FiberNet Advisory Board Agenda Packet 05-12-2015AGENDA
FIBERNET MONTICELLO ADVISORY BOARD MEETING
Tuesday, May 12, 2015 — 6:30 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 April Meeting Minutes
4. Network update.
• E7 Migration
• 10 Gig Ring Conversion
• Golden West
• Meta Switch
5. Business Office Update
• Latest Subscriber Data
6. Discussion of video services offered through CSI Digital subsidiary
7. Consideration of charging service fees for changes to subscriber accounts
8. Consideration of updating ordinance language from General Manager to Business
Manager
9. Next Meeting — Tuesday, June 9th, 2015
10. Adjourn
Residential & Business Subscribers
Service
Jan
Feb
Mar
Apr
May
Phone Only
38
36
34
33
33
Internet Only
517
531
546
547
567
Television Only
89
85
82
81
75
Phone & Internet
171
167
163
167
173
Phone & Television
52
51
51
48
51
Internet & Television
351
345
343
339
331
Triple Play
321
317
312
309
298
Total Subscribers
1539
1532
1531
1524
1528
Total Phone
Total Internet
Total Television
582
571
560
557
555
1360
1360
1364
1362
1369
813
798
788
777
755
Residential Subscribers
Service
Jan
Phone Only
30
Internet Only
490
Television Only
86
Phone & Internet
93
Phone & Television
51
Internet & Television
346
Triple Play
305
Total Subscribers
1401
Total Phone
Total Internet
Total Television
Feb
Mar
Apr
May
28
26
25
24
499
511
517
534
82
78
77
72
89
91
92
98
50
50
47
50
340
337
334
329
301
298
295
284
1389
1391
1387
1391
479
468
465
459
456
1234
1229
1237
1238
1245
788
773
763
753
735
Business Subscribers
Service
Jan
Phone Only
8
Internet Only
27
Television Only
3
Phone & Internet
78
Phone & Television
1
Internet & Television
5
Triple Play
16
Total Subscribers
138
Feb
Mar
Apr
May
8
8
8
9
32
35
30
33
3
4
4
3
78
72
75
75
1
1
1
1
5
6
5
2
16
14
14
14
143
140
137
137
Total Phone 103
Total Internet 126
Total Television 25
103
95
98
99
131
127
124
124
25
25
24
20
CHAPTER 9
TELECOMMUNICATIONS PUBLIC SERVICE ENTERPRISE
FIBERNET MONTICELLO
SECTION:
2-9-1: Findings and Purpose
2-9-2: Creation, Advisory Board Established
2-9-3: Officers and Meetings
2-9-4: Functions, Powers and Duties
2-9-5: General Manager
2-9-6: Reservation of Power
Minnesota Statutes § 237.19 authorizes the City to own and operate a telephone exchange and
to provide municipal telecommunications services following a referendum within the City.
The City conducted the required referendum and more than the statutorily prescribed 65
percent of those voting thereon voted in favor of proceeding. Based on all information to
date, the City Council hereby finds that the establishment of FiberNet Monticello is in the best
interests of the City. The City Council further finds that it is in the best interests of the City to
create an advisory board to guide the management of FiberNet Monticello.
2-9-2. CREATION, ADVISORY BOARD ESTABLISHED:
(A) A municipal telecommunications services enterprise to be known as FiberNet
Monticello is hereby created and established. FiberNet Monticello shall have an
Advisory Board composed of five (5) voting members to be appointed by the Mayor
and the City Council.
(B) Two of the voting members shall be members of the City Council (one of which could
be the Mayor). The terms of appointment shall coincide with their elected terms of
office and appointments to replace any member whose term is expiring or otherwise
vacant may be made from any member of the Council.
(C) The remaining three (3) voting members shall be appointed and shall serve staggered
terms. Those initially appointed shall serve for two years, three years and four years
respectively. Thereafter, all members shall be appointed for five year terms, except
for any person appointed to fill a vacancy occurring prior to the expiration of the term
to which his/her predecessor had been appointed shall be appointed only for the
remainder of such term.
(D) All voting members shall serve at the pleasure of the City Council. Vacancies shall be
filled by appointment by the Mayor and the City Council. Upon the expiration of
his/her term of office, the member shall continue to serve until his/her successor is
appointed and qualified.
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page
(E) The City Administrator of the City of Monticello and the General Manager of
FiberNet Monticello shall be non-voting members of the Advisory Board.
2-9-3: OFFICERS AND MEETINGS
(A) The Advisory Board shall have the offices of President and Vice President. The
President shall be the Mayor, or if the Mayor is not serving, the President shall be a
member of the City Council and designated by appointment of the Mayor and the City
Council. The Vice President shall be elected by the members from the remaining
members.
(B) The Advisory Board shall adopt bylaws with rules and procedures not inconsistent
with the provisions of this ordinance as may be necessary for the proper execution and
conduct of its business.
(C) The Advisory Board shall meet at least monthly. Special meetings may be called by
the President as needed.
