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FiberNet Advisory Board Agenda Packet 10-13-2015AGENDA FIBERNET MONTICELLO ADVISORY BOARD MEETING Tuesday, October 13, 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, Rachel Leonard, Bryan Rabe 1. Call to Order 2. Additions to Agenda 3. Approval of September Meeting Minutes 4. Network update 5. Business Office Update • October Subscriber Counts • Billing Update • Source One Update 6. Financial Update 7. Management Update • September 28 Council Discussion — Management Analysis • CTC Management Services Update and Presentation • Potential City Council Workshop on October 26th 8. Television Update 9. Next Meeting — Tuesday, November 10, 2015 10. Adjourn MINUTES REGULAR MEETING — FIBERNET MONTICELLO ADVISORY BOARD Tuesday, September 15t}', 2015, Boom Island Room, Monticello Community Center Present: Brian Stumpf, Charlotte Gabler, Dennis Sullivan Absent: Jacob Kramer, Jon Morphew Others: Jeff O'Neill, Rachel Leonard, Bryan Rabe, Joe Buttweiler 1. Call to Order Brian Stumpf called the meeting to order at 6:30 PM. 2. Additions to Agenda • Yondoo agreement • XO contract expiration date • FiberNet Speed Test • Monticello Chamber's Harvest Expo 3. Approval of Meeting Minutes CHARLOTTE GABLER MOVED TO APPROVE THE AUGUST 11TH, 2015 REGULAR MEETING MINUTES. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 3-0. 4. Network Update • Bryan Rabe updated on preliminary use of Calix Compass by the technicians. Rabe also updated the board on new ways to monitor the network for potential illegal activity. Rachel Leonard informed the board about FiberNet policies in response to potential illegal uses of the internet. • Rachel Leonard informed the board the initial trial of the GigaCenters is complete. • Staff updated the board on the latest bill from Golden West. CHARLOTTE GABLER MOVED TO RECOMMEND KEEPING GOLDEN WEST FOR AFTER-HOURS TECH SUPPORT FOR ANOTHER 6 MONTHS. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 3-0. • Bryan Rabe updated board on recovery of a password previously unavailable after staff turnover. 5. Business Office Update • Rachel Leonard provided the latest subscriber data. • Rachel Leonard provided an update on reaction to the upcoming 1011115 internet price change. 6. Consideration of approving additional internet speed packages and pricing CHARLOTTE GABLER MOVED TO APPROVE THE NEW SPEED PACKAGES AND PRICING AS PRESENTED. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 3-0. FiberNet Advisory Board Minutes: 9/15/15 7. Management Update Jeff O'Neill updated the board on current management options. O'Neill introduced Joe Buttweiler from Consolidated Telecommunications Company (CTC) out of Brainerd, MN. The board discussed potential options for working with CTC. CHARLOTTE GABLER MOVED TO DIRECT STAFF TO WORK WITH CONSOLIDATED TELECOMMUNICATIONS COMPANY ON A PROPOSAL AND TO TEMPORARILY POSTPONE HIRING A BUSINESS MANAGER. DENNIS SULLIVAN SECONDED THE MOTION. MOTION CARRIED 3-0. 8. Financial Update Update for month ending 8/31/15 was distributed for board members. 9. Consideration of changing December meeting date from 12/15/15 to 12/8/15 BRIAN STUMPF MOVED TO CHANGE THE DECEMBER MEETING DATE FROM 12/15/15 TO 12/8/15. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 3-0. 