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FiberNet Advisory Board Agenda Packet 04-14-2015AGENDA FIBERNET MONTICELLO ADVISORY BOARD MEETING Tuesday, April 14, 2015 — 6 p.m. Boom Island Room, Monticello Community Center Members: Brian Stumpf, Charlotte Gabler, Jon Morphew, Dennis Sullivan, Jacob Kramer Others: Jeff O'Neill, Dan Olsen, Rachel Leonard, Bryan Rabe 1. Call to Order 2. Additions to Agenda 3. Approval of Meeting Minutes 4. Financial Update 5. Recommendation regarding FiberNet management position 6. Consideration of changing regular meeting time to 6:30pm 7. Next Meeting — Tuesday, May 12th, 2015 Adjourn Fiber Net Schedule of Revenue and Expenses 3/31/2015 Account Number Description Budget Beg Balance Debit Credit Balance Ytd% REVENUE 656-00000-341180 PEG Access Fee $ (10,000) $ (1,303) $ - $ 639 $ (1,942) 19.4% 656-00000-341190 USF Fee (10,000) (1,354) - 674 (2,028) 20.3% 656-00000-362400 Sale of City Property - (500) - 800 (1,300) --- 656-00000-362900 Refunds and Reimbursements - (222) - - (222) --- 656-00000-362920 Services - Misc - (3,029) - 1,503 (4,532) --- 656-00000-362990 Other Miscellaneous Revenue - (15) - 208 (223) --- 656-00000-380510 Television Services (565,284) (96,092) - 50,021 (146,113) 25.8% 656-00000-380520 Internet Services (554,256) (95,156) - 48,462 (143,618) 25.9% 656-00000-380522 Equipment Rental/Purch (127,044) (22,044) - 10,987 (33,031) 26.0% 656-00000-380530 Phone Services (315,000) (42,974) - 25,151 (68,125) 21.6% 656-00000-380540 CABS Revenue (57,600) (6,415) - 3,348 (9,763) 17.0% 656-00000-380542 Late Fees - (3,015) - 1,215 (4,230) --- 656-00000-380545 Discounts Offered -Taxable - 4,395 2,129 - 6,524 --- 656-00000-380546 Discounts Offered -Non Taxable - 7,637 3,786 - 11,423 --- 656-00000-380557 Miscellaneous Charges (12,400) (1,089) - 986 (2,076) 16.7% 656-00000-380558 Misc Charges -Non Taxable - (291) - 54 (346) --- 656-00000-392000 Operating Transfer In (450,000) (75,000) - (75,000) 16.7% REVENUE Totals: (2,101,584) (336,468) 5,915 144,049 (474,601) 22.6% EXPENSE Dept 49870 General & Administration 656-49870-410100 Salaries Full -Time Reg 89,749 9,366 9,402 - 18,768 20.9% 656-49870-410200 Salaries Full -Time OT 4,500 61 27 - 89 2.0% 656-49870-410300 Salaries Part -Time Reg 30,101 7,119 2,136 - 9,255 30.7% 656-49870-410310 Salaries Part -Time. OT 500 - - - - 0.0% 656-49870-410400 Salaries Temporary -Reg 5,000 61 364 - 425 8.5% 656-49870-412100 Pera Contributions 9,364 1,979 867 - 2,847 30.4% 656-49870-412200 Fica Contributions 8,051 1,597 713 - 2,309 28.7% 656-49870-412300 Medicare Contributions 1,883 373 167 - 540 28.7% 656-49870-413100 Health Insurance Contributions 47,508 3,695 3,657 - 7,351 15.5% 656-49870-413300 Life Insurance Contributions - 23 22 - 46 --- 656-49870-413400 Disability Ins Contributions - 38 35 - 73 --- 656-49870-414200 UC Benefit Payments - - - - - --- 656-49870-420300 Printed Forms And Paper - 337 - - 337 --- 656-49870-420990 Office Supplies - 179 - - 179 --- 656-49870-421990 Gen Operating Supplies 14,500 3,330 1,937 - 5,267 36.3% 656-49870-422100 Equipment Repair Parts - - - - - --- 656-49870-422110 Vehicle Repair Parts - 27 - - 27 --- 656-49870-430100 Professional Services -Audit 5,350 - - - - 0.0% 656-49870-430400 Legal Fees - 900 11,115 - 12,015 --- Account Number Description Budget Beg Balance Debit Credit Balance Ytd% 656-49870-430700 Salaries Full -Time OT 10,000 Management Services (GM) 120,000 - 6.235 - 6,235 5.2% 656-49870-431970 - Regulatory Professional Svcs 20,000 658 