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HomeMy WebLinkAbout10.26.2022 telecommunications minutesTELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES Harold E. Getty Council Chambers City Hall October 26, 2022 4:00 p.m. Members present: Batemon, Kurtenbach, Young, Van Fleet, and Council Liaison Rob Nichols. Moved by Kurtenbach seconded by Young that the Agenda, as proposed, be approved. Voice - vote Ayes: Four. Motion carried. Moved by Young seconded by Kurtenbach that the minutes of July 14, 2022, as proposed, be approved. Voice -vote Ayes: Four. Motion carried. General progress update from Magellan Advisors. Courtney Violette, Magellan Advisors, shared that the GO Bond was awarded, Waterloo was awarded a 2 million EDA Grant for up around John Deere Plant, and NW Industrial Park, and Airport area. The Middle Mile Grant is currently pending. Design is complete for the most part. City is to review at this point and give feedback. Since last meeting, with the middle mile grant, they are tracking three projects with this grant. This includes two backbone projects along with fiber to the home and premise. They are currently working on preparing bid packets for the middle mile projects and outlined future timelines, which would allow the projects to be bid mid-2023. Mr. Van Fleet questioned when construction on the middle mile grant would begin. Courtney Violette shared that there would not be an award until late march in 2023, and then it would go to environmental, so it could be bid potentially in summer of 2023. Mr. Young questioned when services could begin to be provided. Courtney Violette explained that customers could start to come online 9 months after construction starts. Maggie Burger, Speer Financial, explained that the middle mile grant funds came in late through the NTIA. Mr. Van Fleet questioned if they could start down the path as though they were not getting the middle mile grant and if awarded switch gears. Courtney Violette shared he would have to defer to Maggie as it would impact funding timelines. Maggie Berger questioned if environmental goes well on EDA, could that be bid out because it's a separate bid package. Courtney Violette shared that the EDA portion of the project is nothing without the rest of the project. That's where his concern lies. He added that they could potentially bid it out earlier with the hope that an award comes through but again funding would have to be examined to determine if that is a viable option. Update from bond counsel. Maggie Burger, Speer Financial, provided a financial update and stated that the overall estimated project cost remains at one hundred and fifteen million dollars. She reviewed the various funding sources and noted that the city has been awarded the IEDA $1.8 million dollars with a grant match of $600,000 using TIF funds for the match. There is $25 million dollars of ARPA funds that have been designated towards this project. Additional monies from general obligation authorization, sewer, storm and water are also available for use. She shared information on the Middle Mile Grant, which is for the backbone of this system. It is a $15 million dollar with $15 million in matching funds, which have been identified as the general obligation bond. She explained that the first round of debt (working capital borrowing) would likely need to be issued around March through May of 2023. With the issuance of debt, you probably need to start having audited financial statements. She further explained that they still need to meet with the Water Works Director to see what they anticipate their participation to be. They are also Page 2 working on a sewer model to so some projections for the sewer portion of the public works as to what projects they have coming up outside of this project to identify when, how and where we fit in for any issuance of sewer revenue debt for both sewer and storm water purposes. Mr. Van Fleet questioned if a formal RFP would be required for the audited financial statements. Maggie Burger commented that is probably unlikely that a formal RFP would be needed for this first year, since it is just for the end of this fiscal year. She explained it is a professional service, which in Iowa, can be selected without an RFP. She added that we might talk with the city's auditor since it's just the last quarter. Doing an RFP could still be a good idea because you may find an audit firm who specializes in utilities verses just public finance. She said they have a list of firms as well as sample RFP's. Mike Yong questioned if there was a date when the Middle Mile Grant would be awarded. Maggie Burger explained that we should have informal approval in December and a formal award would follow later. Courtney Violette explained that up to 52 weeks lead-time with manufacturers. Lead times are planned into schedules and fiber cannot go into the ground until a substantial amount of conduit is in the ground. Steve Nadel shared that there have been discussions in the background to ensure all of the financing has been reviewed planned and able to be available with all of the steps of the project. When the grant came up that threw a wrinkle into financing and timing, and when things can go to bid. He added an explanation about the backbone portion of the project. He shared that there will be portions of the project that remain with the city as the city is going to be building the backbone and the utility will have a separate portion of the project. In terms of technically who is managing, governing, and controlling portions and financing portions some will be under the city and some will be under the utility. There will be interplay between the two and that has to happen to reach the end goal, but the entire thing will not be the utility's responsibility. Mr. Van Fleet shared that they were recently invited to existing utilities for tours to learn more about what the future holds. Mr. Young questioned if it would be possible we could be awarded the grant at a lesser amount or is it all or nothing. Courtney Violette shared that the grant is all or nothing. Mr. Van Fleet questioned the points. Maggie Burger shared that points are allotted and that in doing a 50/50 grant to match, we basically bought points. Demographically, Waterloo played well into this grant application as well as the lack of fiber. Mr. Kurtenbach commented that the question he keeps hearing is when will people be signed up for services. Courtney Violette shared that it is anticipated 9 months after we start construction. Steve Nadel requested clarification of the bid letting timeline. Courtney Violette shared that the bid letting documents could not be approved until the environmental portion has been completed. Steve Nadel explained that with the uncertainty of timing, it is possible that construction would not begin until the fall of next year, or even the following spring. Page 3 Mr. Van Fleet questioned if it would be beneficial to do some marketing and branding to put a message out there that we have a name, it is coming, and let's not confuse what we're doing with any other offer that is out there. Steve Nadel concurred with Mr. Van Fleet and added that it would be up to the board when they want to do that messaging and staffing availability. Mr. Van Fleet commented that there could be email sign ups to put out quarterly messaging for future customers. Board member comments. Board members did not have comments. With no further business before the board, it was moved by Kurtenbach seconded by Young that the meeting be adjourned at 4:51 p.m. Voice -vote Ayes: Four. Motion carried. xeCCey rFe(ch&e Kelley Felchle City Clerk