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HomeMy WebLinkAbout01-26-05 Information & Technology SR Information and Technology Committee 2005 South Bend Common Council The January 26, 2005 meeting of the Information and Technology Committee was called to order by its Chairperson, Council Member David Varner at 3:30 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Puzzello, Kuspa, Rouse, Varner and Dieter; Mayor Stephen J. Luecke, Executive Director of the Community & Economic Development Department Sharon Kendall, City Attorney Charles Leone,Director of Public Works Gary Gilot, City Clerk John Voorde, Jack Dillon, Cleo Washington, Mr. Carbone, Judy Jankowski, Mr. Joe Kazinski, Steve Bay, Jeff Parrott of the South Bend Tribune, and Kathleen Cekanski-Farrand, Council Attorney. Dr. Varner noted that the Committee is composed of Council Members Kelly,Dieter,Rouse and himself. This Committee meeting was called to continue the discussion on the items discussion on December 15th when a power point presentation on the St. Joe Valley Metronet was made to the Council. He noted that the principals of Metronet have notified him that they are unable to be present today and that they have asked that dates after mid-February may be better. Mr. Gary Gilot, Director of Public Works, then provided an 8-page handout entitled "Common Council Briefing on St. Joseph valley Metronet,Inc." (copy attached) He summarized the major parts of the handout, namely: Goals and Objectives for Model 21st Century City; Managing City Rights of Way; Traditional Purposes of City Conduits; A Proactive Plan of ROW Management; Public Benefits of MetroNet Collaboration; city as Enable: Access to Open 21st Century Technology Opportunities; and a map addressing the City of South Bend Fiber Improvements All Phases. He noted that currently Animal Control and several fire stations are not currently in the loop. In response to a question from Dr. Varner, Mr. Gilot noted that there is fiber in the County-City Building. The city is attempting to minimize the number of cuts in city streets, noting that South Bend is attempting to be a "City of Champions" as noted by Mayor Luecke in his State of the City Address. He noted that South Bend is in a unique location and that it could be instrumental in the information super-highway age which would create jobs. Mr. Gilot stated that seven(7) institutions have pledged a total of$2.275 million to invest in this not-for-profit venture. As a result there would be a leveraging of technology. In response to a question from Council Member Dieter, Mr. Gilot stated that the seven (7) institutions include: the University of Notre Dame, Memorial Hospital, St. Joseph Regional. Medical Center, Madison Center, Teachers Credit Union. the South Bend Medical Foundation and Bosch. Mr. Gilot stated that each have pledged $325,000, and that others are considering pledging. Mr. Gilot stated that a proof of concept with the University of Notre Dame was done approximately a year ago. Existing conduits are close to Ivy Tech and IU South Bend. The Bendix loop has Bosch which is primarily looking for redundant paths. Mr. Gilot noted that he cannot speak for the incorporators with regard to information contained in a business plan. The $600,000 expenditure was in the 2004 capital budget. Some of the Information and Technology Committee Meeting of January 26,2005 -page 1- ip monies were used as follows: $25,000 for Jim Goldman's study which is a Purdue affiliation; $100,000 for the proof of concept to the University of Notre Dame; $35,000 American Consulting for plans and specs; $75,000 for design and field services of Steve Major; and $365,000 earmarked for conduit & related items. With regard to liability, the city is making space available and there would be no liability to the city or to the taxpayers. The City Attorney's Office has drafted hold harmless and indemnification language. Council Member Kuspa inquired,what is MetroNet to the average person. Mr. Gilot stated that it is a process of direct use of fibers. Strains of glass and lasers are used to send information at high speed which tie into long haul fibers. It can do voice,video,telephone, and internet. Big fiber is necessary in order to access the information age economy. City Attorney Charles Leone noted that in the US Supreme Court case of Nixon v. Missouri handed down in 2004, there was a challenge to an FCC rule. It found that you cannot use a federal mechanism. There is no case law prohibiting what is going on right now. He added that HB 1148 is currently pending. Cleo Washington of SBC noted that the US Supreme Court issued their opinion on March 24, 2004 and that it was a 8-1 decision. He noted that the City has a good City Attorney and a good Council Attorney, however he has a much broader reading of the opinion. There are twelve (12) states which have passed laws and a movement is taking place across the county. He noted that in Monday's edition of the South Bend Tribune,the Governor was quoted as questioning whether local government should compete against the private sector. He stated that if a new state law is • passed that it would affect investments from the city. Mr. Gilot noted that the city is not going into the telecommunication business,but rather into the conduit business. Mr. Carbone questioned whether there is existing fiber and whether it is part of MetroNet? Mr. Gilot answered no, and noted that there was competitive bidding. Mayor Luecke stated that existing fiber cannot be part of MetroNet