07-27-2009 Council Minutes - Laserfiche WebLink

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R MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 27, 2009 7:00 o'clock p.m. (4. FIBER-TO-THE-HOME NETWORK, LAKE MINNETONKA COMMUNICATIONS COMMISSION, Continued) As part of the process, the LMCC hired a consulting firm to determine the feasibility of the project. The report was completed on June 30th and reviewed by the ad hoc committee. The report concluded that the project is feasible and the issue now facing the LMCC is funding of the project. Prior indicated there are federal stimulus funds available and that the LMCC is in the process of preparing information in order to submit a grant application. A requirement of the grant application is a commitment resolution from all LMCC member cities. White asked what other cities have already approved a resolution. Prior stated the Cities of Woodland, Shoreland, Independence, St. Bonifacious, Minnetonka Beach, Tonka 4 ., Beach and Loretto have adopted a commitment resolution. Murphy asked whether the City Attorney has reviewed the resolution. Prior indicated he does not believe so and that the language contained in the resolution is boilerplate. Murphy noted he has approximately 40 years experience working for Northwestern Bell and U.S. West. Murphy stated he is in favor of submitting the grant application and that he has been involved in long discussions surrounding fiber installation in the past. His concern with the resolution is that it grants right -of -way access prior to the actual scope of work being determined. Murphy stated the costs involved • with installing a fiber optic network of the scope being proposed is astronomical and that caution should be exercised prior to commencing any work. Prior stated he understands the concerns raised by Council Member Murphy and that they have been attempting to address those concerns. Prior stated they would like to have the fiber optic cable buried underground due to the number of wind storms routinely experienced in this area. Prior stated in order to apply for the federal stimulus funds, they must obtain the approval of the City. Prior noted that private funding from revenue bonds would also likely be necessary. White noted it would be impossible to complete the project in this area if the LMCC were not granted right -of -way access. Murphy stated his point is whether it is a little early in the process to be granting access to the right -of- way and questioned whether it is necessary to contain that language in the commitment resolution. Franchot asked if the plan envisions going by the houses or actually extending into each house. Prior stated they would like to go into each house and that the network would be run by a locally owned company. Franchot asked if it would be funded by user fees or tax dollars. Prior indicated it would be funded by user fees. Prior asked if there are people in the city who have no connection to cable TV. White indicated there are. PAGE 2 of 8