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FiberNet Advisory Board Minutes 06-14-2011MINUTES FIBERNET MONTICELLO ADVISORY BOARD MEETING Tuesday, June 14, 2011— 6 p.m. FiberNet Customer Service Office Voting: Clint Herbst, Glen Posusta, Jon Morphew, Dennis Sullivan Non-voting: Jeff O'Neill, Jerry Olson (HBC) Absent: Wayne Mayer (arrived later in meeting) Guests: Ben Ranft, finalist for General Manager; Michele Hertwig, marketing consultant 1. Call to Order The meeting was called to order by Chairman Herbst at 6:01 p.m. 2. Additions to Agenda • None 3. Consideration of Approval of Meeting Minutes — May 10, 2011 DENNIS SULLIVAN MOVED TO ACCEPT THE MINUTES FROM THE MAY 10, 2011 BOARD MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4-0. (Wayne Mayer not present at this time.) 4. Introduction of General Manager Finalist — Ben Ranft • Noon luncheon — was held today with various staff and Advisory Board meetings • Welcome and Interview by Board: - Jerry Olson introduced Ben to the Board and provided a short summary of his background. a) Resume provided for your review - Jeff O'Neill noted that he had forwarded Ben's resume to all Council members explaining the process and intention to bring a recommendation to Council for approval on June 27111 • Jeff O'Neill presented some of the questions that he wrote up for Ben Ranft to answer. In addition, Advisory Board members asked questions of Ben Ranft. The Advisory Board will make a decision later in the meeting prior to adjourning. 5. Marketing Report (Michele Hertwig, Majirs) • Marketing update — "Dress a Duck" contest; "We'll come to you" campaign kicks off at Walk & Roll; putting up TV's at MCC — will have banner indicating sponsorship by FNM; will be doing promotions at MCC; Michelle is working on video shoots with local residents for promoting; may consider another promotion similar to Bluestone Grille; discussed other ways to get the word out about FNM; plan to adjust office hours in a while • Website update (no report) • Department Head Meeting at FNM Headend building on June 15th FiberNet Advisory Board Minutes —June 14, 2011 6. Operations/Financial Report — General Manager • Cash Flow update: Jerry Olson provided copies of reports and Jeff O'Neill explained cash flow status. By the Board meeting in July, will have report showing projections for the coming year. • Update on past due accounts: Jerry Olson reviewed the current status of past due accounts; this month 7 disconnects with approximately $1500 in delinquencies. • Residential installation status: Jon Morphew asked about progress on contacting possible customers. Jerry Olson explained that a PT seasonal person has been making some contacts; they are looking at offering her a regular position as Sales Assistant and would set goals for making contacts and signing up customers. Ben Ranft suggested that they may consider adjusting the time that contacts and installs are made. • Update on organization structure realignments: Jerry Olson outlined a proposal for realigning the structure to better accommodate business phone customers. Would like to see field staff under Field Operations and technical staff under Tech Operations. Current supervisors would continue to be in charge of the technical staff. They are working on a job description for supervisory duties for the Plant Manager, who oversees Field Operations; would not have an impact on salaries. This should free up some time for Matt Henning to assist with business sales configurations, especially with Hosted PBX services. This plan is to be presented to the Personnel Committee next week. 7. Outreach • League of MN Cities Policy Development Efforts — Jerry Olson explained the discussion that the League of MN Cities generated with the Association of Minnesota Counties regarding broadband use by cities and counties. Statute 237 dictates the process for cities and counties to deliver broadband services — this is the statute that requires the 65% to implement a phone switch. • Request for Monticello to host Governor Dayton — The group meeting with League of MN Cities feels it would be worthwhile for Monticello to send an invite to the Governor's office to see the FiberNet operations. Jerry Olson also pointed out that Cargill is in the process for bringing a new business to town, which could serve as a good example to show off the business services offered by FiberNet. 8. Project Reports • Apartment Units — Wiring Policy discussion: Jeff O'Neill explained the issues with bringing apartments up to standards to connect them to FiberNet services. Many of the buildings need to be rewired, which would be a huge cost to absorb. Jeff O'Neill suggested that an option may be to come up with some incentives to offset cost of wiring. DENNIS SULLIVAN MOVED TO ALLOW FIBERNET MONTICELLO TO OFFER WHOLESALE CONTRACTS TO APARTMENT OWNERS FOR FIBERNET SERVICES. GLEN POSUSTA SECONDED THE MOTION. 21 FiberNet Advisory Board Minutes —June 14, 2011 MOTION CARRIED 3-0. (Wayne Mayer abstained from voting and Clint Herbst had left the meeting.) • Pre -Budget Workshop: a preliminary draft list of "mandatory" and "optional" projects for FiberNet in 2012 was provided by Jeff O'Neill. He outlined the purpose for reviewing the list of projects to utilize in preparation of budget and future CIP. Jeff O'Neill went through the list with the Advisory Board. 9. Future Items • Governance Ordinance - establish bylaws for Advisory Board (August) 10. Added Items • None 11. Continue Discussion regarding appointment of Ben Ranft as General Manager Advisory Board members asked questions and provided comments regarding the hiring of Ben Ranft as General Manager for FiberNet Monticello. GLEN POSUSTA MOVED TO RECOMMEND THAT HBC HIRE BEN RANFT FOR THE FIBERNET GENERAL MANAGER POSITION. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 3-2 WITH WAYNE MAYER AND JON MORPHEW VOTING IN OPPOSITION. Jon Morphew asked what would happen to Ben Ranft should this not work out for him. Jerry Olson stated that HBC had been considering him for management and would have a spot for him. 12. Adjourn CLINT HERBST MOVED TO ADJOURN THE MEETING AT 9:28 P.M. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 5-0. Recorder: Catherine M. Shuman 60td Approved: July 12, 2011 r Attest: CO inistrator FiberNet Advisory Board Minutes —June 14, 2011