HomeMy WebLinkAbout09.28.2009• •
COUNCIL WORK SESSION
September 28, 2009
4:50 p.m.
Council Chambers
Members present: Mayor Hurley, Cole, Getty, Hart, Steve Schmitt, Welper, Reggie Schmitt,
Greenwood.
Moved by Reggie Schmitt, seconded by Steve Schmitt that the Agenda, as proposed, be
approved. Ayes: Six. Absent: Greenwood. Motion carried.
Doris Kelly, Chair of the Municipal Telecommunications Utility Board, noted that the citizens of
Waterloo, recognizing the importance of access to Advanced Broadband, approved the formation
of the Telecommunications Utility on November 8, 2005. Following the establishment of the
Utility, the mayor created a board to investigate alternatives for a municipal system or to
negotiate with other providers or consultants that might be interested in providing Waterloo's
citizens and businesses with Advanced Broadband services at competitive prices. Prior to
initiating discussions with providers or investigating alternatives, the Municipal
Telecommunications Board developed an appropriate survey instrument for data collection. Two
survey instruments were developed, one for the business sector and one specifically for
identifying the city's current and future internal communications needs.
Greenwood now present at 4:55 p.m.
Internally, findings showed that the city is technology -operation inefficiently and ineffectively,
and with cost waste implications, specifically outdated telephone system, outdated voice mail,
outdated computers, lack of technology training for staff, outdated software, connectivity and
networking issues, very limited bandwidth, system collapses and miles of unreliable
underground interconnect cable. Problems with the telephone system were cited more frequently
than any other technology issue. The five steps for the Municipal Telecommunications Utility
plan are: 1) Contract a consulting group to conduct needs assessment of city's overall telcom
network needs. 2) Seek a 3rd Party Provider for high speed data services. 3) Explore joint
informational technology services with Black Hawk County and the Waterloo Community
Schools. 4) Exercise the option to obtain an indefeasible right of use (IRU) of two pairs of fiber
located in McLeod USA's city ring network. 5) Access Federal Recovery & I -Jobs Dollars to
establish high-tech corridor connecting Waterloo/Waverly to Iowa City.
Steve Dust, President of the Greater Cedar Valley Alliance, gave an update of the Waterloo
Business Telecom Survey dated August 4, 2009. The external research with business owners
revealed that the City of Waterloo is at least a decade and one-half behind other comparable
cities in regards to business access to broadband. Eighty percent (80%) of the businesses
responding agree that Waterloo needs to make improvements to its current telecom services to
greatly increase the community's ability to attract and retain more businesses. Eighty percent
also believe that it is very important that Waterloo takes action to ensure improved telecom for
businesses. Ninety-four percent expect their businesses to require more advanced
telecommunications services. Fifty-five percent supported working with 3rd party providers, 45
percent said the city should seek new 3rd party providers, 13 percent supported contracting with
current and existing 3rd party providers, 23 percent said the city should install, maintain and own
the necessary infrastructure, and 9 percent said the city should not be concerned. The surveyed
showed reasons why the city should not be involved, including they don't believe it's a
government function, let competition drive it, current providers provide good services and are
improving their systems, private business should be the provider, and there has been no evidence
that city owned telecommunications services are successful.
There is a short window of opportunity through the American Recovery and Reinvestment Act
and the Iowa Jobs Program (I -JOBS) to fund broadband and wireless grants for unserved and
underserved areas. This could be used to create a high technology fiber infrastructure connecting
Waverly to Iowa City. The I-380 Corridor would serve as the catalyst for corridor economic
development and would provide Waterloo an opportunity to connect to an open access
broadband network. The I-380 Corridor offers a solution that may be cost effective and utilizes
telecommunications infrastructures owned by private telecommunications companies and
Council Work Session
September 28, 2009
Page 2
publicly owned where private vendors cannot or will not provide sustainable solutions. The
Utility Board encouraged the council to cooperate and work with the Greater Cedar Valley
Alliance to complete a grant application and move the city forward.
Over 12 years ago, the city signed an Indefeasible Right of Use (IRU) agreement with
McLeodUSA (now PAETEC) for the use of up to four fiber optic strands located in McLeod's
30 mile city network. The conditions of the agreement require the city to pay one dollar plus the
payment of twenty-five cents per foot per pair of fibers (or 2 fiber strands) and $660.00 for the
city's access to each splice point. The agreement also states McLeodUSA would provide all
labor and materials necessary for the installation of the fiber optic cable and all necessary
maintenance and repairs on the fiber optic cable at no additional expense to the city. If the city
were to exercise its right to utilize the strands of fiber, it would provide the community with a
30-mile backbone that could be used as a public sector network with the potential to serve
selected commercial and industrial customers. Inquires were made to PAETEC regarding their
interest to sell 4 strands of fiber and they submitted a purchase price of $150,000.00.
Jim Waterbury noted that the name of the game for most private companies is to provide only
what is necessary to stay in business. Waterloo has very little broadband competition. Mr.
Waterbury noted that Mediacom has announced plans to offer faster broadband, and the board
feels it came about because of today's meeting. Mr. Waterbury reviewed a flow chart which
detailed specific action that should be implemented for the city's survival and expansion of
business opportunities. The first step is to hire a consultant to conduct a needs assessment of the
city's overall telecom network needs.
Ms. Kelly reviewed the three RFPs that were received from Advanced Computer Engineering
Solutions, Columbia Telecommunications Corporation and RSM McGladrey and the decision to
go with Columbia Telecommunications Corporation.
Ms. Kelly explained that e-government is being very efficient electronically and allows purchase
of license and permits on-line which benefits businesses. Mayor Hurley noted that the city's new
website has the tools to eventually become e-government.
Mayor Hurley explained that the next deadline for application for Black Hawk County Gaming
Association funds is Wednesday, and he asked council to amend tonight's agenda to add a
resolution authorizing him to submit the application for a grant in the amount of $40,000.00 to
hire a consultant to conduct the needs assessment of the city's overall telecom network needs.
Councilperson Steve Schmitt noted that last week the council held a presentation by Mediacom
and heard that Waterloo will be the first in the state with high speed Internet for residential and
that businesses will have access to it within six months. Ms. Kelly responded that that the only
time the city hears from Mediacom is when the Utility Board comes before council.
With no further business before the council, it was moved by Welper, seconded by Reggie
Schmitt that the meeting be adjourned at 5:30 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk
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