FiberNet Advisory Board Minutes 02-12-2013MINUTES
FIBERNET MONTICELLO ADVISORY BOARD MEETING
2°d Tuesday, February 12, 2013 — 6 p.m.
Floor Conference Room, Prairie Center Building
Present: Clint Herbst, Glen Posusta, Jon Morphew, Wayne Mayer, Dennis Sullivan
Absent: None
Non-voting: Jeff O'Neill, Brett DeMarais, Mark Pultusker
1. Call to Order
Clint Herbst called the meeting to order at 6 p.m.
2. Additions to Agenda
Letter from resident (Newcombe) — Mark Pultusker brought this up; wondered if a
reply should be drafted. He commented on the issue of educating on inquiries
like this so they understand why competitors are undercutting FiberNet
Monticello. Mark Pultusker feels the new TDS promotion is designed more to
attract Charter customers.
3. Approval of Meeting Minutes — Xapnuary 15, 2012
DENNIS SULLIVAN MOVED TO ACCEPT THE JANUARY 15, 2012 MEETING
MINUTES AS PRESENT. JON MORPHEW SECONDED THE MOTION. MOTION
CARRIED 5-0.
4. System updates
a. Bond Restructuring Efforts and Status Report
There is threatened litigation so an update cannot be provided at this time. One of
the bondholders present at the meeting questioned whether there was any
information that could be disclosed. Clint Herbst explained that there is possible
litigation and cannot release data at this time regarding the bonds.
b. System Upgrades — Equipment purchase approved by Council
City Council approved a request in the amount of $210,000 for equipment
purchases to provide redundancy and backup to systems, test equipment and
software for troubleshooting problems, additional equipment to improve video
products (VOD, middleware software, more channels, interaction with other IT
products, advertising splicer). Glen Posusta asked about potential revenue stream
from advertising with local businesses. Mark Pultusker said that there would
probably be 30 to 40 ad spaces available each week. He would anticipate
charging $1004125 per month at a minimum. He would also try to bundle
advertising with other services. The equipment cost gets the ads on 12 channels.
Jon Morphew asked how those commercials would be produced; would FiberNet
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Monticello contract with someone to provide that service. Mark Pultusker stated
that he would like to build a studio to tape the ads; the cost of creating the ads
would be borne by the customer. FiberNet Monticello most likely would work
with an outside vendor for the ad creation.
Wayne Mayer asked if the test equipment is upgrading existing equipment or is
this something that is being added and should have been in place all along. Mark
Pultusker replied that this is equipment that should have been purchased right
away with the initial system. Mark Pultusker brought in his own test equipment
which has been in use for the past 6 months. Mark Pultusker also noted that he is
in the process of redesigning the alignment of the satellite dishes to better
accommodate the signals. Wayne Mayer added a comment that he feels that this
should be looked at further as he knows there were funds allocated for the test
equipment, which should have been purchased up front. Mark Pultusker
suggested that this be noted but it will take some time since they are still working
with HBC to obtain information that needs to be transferred to FiberNet
Monticello.
C. Billing system
Mark Pultusker stated that the last billing that went out in February was on the
HBC system. The same billing is being created on the new system and will be
audited against the HBC system. If everything looks good, the new billing system
will be in place starting with March bills. The new system will provide details on
an electronic basis in addition to the paper bill, will provide interactive work
orders to FiberNet Monticello techs, allows for automated payments, allows for
instant changes to system, can prorate new services, and can generate reports.
Mark Pultusker is contemplating replacing cell phones for techs so they can
access system work orders via their phones over the internet. Billings will be
generated out of the FiberNet Monticello offices.
d. Marketing and PR — May or June
Mark Pultusker explained that he has not implemented any marketing up to this
point. This is due to the many changes that have taken place in resources,
equipment, and software as well as service offerings. He is working on
developing a marketing plan to start up around June. However, he is working on
some smaller PR pieces that will go out to the public in the near future. Mark
Pultusker stated that he wants to emphasize the advantages that FiberNet can offer
in terms of video offerings and bandwidth capability.
Wayne Mayer asked about problems that Mark Pultusker had reported with
bandwidth when a large number of users were on the system. Mark Pultusker
said that will be resolved with the new upgrade that will be made to the system in
about 30 days. The new system will allow more bandwidth per group of users.
5. Product and Service Development Update
FiberNet Advisory Board Minutes — February 12, 2013
a. Co -location — Data Center - VZ and marketing tower to others
Mark Pultusker reported that Verizon has notified FiberNet Monticello that they
would not be able to use the data center because it is too far from the water tower.
Mark Pultusker is looking into the possibility of building a tower immediately
adjacent to the data center. He is looking into the possibility of some kind of
agreement with the builder of the tower serving as the lease agent and paying rent
to the City for the use of land under the tower. This would be in addition to fees
paid for use of the data center. The placement of the tower would be at the end of
the head end building near the satellite dishes. Mark Pultusker would like staff to
look into zoning rules on towers.
b. IT services — Virtual Ethernet — back-up CLOUD services
Mark Pultusker said he is looking at eventually being able to provide offsite
backup services for local and outside companies.
C. Wi Fi to city locations — Ex. parks, downtown etc.
No report.
d. FTTH Communications Services
Mark Pultusker reported that this company put in some fiber in Albertville. He is
doing some testing now and looking at possibly working with this company to
deliver video services to other sites. FiberNet Monticello may have an
opportunity to expand services to apartments in other locations through the help
of this company. If this test process works out, Mark Pultusker would like to put
sales in place by June.
e. Annandale/Mole Lake
Annandale City Administrator Kelly Hinnenkamp approached FiberNet to discuss
potential for providing broadband to their businesses, but would not include video
services. Mark Pultusker suggested that they invest economic development
dollars to set up a radio microwave signal to send wireless internet to them.
Annandale could realize revenue from the system to help pay back their costs, but
they would have to take the risk to start with. No video would be provided as
there would be no fiber involved. Clint Herbst asked what the timeframe is for
looking at servicing Annandale. Mark Pultusker is considering asking them to
utilize a third party to analyze the design and make sure it will work.
f. MDU Development Concept — Third Part
(see 5.d.)
6. Update on New Channels
Mark Pultusker is working on adding a number of new channels that subscribers have
been requesting.
7. Maintenance and Upgrade Status
FiberNet Advisory Board Minutes — February 12, 2013
a. Minerva - middleware
Mark Pultusker noted this will take some time to put this upgrade in place. It
requires major changes to the existing system which will create some down time.
b. VOD - addingsubscription service like Bravo and HBO
Mark Pultusker is looking into offering these promotions but not until after he
changes the pricing.
8. Next Meeting — March 12, 2013
9. Other
10. Adjourn
DENNIS SULLIVAN MOVED TO ADJOURN THE MEETING AT 7:29 P.M. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0.
Recorder: Catherine M. Shuman (/ ,
Approved: April 9, 2013 %
Attest:
Citistrator
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