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HomeMy WebLinkAbout11.30.2022.telecommunications_minutesTELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES Harold E. Getty Council Chambers City Hall November 30, 2022 4:00 p.m. Members present: Batemon, Kurtenbach, Young, Van Fleet, and Council Liaison Rob Nichols. Moved by Young seconded by Kurtenbach that the Agenda, as proposed, be approved. Voice - vote Ayes: Four. Motion carried. Moved by Kurtenbach seconded by Batemon that the minutes of October 26, 2022, as proposed, be approved. Voice -vote Ayes: Four. Motion carried. 1. Update from Magellan Advisors: Courtney Violette, Magellan Advisors, explained that the design process is complete and will begin sending the designs to the city within the week. they are working on an RFP to bid out the project. They have had discussions with city leadership on accelerating the project where possible. This week we will have the first project set ready for RFP review. The second is yet coming The projects include the EDA project, which will hopefully be ready for bid in second quarter. Fiber to the home project will be under review within the week. they have provided the city and Speer Financial updated cost estimates, construction timing, etc. they have had conversations with city leadership on operations planning, staffing, and structure. Lastly, the next step at this point is getting the design packages uploaded and legal review of RFPs. The goal is to be under construction in April. Recruiting for key positions will start in January. Marketing will begin in second quarter of 2023. Mr. Kurtenbach questioned if any of the construction work would be covered under Davis -Bacon laws. Courtney Violette confirmed. Mr. Nichols requested more information on staffing. Courtney Violette explained that they have identified several positions that will be necessary to start in 2023. Having a general manager will be important to have on board to oversee construction. As equipment starts to come in and connecting customers late next year, additional staffing will be necessary. Mr. Van Fleet questioned if Magellan Advisors will be writing job descriptions. Courtney Violette confirmed and added that Magellan Advisors would help with recruiting. 2. Update from Speer Financial. Maggie Burger, Speer Financial, explained that in 2023 the city or utility might not need to borrow a lot of money due to the grant funds that are available. She further provided an overview of strategies that can be used for funding based on whether the utility does or does not receive the Middle Mile Grant. Mr. Nichols questioned when we will hear back about the Middle Mile Grant. Maggie Burger we will likely hear back about the grant sometime in March but that they are planning as if there is no middle mile grant funding. Courtney Violette added that the financial modeling they provided assumes no middle mile grant funding and high interest rates. Mr. Van Fleet commented that the middle mile grant would be great to receive but it has definitely caused a shift in strategy and appreciates everyone's adjustment. He added that they have also adjusted modeling for construction costs to help keep financial planning as accurate as possible. With no further business before the board, it was moved by Young seconded by Kurtenbach that the meeting be adjourned at 4:29 p.m. Voice -vote Ayes: Four. Motion carried. Page 2 xelTey F'efch(e Kelley Felchle City Clerk