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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