658 - 1,317 6.6% 656-49870-431990 - --- Miscellaneous Prof Services - 6,547 3,565 - 10,112 --- 656-49870-432100 656-49877-412100 Pera Contributions Telephone/Internet 2,640 150 156 - 306 11.6% 656-49870-432150 12,097 2,060 Internal IT Services 24,291 4,048 2,024 - 6,073 25.0% 656-49870-432200 257 738 Mail & Delivery Services - 1,050 807 - 1,857 --- 656-49870-432500 23.2% 656-49877-413300 Cable/Network Services - 128 - - 128 --- 656-49870-433200 Disability Ins Contributions Training/Conferences - 12 - - 12 --- 656-49870-434600 - Marketing 1,500 - - - - 0.0% 656-49870-436100 3,792 29.2% LPV Insurance 9,514 6,730 - - 6,730 70.7% 656-49870-440100 656-49877-421200 Motor Fuels Repair and Maint-Buildings - 1.199 304 - 1,502 --- 656-49870-441200 85,000 9,479 Building/Room Rental 16,980 2,830 1,415 - 4,245 25.0% 656-49870-443200 - Write Offs 11,000 4,394 610 967 4,037 36.7% 656-49870-443300 0.0% 656-49877-421840 Dues Membership and Subscrip 1,500 400 - - 400 26.7% 656-49870-443700 Gen Operating Supplies 35,000 Licenses And Permits 1,500 - 139 - 139 9.3% 656-49870-443980 - - Bank Charges 15,000 1,774 1,246 - 3,020 20.1% 656-49870-443990 - - 0.0% Miscellaneous Other Exp 10,000 214 5 - 219 2.2% 656-49870-472030 Operating Transfer Out - - - - - --- 656-49870 EXPENSE TotalS: 450.431 59.220 47.607 967 105.860 23.5% Dept 49870 Field Operations 656-49877-410100 Salaries Full -Time Reg 165,118 31,672 17,058 48,731 29.5% 656-49877-410200 Salaries Full -Time OT 10,000 2,379 1,224 3,602 36.0% 656-49877-410300 Salaries Part -Time Reg 10,000 - - 0.0% 656-49877-410310 Salaries Part -Time OT - - --- 656-49877-410400 Salaries Temporary -Reg 10,000 - - 0.0% 656-49877-412100 Pera Contributions 13,884 2,554 1,371 3,925 28.3% 65649877-412200 Fica Contributions 12,097 2,060 1,097 3,157 26.1% 65649877-412300 Medicare Contributions 2,829 482 257 738 26.1% 656-49877413100 Health Insurance Contributions 45,882 5.205 5,440 10,645 23.2% 656-49877-413300 Life Insurance Contributions 33 33 65 --- 656-49877-413400 Disability Ins Contributions 57 57 115 --- 656-49877-414200 UC Benefit Payments 5,000 - - 0.0% 656-49877-415100 Work Comp Ins Premiums 13,000 - 3.792 3,792 29.2% 656-49877-421110 Clothing Supplies 5,000 - - - 0.0% 656-49877-421200 Motor Fuels 10,000 157 249 406 4.1% 656-49877-421800 Fiber Optic Supplies 85,000 9,479 4,775 14,254 16.8% 656-49877-421820 Telcom/Phone Supplies 10,000 - - 0.0% 656-49877-421830 Video/Digital TV Supplies 30,000 - - 0.0% 656-49877-421840 Data/Intemet Supplies 20,000 - - 0.0% 656-49877-421990 Gen Operating Supplies 35,000 501 21 - 523 1.5% 656-49877-422500 Landscaping Materials 5,000 - - - - 0.0% 656-49877-422990 Misc Repair and Maint Supplies 2,160 - - - - 0.0% Account Number Description Budget Beg Balance Debit Credit Balance Ytd% 656-49877-424100 Small Tools ($500-$9999) 25,000 - - - - 0.0% 656-49877-431900 Maintenance Agreements 110,000 63,536 - - 63,536 57.8% 656-49877-431990 Miscellaneous Prof Services 15,000 641 871 - 1,512 10.1% 656-49877-432770 Gopher State Locates 5,000 81 20 - 101 2.0% 656-49877-433100 Travel Expense 2,000 - - - - 0.0% 656-49877-433200 Training/Conferences 5,000 - - - - 0.0% 656-49877-438100 Electric 27,500 - 4.397 - 4,397 16.0% 656-49877-438200 Water/Sewer 2,000 - - - - 0.0% 656-49877-438400 Refuse/Recycling Services 500 - 137 - 137 27.4% 656-49877-440100 Repair and Maint-Buildings 10,000 - - - - 0.0% 656-49877-440440 Repair & Maint-Mach & Equip 5,000 - - - - 0.0% 656-49877-440500 Repair and Maint-Vehicles 5,000 - - - - 0.0% 