Loading...
IEDC Minutes 08-04-2009MEETING MINUTES MONTICELLO INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE Tuesday, August 4, 2009 7:00am, Boom Island Room MEMBERS PRESENT: Chair Don Roberts, Zona Gutzwiller, Rich Harris, Dick VanAllen, Bill Tapper, Dan Olson, Lynne Dahl-Fleming, Patrick Thompson, Wayne Elam MEMBERS ABSENT: Marshall Smith, Charlotte Gabler, Elaine DeWenter LIASONS PRESENT: Clint Herbst and Glen Posusta, City Council Members LIASONS ABSENT: Sandy Suchy, Monticello Chamber CITY STAFF PRESENT: City Administrator, Jeff O’Neill; FiberNet Manager, Don Patten 1. Call to Order IEDC Chair Roberts called the meeting to order at 7:05 am declaring a quorum. Chair, Roberts noted that the main purpose of this morning’s meeting was to receive an update on FiberNet Monticello. 2. Consideration of adding items to the Agenda: No items were added. 3. Approval of June 2, 2009 IEDC Meeting Minutes Minutes were not provided to approve. 4. Economic Development Director Update Agenda stated update would be provided at the September meeting. 5. Reports: Reports from the Council and Chamber would be given at the September meeting. 6. FiberNet Monticello Construction, Service Available, and Pricing Presentation: Don Patten, manager for FiberNet Monticello told the group that constructi on crews would be working in phases over the summer months to complete the fiber optic network services of telephone, Internet and digital TV. Bids were being opened this week for the telephone switch followed by video bids in August. Patten noted that there would be some aerial connections in the downtown Monticello area with pole agreements from Xcel Energy. FiberNet is working on obtaining a sales person to meet with businesses. Surrounding communities are interested in the possibilities of obtaining wholesale fiber services from FiberNet and have made inquiries. Chair Roberts asked if the Township of Monticello would be included in FiberNet’s service area? Patten responded that when the City was previously looking at applying for stimulus dollars Township service was considered a possibility. Currently, the NTIA funding application has defined the criteria for what is “underserved” differently than what was originally anticipated. The City will not be making application for stimulus funds at this time. Patten went on to explain how servicing surrounding communities could connect the FiberNet fiber optic network with larger fiber optic systems outside of the Monticello community. Zona Gutzwiller asked when FiberNet began looking to service communities outside of Monticello because today is the first she has heard of it. Clint Herbst commented that from the beginning the City had anticipated that serving adjacent communities would be a possibility and neighboring cities have been asking about it. Patrick Thompson asked if the City was in contact with other Minnesota cities who have had success with fiber optic networks so Monticello would have resources for learning. Patten said FiberNet has been and is in contact with the cities of Wabasha, Winona, Red Wing and Lake City all of who are either operating a similar fiber network or who are looking to do so. Dahl-Fleming asked if the revenue bonds received from private investors for the FiberNet project could be used for expanding the system outside of the community. Herbst responded that in regards to any capital expenditures, profits would have to service debt first. Chair Roberts asked how FiberNet was being governed. Patten responded that similar to the liquor store, FiberNet is governed ultimately by the City Council. Jeff O’Neill noted that input from the FiberNet Advisory Board would be received which is made up of three citizens and two Council people but that FiberNet is actually a City operations just like the liquor store. Roberts asked if the City was tracking the original business plans for FiberNet’s goals versus actual. Herbst responded that one of the goals was the option of paying off the bond debt early. Roberts asked how long they anticipated it would take to pay off the bonds early. Patten responded that with profits it was possible within 4-9 years. He also commented that regarding the business plan they are dead on and hope to never have to touch the contingency funds. Many of the electronics have come down in price over the past couple of years which helps project costs overall. Dahl-Fleming mentioned that Patten has commented that nearly 500 interested residential customers have contacted FiberNet and asked how many businesses have contacted them? He responded that approximately 25 businesses have made contact with FiberNet. O’Neill commented that the City has had access to the revenue bonds for only 45 days and that sales will be ramping up soon once a full time sales person is hired. Chair Roberts asked when residents could receive connection for services. Patten said by November of this year. O’Neill also commented that the City had elected to provide at no charge, installation of a fiber drop to every home and business that wanted it during this construction phase. Installation Authorization Forms were available on the FiberNetMonticello.com website. The City looks at the fiber network the same as other utilities like sewer and water hook-ups and that it should be available for everyone. It was also less expensive to place the fiber drops now during construction rather than after. Handouts were provided of the FiberNet Installation Authorization Form, Service Phasing Map for construction and brochures for service pricing. MOTION BY BILL TAPPER SECONDED BY ZONA GUTZWILLER TO ADJOURN THE MEETING. MOTION CARRIED 9-0. Adjourned at 8:10 a.m.