10. Added Items • Jeff O'Neill provided an update on Yondoo. The negotiations team appointed by City Council will see the updated version of the contract in September. • Rachel Leonard reported that the current contract with XO expires on 9/1/2016. • Bryan Rabe requested authorization to purchase a speed test license for FiberNet. He reported a one-time set-up fee of $1,000 and a one year price of $1,995.00. DENNIS SULLIVAN MOVED TO APPROVE THE PURCHASE OF THE SPEED TEST LICENSE FOR ONE YEAR. CHARLOTTE GABLER SECONDED THE MOTION. MOTION CARRIED 3-0. • Discussion of the 2015 Chamber Harvest Expo. Board members supportive of FiberNet's participation again this year. 11. Next Meeting The next meeting of the FiberNet Monticello Advisory Board is scheduled for October 13th, 2015 in the Boom Island Room at the Monticello Community Center. 12. Adiournment DENNIS SULLIVAN MOVED TO ADJOURN THE MEETING AT 8:40 PM. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 3-0. Recorder: Rachel Leonard Approved: Attest: Jeff O'Neill, City Administrator Residential & Business Subscribers Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Phone Only 38 36 34 33 33 33 32 30 29 30 Internet Only 517 531 546 547 567 577 591 607 612 621 Television Only 89 85 82 81 75 75 76 78 77 79 Phone &Internet 171 167 163 167 173 174 170 171 176 169 Phone & Television 52 51 51 48 51 50 50 51 48 47 Internet & Television 351 345 343 339 331 325 321 319 322 326 Triple Play 321 317 312 309 298 298 292 284 282 283 Total Subscribers 1539 1532 1531 1524 1528 1532 1532 1540 1546 1555 Total Phone 582 571 560 557 555 555 544 536 535 529 Total Internet 1360 1360 1364 1362 1369 1374 1374 1381 1392 1399 Total Television 813 798 788 777 755 748 739 732 729 735 Business Subscribers Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Phone Only 8 8 8 8 9 9 9 8 8 9 Internet Only 27 32 35 30 33 34 34 36 35 36 Television Only 3 3 4 4 3 3 3 2 2 2 Phone & Internet 78 78 72 75 75 73 70 70 73 71 Phone & Television 1 1 1 1 1 1 1 1 1 1 Internet & Television 5 5 6 5 2 2 2 2 2 2 Triple Play 16 16 14 14 14 13 14 14 14 14 Total Subscribers 138 143 140 137 137 135 133 133 135 135 Total Phone 103 103 95 98 99 96 94 93 96 95 Total Internet 126 131 127 124 124 122 120 122 124 123 Total Television 25 25 25 24 20 19 20 19 19 19 Nov Dec 0 0 0 0 0 0 0 0 Nov Dec 0 0 0 0 0 0 0 0 Residential Subscribers Service Phone Only Internet Only Television Only Phone & Internet Phone & Television Internet & Television Triple Play Total Subscribers Total Phone Total Internet Total Television Jan Feb Mar Apr May Jun Jul Aug Sep Oct 30 28 26 25 24 24 23 22 21 21 490 499 511 517 534 543 557 571 577 585 86 82 78 77 72 72 73 76 75 77 93 89 91 92 98 101 100 101 103 98 51 50 50 47 50 49 49 50 47 46 346 340 337 334 329 323 319 317 320 324 305 301 298 295 284 285 278 270 268 269 1401 1389 1391 1387 1391 1397 1399 1407 1411 1420 479 468 465 459 456 459 450 443 439 434 1234 1229 1237 1238 1245 1252 1254 1259 1268 1276 788 773 763 753 735 729 719 713 710 716 Nov Dec 0 0 0 0 0 0 0 0 Fiber Net Schedule of Revenue and Expenses (Modified Accrual Basis) 9/30/2015 Original Amended Account Number Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Ytd% Budet g Bud et g REVENUE 656-00000-341180 PEG Access Fee $ (10,000) $ (10,000) (659) (644) (639) (635) (619) (632) (628) (618) (620) (5,693) 56.9% 656-00000-341190 USF Fee (10,000) (10,000) (675) (679) (674) (697) (703) (704) (672) (673) (674) (6,151) 