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4646 Dakota Street SE
Prior Lake. MN 55372
Economic Development Authority Meeting Minutes
September 16, 2011
1. CALL TO ORDER
President Hedberg called the meeting to order at 3:02 p.m. Present were Hedberg, Hitchcock, Morris and
Myser; Choudek was not in attendance, Finance Director Erickson, Assistant City Manager Kansier, Communi-
ty and Economic Development Director Rogness, Executive Director Boyles.
2. APPROVAL OF AGENDA
MOTION BY MYSER, SECOND BY MORRIS TO APPROVE THE AGENDA AS PRESENTED.
VOTE: Ayes by Hedberg, Hitchcock, Morris and Myser. The motion carried.
3. APPROVAL OF MEETING MINUTES
MOTION BY MORRIS, SECOND BY HITCHCOCK TO APPROVE THE MINUTES OF THE AUGUST 8, 2011
MEETING AS PRESENTED.
VOTE: Ayes by Hedberg, Hitchcock, Morris and Myser. The motion carried.
4. PUBLIC HEARING
No public hearing was scheduled.
5. OLD BUSINESS
A. Integra — Mary Korthour, Vice President, and Larry Shepard, Director of Network Ops and Outside
Plant.
Mary Korthour and Larry Shepard of Integra were present to talk about the plans Integra has for building a
fiber optic to the home; and explore and discuss whether and how we might work together to identify and
achieve mutually beneficial objectives.
Morris: asked how service boundaries are set.
Korthour: explained their service area boundaries are established by the Public Utility Commission (PUC).
Integra currently has 6,000 dwelling units within their service area boundary. They offer telephone, internet
and cable TV services. Most of their existing service area is covered by copper, which allows a capacity of
30 Mg for downloading and 2 Mg for uploads. As new areas in the City are developed, Integra is installing
fiber, which will allow a 30 Mg download and 30 Mg upload capacity. About 250 homes have fiber availa-
ble. The major cost in providing fiber to the home is the "last mile" or the line from the street to the home.
This cost per household is generally around $2,500.
Shepard: Integra works closely with the City Engineering Department to coordinate placement of copper
and fiber in new developments and as we do street reconstruction projects. Even if fiber is not extended,
conduit is placed in the street.
Korthour: Noted some business have requested fiber. The cost is $90 for 30 Mg downloads, plus $20 for
30 Mg uploads.
EDA commissioners: asked staff to try to put together a graphic showing:
1. Location of the Scott County fiber;
2. Location of Integra fiber;
3. Location of Mediacom fiber, if any; and
4. Location of Century Link fiber.
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
EDA Commissioners: referred this to the Broadband Advisory Subcommittee. It needs to determine what
it is looking for and bring a recommendation back to the EDA.
B. Scott CDA Grant and Broadband Enhancements for Prior Lake
Kansier: In December, 2010, the Scott County Community Development Authority awarded the City of
Prior Lake a Technical Assistance Planning Grant in the amount of $15,000.00. The purpose of the grant is
to provide funding to enhance economic development activities with the goal of achieving long range job
creation within Scott County. When the City submitted its original grant application, we intended to use the
funds to retain the services of a consultant to help develop a Prior Lake Economic Development Strategy
and Marketing Program. While this strategy is still valuable, the City Economic Development Authority re-
cently identified other goals, specifically making Fiber -To- The -Home (FTTH) a reality in Prior Lake. An al-
ternative use of the grant funds could be to retain a consultant to assist in the development of a FTTH im-
plementation plan. FTTH dovetails nicely into the idea of expanding and utilizing the current County fiber
optic backbone. If the EDA supports this change, we must specifically identify how we will use the grant
funds. Staff suggested we put together a proposal to hire a consultant to develop a plan for a cooperative
fiber network to serve economic development and businesses in Prior Lake. Matt Schmitt, with Scott Coun-
ty, will assist with this.
MOTION BY MYSER, SECOND BY HITCHCOCK TO DIRECT STAFF TO: 1) SEND A LETTER TO THE
SCOTT CDA REQUESTING A REDIRECTION OF THE GRANT FUNDS; 2) PREPARE AN OVERVIEW
OF WHAT WE ARE LOOKING FOR IN A CONSULTANT TO ACHIEVE OUR BROADBAND OBJECTIVES
USING ALTERNATIVES A) CITY - OWNED, OR B) OPEN ACCESS.
VOTE: Ayes by Hedberg, Hitchcock, Morris and Myser. The motion carried.
C. 2012 EDA Budget and Fund Transfer
Finance Director Erickson reviewed the 2012 EDA budget. The City Council approved fund transfers on
September 6, 2011, but did not adopt a preliminary 2012 budget. The Council will adopt a final budget in
December, 2011.
Hedberg: Commented the current budget proposal reduces the cash on hand. Additional expenditures
could result in a tax levy increase.
6. NEW BUSINESS
A. Rain Source Fund Program
Deferred to next meeting.
B. Appointment of Subcommittees
In an effort to assemble and organize human resources to achieve EDA objectives, Commissioners Morris
and Hitchcock have proposed that subcommittees be established for the following EDA objectives: Broad-
band Technology, Technology Business Incubator, Technology Village, Data Center and Downtown Rede-
velopment. The Commissioners decided to focus on three areas: Broadband, Technology Incubator and
Data Center. There should be no more than five committee members, exclusive of staff. Community and
Economic Development Director Rogness will be a part of each subcommittee. Additional outside exper-
tise can be called upon if needed. The subcommittees will have the following members:
Broadband Advisc
Bob Morris, Chair
Eric Lampland
Christopher Mitchell
Technology Business Incubator
Terry Hitchcock, Chair
Michelle Choudek
[Bob Morris
John Bryant
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Matt Schmit Bob Jader
Mary Steinhoff(SMSC) Atta Mateen
Dan Rogness Dan Rogness
Data Center
Bob Morris, Chair
Richard Keeney
Eric Lampland
Matt Schmit
John Bryant
Dan Rogness
MOTION BY MYSER, SECOND BY HITCHCOCK TO ESTABLISH THE THREE SUBCOMMITTESS AS
LISTED ABOVE.
VOTE: Ayes by Hedberg, Hitchcock, Morris and Myser. The motion carried.
7. OTHER BUSINESS
A. Draft October 10, 2011 Agenda
ADJOURNMENT
A motion was made by Myser and seconded by Hitchcock to adjourn the meeting. With all in favor, the meeting
adjourned at 5:21 p.m.
Frank Boyles, Executive Director
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