GM hire a key decision ahead for Charles City Telecom Utility Board

By Kelly Terpstra, kterpstra@charlescitypress.com

Just what attributes and qualifications does Charles City want in its telecom utility general manager?

The Charles City Telcom Utility Board will at some point be advertising to hire that person, who will oversee the $15 million fiber-to-the-home broadband operation.

Discussion of the telecom’s employee structure and the hiring of that essential general manager position were agenda items that received much attention at Tuesday’s utility board meeting.

“It will be up to us, when we examine this person’s performance, they’re doing what they’re supposed to be doing,” said board member Jeff Marty.

In the interim, the telecom board is working with paid consultants Todd Kielkopf and Curtis Dean to figure out the road map in creating a sustainable business model.

Most everyone at the meeting agreed that a large part of whether the telecom venture is a success hinges on the hiring of the general manager.

Once hired, the general manager will employ a manager of technology and technical architect. There will also be a customer service team consisting of a supervisor, two staff members and a salesperson.

“You’re going to be running on a very small staff and cross training is going to be important,” said Kielkopf.

Board members said they want the general manager to have experience on the technical side of the operation as well as being able to market the business model.

“Somewhere within your utility you need to have the capacity to have a public face or present that public image,” said Dean, when referring to some of the sought-after traits of a general manager that he deemed would be a good fit for Charles City.

Not only would the general manager serve as a functional technical expert, he or she would be a key decision maker and participant in the development of the fiber project.

“I see your general manager as getting the answer, not necessarily knowing the answer,” said board member Dick Herbrechtsmeyer.

Telecom liaison DeLaine Freeseman said the general manager should be a person who keeps in touch on a regular basis with the board and those involved with the system’s construction. Freeseman felt that job could best be done by someone living in Floyd County.

“I think it’s imperative this person lives in town and this person is involved in the community. Because at least getting this thing off the ground, they’re going to have to be very accessible and it’d be really easy to decide in an office some place … because there’s going to be a lot of questions,” said Freeseman.

The board did take action on two agenda items. The board voted to set CUSB Bank in Charles City as its depository bank.

The other vote approved a proposal from SA Architects to develop a conceptual plan for a remodel to take place at the location of the telecom’s data center at 813 North Main. The scope of services in preparing those estimated remodel costs would not exceed $13,000.

The board voted last month to purchase property at 813 N. Main St. for $190,000 to use as the location of the data center and head-end for the municipal utility. The purchase of the property, which used to house the City Tap, can be closed on or before April 1 after approval of the loan agreement.

Erik Lampland, with Lookout Point Communications, said that telecom’s business plan could be finalized by mid-March and bid specifications to lay down the outside plant fiber could go out to contractors in April.

Lampland said bids could be received back as soon as the middle of May or Memorial Day and the utility board could approve a contract sometime in June.

The board of trustees will have oversight of the broadband operation and be responsible for the possible issuing of revenue bonds that could help pay for the project.

The cost incurred into the third year of the project lists capital expenditures of $13.2 million and a bond requirement of $12 million. The cost of the project would be recouped through subscriber fees, supporters say.

There has been $490,000 expended so far by the city in researching the concept of creating a municipal telecom and fiber-to-the-home network. That research has included a pre-feasibility study, business plan and engineering layout.

The board approved a $1 million loan agreement from the city to help fund the initial startup costs.
Discussion about user rates could come as soon as the next meeting, which will take place Tuesday, March 31. Board members indicated that discussion would likely be closed to the public.

Charles City would be just the second municipal broadband telecom in Iowa that would not have the backing of its own electric utility to fund the operation. Dean said the other community is Reinbeck, south of Charles City in Grundy County. That town formed its own telecom utility in June 2000.