City Council Minutes 05-23-2005 SpecialMINUTES
SPECIAL MEETING — CITY COUNCIL
Monday May 23, 2005 — 5 p.m.
Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf.
Members Absent: None
Others Present: Dennis Nelson, City Administrator of Windom, Milda Hedblom from Dain
International Services and Brenda Krueger from Springsted Incorporated.
Mayor Herbst called the special meeting on fiber optics to order at 5 p.m. and explained the purpose
of the workshop meeting was for the City to learn more about fiber optics and benefits it could
provide.
Councilmember Wayne Mayer gave some background information explaining the various types of
broadband technologies including copper, coaxial cable and fiber optics.
Milda Hedblom elaborated on some of the technology Wayne Mayer had discussed. She then went
on to discuss benefits to Monticello by having a fiber optic system in place. These benefits include:
1) Economic growth as the fiber optic system would serve as a magnet for development; 2) A fiber
optic system would be community asset and could be a source of revenue; 3) It would promote
competition; 4) A city with a fiber optic system has an image of being progressive; and 5) Improve
telecommunications and information services for businesses and she noted other benefits as well.
Milda Hedblom also reviewed some of the risks involved for the City in establishing a fiber optics
system. The City would have the financial obligation for capital costs and the financial obligations
of establishing and operating a business. She noted competitors from the private sector may offer
resistance to the city entry into the field and with constant change in technology the City must be
able to anticipate change and adapt to it. Milda Hedblom stated that one time the United States was
one the leaders in this type of technology but now has dropped back to 13th. She stated that
regulations relating to fiber optics have undergone some change and added that this technology has
come down in price from what it was.
She then talked about options the City could look at in providing fiber optic services. The City
could build the fiber optic network and provide all services or the City could build and own the
network and maintain the infrastructure with an open plat form for services. The City could also
own the fiber optic system and lease it to private vendors or try to get the private market to invest in
the fiber optic system. She cited a number of examples what different communities had done.
If the City would establish a fiber optic system there are legal requirements that have to be met for
voice and video services. These regulations include for voice services conducting a referendum,
which must be approved by a 65% majority as well as other requirements such as certification, and
franchise agreements.
Before the City makes a decision, they need to look at what services the local providers have and
whether those services are sufficient. The City, if they decide to proceed with a fiber optic system,
also needs to decide what services to provide. Milda Hedblom suggested that the City look at
setting up a task force to come up with goals keeping in mind what makes sense for the community.
Special Council Meeting Minutes — 5/23/05
Once the goals has been established then you can go into detail on what you need to do to
accomplish your objectives.
Clint Herbst stated that a portion of the City had overhead lines but after a certain date the City
required that all lines be placed underground. He wondered how this would impact bringing fiber
optics to the home.
Dennis Nelson commented on the hookup for homes and then went on to explain the procedure the
City of Windom used in establishing their fiber optic system. The City of Windom was the
electrical provider for the community for 100 years. In 2000 they put the question of fiber optics on
the ballot; the Council decided to proceed in August 2003 and in 2005 they connected their first
customer. Dennis Nelson noted that shortly after the City of Windom decided to proceed Quest
announced they would offer the service. He indicated that the City sent out a homeowner consent
form that covered installing a drop for eachproperty. Once the fiber optic system was in the City
had to market that feature to the public. Dennis Nelson indicated the project cost was $8.6 million
for voice, video and data service. The cost of a drop was about $4,600. He felt the fiber optic
system would be a moneymaker for the City.
The workshop session closed at 7 p.m.
Recording Secretary