and some would be replaced with 144 fiber and some would be dedicated to the city for city use. Dr. Varner noted that at the earlier meeting Pat McMahon stated that 24 pairs would be for the city of the 144 fibers. Mr. Gilot stated that since then the city has asked for 36 pairs, to which MetroNet has agreed. Mr. Washington inquired wt6her the study performed by Mr. Goldman would be released to the Council. He noted that it would be appropriate for the Council to see it, noting that other community models have not all been successful. He added that there is a "littered landscape" of at least 47 companies, large and small which have been failures. He questioned whether only "best case scenarios" are being studied. Council Member Rouse noted that St. Joseph Medical Regional Center is one of the seven companies. He questioned what would happen when they move their operation out of the city. Information and Technology Committee Meeting of January 26,2005 -page 2- N 4 Mr. Gilot stated that they would still have facilities in South Bend and they would continue to use fiber which would grow over to Mishawaka. Mr. Joe Kazinski questioned how many need dark fiber and that they must go through a service provider. He questioned how many of the seven(7)have fiber. He questioned what Notre Dame is paying for the Metronet since it is his understanding that they have been on for 1 1/2 years. He inquired about access to other businesses and building owners. He stated that SBC is on the cutting edge. Mr. Gilot stated that they all have access; adding that the premise is redundancy, availability and affordability. Currently they feel limited due to pricing and that they are looking for competitive pricing. He noted that Notre Dame gave $325,000. He stated that there must be a public purpose for lateral builds. Mayor Luecke stated that SBC was invited to participate early and that they chose not to; and then MetroNet moved forward. Les Dant, Integration Solutions Engineer with SBC noted that he has been in the business for over 24 years. He believes that "the needs of the few will be paid for by the many". He questioned the map presented by Mr. Gilot, noting that large routers are very expensive costing at least $100,000 for high speeds. 10 megabits are at most stations, now and what is being proposed is 100 times faster. He stated that if this goes forward that there would be three (3) bills instead of two(2). Mr. Washington noted that information requested of them by the city was proprietary and confidential. He noted that when he was on the City Council much of the information provided was overwhelming and that in some cases he was not fully informed. He then provided handouts with Exhibit 1 being a copy of a resolution providing $110,000 to Project Future for 2002-2006; with four (4) of the Council Members who adopted that resolution not being on the Council today. Exhibit 2 was a listing of "Other Community Models". Exhibit 3 was a 2-page document entitled "Project Future Website" and he stated that the issue is the use of taxpayer dollars, noting that SBC is in thirteen (13) states. Exhibit 4 was a 2-page document with excerpts from the South Bend Tribune; and Exhibit 5 was a 2-page document entitled"Marietta Selling City-Owned Internet Company at $24 million Loss". Exhibit 6 was a 2-page document on House Bill 1518. He stated that he believes that HB 1518 will pass. Mr. Washington stated that he has made two (2) promises; namely that SBC would be as transparent as possible and that he would provide copies of all documents to the Mayor. He stated that SBC believes in competition however does not believe that it should have to compete against the government. He gave the analogy to the cell phone industry. Mayor Luecke stated that the city is not creating an internet company, but rather providing money for infrastructure which is beneficial to South Bend. A representative from TCU stated that data moves in many different formats and questioned why SBC is not consistent. Information and Technology Committee Meeting of January 26,2005 -page 3- Judy Jankowski of Freedom Link stated that the city feels it needs conduit, but small business feels that big business will get the advantage over them if MetroNet goes forward. She noted that it is a fairness issue. Mr. Washington noted that Indianapolis does not have to pay one dollar,but rather City Market, the Convention Center and the Airport have made financial investments. Evansville was the first city to sign up for WiFi; Indianapolis and Gary approved SBC. SBC uses pilots if they believe it may be a"hot technology". Mr. Dant inquired if MetroNet would go under who does the relocates, and inquired if that responsibility would not go back to the city until it would find another entity to take over. He added that there would also be costs for maintenance,upgrades and relocates. In response to a question from Steve Bay,Mr. Gilot stated that there would be access to the fiber only and not to the conduit. He added that there is no room for additional fiber. In response to a question from Dr. Varner, Mr. Gilot stated that he would meet with the principals to see of another meeting for either February 23rd or March 2nd would be possible. There being no further business to come before the Committee, Dr. Varner adjourned the meeting at 5:00 p.m. Respectfully submi -:, Council Member Davi. arner,Chairperson Information and Technology Committee KCF:kmf Attachments Information and Technology Committee Meeting of January 26,2005 -page 4-