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City Council Regular Meeting Minutes November 22, 2005 Page 2 1 VI. GENERAL POLICY BUSINESS OF THE COUNCIL. 2 A. Consider Resolution 05 -090 re: Nextel lease agreement 3 Mayor Faust stated an email from Nextel was received requesting this item be removed from the 4 agenda due to them waiting for a response from their legal counsel. 6 Motion by Councilmember Thuesen, seconded by Councilmember Horst, to remove from the 7 agenda Resolution 05 -090, re: Nextel lease agreement. 8 9 Motion carried unanimously, 10 11 B. Consider Resolution 05 -091. re: approving a wireless intemet connectivity feasibility 12 study with Columbia Telecommunications Comoration 13 Mr. Morrison reviewed the resolution with the Council and indicated that this is to authorize 14 Columbia Telecommunications Corporation to do a feasibility study, for a cost of $14,500. He 15 added this issue has previously been discussed at work sessions and this is the next step to 16 proceed. He referenced an article from the Star Tribune regarding the City of St. Louis Park 17 offering wireless internet in some areas of the City. He added the plan is to present 18 recommendations to Council around April 2006. 19 20 Councilmember Horst asked if the $14,500 cost includes the total study and feasibility. He also 21 asked if the feasibility looks at the cost and what percentage of residents will/will not sign up. 22 Mr. Morrison replied the cost is for the entire study, and will include they conduct an on -site 23 strategy session, estimate market potential, perform a competitive assessment, conduct 24 conceptual network design and costing review, assess operation issues, provide insights on 25 financing options, outline potential partnership opportunities, outline business models and 26 develop cost benefit analysis, provide a schedule of activities and tasks, and develop a report and 27 recommendations. He added what is not included is market research, which would be the next 28 step in the process with an additional cost of $11,000. 29 30 Councilmember Horst asked for clarification regarding the work session discussion. Mayor 31 Faust replied this was one of the City's goals and discussions entailed taking this to the next 32 level, which is to do a feasibility study. He added the City has not made a decision whether to go 33 with it or not. 34 35 Councilmember Thuesen stated the issue has been discussed on a number of occasions and more 36 information is needed, which would be received from a feasibility study. 37 38 Councilmember Horst stated he recalls discussions focused on inherent problems other cities 39 have had, whether the system is put in by an outside vendor or is a City -owned system, and the 40 possibilities of obsolescence. After reading the Star Tribune article he thinks the City has an 41 opportunity to watch and see what happens with the St. Louis Park pilot program without them 42 spending too much at this point. He added $14,500 seems like a lot of money and noted he 43 would not support this. 44 45 Councilmember Stille asked if the second part of the survey could come at a later time. He noted 46 the first component is a sensitivity analysis to see how many customers are needed to make this 47 viable, and the second component is understanding the market; this is where it costs more. He