61.5% 656-00000-362920 Services - Misc (1,515) (1,514) (1,503) (1,489) (1,339) (1,340) (1,330) (1,307) (1,315) (12,652) --- 656-00000-362990 Other Miscellaneous Revenue (233) (4) (208) (8) (2) (2) (171) (36) (167) (831) --- 656-00000-380510 Television Services (565,284) (565,284) (45,118) (50,974) (50,021) (49,778) (48,932) (49,280) (48,493) (47,985) (48,215) (438,797) 77.6% 656-00000-380520 Internet Services (554,256) (554,256) (47,631) (47,524) (48,462) (48,396) (49,433) (49,854) (49,924) (50,256) (50,918) (442,398) 79.8% 656-00000-380522 Equipment Rental/Purchase (127,044) (127,044) (10,681) (11,363) (10,987) (10,878) (14,361) (11,237) (13,327) (11,595) (10,708) (105,138) 82.8% 656-00000-380530 Phone Services (315,000) (315,000) (17,886) (25,088) (25,151) (25,458) (24,352) (25,206) (24,424) (24,678) (22,301) (214,545) 68.1% 656-00000-380540 CABS Revenue (57,600) (12,000) (3,266) (3,149) (3,348) 11,792 (13,142) 3,073 - (1,506) (9,547) 79.6% 656-00000-380542 Late Fees (1,480) (1,535) (1,215) (1,350) (1,230) (1,510) (1,215) (1,335) (1,355) (12,225) --- 656-00000-380545 Discounts Offered -Taxable 2,224 2,170 2,129 2,128 2,292 2,218 2,205 2,196 2,184 19,747 --- 656-00000-380546 Discounts Offered -Non Taxable 3,855 3,782 3,786 3,606 3,676 3,716 3,570 3,496 3,509 32,995 --- 656-00000-380557 Miscellaneous Charges (12,400) (12,400) (620) (470) (986) (1,574) (2,161) (2,088) (2,498) (2,349) (2,293) (15,039) 121.3% 656-00000-380558 Misc Charges -Non Taxable 45 (337) (54) (602) (125) (508) (13) (174) (110) (1,878) --- OPERATING REVENUE Totals: (1,651,584) (1,605,984) (123,639) (137,329) (137,334) (123,340) (150,431) (133,354) (136,920) (135,315) (134,488) (1,212,149) 75.5% EXPENSE Dept 49870 General & Administration 656-49870-410100 Salaries Full -Time Reg 89,749 89,749 (879) 10,244 9,402 9,773 9,781 9,987 14,283 9,672 9,799 82,063 91.4% 656-49870-410200 Salaries Full -Time OT 4,500 4,500 14 48 27 14 17 4 14 14 11 163 3.6% 656-49870-410300 Salaries Part -Time Reg 30,101 30,101 3,164 3,955 2,136 1,350 1,258 1,453 2,171 1,433 859 17,779 59.1% 656-49870-410310 Salaries Part -Time. OT 500 500 - - - - - - - - - - 0.0% 656-49870-410400 Salaries Temporary -Reg 5,000 5,000 - 61 364 - - - - - - 425 8.5% 656-49870-412100 Pera Contributions 9,364 9,364 911 1,069 867 835 829 858 1,235 834 800 8,238 88.0% 656-49870-412200 Fica Contributions 8,051 8,051 736 860 713 664 659 683 987 663 635 6,600 82.0% 656-49870-412300 Medicare Contributions 1,883 1,883 172 201 167 155 154 160 231 155 148 1,543 82.0% 656-49870-413100 Health Insurance Contributions 47,508 47,508 - 3,695 3,657 3,657 3,657 3,653 3,697 3,664 3,657 29,335 61.7% 656-49870-413300 Life Insurance Contributions - - 23 22 22 22 22 22 22 22 178 --- 656-49870-413400 Disability Ins Contributions 38 35 35 35 35 36 35 35 284 --- 656-49870-414200 UC Benefit Payments - - - - - - - - - 656-49870-420300 Printed Forms And Paper - 337 - - - 337 --- 656-49870-420990 Office Supplies - - 179 - 195 360 50 - - - 784 --- 656-49870-421990 Gen Operating Supplies 14,500 14,500 103 3,228 1,937 4,756 2,717 1,031 440 2,143 (766) 15,588 107.5% 656-49870-430100 Professional Services -Audit 5,350 5,350 - - - - - - - - - 0.0% 656-49870-430400 Legal Fees - - 900 11,115 525 555 75 150 986 3,593 17,898 --- 656-49870-430700 Management Services (GM) 100,000 75,000 - 6,235 