FRONTIER TELENET

SPECIAL MEETING OF BOARD OF DIRECTORS

OCTOBER 10, 2016

MINUTES

A Special Meeting of the Board of Directors of Frontier TeleNet was called to order by Chairman Judge Steve Shaffer at 9:10 AM.  This meeting held in the conference room of the North Central Education District, 135 South Main Street, Condon, Oregon.

Directors Present:  Judge Steve Shaffer, by telephone, Judge Lynn Morley, and Robert Waltenburg, North Central ESD Superintendent by telephone.

Also Attending:  Sherman County Commissioner Mike Smith, by telephone, Mac Stinchfield, Kathryn Greiner, Rob Myers and Jeanne Burch.

Judge Shaffer asked Judge Lynn Morley to conduct the meeting due to the fact it was difficult to do this by telephone.  Judge Morley agreed and continued the meeting.

Public Input-None

Directors Changes or Additions to the Agenda-None

Review/Discussion of the City of Condon RFP.

The following questions asked by the City of Condon:

  1. Is there dark fiber that the City of Condon could obtain through a long-term Indefeasible Rights of Use (IRU) in your proposed middle mile? If so, what would be the price or other consideration for the dark fiber?

Mike Smith gave the following answer:  Frontier TeleNet would gladly negotiate a contract with the City of Condon for a dark fiber.  Being a public and open entity, Frontier TeleNet will openly negotiate a reasonable cost for dark fiber with the City of Condon.  Negotiations will allow both entities to understand how to provide a valuable service while allowing Frontier TeleNet to cover its expenses and not subsidize one entity at the expense of Emergency Communications.

Steve Shaffer also commented that to own dark fiber , it is necessary to have the proper PUC License.  Also must have the proper license to deliver services.  Mike Smith asked if the City of Condon intended to be a broadband provider?  Kathryn Greiner answered that the City of Condon is intent on having the available raw material for another provider.  Directors agreed that dark fiber would be available but the price will be negotiated.  Steve Shaffer pointed out that this will be a lease and terms will be negotiated.

  1. We are requesting firm pricing on the cost of broadband that was offered.

Mike Smith made the following statement:  Frontier TeleNet will agree to negotiate firm pricing with City of Condon in good faith once all expenses are known.  As the City knows, Frontier TeleNet is currently awaiting responses for the middle mile project in order to understand the true cost of the project and a better understanding of continuing maintenance expenses.  It must be clear though, the ISP could negotiate their own agreement with a data supplier.  Frontier TeleNet is in the business of supplying transport of data, but can supply data if the customer wants it.

Kathryn Greiner stated that Frontier TeleNet already sells broadband so there must be prices available.  Steve Shaffer stated that it is hard to give a price on broadband for fiber because the current system is microwave.  Kathryn Greiner asked about what Sherman County is charging for their new fiber project.  Mike Smith stated that the Sherman Fiber Project is not complete so pricing is not in place.  Rob Myers asked if the City of Condon could give some parameters so it will be easier to give pricing.  Kathryn Greiner asked Rob Myers to submit in writing what parameters are necessary and she will obtain the answers.  Kathryn Greiner also asked Rob to do this right away as the City of Condon will be meeting in a day or so.  Rob Myers agreed to do this today and send to Kathryn Greiner by email.

  1. Request a timeline for your middle mile project, in addition a projected timeline of fiber being available within the City Limits of Condon.

Mike Smith answered that the Gilliam County Court would greatly appreciate the City of Condon and the Fiber Committee to insure the Court the ability to move forward on planning and financing the project.  Once that support is in place the project could move forward quickly.  Steve Shaffer added that it is up to Gilliam County to invest in the middle mile build.  Frontier TeleNet is a supplier of transport for Public Safety.  Connectivity is important and there will be a downsizing of 911 centers statewide.  Frontier TeleNet could be the supplier of this connectivity for Eastern Oregon and maintain the employment at 911 Center in Condon.  Steve Shaffer also stated if Frontier TeleNet has the support of the City of Condon Fiber Committee, with the Gilliam County Court , the middle mile project could happen within a few months but not more than a year to completion.  Lynn Morley asked if the weather would be a factor in completing this middle mile concerning burying fiber.  Steve Shaffer answered it should not be a problem.

Review and Discussion of Frontier TeleNet RFQs no. 816 and 817:

Rob Myers noted that the draft copies of Frontier TeleNet RFQ no. 816 and 817 had been sent to directors.  Robert Waltenburg stated that the drafts looked good and complimented Rob Myers on the hard work involved in these draft RFQs.  Moved by Robert Waltenburg, seconded by Steve Shaffer, to approve RFQ #816, Giliam County Build, as presented with a response time of 30 days.  Motion carried with all present voting aye.

Moved by Robert Waltenburg, seconded by Steve Shaffer, to approve RFQ #817, Wasco to Rufus Build, as presented with a response time of 30 days.  Motion carried with all present voting aye.

Other:  Steve Shaffer reported that a list of questions had been received by Les Ruark.  Steve Shaffer reported that he would address these questions after the October 17 meeting.  Mr. Ruark requested that a copy of his email be attached to these minutes.

Public Input:  None

Next Meeting:  The regular meeting of Frontier Board of Directors will be held October 17, 2016 in Condon at 2 PM at the Condon Fire Department.

There being no further business, the meeting adjourned at 10:05 AM.

Respectfully Submitted:

Jeanne E. Burch

Frontier TeleNet Staff

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