COMMITTEE-OF-THE-WHOLE MEETING

SEPTEMBER 18, 2000

IN ATTENDANCE: Vice Mayor Dale Strasser, Colette Beineke, Susan Hambley, Kathleen Malinak, Tom Miller, John Rocha, Dave Wadsworth, City Manager, Safety-Service Director, Law Director, Chief Beyer, Bill Flecher, Tom Arnold, Murray Mc Dade, Jeff Neidert, Rob Marok, Sandra Barnosky, (see attached list for other attendees),Clerk of Council Barbara Roth, and news media.

Meeting convened at 7:00 p.m

Mr. Trimble introduced Vi Gamble and Leroy Peterson from Munitech.

Mr. Gamble thanked City Council for giving him the opportunity to speak to them. He mentioned, he has been in the City Management Profession for the past twenty three years. He noted, he has a Master’s Degree in Urban Study and in Political Science. He then introduced Leroy Peterson, who is a former State Legislature, a former Council Member from the City of Maple Heights, and also a former School Board Member from the City of Maple Heights.

Mr. Gamble explained, there are three options of fiber optics for the City to choose from. He explained, the first plan to be the one the City is most familiar with. He conveyed, that plan would be100% debt financed through municipal revenue bonds, and municipal funds. He went on to say it would be Municipality owned. He continued by saying, this plan would give the City control of telecommunications. He stated, this would not be subjected to PUCO regulations because it would be a Municipal utility under the Constitution of the State of Ohio.

Mr. Wadsworth questioned, a House Bill that is going through the State of Ohio.

Mr. Gamble advised, to try and stop this type of regulation would be a violation of the State Constitution.

He went on and explained, the second would be the Municipality constructing the fiber network. The electronics would be privately owned. He stated, the City would own the pipeline. He concluded by saying, the third plan would be a privately owned operation. The Municipality would receive 5-10 percent network ownership in exchange for the use of right of way.

Mr. Wadsworth questioned option two.

Mr. Gamble reexplained option two. He advised, the City would own the fiber network. But, the electronics would be privately owned. Mr. Gamble specified, the City would have to work out contracts. He reiterated, the third model would be in exchange for use of right of way and the City would be well compensated.

Mr. Trimble stated, he advised Council of the cost and what amount not to exceed.

Mr. Gamble advised, they are not asking for any money up front from the City. He stated, what they want is a reimbursement of not more than $30,000 for a business plan. Mr. Gamble pointed out, that would be to pay for expenses that they have incurred.

Mr. Gamble explained, the cost would be for a scientific survey that Munitech would preform.

Mrs. Malinak questioned, the cost of the business plan.

Mr. Gamble stated, they are not asking the City for any money up front. He explained, eventually there would be a cost.

Mrs. Malinak requested an explanation on the financing, if the City decided to go with the plan. She also wanted to know, what other Cities they have done work in.

To which Mr. Gamble advised, this is a new project and they are unable to disclose what other companies they have worked with. He continued by saying, if the City decided to make it a totally Municipal utility, then the City would have to come up with the financing.

He continued to explain, the second plan would be having outside cable which the City would own and be able to control. He advised, under plan one and two the City has control. Under plan three the City only puts up the right of way.

Mrs. Malinak questioned plan two, she questioned if the City owns the fiber optics.

Mr. Gamble advised, a company would work out a contract with the City to connect the electronics to the fiber optic system and then service the customer.

Mrs. Malinak questioned the percentage the City would receive.

Mr. Gamble indicated, that would be part of the study.

Mr. Wadsworth stated, if the City does all the work at once that would be the way to go. He also expressed, the concern of previously the City put out $40,000 and the City has nothing to show for it.

Mr. Strasser stated, the City is in the middle of negotiations with Adelphia.

Mr. Gamble advised, the cable companies are not providing the same type of technology. He did not feel there would be competitiveness within the telecommunications system.

Mr. Wadsworth stated, the City needs to own their own system. Also, the City needs to have a state of the art system for customers in the City’s Industrial area which will make our city grow.

Mr. Gamble mentioned, the previous plan did not work out the way it was intended. He indicated this time they would be working with other companies that are nationally recognized. He noted, if the City gives them the letter of intent they will be ready to start.

Mr. Trimble stated, Munitech did bring the proposals to the COG (Northeast Ohio Council of Government).

Mrs. Malinak stated, there are too many unknowns. They cannot tell Council what companies have been set up.

Mr. Gamble stated, if he was in a closed meeting he would divulge the information to Council. But, he is not sure who is sitting in the audience and therefore, he cannot reveal any additional information. He reiterated, the letter of intent they have asked the City for is for protection. They are putting a project together for the City and they need protection.

Mr. Miller wanted to know how many cable customers are within the City.

To which Mr. Trimble answered there are about ten thousand customers within the City.

Mr. Miller suggested, further discussion is needed. He advised this would not just be cable television access but also internet access and telephone access. Mr. Miller concluded by saying, there would be a savings not only to the business customers within the community, but also to the residential community.

Mr. Wadsworth expressed concern for additional information.

Mr. Miller noted, he would be willing to put this project into the Economic Development, Technology & Cable Committee

Mr. Gamble advised, Munitech has the business plan for the City project outlined. He concluded by saying, he would be able to share the plan with Council in confidence but not in a public meeting.

Mrs. Malinak asked Mr. Trimble if he has the same experience as Mr. Gamble on this type of project.

To which Mr. Trimble answered, he does not have the time to devote to this project.

Mrs. Beineke wanted to know what exactly Mrs. Malinak asked of Mr. Trimble.

Mrs. Malinak stated, she wanted to know if Mr. Trimble was at the same meetings as Mr. Gamble. She felt that Mr. Gamble was new at this type of project and she felt uncomfortable with his presentation.

Mr. Trimble reassured Mrs. Malinak, that Mr. Gamble’s level of involvement was much deeper than his. He stated, to wait for Adelphia to get to the City would be about eighteen months.

Mrs. Malinak questioned, the money involvement.

Mr. Trimble advised, the $30,000 would be the cost of the study. He reexplained, the different plans and the cost. For instance, one plan the City would have zero investment the City would give use for the right of way. Another plan the City would buy the fiber optics and the electronics.

Mrs. Malinak wanted to know what the charges would be in the future.

Mr. Wadsworth wanted to know how much the City would make.