1,885 715 1,690 2,015 - - 12,540 16.7% 656-49870-431800 Professional Services -Billings - 25,000 - - - - 10,173 2,045 2,016 2,030 2,173 18,437 73.7% 656-49870-431970 Regulatory Professional Svcs 20,000 20,000 - 658 658 - - 1,975 1,979 - - 5,271 26.4% 656-49870-431990 Miscellaneous Prof Services 24,000 24,000 2,617 1,955 3,565 7,271 (50) 2,558 6,612 4,062 5,813 34,402 143.3% 656-49870-432100 Telephone/Internet 2,640 2,640 150 - 156 306 313 8 909 8 8 1,858 70.4% 656-49870-432150 Internal IT Services 24,291 24,291 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024 18,218 75.0% 656-49870-432200 Mail & Delivery Services - - 543 507 807 623 1,135 555 933 578 696 6,378 --- 656-49870-432500 Cable/Network Services - 128 - 2,024 128 - 1,901 - - 4,182 --- 656-49870-433200 Training/Conferences - - - 12 - - - - - 12 --- 656-49870-434600 Marketing 1,500 1,500 - - 220 39 5 289 289 842 56.1% 656-49870-436100 LPV Insurance 9,514 9,514 6,730 - - - - - 3,819 10,549 110.9% 656-49870-440100 Repair and Maint-Buildings - - - 1,199 304 - - - - 1,357 - 2,859 --- 656-49870-441200 Building/Room Rental 16,980 16,980 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 12,735 75.0% 656-49870-443200 Write Offs 11,000 11,000 4,394 - (357) 3,493 1,459 790 760 703 4,016 15,258 138.7% 656-49870-443300 Dues Membership and Subscrip 1,500 1,500 400 - - 895 - - - - 1,295 86.3% 656-49870-443700 Licenses And Permits 1,500 1,500 - - 139 - 25 - 1,293 - 102 1,559 103.9% 656-49870-443980 Bank Charges 15,000 15,000 852 922 1,246 1,301 951 953 950 981 1,028 9,184 61.2% 656-49870-443990 Miscellaneous Other Exp 6,000 6,000 208 6 5 5 12,580 338 112 6 6 13,267 221.1% 656-49870-472030 Operating Transfer Out - - - - - - - - - - - - --- 656-49870 EXPENSETotaIS: 450,431 450,431 23,554 33,664 46,640 42,549 51,846 32,362 46,192 33,074 40,181 350,062 77.7% Original Amended Account Number Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Ytd% Budet g Bud et g Dept 49870 Field Operations 656-49877-410100 Salaries Full -Time Reg 165,118 185,118 13,994 17,678 17,058 17,201 17,172 17,187 25,513 17,172 17,187 160,163 86.5% 656-49877-410200 Salaries Full -Time OT 10,000 10,000 1,167 1,211 1,224 755 661 1,121 1,281 949 828 9,197 92.0% 656-49877-410300 Salaries Part -Time Reg 10,000 - - - - - - - - - - --- 656-49877-410310 Salaries Part -Time OT 656-49877-410400 Salaries Temporary -Reg 10,000 - - - - - - - - - - --- 656-49877-412100 Pera Contributions 13,884 13,884 1,137 1,417 1,371 1,347 1,338 1,373 2,009 1,359 1,351 12,702 91.5% 65649877-412200 Fica Contributions 12,097 12,097 926 1,134 1,097 1,077 1,069 1,099 1,625 1,087 1,081 10,194 84.3% 65649877-412300 Medicare Contributions 2,829 2,829 217 265 257 252 250 256 380 254 253 2,383 84.2% 656-49877-413100 Health Insurance Contributions 45,882 45,882 - 5,205 5,440 5,440 5,440 5,440 5,440 5,440 5,440 43,285 94.3% 656-49877-413300 Life Insurance Contributions - - 33 33 33 33 33 33 33 33 260 --- 656-49877-413400 Disability Ins Contributions - - 57 57 57 57 57 57 57 57 458 --- 656-49877-414200 UC Benefit Payments 5,000 5,000 - - - - - - - - - 0.0% 656-49877-415100 Work Comp Ins Premiums 13,000 13,000 3,792 - 3,792 29.2% 656-49877-421110 Clothing Supplies 5,000 5,000 - - - - - - 1,640 1,640 32.8% 656-49877-421200 Motor Fuels 10,000 10,000 - 157 249 126 271 302 260 342 247 1,954 19.5% 656-49877-421800 Fiber/Video/Phone