Permit fees may deter fiber option in MV

By Lois Mittino Gray

Mainstream Fiber would like to install enhanced fiber optics in Mount Vernon, but the permitting fees may be the gamechanger in their $4.3 million proposal. Two representatives from the company appeared at the May 28, Mount Vernon Board of Works meeting to pitch for reducing these fees from the city fathers.

Company President and its founder, Bryan Gabriel, began his presentation stating they are an Indiana-based company offering construction services, installation, and customer support. “A few years back, we put in one line in the city using a grant. We noticed that in Mount Vernon’s growth plan, fiber optic infrastructure was mentioned as a desired goal. Fiber is the gold standard for internet, and it creates economic development for the community. We talked to the Mayor and our goal is to give everyone the opportunity for this service, not just the one line, and get it to all of your town,” he explained.

To do this, Mainstream has proposed an estimated capital investment of $4.3 million. The company made it clear that they are not asking for money from the city to do this, rather, considering relief on the permitting fees that are now required. These fees add an additional $622,000 to the project for the application process. “This makes it difficult to stay on budget. We would like the fees fully waived, or even a capped fee, such as $5,000 to $6,000, would be doable for us,” he stated.

Board member Andy Hoehn looked at the sample maps and asked how close to each residence the equipment would be. Gabriel replied there is one for every 1-3 homes, about the size of a flowerpot. There is no hook up cost, but subscribers would pay a monthly fee for the service. He threw out a number estimate of $89 per month. Board member Hoehn asked if residents would still need an internet provider. Gabriel replied, “No, Mainstream IS that. Users need to call one of our offices, we drop a line in, and things are ready to go. Mainstream, as an Internet Service Provider (ISP), builds it, operates it, and maintains it.”

Board member David Dodd asked how they compare to other ISPs in the area. Gabriel responded they offer competitive pricing and quality of service, as fiber is the best there is and is a great product. There is no buffering. They would be an alternative to other providers on the market. Board member Dodd asked if they have a website they he could peruse and was told in in the affirmative.

Loehr asked if they could connect all of the city offices. “Do you offer private line connection in which we can control ingress and egress of data,” he queried. Gabriel replied, “Yes, we do private and public lines and can supervise that.” He added the city could be a private line connection. “We do this now for schools, governments, and hospitals.”

Peter Nemeth, Mainstream’s Senior Director of Regulatory and Legal, added their upload speeds equal their download speeds and are symmetrical. “Fiber is much quicker and that is also important for utilization of security cameras. Once it is put in the ground, it will last 30 years.”

Board member Dodd asked them to identify a recent project on this scale that they have completed. Gabriel replied Newburgh and Spencer, Indiana. Dodd told the pair that “I work from home on the computer. I’m your target and I’m interested.”

City Attorney Beth Higgins observed the Common Council just adopted a fee ordinance. They would need to look at it again and then decide if they want to be able to negotiate, especially in the cases of economic development projects. The ordinance would need to be amended. Higgins inquired if Mainstream pulls their own wire or uses a third party. Are they planning to construct in easements and rights-of-way? Are they disrupting any recently paved streets? Gabriel replied if any damage is done, they will fix it. They do have third party contractors that they use along with their own staff.

Mayor Loehr stated that this is exciting and asked how fast they need an answer on the fees. “We are ready to go. Once we get the permit, we can start construction,” Gabriel offered. “The sooner, the better,” Nemeth added.

Attorney Higgins stated they would need to work some language in, add some definitions, and possibly give the Board of Works discretion. Mayor Loehr stated he certainly does not want to deter growth because of this ordinance.

Wastewater Superintendent Curtis Prater asked if the service would be available to the street department and wastewater department since they are not located within the city limits. Gabriel replied that can be added on. Mayor Loehr asked if they have spoken with the school district about this. Gabriel replied they are in the federal bid process for schools, but he could talk with them proactively.

Board member Dodd asked how many customers they feel they would need to “break even” with their investment. Gabriel posited 30% is considered a win for them. “Fiber is expensive upfront, getting started. It takes five years to get our customer load fully up to speed. We’re taking on the risk and hope to make our money back.”

Board member Hoehn moved the Board send a resolution to Council for a moratorium on the current ordinance, then sit down and go through that ordinance carefully. It was seconded by Board member Dodd and the motion carried. Paperwork may be available at the next meeting. “We don’t want to be a speed bump here,” Hoehn remarked.

In Department Reports:

--Police Detective Sergeant Skylar Turner reported for the period from May 14 to May 27, there were 274 calls for service. Of those, 124 traffic stops were conducted and 11 traffic collisions investigated. There were 13 individuals arrested on 23 different charges including 13 drug; two domestic battery; two neglect of dependent; one warrant; one theft; one RLE; one OWI; one driving while suspended and one prostitution. Mayor Loehr asked how they were set now on personnel and Officer Turner replied they are still down two.