2-9-4: FUNCTIONS, POWERS AND DUTIES
(A) The Advisory Board shall have the powers granted to it by the City Council under this
Ordinance and as otherwise delegated by action of the City Council.
(B) The Advisory Board shall have the authority to provide general oversight and strategic
management for the FiberNet Monticello Enterprise Fund (the Fund). The Advisory
Board shall insure that the Fund meets City requirements and Minnesota Statutory
requirements for financial management and reporting.
(C) The Advisory Board shall have the authority to govern FiberNet Monticello within the
boundaries established in the annual budget as approved by the City Council. The
Advisory Board shall make an annual budget recommendation to the City Council.
(D) The City Council shall make available to the Advisory Board such appropriations as it
deems fit for salaries, fees, and expenses necessary in the conduct of its work. The
Advisory Board shall have the authority to approve and direct the expenditure of all
budgeted sums as appropriated and consistent with state law, in particular M.S.
Section 412.271, Subd. 8.
2-9-5: GENERAL MANAGER
(A) The City Council shall appoint a General Manager for FiberNet Monticello, and hire
or assign such staff or consultants or contractors as it deems necessary for the efficient
operations of FiberNet Monticello and the City.
(B) The General Manager shall be responsible for the administration and management of
FiberNet Monticello.
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page 2
(C) The General Manager shall provide reports to the Advisory Board at its regular
meetings and an annual report to the City Council accurately describing the activities
and financial condition of FiberNet Monticello.
(D) The General Manager shall maintain contact with the City Administrator as necessary
to coordinate activities.
2-9-6: RESERVATION OF POWERS
(A) Except as delegated by this Ordinance, and subject to amendment of this Ordinance,
the City Council reserves its rights and powers regarding FiberNet Monticello,
including but not limited to the power to (1) adopt the annual budget, (2) approve
capital improvements, (3) review rates and fees, (4) approve potential expansions of
the service area of FiberNet Monticello, and (5) ratify hiring and firing.
(4/14/08, #480)
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page
Fiber Net
Schedule of Revenue and Expenses
4/30/2015
Account Number Description
REVENUE
656-00000-341180 PEG Access Fee
656-00000-341190 USF Fee
656-00000-362400 Sale of City Property
656-00000-362900 Refunds and Reimbursements
656-00000-362920 Services - Misc
656-00000-362990 Other Miscellaneous Revenue
656-00000-380510 Television Services
656-00000-380520 Internet Services
656-00000-380522 Equipment Rental/Purch
656-00000-380530 Phone Services
656-00000-380540 CABS Revenue
656-00000-380542 Late Fees
656-00000-380545 Discounts Offered -Taxable
656-00000-380546 Discounts Offered -Non Taxable
656-00000-380557 Miscellaneous Charges
656-00000-380558 Misc Charges -Non Taxable
656-00000-392000 Operating Transfer In
REVENUE Totals:
EXPENSE
Dept 49870
656-49870-410100
656-49870-410200
656-49870-410300
656-49870-410310
656-49870-410400
656-49870-412100
656-49870-412200
656-49870-412300
656-49870-413100
656-49870-413300
656-49870-413400
656-49870-414200
656-49870-420300
656-49870-420990
656-49870-421990
656-49870-422100
656-49870-422110
656-49870-430100
Budget Beg Balance Debit Credit Balance Ytd%
$ (10,000) $
(1,942) $
- $
635 $
(2,577)
(10,000)
(2,028)
-
697
(2,725)
Salaries Full -Time OT
(1,300)
-
2,400
(3,700)
Salaries Part -Time Reg
(222)
-
-
(222)
Salaries Part -Time. OT
(4,532)
-
1,489
(6,021)
Salaries Temporary -Reg
(223)
-
8
(231)
(565,284)
(146,113)
-
49,778
(195,891)
(554,256)
(143,618)
-
48,396
(192,014)
(127,044)
(33,031)
-
10,878
(43,909)
(315,000)
(68,125)
-
25,458
(93,583)
(57,600)
2,810
776
1,558
2,028
Disability Ins Contributions
(4,230)
-
1,350
(5,580)
UC Benefit Payments
6,524
2,128
-
8,652
Printed Forms And Paper
11,423
3,606
-
15,029
(12,400)
(2,076)
-
1,574
(3,650)
Gen Operating Supplies
(346)
5,267
602
(948)
(450,000)
(112,500)
-
37,500
(150,000)
(2,101,584)
(499,528)
6,510
182,323
(675,341)
General & Administration
Salaries Full -Time Reg
89,749
18,768
9,773
28,541
Salaries Full -Time OT