Supplies 145,000 145,000 8,717 762 4,775 328 315 21 14,015 1,834 9,625 40,393 27.9% 656-49877-421990 Gen Operating Supplies 35,000 35,000 - 501 21 4,735 5,841 3,126 452 4,008 5,240 23,925 68.4% 656-49877-422500 Landscaping Materials 5,000 5,000 - - - - - - 36 - 36 0.7% 656-49877-422990 Misc Repair and Maint Supplies 2,160 2,160 121 2 - 123 5.7% 656-49877-424100 Small Tools ($500-$9999) 25,000 25,000 - - - - - - 0.0% 656-49877-431900 Maintenance Agreements 110,000 110,000 63,536 2,077 406 - 4,165 70,184 63.8% 656-49877-431990 Miscellaneous Prof Services 15,000 15,000 - 641 871 91 9,028 455 (6,587) 658 771 5,928 39.5% 656-49877-432770 Gopher State Locates 5,000 5,000 50 31 20 71 240 - 172 323 131 1,038 20.8% 656-49877-433100 Travel Expense 2,000 2,000 - - - - - - - - - 0.0% 656-49877-433200 Training/Conferences 5,000 5,000 - - - - - - - - 0.0% 656-49877-438100 Electric 27,500 27,500 4,397 4,424 1,946 1,489 1,795 1,900 1,694 17,645 64.2% 656-49877-438200 Water/Sewer 2,000 2,000 - - 82 - - 451 - 533 26.7% 656-49877-438400 Refuse/Recycling Services 500 500 137 137 137 137 137 274 960 192.0% 656-49877-440100 Repair and Maint-Buildings/Systems 10,000 10,000 - - - - 6,630 3,900 - 10,530 105.3% 656-49877-440440 Repair & Maint-Mach & Equip 5,000 5,000 - 943 65 1,008 20.2% 656-49877-440500 Repair and Maint-Vehicles 5,000 5,000 575 - - 575 11.5% 656-49877-443990 Miscellaneous Other Exp 6,255 6,255 - - 0.0% 656-49877-458010 Other Equipment 120,000 120,000 - - - 0.0% 656-49877-472030 Operating Transfer Out - - - - - - --- 656-49877 EXPENSE Totals: 828,225 828,225 89,743 29,093 40,798 38,272 43,882 32,502 53,787 41,021 49,807 418,905 50.6% Dept 49879 Cost of Goods Sold 656-49879-430910 Voice -Technical Services 76,000 76,000 2,694 6,240 3,641 10,158 5,329 5,298 5,921 5,103 6,083 50,466 66.4% 656-49879-430920 Video -Technical Services 576,000 576,000 - 53,928 46,837 59,811 61,847 51,654 50,790 49,435 50,094 424,395 73.7% 656-49879-430930 Data -Technical Services 170,000 170,000 9,849 18,649 14,249 14,249 14,249 16,949 14,249 11,549 34,366 148,356 87.3% 656-49879-443720 Video -Licenses and Permits - - - 67 - - - - - 67 - 134 --- 656-49879 EXPENSE Totals: 822,000 822,000 12,542 78,883 64,727 84,218 81,425 73,901 70,959 66,153 90,542 623,351 75.8% OPERATING EXPENSE Totals: 2,100,656 2,100,656 125,840 141,640 152,165 165,039 177,153 138,765 170,938 140,248 180,530 1,392,317 66.3% OPERATING (LOSS) (449,072) (494,672) (2,201) (4,311) (14,832) (41,699) (26,722) (5,411) (34,018) (4,933) (46,041) (180,168) 36.4% OPERATING - average monthly (loss) (37,423) (41,223) (20,019) 48.6% Months Year % 9 12 75.0% Note: Some December 2015 (CoGS) content, which is paid in January 2016, will need to be accrued at year-end. Amended Description Orig. Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Ytd% SUMMARY Budget OPERATING (LOSS) (449,072) (494,672) (2,201) (4,311) (14,832) (41,699) (26,722) (5,411) (34,018) (4,933) (46,041) (180,168) 36.4% NONOPERATING (REV)/EXP: USAC receivable w/o - - 24,170 24,170 656-00000-362400 Sale of City Property (500) (800) (2,400) (15,700) (15,500) - (34,900) --- 656-00000-392000 Operating Transfer In (450,000) (450,000) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (37,500) (337,500) 75.0% NET 928 (44,672) 35,799 33,189 23,468 (1,799) 26,478 47,589 3,482 32,567 (32,712) 168,062 Residential & Business Subscribers (Customer Counts) Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD I CHG % Phone Only 38 36 34 33 33 33 32 30 29 30 --- --- -8 -21.1% Internet Only 517 531 546 547 567 577 591 607 612 621 --- --- 104 20.1% Television Only 89 85 82 81 75 75 76 78 77 79 --- --- -10 -11.2% Phone & Internet 171 167 163 167 173 174 170 171 176 169 --- --- -2 -1.2% Phone & Television 52 51 51 48 51 50 50 51 48 47 --- --- -5 -9.6% Internet & Television 351 345 343 339 331 325 321 319 322 326 --- --- -25 -7.1% Triple Play 321 317 312 309 298 298 292 284 282 283 --- --- -38 -11.8% Total Subscribers 1539 1532 1531 1524 1528 1532 1532 1540 1546 M M E 0 16 1.0% Total Phone 582 571 560 557 555 555 544 536 535 529 --- --- -53 -9.1% Total Internet 1360 1360 1364 1362 1369 1374 1374 1381 1392 1399 --- --- 39 2.9% Total Television 813 798 788 777 755 748 739 732 729 735 --- --- -78 -9.6% Total Services 2755 2729 2712 2696 2679 2677 2657 2649 2656 2663 --- --- -92 -3.3% Residential & Business Subscribers (Percentage of Customers) Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phone Only 2.5% 2.3% 2.2% 2.2% 2.2% 2.2% 2.1% 1.9% 1.9% 1.9% --- --- Internet Only 33.6% 34.7% 35.7% 35.9% 37.1% 37.7% 38.6% 39.4% 39.6% 39.9% --- --- Television Only 5.8% 5.5% 5.4% 5.3% 4.9% 4.9% 5.0% 5.1% 5.0% 5.1% --- --- Phone & Internet 11.1% 10.9% 10.6% 11.0% 11.3% 11.4% 11.1% 11.1% 11.4% 10.9% --- --- Phone & Television 3.4% 3.3% 3.3% 3.1% 3.3% 3.3% 3.3% 3.3% 3.1% 3.0% --- --- Internet & Television 22.8% 22.5% 22.4% 22.2% 21.7% 21.2% 21.0% 20.7% 20.8% 21.0% --- --- Triple Play 20.9% 20.7% 20.4% 20.3% 19.5% 19.5% 19.1% 18.4% 18.2% 18.2% --- --- Total Subscribers 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% Total Phone 21.1% 20.9% 20.6% 20.7% 20.7% 20.7% 20.5% 20.2% 20.1% 19.9% --- --- Total Internet 49.4% 49.8% 50.3% 50.5% 51.1% 51.3% 51.7% 52.1% 52.4% 52.5% --- --- Total Television 29.5% 29.2% 29.1% 28.8% 28.2% 27.9% 27.8% 27.6% 27.4% 27.6% --- --- Total Services 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% --- --- Residential and Business Service Participation (Percentage of Customers) Service I Jan I Feb I Marl Apr I May I Jun I Jul I Aug I Sep I Oct I Nov I Dec I YTD I CHG % Phone 38% 37% 37% 37% 36% 36% 36% 35% 35% -3% -8% TV 53% 52% 51% 51% 49% 49% 48% 48% 47% -6% -11% Internet 88% 89% 89% 89% 90% 90% 90% 90% 90% 2% 2% Residential Subscribers (Customer Counts) Service Jan I Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD CHG % Phone Only Internet Only 30 28 26 25 24 24 23 22 21 21 37.3% 38.4% -9 95 -30.0% 19.4% 490 499 511 517 534 543 557 571 577 585 Television Only Phone & Internet 86 82 78 77 72 72 73 76 75 77 5.3% 5.4% --- --- -9 5 -10.5% 5.4% 93 89 91 92 98 101 100 101 103 98 Phone & Television Internet & Television Triple Play 51 50 50 47 50 49 49 50 47 46 1 3.4% -5 -22 -36 -9.8% -6.4% -11.8% 346 340 337 334 329 323 319 317 320 324 305 301 298 295 284 285 278 270 268 269 Total Subscribers 1401 1389 1391 1387 1391 1397 1399 1407 1411 1420 0 0 19 1.4% Total Phone Total Internet 479 468 465 459 456 459 450 443 439 434 0 0 -45 42 -9.4% 3.4% 1234 1229 1237 1238 1245 1252 1254 1259 1268 1276 0 0 Total Television Total Services 788 773 763 1 753 735 1 729 1 719 1 713 710 1 716 1 0 0 -72 -75 -9.1% -3.0% 2501 2470 2465 1 2450 2436 1 2440 1 2423 1 2415 2417 1 2426 1 0 0 Residential (Percentage of