--Mount Vernon Fire Chief Robbie Wilson stated since the last meeting, his department responded to 34 calls for service. This includes one structure fire; one vehicle fire; one fire alarm and four vehicle collisions. They have sponsored two students who are now enrolled in the Indiana District 10 Fire Academy. He and Assistant Chief Dakota Logan gave a presentation and answered lots of questions at Fourth Grade Career Day. He concluded his report by stating they have completed their yearly pressure testing on every section of fire hose and all is okay.

--Wastewater Superintendent Prater presented his April report of operations. Personnel had 1.5 hours of training completed on road safety and operations. Two emergency repairs were completed on the gravity system. All trouble lines were cleaned and flushed and activated sludge placed in all lift stations for odor/fog control. There were no exceedances for April at the treatment plant and none are expected for May

Money-wise, 95.85 tons of dried sludge were transported to Agspread for disposal at a cost of $2204.55. April revenue coming in for hauled waste of 49,260 gallons was $4,396.00.

Prater told Board members, “We are acid cleaning the aeration tanks diffusers this week and next week, as we are experiencing low oxygen transfer and higher than desired ammonia (NH3) numbers. A job was completed on south tanks and a much-improved oxygen transfer rate has been seen.”

Prater brought in a quote from Vomac through Sourcewell for a triaxle dump truck that fits the parameters set forth by him. The quote came in at $207,564.69. “This is over what is in my budget currently by approximately $30,000. I can get the financing in place to split the cost over two years with a finance charge of approximately $9,000.00 for a total truck cost of $216,512.38 at a yearly cost of$108,256.19,” he explained. There is also an 84 month extended warranty available to go past the 2 years with purchase assuming mileage stays below 250,000 miles for $6782.00. This would make the total purchase of the new truck and extended warranty up front at $214,346.69.

Prater felt all options should provide a 7.7 year return on investment with an expected usable service life of 10 plus years. “The truck should pay for itself in 7 years 7 months and then provide capital gain for 2 yrs, 5 months on expected service life,” he stated. Prater added that the cost is the State Bid, so there is no need to go out for bids.

Board member Hoehn asked if this dump truck takes a different license. The Superintendent replied a CDL and he has staff with CDL-B. He would also like to add another CDL-B staff member. It is Class A, instead of Class 7, which means it gives him more options. Board member Hoehn asked if he is partial to a certain brand. Prater said he was not partial, it is a Mack truck.

Mayor Loehr responded he would like to do some research and he does not want to finance. He would prefer an outright purchase. “9,000.00 is a lot to waste.” The Mayor asked if it was possible to do a loan “in house.” Attorney Higgins replied yes, but any such loan would have to be paid back by the end of the year. She suggested Prater look at his funds first before they look at financing.

Board member Hoehn asked the possibility of purchasing used. Prater replied the cost really wasn’t making sense. There would be no service records, no warranty.

Board member Hoehn asked how many miles a day would this be used. Superintendent Prater replied 70 to 80 miles per day with anaverage of three times per week.

--Assistant Street Commissioner Reese reported since the last meeting, the street department had 16 extra trash pick-ups generating $600.00; limb removal fees totaling $150.00; and $125.00 was collected for sale of dirt. She added there were two trash violation letters sent to homeowners for their property being in violation for trash. Jennifer Seskey was introduced and welcomed as the new administrative assistant.

--Officer Turner stated six weed cases were opened and closed; and two abandoned vehicle cases were opened. He emphasized, “This is the time the grass grows in a hurry. People will get fined if they don’t mow and control it.”

Under Legals, job description for the Water Superintendent and Wastewater Treatment Superintendent were approved. They were once combined into one Utility Superintendent position, but have now been separated.

A job description for Director of the Hagemann Event Center was also discussed. The position will actually be created next year, but a budget line needs to be created for it soon. Board member Dodd moved the job description be approved. Board member Hoehn stated he would like to postpone final action until he has time to review this further. It was agreed that it could be amended, if need be, at a later time so it was approved. This position will also report to the Board of Works. Board member Dodd noted it looks very detailed. Mayor Loehr stated he reached out to Warrick County for theirs and reworked it to meet their needs.

Parks and Recreation Director Michael Harshbarger appeared before the Board to request permission to block Water Street from Main to Mulberry every Monday from 2:00 p.m. to 8:00 p.m. for Summer Market Days. They will start June 8 and run through July 27. They already have food trucks lined up as well as entertainment. Board member Dodd moved the closure be approved and the motion carried.

In Mayor’s Announcements, he said the Columbia Store in Henderson is having City of Mount Vernon Employees days through June 22. Please make employees aware.

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