City Council Minutes 05-26-2016 SpecialMINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Thursday, May 26, 2016 — 8 a.m.
Boom Island Room, MCC
Present: Brian Stumpf, Charlotte Gabler (left at 9 a.m.), Tom Perrault, Glen Posusta, Lloyd
Hilgart
Absent: None
Others: Jeff O'Neill, City staff. Wayne Oberg, Rachel Leonard, City Attorney Joel
Jamnik
1. Call to Order
Mayor Brian Stumpf called the special meeting to order at 8 a.m.
2. FiberNet Telecommunications Contract Manager Candidate Presentations
Jeff O'Neill, City Administrator, gave a brief introduction and commented on the format
of the presentations. The first to present was CTC.
A. Consolidated Telecommunications Company (CTC)
The following individuals from CTC presented to the City Council: Joe Buttweiler,
Kevin Larson, Kristi Westbrock, Andy Isackson, Ryan Rosenwald,
CTC presented a review of their business plan which focused on their customer
service/support and aggressive marketing components. They touched on other CTC
owned companies/services and their existing and future transport routes. There was a
strong interest in the data center opportunity.
Following CTC's presentation there was a short break. The next presentation was given
by Arvig.
B. Arvig
The following Individuals from Arvig presented to the City Council: Mark Birkholz,
David Schornack, and Andy Klinnert.
Arvig presented their proposal and the growth that they have had over the last few years.
Their focus is on businesses and alternative streams of revenue. They focused on their
ring of fiber and the value it would have for the City of Monti cel lo/Fib erNet.
Following the presentations the City Council discussed their two options. Ms. Gabler left
the meeting but communicated via phone. It was a consensus of the City Council that
both options were good and viable. Brian Stumpf encouraged the City Council to look at
City Council Special Meeting Minutes — May 26, 2016 Page 1 1
which company feels most comfortable. Discussion continued on the differences
between the two companies.
Wayne Oberg, Finance Director, highlighted that OTC's incentive fee is based on an
increase in revenues while Arvig's incentive fee is based on net profit. He explained this
is an important distinction because CTC's is an incentive before costs are taken into
account, and Arvig's is an incentive after costs are subtracted from revenues.
Rachel Leonard, Communications Coordinator, remarked the companies have two
different business models. CTC's model looks at both residential and business accounts,
whereas Arvig isn't focused as much on residential accounts. One isn't necessarily better
than the other, but Council must decide which one it prefers.
There was discussion about an apparent discrepancy of budget numbers given by both
companies. Lloyd Hilgart commented that once the existing budget losses for 2016 were
added to Arvig's numbers, they were very similar to CTC's. Hilgart stated if the numbers
are close, the Council must decide which one is more realistic. Hilgart remarked Arvig
seemed to have a better business strategy. Glen Posusta commented that, by looking at
pure numbers, the City should choose Arvig. Charlotte Gabler added that she felt that
CTC's numbers may be overselling.
Glen Posusta moved to approve commencing negotiations with Arvig to contract for
FiberNet Management Services. Lloyd Hilgart seconded the motion. Motion
carried unanimously.
3. Adjournment
By consensus the meeting was adjourned at 11:24 a.m.
Recorder: Jennifer Schreiber
Approved:
Attest:
Cit ministrator
City Council Special Meeting Minutes — May 26, 2016 Page 2