4,500
89
14
103
Salaries Part -Time Reg
30,101
9,255
1,350
10,605
Salaries Part -Time. OT
500
-
-
-
Salaries Temporary -Reg
5,000
425
-
425
Pera Contributions
9,364
2,847
835
3,682
Fica Contributions
8,051
2,309
664
2,973
Medicare Contributions
1,883
540
155
695
Health Insurance Contributions
47,508
7,351
3,657
11,008
Life Insurance Contributions
-
46
22
68
Disability Ins Contributions
73
35
108
UC Benefit Payments
-
-
-
Printed Forms And Paper
337
-
337
Office Supplies
-
179
195
374
Gen Operating Supplies
14,500
5,267
4,756
10,023
Equipment Repair Parts
-
-
-
-
Vehicle Repair Parts
-
27
27
Professional Services -Audit
5,350
-
-
25.8%
27.2%
34.7%
34.6%
34.6%
29.7%
-3.5%
29.4%
33.3%
32.1%
31.8%
2.3%
35.2%
0.0%
8.5%
39.3%
36.9%
36.9%
23.2%
69.1%
0.0%
Account Number
Description
Budget
Beg Balance
Debit
Credit Balance
Ytd%
656-49870-430400
Legal Fees
-
12,015
525
12,540
---
656-49870-430700
Management Services (GM)
100,000
6,235
1,885
8,120
8.1%
656-49870-431970
Regulatory Professional Svcs
20,000
1,317
-
1,317
6.6%
656-49870-431990
Miscellaneous Prof Services
24,000
6,113
9,295
15,408
64.2%
656-49870-432100
Telephone/Internet
2,640
306
306
612
23.2%
656-49870-432150
Internal IT Services
24,291
6,073
2,024
8,097
33.3%
656-49870-432200
Mail & Delivery Services
-
1,857
623
2,480
---
656-49870-432500
Cable/Network Services
128
2,024
2,152
---
656-49870-433200
Training/Conferences
-
12
-
12
---
656-49870-434600
Marketing
1,500
-
220
220
14.7%
656-49870-436100
LPV Insurance
9,514
6,730
-
6,730
70.7%
656-49870-440100
Repair and Maint-Buildings
-
1,502
-
1,502
---
656-49870-441200
Building/Room Rental
16,980
4,245
1,415
- 5,660
33.3%
656-49870-443200
Write Offs
11,000
4,037
3,615
122 7,530
68.5%
656-49870-443300
Dues Membership and Subscrip
1,500
400
-
- 400
26.7%
656-49870-443700
Licenses And Permits
1,500
139
-
139
9.3%
656-49870-443980
Bank Charges
15,000
3,020
1,301
4,321
28.8%
656-49870-443990
Miscellaneous Other Exp
6,000
219
5
225
3.7%
656-49870-472030
Operating Transfer Out
-
-
-
- -
---
656-49870 EXPENSE TotalS:
450.431
101.861
44.695
122 146.433
32.5%
Dept 49870
Field Operations
656-49877-410100
Salaries Full -Time Reg
165,118
48,731
17,201
65,932
39.9%
656-49877-410200
Salaries Full -Time OT
10,000
3,602
755
4,357
43.6%
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
3,925
1,347
5,272
38.0%
65649877-412200
Fica Contributions
12,097
3,157
1,077
4,234
35.0%
65649877-412300
Medicare Contributions
2,829
738
252
990
35.0%
656-49877413100
Health Insurance Contributions
45,882
10,645
5,440
16,085
35.1%
656-49877-413300
Life Insurance Contributions
65
33
98
---
656-49877-413400
Disability Ins Contributions
115
57
172
---
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
406
126
532
5.3%
656-49877-421800
Fiber Optic Supplies
85,000
14,254
328
14,582
17.2%
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
523
4,735
5,258
15.0%
Account Number
Description
Budget
Beg Balance
Debit
Credit Balance
Ytd%
656-49877-422500
Landscaping Materials
5,000
-
-
0.0%
656-49877-422990
Misc Repair and Maint Supplies
2,160
121
121
5.6%
656-49877-424100
Small Tools ($500-$9999)
25,000
-
-
-
0.0%
656-49877-431900
Maintenance Agreements
110,000
63,536
2,077
65,613
59.6%
656-49877-431990
Miscellaneous Prof Services
15,000
1,512
91
1,603
10.7%
656-49877-432770
Gopher State Locates
5,000
101
71
172
3.4%
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
4,424
8,821
32.1%
656-49877-438200
Water/Sewer
2,000
-
-
-
0.0%
656-49877-438400
Refuse/Recycling Services
500
137
137
274
54.9%
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
25
25
0.4%
656-49877-458010
Other Equipment
120,000
-
-
0.0%
656-49877-472030
Operating Transfer Out
-
750
750
---
656-49877 EXPENSE Totals:
828,225
159,635
39,047
198,682
24.0%
Dept
49879
Cost of Goods Sold
656-49879-430910
Voice -Technical Services
76,000
12,574
10,158
22,732
29.9%
656-49879-430920
Video -Technical Services
576,000
100,764
59,811
160,575
27.9%
656-49879-430930
Data -Technical Services
170,000
42,746
14,249
56,995
33.5%
656-49879-443720
Video -Licenses and Permits
67
-
67
---
656-49879 EXPENSE Totals:
822,000
156,151
84,218
- 240,369
29.2%
EXPENSE Totals:
2,100,656
417,647
167,960
122 585,484
27.9%
Net
928
81,881
(174,470)
(182,445) 89,857
Average loss per month (15,036)
Months Year %
4 12 33.3%