FiberNet Advisory Board Agenda Packet 08-16-2016AGENDA
FIBERNET MONTICELLO ADVISORY BOARD MEETING
Tuesday, August 16, 2016 — 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
1. Call to Order
2. Additions to Agenda
3. Approval of June 2016 Meeting Minutes
4. Discussion of the FiberNet Governance Model
5. Discussion of membership in the MN Public Broadband Alliance
6. Next Meeting — Tuesday, September 13, 2016
7. Adjourn
MINUTES
REGULAR MEETING — FIBERNET MONTICELLO ADVISORY BOARD
Tuesday, June 1411, 2016
Boom Island Room, Monticello Community Center
Present: Brian Stumpf (left at 7pm), Charlotte Gabler, Jon Morphew, Dennis Sullivan
Others: Jeff O'Neill, Rachel Leonard, Bryan Rabe, Wayne Oberg, Mark Birkholz, Lynne
Dahl -Fleming
Absent: Jacob Kramer
1. Call to Order
Brian Stumpf called the meeting to order at 6:30 PM.
2. Additions to Agenda
None
3. Approval of May 2016 Meeting Minutes
CHARLOTTE GABLER MOVED TO APPROVE THE MAY 10TH, 2016 REGULAR
MEETING MINUTES. DENNIS SULLIVAN SECONDED THE MOTION. MOTION
CARRIED 4-0.
4. Network Update
• Bryan Rabe reported peak network usage and the number of new GigaCenter ONTs in
the field.
• Bryan Rabe reported FiberNet continues to have trouble with set-top boxes after power
outages. The fix is relatively simple to execute, but it requires a call into tech support.
Staff is working with Calix on a better solution.
• Jeff O'Neill asked if there were any recent hack attempts. Bryan Rabe replied the Calix
software continues to help thwart any attempts. Lately there have been reports of
malicious IP attacks, whether intentional or due to viruses on customer computers.
FiberNet responds to those reports per the instructions of our regulatory consultant.
5. Business Office Update
• Rachel Leonard provided the latest subscriber data.
Rachel Leonard reported maintenance staff found an indication of water encroachment
and other environmental concerns in the suite across the hall from the FiberNet office.
The City contacted the League of MN Cities to evaluate the building and determine what
needs to be done. Until the evaluation is complete, office staff have been temporarily
moved into City Hall. There are signs on the doors directing customers to the temporary
location. FiberNet continues to have walk-in hours each day.
Rachel Leonard requested board input on a customer credit. The customer's property
was wired so FiberNet service could be provided in the future. The cost was $69.95 per
line, and a total of 6 lines were installed. The charges were listed on a form signed by the
customer as $69.95 x 6 for 6 lines installed instead of the estimated total cost. Customer
claimed he didn't understand how he would be charged and thought it would be one
charge of $69.95. Since there was potential for misunderstanding, staff believed a
courtesy credit would be appropriate but asked the board to determine the proper
FiberNet Advisory Board Minutes: 06/14/16
amount. Discussion among the board varied from no credit necessary to half of the total
cost. Charlotte Gabler presented the idea of providing credit for two of the 6 lines.
DENNIS SULLIVAN MOVED TO PROVIDE A CREDIT FOR THE COST OF 2
LINES (69.95 x 2). CHARLOTTE GABLER SECONDED THE MOTION. MOTION
CARRIED 3-1. JON MORPHEW VOTED IN OPPOSITION BECAUSE HE
BELIEVED FIBERNET SHOULD NOT OFFER A CREDIT.
6. Financial Update
• Wayne Oberg provided the financial reports ending 5/31/2016. He reported
administrative costs and revenues are relatively static; this is a positive trend. Field costs
are less static because there are more annual fees due at varying times of the year.
• Mr. Oberg reported that a previous $9,000 invoice included on the last financial update
does not need to be paid. Staff questioned CSI about the invoice and determined the fee
was included in the annual maintenance fee already paid for 2016.
Finally, Mr. Oberg noted an annual maintenance fee for MetaSwitch was received in
May. It had been sent to an incorrect email address earlier in 2016. The contact
information has been updated and the invoice has been paid.
7. Management Update
• Jeff O'Neill reported that at a special City Council meeting on May 26th, the Council
unanimously voted to enter into negotiations with Arvig for a management services
agreement. He explained that both CTC and Arvig were highly disciplined, excellent
companies, but the Council appeared to feel more comfortable with the Arvig business
model. Mr. O'Neill introduced Mark Birkholz from Arvig.
• Mark Birkholz gave background on Arvig and their plans for FiberNet. He emphasized
the importance of showing this is still a city entity and here for the community.
• Charlotte Gabler asked about potential changes to the governance model, particularly the
role of the advisory board. Mr. Birkholz said Arvig will give quarterly reports, and they
are happy to give them directly to Council or a board the Council designates. Rachel
Leonard commented that ultimately who gets the report will be up to the Council in a
future decision. Lynne Dahl -Fleming asked about future transparency of FiberNet. Jeff
O'Neill explained that all FiberNet documents will still be public and available upon
request. Rachel Leonard stated more people may have access to the information if given
to the Council because it's a larger audience.
• Dennis Sullivan addressed Mr. Birkholz to say Arvig may still want a citizen board to be
a liaison to the community. It could become more like a focus group.
• Charlotte Gabler commented she would like to continue to see monthly financial reports
so she can be informed, particularly when speaking to citizens.
8. IRET Update
• Jeff O'Neill reported the City Council approved an 8 year agreement with IRET. Lynne
Dahl -Fleming asked about the exclusivity of the agreement; O'Neill explained FiberNet
will receive exclusive marketing rights within the complex.