Customers) Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phone Only 2.1% 2.0% 1.9% 1.8% 1.7% 1.7% 1.6% 1.6% 1.5% 1.5% --- --- Internet Only 35.0% 35.9% 36.7% 37.3% 38.4% 38.9% 39.8% 40.6% 40.9% 41.2% --- --- Television Only 6.1% 5.9% 5.6% 5.6% 5.2% 5.2% 5.2% 5.4% 5.3% 5.4% --- --- Phone & Internet 6.6% 6.4% 6.5% 6.6% 7.0% 7.2% 7.1% 7.2% 7.3% 6.9% --- --- Phone & Television 3.6% 3.6% 3.6% 3.4% 3.6% 3.5% 3.5% 3.6% 3.3% 3.2% --- --- Internet & Television 24.7% 24.5% 24.2% 24.1% 23.7% 23.1% 22.8% 22.5% 22.7% 22.8% --- --- Triple Play 21.8% 21.7% 21.4% 21.3% 20.4% 20.4% 19.9% 19.2% 19.0% 18.9% --- --- Total Subscribers 100.0% 100.0% 100.0% 100.0% 100.0°/% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% Total Phone 19.2% 18.9% 18.9% 18.7% 18.7% 18.8% 18.6% 18.3% 18.2% 17.9% --- --- Total Internet 49.3% 49.8% 50.2% 50.5% 51.1% 51.3% 51.8% 52.1% 52.5% 52.6% --- --- Total Television 31.5% 31.3% 31.0% 30.7% 30.2% 29.9% 29.7% 29.5% 29.4% 29.5% --- --- Total Services 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% --- --- Residential Service Participation (Percentage of Customers) Service I Jan I Feb I Marl Apr l May l Jun I Jul l Aug l Sep I Oct I Nov I Dec I YTD I CHG % l Phone 34% 34% 33% 33% 33% 33% 32% 31% 31% 31% -3% -9% TV 56% 56% 55% 54% 53% 52% 51% 51% 50% 50% -6% -11% Internet 88% 88% 89% 89% 90% 90% 90% 89% 90% 90% 2% 2% Business Subcribers (Customer Counts) Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD CHG % Phone Only 8 8 8 8 9 9 9 8 8 9 21.9% 24.1% 1 12.5% Internet Only 27 32 35 30 33 34 34 36 35 36 1.5% 1.5% 9 33.3% Television Only 3 3 4 4 3 3 3 2 2 2 0.7% 0.7% -1 -33.3% Phone & Internet 78 78 72 75 75 73 70 70 73 71 1.5% 1.5% -7 -9.0% Phone & Television 1 1 1 1 1 1 1 1 1 1 10.4% 10.4% --- --- 0 0.0% Internet & Television Triple Play Total Subscribers 5 5 6 5 2 2 2 2 2 2 39.8% 38.5% -3 -2 -3 -60.0% -12.5% -2.2% 16 16 14 14 14 13 14 14 14 14 138 143 140 137 137 135 133 133 135 135 0 0 Total Phone Total Internet 103 103 95 98 99 96 94 93 96 95 0 0 -8 -3 -7.8% -2.4% 126 131 127 124 124 122 120 122 124 123 0 0 Total Television Total Services 25 25 25 1 24 20 1 19 20 19 19 19 0 0 -6 I -17 -24.0% -6.7% 254 259 247 1 246 243 1 237 234 234 239 237 0 0 Business Subscribers (Percentage of Customers) Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phone Only 5.8% 5.6% 5.7% 5.8% 6.6% 6.7% 6.8% 6.0% 5.9% 6.7% --- --- Internet Only 19.6% 22.4% 25.0% 21.9% 24.1% 25.2% 25.6% 27.1% 25.9% 26.7% --- --- Television Only 2.2% 2.1% 2.9% 2.9% 2.2% 2.2% 2.3% 1.5% 1.5% 1.5% --- --- Phone & Internet 56.5% 54.5% 51.4% 54.7% 54.7% 54.1% 52.6% 52.6% 54.1% 52.6% --- --- Phone & Television 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.8% 0.8% 0.7% 0.7% --- --- Internet & Television 3.6% 3.5% 4.3% 3.6% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% --- --- Triple Play 11.6% 11.2% 10.0% 10.2% 10.2% 9.6% 10.5% 10.5% 10.4% 10.4% --- --- Total Subscribers 100.0% 100.0°/% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% Total Phone 40.6% 39.8% 38.5% 39.8% 40.7% 40.5% 40.2% 39.7% 40.2% 40.1% --- --- Total Internet 49.6% 50.6% 51.4% 50.4% 51.0% 51.5% 51.3% 52.1% 51.9% 51.9% --- --- Total Television 9.8% 9.7% 10.1% 9.8% 8.2% 8.0% 8.5% 8.1% 7.9% 8.0% --- --- Total Services 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% --- --- Business Service Participation (Percentage of Customers) Service I