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HomeMy WebLinkAbout09.24.2019.telecommunications minutesTELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES September 24, 2019 2:00 p.m. Harold E. Getty Council Chambers Board members present: Kajtazovic, Kurtenbach, Pilkington, Van Fleet. Absent: Buck. Sharon Juon, Council Liaison, was present for the meeting. Moved by Pilkington seconded by Kurtenbach that the Agenda, as proposed, be approved. Voice -vote Ayes: Four. Motion carried. Moved by Kurtenbach seconded by Pilkington to approve the minutes of August 14, 2019. Voice -vote Ayes: Four. Motion carried. Moved by Pilkington seconded by Kurtenbach to approve engagement of Magellan Advisors to perform a comprehensive community broadband feasibility study as per proposal, in an amount not to exceed $84,450, and authorize Board Chair and City Clerk to execute documents to formalize said engagement on terms satisfactory to said officers and to the Board's legal counsel. Voice -vote Ayes: Four. Motion carried. Mr. Kurtenbach requested an update on the legal and financial questions discussed at the last meeting. Chris Wendland, City Attorney's Office, explained that he had follow up conversations with an attorney named Steve Nadel from the firm Ahlers and Cooney. Most communities that create a telecom utility already have a municipal electric company, which makes the transition to offering telecom services smoother from a funding perspective. As a result, it is recommended that the board work with the city to mutually enter into the agreement with Magellan Advisors. The city will reallocate bond funds to pay for the contract. Michelle Weidner, Chief Financial Officer, explained that many questions about entering into the agreement centered on funding. The city would take action on October 7, 2019 to reallocate bond funds to pay for the contract. She noted that the bond attorneys are comfortable with the city pursuing the joint agreement and utilizing bond funds to pay for the contract. Ms. Kajtazovic requested an overview of the timeline for the study. Michelle Weidner commented that the proposal states it will take approximately five months to complete the study. Mr. Van Fleet commented Magellan is invited to come to the council meeting to do a presentation. Moved by Kurtenbach seconded by Kajtazovic to recommend to the City of Waterloo that it jointly engage Magellan Advisors to perform the broadband feasibility study. Voice vote -Ayes: Four. Motion carried. Kelley Felchle, City Clerk, questioned if the committee would like to set another meeting date prior to adjourning. Mr. Van Fleet commented that he would like the board to set another meeting date. Mrs. Juon requested that the board members attend the council meeting to show support for approving the contract with Magellan Advisors. Michelle Weidner commented that she believes the contract will be on the agenda on October 7. She further stated that the bond reallocation is scheduled for October 7. More work may be needed on the contract, but stated she would notify the board if the approval needs to be pushed back to a later meeting. Mr. Kurtenbach requested verification of the timeline from Magellan Advisors. September 24, 2019 Page 3 Randy Pilkington commented that it would be good for them to build on the work done by Amperage Marketing. Kelley Felchle questioned if the board would like to set another meeting prior to adjourning. Mr. Kurtenbach recommended setting another meeting date to get updated information regarding the study prior to attending the city council meeting. Kelley Felchle commented that city council would receive a copy of Magellan Advisor's proposal for review prior to voting on the agreement. She further questioned if the board would like to set another meeting date, possibly one month from now, while these steps are taking place at the city council. Mrs. Juon questioned if Mr. Kurtenbach wants another board meeting to review the timeline of the study prior to the agreement being voted on by council. Mr. Kurtenbach clarified that he wants to ensure that the timeline is still accurate. Michelle Weidner commented that staff will get in touch with Magellan to confirm the timeline and is not sure that requires another meeting, but, would get that information to the board so that they are comfortable prior to council voting on the agreement. Kelley Felchle questioned if the board would like to set a meeting for later in October. Mr. Van Fleet commented that a meeting later in October would be ideal. Mrs. Juon questioned if it is at the next meeting that the board would like Magellan Advisors present. Mr. Kurtenbach commented that it would be good to hear from them again. Mr. Van Fleet commented that he could reach out to them. Mr. Pilkington commented that it would be good to have Magellan Advisors present at the council meeting. Mrs. Juon commented that she agreed. Mr. Van Fleet commented that he would see if they could be present for the October 7 council meeting or participate via video conference. Mayor Hart questioned what the outcome of the votes was. Kelley Felchle commented that both motions passed. The next steps are for council to approve reallocating bond funds and approve the contract. Mayor Hart explained that it is important to continue moving forward with the study, noting that board members and city staff have helped to vet the company. Mrs. Juon asked Mayor Hart if he thinks it would be helpful to have Magellan Advisors present when the council votes on the agreement. Mayor Hart commented that it would depend on the company's availability but will work to see what can be done to get council as much information as possible. He further stated that the company has worked with several Iowa communities and should be able to do the work. Mr. Van Fleet commented that he got the impression that it will be difficult for them to be physically present for the meeting. September 24, 2019 Page 3 With no further business before the board, it was moved by Pilkington seconded by Kurtenbach that the meeting be adjourned at 2:21 p.m. Voice -vote Ayes: Four. Motion carried. CCey EFeCchk. Kelley Felchle City Clerk