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HomeMy WebLinkAbout05-22-2003 Special MeetingSTATE OF ALABAMA )( 3116 COUNTY OF BALDWIN )( The City Council, City of Fairhope, met in special session at 7:00 p.m., Fairhope Municipal Complex in the Civic Center, 161 N. Section Street, Fairhope, Alabama, Thursday, 22 May, 2003. Present were Mayor Timothy M. Kant, Councilmembers: Robert C. Gentle, Michael A. Ford, Debbie Quinn, Pauline Anders, and Cecil Christenberry; Acting City Clerk Tyron D. Hoskins. City Attorney Marion E. Wynne and City Clerk Geniece W. Johnson were absent. There being a quorum present, Mayor Kant called the meeting to order. The Pledge of Allegiance was recited, and Councilmember Christenberry gave the invocation. Mayor Kant called on Verne Kennedy with Marketing Research Institute of Pensacola, Florida. Mr. Kennedy stated that three populations were surveyed, which include the citizens of Fairhope, commercial businesses and institutions and large broadband users such as schools and hospitals. He also conducted several studies such as current uses, the importance of digital connectivity, would citizens want certain services, and asked the opinion of citizens. Bob Callahan with Callahan and Associates presented his study on providing broadband cable to the citizens of Fairhope. He stated that broadband offers services such as the delivery of movies to your home, telephone calls and Internet service. Mr. Callahan stated that broadband would offer the City of Fairhope and its citizens the following advantages: • Revenue for the City of Fairhope • Cost of cable would drop • Quality of Life would improve for at-home workers and as a means of entertainment Mayor Kant then called on Rick Anderson with Cable System Services. Mr. Anderson stated that they walked the entire city and marked and recorded every address within the city limits. Per Mr. Anderson, the cost of this project would be $12.2 million with a profit showing up in the second year. Tim Rosson, President of Compass Bank, presented the financial aspect of the broadband project. He stated that the project would be done over a two year period and in phases. The City would begin payment at the end of the two year period and payment would be amortized over a ten year period. The revenue stream would increase as the City grows. He also stated that the City's debt service ratio is almost 2 to 1. 22 May 2003 3117 Mayor Kant called on Chris Gill with Hand Arendall law firm to discuss the legal aspect of the broadband project. Mr. Gill stated that a law was passed in 2001 stating that cities can provide these services not only to their residents, but also anywhere the city offers utilities. He explained that this meeting was held in order to give the public an opportunity to ask questions and to offer any comments. Mr. Gill explained that if the City Council decides to go forward with the broadband project that an election would be held allowing the citizens to vote in favor of or against this project. Aaron Norris, City of Fairhope Electric Supervisor commented that the City will continue to give the same quality of service with the broadband project as they do with the utilities. He also stated that the fiber optic system allows them to know of a potential problem with the City's sewer system before it happens. Councilmember Gentle accompanied Mayor Kant to two other cities that offered broadband services to their citizens. According to Councilmember Gentle, those cities were up and running, profitable, and self-taught. Councilmember Gentle stated that this project isn't just about cable television, but also about future technology. He also stated that you have to plan your work and work your plan and also grow people from within. Mayor Kant stated that if we can't provide the same level of services with competitive prices than we shouldn't go forward with the project. The public hearing was then opened at 7:50 p.m. The following citizens addressed the City Council with concerns about the project. 1. Bob Hoppe — Will the electric department be responsible for the maintenance, who will design the system, and the cost of the project. 2. Gene Garrett — Looking forward to fiber optic services. 3. Jim Merrihew — Thanked the City for looking forward. 4. Jeff Kain — He applauds the effort and strongly support this and hopes the City goes forward with this project. 5. Ron Havron — What will be required in rewiring his house. Mayor Kant stated that the wiring depends on services selected. 6. Tom Hopkins — What will the monthly fees be for broadband services and who will the long distance company be. Mayor Kant stated that the prices will be a certain percentage under what other competitors will offer. The City of Fairhope will provide a quality service at a competitive price. 22 May 2003 3118 7. Dewey Brown — Supports broadband services but the citizens need to have a choice. The public hearing was closed at 8:10 p.m. Mayor Kant then opened the floor to the Councilmembers for discussion. Councilmember Gentle asked why not have a wireless system versus fiber optic. Bob Callahan stated this area has hurricanes and thunder storms that interfere with wireless service. Councilmember Ford was concerned with when the first payment would be due to Compass Bank. Tim Rosson of Compass Bank stated that payments can be in the form of interest payments only until construction is complete. He also asked if the City can offer broadband anywhere the City offers utilities. Chris Gill stated that the City can offer broadband services to all utility customers. Councilmember Christenberry asked who would lay the fiber. Mayor Kant stated that the City will go out on bids and the project time is estimated to be 18-24 months. Additional employees will be used to hook up customers once construction is complete. The cost of the infrastructure will include the programming. Mayor Kant stated that the installation cost will be determined according to what the market is offering. He thanked everyone for attending the meeting and to call with any questions. There being no further business to come before the City Council the meeting was duly adjourned at 8:35 p.m. Tim y M. K nt, Ma or CAO-ev 4 Tyl D. Hoskins, Acting City Clerk