Jeff O'Neill explained that the City currently has a
page on its website that identifies the various providers of utilities; the focus will
be on city provided services.
6. Operations /Financial Report — General Manager
• CSR Hiring — Ben Ranft mentioned there are two new part-time CSR's that
started today with FNM; both are local residents and are FNM customers. They
are splitting shifts each week.
• Price Increase (Cable) — Ben Ranft mentioned that their wholesale costs have
increased from content providers so they plan to increase the prices for cable TV
starting in June to keep at the same price point as it was.
DENNIS SULLIVAN MOVED TO RECOMMEND THAT CITY COUNCIL
RATIFY AN INCREASE IN BASIC & EXPANDED CABLE SERVICE BY
$3.95 EFFECTIVE WITH THE BILLING STARTING AFTER JUNE 1, 2012.
GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4 -1
WITH WAYNE MAYER VOTING IN OPPOSITION.
Ben Ranft mentioned that a separate letter would be sent to all customers
regarding the change in prices.
• Residential installations — Ben Ranft reviewed the monthly stats for December
and January and pointed out that there are snowbirds that have dropped service
while they are gone. Clint Herbst suggested looking at a way to keep in touch
with those customers to make sure they connect back with FNM. Glen Posusta
asked about the checks that are being cut to customers when they leave to go to a
FiberNet Advisory Board Minutes — February 21, 2012
competitor. Ben Ranft explained that those customers have been paying in
advance and being refunded any balance over $5. Ben Ranft offered to look into
any possible ways of structuring the accounts so that it reduces the number of
refunds that are going out.
• Apartments
a) Quotes — Ben Ranft met with HBC and discussed quotes for rewiring
apartments. HBC averages about $750 per apartment. FNM got
quotes from one vendor for an average of $1000 /unit and another
vendor at an average of $600 /unit. Ben Ranft also mentioned there is
some other technology that might be utilized in apartments that would
be relatively low cost.
b) Other Ideas (Wireless Network) — no report
c) Pricing compared to what HBC has paid in the past — no report
• Commercial installations - Internet and Phone
a) Sales Manager Report - Ben Ranft reported a great number of new
commercial customers that have been added over the past 3 months
b) TLS Connections — includes all city buildings
7. Status Report
• NTTC VS NCTC (Lower Content Costs) - Ben Ranft reported that once an
application is submitted, it will be considered for negotiation.
• Monticello Air — customer reported issues with continuity of service; it was
related to installation by 3rd party vendor and has been corrected. FNM install
techs are working on some installs.
• Charging for services
a) Service Call Report — Ben Ranft gave an update on the service calls
and noted which had been charged a fee and which were covered
under customer service. Wayne Mayer asked Ben Ranft to incorporate
this report at the monthly meetings. Ben Ranft will also email daily
updates to Jeff O'Neill and he will forward to FAB members to keep
them on top of customer status.
8. Project Reports (Jeff /Ben)
• Meeting with Wright Hennepin Security — Jeff O'Neill gave an update.
• Water Tower Co- location Research — Ben Ranft has been in touch with Big Lake
to set up a relay to a water tower in Big Lake. HBC will be working on this
proj ect.
9. State Legislation Report — Jeff O'Neill reported that there is some legislation
concerning the ability of cities to hold a telecom referendum and the requirements for
providing phone service. At this time, there is no movement that would affect the City.
There was some discussion about ability to serve outside the City.
FiberNet Advisory Board Minutes — February 21, 2012
10. Other:
• Dennis Sullivan asked if TDS was actively working on their new TV offering. He
wanted to know if there was potential for expanding into other areas to compete.
Ben Ranft pointed out that the biggest issue would be raising the capital to bring
the infrastructure into new areas.
• Dennis Sullivan mentioned that he does taxes for clients in low income
apartments and the company is looking at converting to all electronic using
wireless.
11. Adjourn
JON MORPHEW MOVED TO ADJOURN THE MEETING AT 8:19 P.M. WAYNE
MAYER SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman 60-4--'
Approved: March 13, 2012
Attest:
Ci inistrator
FiberNet Advisory Board Minutes — February 21, 2012