Meeting Information
Amended Agenda
6:35 p.m. (Commission Chamber)
-Convene
CONSENT AGENDA
(1) (a) Consider approval of Commission Orders; and
(b) Consider approval to award bids for various signs, posts and miscellaneous materials (Keith Browning).
REGULAR AGENDA
(2) Discuss Lawrence Freenet Rural Broadband initiative (Josh Montgomery) -no backup
(3) Discussion of Request from First Baptist Church of Eudora for assistance in their ongoing efforts to obtain water services (Craig Weinaug) (Item withdrawn by County Administrator Weinaug)
(4) Other Business
(a) Consider approval of Accounts Payable (if necessary)
(b) Appointments
(c) Miscellaneous
(d) Public Comment
(5) Adjourn
Jones called the regular session meeting to order at 6:35 p.m. on Wednesday, March 11, 2009 with all members present.
CONSENT AGENDA 03-11-09
Jones moved approval of the following Consent Agenda:
► Award bids for various signs, posts and miscellaneous materials as follows: Rocal $12,307.48; National Sign $1,180.00; Vulcan $5,182.60; J & A Traffic $5,810.00; CPC $158.67; M D Solution $647.50; Traffic Control $705.38.
Motion was seconded by Thellman and carried unanimously.
MISCELLANEOUS/LOAN GUARANTEE 03-11-09
Kris Adair, Treasurer of Lawrence Freenet Broadband, continued discussion from the February 25, 2009 meeting, asking the Board to consider signing a loan guarantee to help Lawrence Freenet secure a loan in the amount of $150,600 with a private lender. Adair showed a short video on the fundamentals of her organization. She compared the lack of internet availability in the rural areas of Douglas County to the earlier 1900's when the government backed loans so farmers could receive access to telephone and electrical services. Adair stated Lawrence Freenet cannot receive a Small Business Administration (SBA) loan because it lacks the needed collateral. She asked that even if the County is not willing to back this project, she hoped it can find another way to get these services into the rural area.
The Board discussed the monthly fees charged by Lawrence Freenet. It was determined that residents in the rural area pay approximately $44 per month, and city residents pay approximately $23 per month with reduced rates offered to low income families. No tower location has been selected at this time.
Thellman noted that Lawrence Freenet is only making about enough money to cover its expenses. She asked what Freenet was prepared to do if they fall short in payment. Adair responded they plan to set aside a year's worth of payments to CWC out of the loan amount.
Flory stated his opinion is not whether the Board supports expanded high speed internet in rural areas. He d s support that. That's not the issue. The issue is whether the Board should commit tax dollars to assist a private enterprise in a field where there is competition. He would like to hear comments on whether it's an appropriate use of tax dollars, even though it's non profit.
Jones stated this is an abstract conversation because there is no contract in front of us. The discussion should be "Is the role of the county to provide incentive in a field where competition exists1/2" If the Board decides to go forward, the County would require Lawrence Freenet to provide a lot more details regarding their plan.
Jones opened the item for public comment.
Andy Brown, President of the Board of Lawrence Freenet, stated the loan is to help secure funds for the location of a tower and a tower site can not be located until a site survey is completed. He stated Lawrence Freenet is a customer of CWC. Lawrence Freenet receives an invoice each month from CWC and those invoices are current. If Lawrence Freenet ran short on the loan payment, he feels they could short CWC for 90 days to make payment. Lawrence Freenet could get smaller loans, if necessary, from banks.
Thellman questioned why Lawrence Freenet could not get a larger loan. Brown responded because they do not own any real property for collateral.
Flory asked who would own the equipment purchased with the loan. Brown responded Lawrence Freenet would own the equipment.
Rod Kutemeier, representing Sunflower Broadband, showed a map of wireless internet providers in Douglas County. He stated there are at least five providers in the southwestern part of Douglas County. He is concerned about using public dollars to secure a loan where he feels there is ample coverage. Sunflower Broadband plans to increase their coverage in this area. They currently offer Wave Runner and Rural Broadband service. He also stated if residents qualify for food service or WIC, they qualify for a reduced rate. The service is a little slower than the pay service.
Jones asked who is the parent company of Sunflower Broadband. Kutemeier stated The World Company.
Flory asked if Sunflower plans to seek stimulus money to expend the rural areas. Kutemeier stated "yes" and they have purchased two channels of UHF frequency, which is superior to the current frequencies being used, allowing high-speed service and video without needing line of sight. Flory then asked if some of the stimulus money could be utilized to help low income families in those areas. Kutemeier stated they are doing that now and plan to continue that process.
Brett Sayre, representing AT&T in Lawrence, stated AT&T is not against competition. The market functions best with multiple service choices. AT&T competes with Lawrence Freenet, Sunflower Broadband and other service providers in the Douglas County market. Expansion and growth by competitors in a market should be based on sound economics. He feels the Board should examine why private investment has not been committed to this project. County involvement might be feasible if high speed internet services were not available. The County favoring one competitor over another should be discouraged. He added that stimulus money is available to help service providers expand broadband availability.
Dennis Wisemen, representative for Mercury Wireless, stated he is concerned over the amount of competition that we are starting to see in western Douglas County. There are a limited number of channels in the frequencies available to providers. His company presently serves areas of Osage, Franklin and Douglas Counties. He suggested that Lawrence Freenet seek a SBA loan. Wiseman said he recently borrowed a substantially higher amount than Freenet is seeking using only his equipment as collateral. He will also be seeking stimulus money.
Jeff Swanson, Douglas County resident, stated he lives halfway between Clinton Lake and Lonestar Lake and d s not have access to internet broadband service. He stated he d s have a problem with Lawrence Freenet charging rural residents twice the monthly fee than city residents. He has no objection to the County making the loan guarantee.
Jones moved to close the public comment. Motion was seconded by Flory and carried unanimously.
Thellman stated there are so many representatives showing significant coverage in the area. It's a hard case to make that there aren't other options. She is concerned about subsidizing private business with public money when it's not the only service available. It is hard to feel confident in thinking about guaranteeing a loan when Freenet is only making their monthly bills by a little.
Jones stated his concerns are policy and principle. The policy is that the County d s partner with companies. The compelling issue is the citizens of Douglas County. He cares that there are residents in Douglas County who can't afford internet. He is "ok" with going forward to the next step. He feels before pursuing any further, there should be a good marketing plan in place and someone from a bank to provide a financial assessment with Freenet paying that cost. If we did this, he would insist that a year's amount of payment be guaranteed. There needs to be no risk to the taxpayer's money.
Flory said he cannot get to that next step. Very few emails or phone calls he received indicated income as a barrier, but trouble with access. He d s not believe it's appropriate to put taxpayer money at risk to benefit a private enterprise. He stated there is stimulus money on the table and he would like to see competitors go after that money.
Thellman clarified her position by stating she would feel better making a decision when she sees real numbers.
It was the consensus of the Board to allow Lawrence Freenet to provide more supportive information and a business package with a third party review for the Board to discuss at a later date. The Board also asked for financial information regarding CWC.
MISCELLANEOUS 03-11-09
Jones stated he met with a representative from United Way to begin talks on the challenges Douglas County will face during the next budget year. He would like to engage in a discussion on demand and efficiency of our local agencies.
Jones moved to adjourn Flory seconded and the motion carried.
____________________________ ____________________________
Charles Jones, Chairman Nancy Thellman, Vice-Chair
ATTEST:
_____________________________ _____________________________
Jamie Shew, County Clerk Jim Flory, Member
Time and Date