656-49877-443990 Miscellaneous Other Exp 6,255 - - - - 0.0% 656-49877-458010 Other Equipment 120,000 - - - - 0.0% 656-49877-472030 Operating Transfer Out - - - - --- 656-49877 EXPENSE Totals: 828,225 118,837 40,798 - 159,635 19.3% Dept 49879 Cost of Goods Sold 656-49879-430910 Voice -Technical Services 76,000 11,820 3,641 15,461 20.3% 656-49879-430920 Video -Technical Services 576,000 98,216 46,837 145,053 25.2% 656-49879-430930 Data -Technical Services 170,000 28,497 14,249 42,746 25.1% 656-49879-443720 Video -Licenses and Permits 67 - 67 --- 656-49879 EXPENSE Totals: 822,000 138,600 64,727 - 203,327 24.7% EXPENSE Totals: 2,100,656 316,657 153,132 967 468,822 22.3% Net 928 19,811 (159,047) (145,015) 5,779 Average loss per month (23,074) Months Year % 3 12 25.0% CITY OF Monticcflo i Internet Video Phone FiberNet Advisory Board April 14, 2015 Current Management Structure Jeff O'Neill & Dan Olsen Rachel Bryan Rabe Leonard Office Staff Tech Staff �r�Monticello FIBERNET �� The original intent of the interim plan was to be intentional choosing a manager. This remains paramount; we need to determine the option that best fits FiberNet's specific current & future needs. Monticello FIBERNET �� Management Options 1. Office Manager 2. Business Manager 3. General Manager Management Criteria 1. Job Responsibilities 2. Organizational Structure 3. Staffing Levels 4. Financial Implications 5. Contribution to Opportunities nternet Video Phone Rachel Leonard Office Manager: Characteristics Jeff O'Neill & Dan Olsen Off ice Manager wo M=k Office Staff • Generally maintains current structure • Salary range: Grade 12-13 Bryan Rabe $48,876 - $67,327 y + app . rox$20,000 in benefits • Similar positions: DMV Manager, City Clerk, HR Manager Tech Staff �r�Monticello FIBERNET �� Office Manager: Criteria Analysis 1. Job Responsibilities: Weighted heavily toward office tasks; includes supervision of office staff. Covers what is being done now. 2. Structure: Decision making structure is collaborative but diffused. 3. Staffing Levels: Communication Coordinator would have more time for marketing and FAB items. Modest reduction in City Administrator's time allotted to FiberNet. 4. Financial Implications: Smaller salary is less of a financial burden on the budget. However, lesser likelihood of significant increases in market share. Short-term best option in terms of net cost. 5. Opportunities: Relies on existing resources to capture opportunities. �r�Monticello FIBERNET �� Business Manager: Characteristics City Administrator • Creates a new type of central position in the hierarchy Business Rachel Manager Leonard Dan Olsen • Salary range: Grade 14-16 $54,704 - $78,692 +approx. $20,000 in benefits Lead CSR Lead Headend • Similar Positions: Chief Building Official, PW Technician Technician Superintendents, Liquor Store Manager Office Staff Install/Tech Outside Plant Support Staff Technician illy o} ��jMonticello FIBERNET �� Business Manager: Criteria Analysis 1. Job Responsibilities: Weighted toward higher level office duties, including business plan for FiberNet. Supervises all FNM staff. 2. Structure: New management position with central authority. 3. Staffing Levels: Adds leadership position without redundancy. Reduces the City Administrator's time spent on FiberNet. Moves Communications Coordinator to marketing & other city projects. Likely need Lead CSR but at minor expenditure. 