FiberNet Advisory Board Minutes: 06/14/16
9. Next Meetin
The next meeting of the FiberNet Advisory Board is scheduled for July 12, 2016 at 6:30pm
in the Boom Island Room at the Monticello Community Center.
10. Adiournment
CHARLOTTE GABLER MOVED TO ADJOURN THE MEETING. DENNIS SULLIVAN
SECONDED THE MOTION. MOTION CARRIED 3-0 AND MEETING ADJOURNED
AT 7:40 PM.
Recorder: Rachel Leonard
Approved:
Attest:
Jeff O'Neill, City Administrator
CHAPTER 9
TELECOMMUNICATIONS PUBLIC SERVICE ENTERPRISE
FIBERNET MONTICELLO
SECTION:
2-9-1:
Findings and Purpose
2-9-2:
Creation, n ,a.,isef,, Board Established
2 9 4-.
2-9-5:
Functions, Powers and Duties
Gone,.al Manage Management
2-9-6:
Reservation of Power
2-9-1: FINDINGS AND PURPOSE
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 infefma4ien
The City Council hereby finds that the establishment of FiberNet Monticello is in the
best interests of the City. The City Getmeil f,,. her- finds that ;t ; in the best interests of the
City to . ea4e aR .,a. isetz„ 1 -.e.,, -.a to g -aide the management .,4'Fiber-Net Me tieel e
(A) A municipal telecommunications services enterprise to be known as FiberNet
Monticello is hereby created and established. Fiber -Net Men4 ee"e shall have a
n dyis iFy Board eemposed of five (5) ,,.ting members to be appointed by the Mayor-
and
(B)
be the Mayef). The tefms of appointment shall eeineide with their- eleeted teFms of
vaeat# may be made fFofn any mem er- of the Couneil.
(D) All veting membef-s shall serve at the pleasiffe of the City Get�neih Vaeaneies shall
filled by appointmen4 by the "fir and the City CounEil. Upon the e"ir-ation 0i
„tea and qualified-.
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page
♦ 1 I 1 I
\ 1 I ♦ �-0 . 90
1 I
dill l7n
(C) The Advisory Bea -r -d shall meet at least menthly. Speeial y be ealled by
the Wes dent . fieeded,
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2-9-5: GENERAL MANAGE MANAGEMENT
(A) The City Council shall appoint a Genefal M,,nage, management for FiberNet
Monticello, and hire or assign such staff, consultants or contractors as it deems
necessary for the efficient operations of FiberNet Monticello and the City.
(B) The Gene, -al Manager Management shall be responsible for the administration and
management of FiberNet Monticello.
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page 2
(C) Management shall have the authority to govern FiberNet Monticello within the
boundaries established in the annual budget as approved by the City Council.
Management shall make an annual budget recommendation to the City Council.
Management shall insure FiberNet meets City requirements and Minnesota
Statutory requirements for financial management and reporting.
(C) The Genera' M.,.,. gef Management shall provide periodic reports to the A&isefy
Board at its regular- fneetings and an annualro oA to the City Council accurately
describing the activities and financial condition of FiberNet Monticello.
(D) The General manager Management 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 or the City Council, and sttbjeet to amendment
of this Ord -.anee, 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 f4es and fees, (4) approve potential
expansions of the service area of FiberNet Monticello, and (5) m4if . hiring and firing.
(4/14/08, #480)
MONTICELLO CITY ORDINANCE TITLE II/Chapt 9/Page
Residential & Business Subscribers
Service
Jan
Feb
Mar
Apr
May
Jun
Jul
Au
Phone Only
32
31
31
31
27
27
28
29
Internet Only
664
678
693
700
704
707
717
723
Television Only
74
72
72
70
71
71
73
71
Phone &Internet
164
163
161
158
162
164
156
155
Phone & Television
44
43
43
43
42
42
42
42
Internet & Television
318
309
298
292
287
285
280
281
Triple Play
278
277
271
268
265
260
254
252
Total Subscribers
1574
1573
1569
1562
1558
1556
1550
1553
Total Phone
518
514
506
500
496
493
480
478
Total Internet
1424
1427
1423
1418
1418
1416
1407
1411
Total Television
1 714
1 701
684
673
1 665
658
649
1 646
Business Subscribers
Service
Jan
Feb
Mar
Apr
May
Jun
Jul
Au
Phone Only
10
10
10
10
8
9
10
10
Internet Only
37
38
39
41
31
31
31
30
Television Only
1
1
1
1
1
1
2
2
Phone & Internet
70
70
66
64
68
69
66
66
Phone & Television
1
1
2
2
1
1
1
1
Internet & Television
3
3
3
3
4
4
4
4
Triple Play
15
14
14
14
15
15
15
14
Total Subscribers
137
137
135
135
128
130
129
127
Total Phone
96
95
92
90
92
94
92
91
Total Internet
125
125
122
122
118
119
116
114
Total Television
20
19
20
20
21
21
22
21
Residential Su scri ers
Service
Jan
Feb
Mar
Apr
May
Jun
Jul
Au
Phone Only
22
21
21
21
19
18
18
19
Internet Only
627
640
654
659
673
676
686
693
Television Only
73
71
71
69
70
70
71
69
Phone & Internet
94
93
95
94
94
95
90
89
Phone & Television
43
42
41
41
41
41
41
41
Internet & Television
315
306
295
289
283
281
276
277
Triple Play
263
263
257
254
250
245
239
238
Total Subscribers
1437
1436
1434
1427
1430
1426
1421
1426
Total Phone
422
419
414
410
404
399
388
387
Total Internet
1299
1302
1301
1296
1300
1297
1291
1297
Total Television
694
682
664
653
644
637
627
625