Jan I Feb I Marl Apr l May l Jun I Jul l Aug l Sep I Oct I Nov l Dec l YTD I CHG % l Phone 75% 72% 68% 72% 72% 71% 71% 70% 71% 70% -4% -5% TV 18% 17% 18% 18% 15% 14% 15% 14% 14% 14% -4% -22% Internet 91% 92% 91% 91% 91% 90% 90% 92% 92% 91% 1% 1% City Council Agenda 10/12/15 2L Consideration to call for a Workshop on Development of FiberNet Service Mix and Delivery options (JO) A. REFERENCE AND BACKGROUND In response to the general direction provided by the City Council at the previous meeting, Council is asked to consider establishing October 26, 2015 at 4:30 p.m. as a date for a joint workshop with City Council and the Fiber Advisory Board to discuss topics including but not limited to the following: • Review of telecommunication service mix and the Monticello marketplace • Review of local and industry trends since 2009 — Voice, Internet, Video • Develop an desired approach for establishing direction o Stay the course — hire a Business Manager and utilize CTC or other company for technical support o Preparation of an RFP seeking consultant guidance in establishing service mix and operational design o Preparation of an RFP seeking proposals from telecommunication companies interested in operating FNM This workshop is requested in response to Council comments at the meeting on September 28, 2015. At that meeting there was discussion relating to FiberNet operations and management. The discussion included recognition that important accomplishments have occurred in the past year along with reaffirmation that additional resources and expertise are needed in order for FNM to thrive going forward. The consensus voiced at the meeting of the Council on September 28, 2015 is consistent with the direction provided by the FiberNet Advisory Board through their request of staff to find technical support due to Dan Olsen's departure. The process for hiring a Business Manager was put on hold after his resignation because the job description was predicated on technical support provided by Olsen. Subsequently, staff has found a company called Consolidated Telecommunications Company capable of fulfilling a technical support role which would enable the City to follow through on the original plan to hire a Business Manager. However, discussions with CTC highlighted their capability to provide a very broad level of services. The idea emerged that perhaps the City could benefit from CTC support in other areas in addition to technical support, such as system management, regulatory support, marketing and expansion. In keeping with FiberNet Advisory Board direction, CTC is in the process of developing a proposal to the FiberNet Advisory board outlining the menu of services to be provided at the regular meeting of FAB on this Tuesday. City Council Agenda 10/12/15 Please note that in the event the City is interested in utilizing a telecommunications company to play a significant role in operating the asset, the City is not limited to utilizing CTC for services and it could occur that Council may wish to seek proposal from other companies as well. This matter could be a topic of conversation at the workshop. B. ALTERNATIVE ACTIONS 1. Motion calling for a Workshop to be held on October 26, 2015 at 4:30 p.m. 2. Motion to deny or select an alternative date C. STAFF RECOMMENTATION Staff recommends alternative 1. D. SUPPORTING DATA None