4. Financial Implications: Bigger budget impact than office manager but potentially a greater benefit. Smaller budget impact than a General Manager. May increase market share and more likely to balance the benefit with the cost. 5. Opportunities: Ability to plan and contribute to capitalizing on new opportunities. Monticello FIBERNET �� Rachel Leonard Lead CSR or Office Manager )ff General Manager: Characteristics City Administrator •Central position leading the FNM hierarchy General Salary range: Grade 17-21 Manager Dan Olsen $63,443 - $98,068 +approx. $20,000 in benefits • Similar Positions: PW Director, Finance Director, Lead Headend City Engineer, Community Technician Technician Development Director Install/Tech Outside Plant Support Staff Technician cllyo} Monticello FIBERNET �� General Manager: Criteria Analysis 1. Job Responsibilities: Includes higher level responsibilities for headend &business office - all inclusive. 2. Structure: Traditional management position with central authority. 3. Staffing Levels: Reduces City Administrator and Communication Coordinator's time spent on FiberNet. Creates redundancies on tech side. Likely to necessitate a new office position - either Lead CSR or Office Supervisor. 4. Financial Implications: Salary level is greatest burden on the budget. Also need to factor in the expense for new office position. May increase market share but will struggle to balance the increase with the salary. 5. Opportunities: Ability to plan and contribute to capitalizing on new opportunities. May be able to find additional opportunities too. r* 111,o, Monticello FIBERNET �� Office Manager Office Business Manager Office General Manager Office Headend Headend Monticello I'm] 'L461,1 0 ff-lnt-er-netT Video I Phone Residential & Business Subscribers Service Jan Feb Mar Apr Phone Only 38 36 34 33 Internet Only 517 531 546 547 Television Only 89 85 82 81 Phone & Internet 171 167 163 167 Phone & Television 52 51 51 48 Internet & Television 351 345 343 339 Triple Play 321 317 312 309 Total Subscribers 1539 1532 1531 1524 Total Phone 582 571 560 557 Total Internet 1360 1360 1364 1362 Total Television 813 798 788 777 Residential Subscribers Service Jan Feb Mar Apr Phone Only 30 28 26 25 Internet Only 490 499 511 517 Television Only 86 82 78 77 Phone & Internet 93 89 91 92 Phone & Television 51 50 50 47 Internet & Television 346 340 337 334 Triple Play 305 301 298 295 Total Subscribers 1401 1389 1391 1387 Total Phone 479 468 465 459 Total Internet 1234 1229 1237 1238 Total Television 788 773 763 753 Business Subscribers Service Jan Feb Mar Apr Phone Only 8 8 8 8 Internet Only 27 32 35 30 Television Only 3 3 4 4 Phone & Internet 78 78 72 75 Phone & Television 1 1 1 1 Internet & Television 5 5 6 5 Triple Play 16 16 14 14 Total Subscribers 138 143 140 137 Total Phone 103 103 95 98 Total Internet 126 131 127 124 Total Television 25 25 25 24 �R �R �Poe�9e,e�Re,�Ro S° N o0 o m r a r o m .I I u. � vi ai ry n m m ri c o v N x , u m o mp g v ti ti `a ry N m vO1i u u V SR CS w 0 o 43 F o 0 0 0 0 0 0 0 0 0 0 0 mO. 0 0 0 0 0 o 0 o a fE N r .d M d; tN O N M P a1 O N In N O M N O O O O O u M r N 6+ m LfI r O N CO N O c; A N O ey 'i 0 0 0 0 0 0 0 0 0 0 °� C O T 0 N0. pa�q r++ G q O y 1 ��11 ,,,Vyyy •'"r' y � 9 O d msN6 v 0 0 0 F Ur O 111 O �-I h M M •-I q' O d' (V U vl N at .i V eNi 00 pl N a M N U FO i U d o 0 0 0 0 Q IR Q o VJ o Liy i i � i i i i O 0 0 0 0 0 0 0 Q M �i l� N M O n n O rl n N �6 M d• e -I � CO C; O O Q pia. � M N N N H m M •y gz ee O N IfI M d' '4 OJ O r1 00 V A o 0 0 0 0 0 o 0 o a �F•1 v O �: T d' "i N n O? 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