Broadband commission continues to iron out $12 million fiber-to-the-home plan

By Kelly Terpstra, kterpstra@charlescitypress.com

No municipality in the state of Iowa has been able to pass and construct an extensive broadband fiber-to-the-home internet network without also operating its own electrical utility, according to Broadband Commission members who met on Tuesday.

Charles City would be the first.

That’s what at stake in the coming weeks for voting members of the commission who will have to make decisions regarding the future of the proposed $11.5 million undertaking.

The project, upon final City Council approval and completion of the build phase, would connect residents and businesses in Charles City with a triple-play package of high-speed internet, video/TV and telephone with the objective of providing a fast, reliable and universally available network within the city.

Josh Mack, a voting member of the commission, said, “I’m 100 percent for this utility. I absolutely think we should do it — we should go for it. I just want to make sure we’re all ready to go instead of we make this and we kind of sit and discuss it for another two or three years.”

Currently NewCom Technologies, along with Eric Lampland and Lookout Point Communications, is putting some of the finishing touches on the design and engineering phase of the project — which came at a cost of approximately $381,000.

The Broadband Commission will need to decide within the next month on a site to recommend for the “nerve center” that would provide office space, house network servers and provide parking for potential customers. One building that has been considered for that spot is the 500 North Grand Building, the old Charles City middle school.

Commission members also stated a utility board should be appointed and a consultant selected before the project is brought before the City Council to vote on.

“For me, being the hometown guy — I’ve lived here my whole life — this is my opportunity to give back and really build something,” said Jeff Marty, a voting commission member. “If we have a great fiber connection we’re going to get some larger companies coming in here.”

Possible partners, such as New Hampton or Waverly, could operationally share with Charles City to cut costs and also provide employees for the project. New Hampton, like Charles City, is at a similar stage in design and engineering work. The big question in that regard is how much local control would the city want to have in terms of the running the network.

“We have a whole bunch of decisions that are all coming to a head, all at the same time,” said DeLaine Freeseman, who is a non-voting member of the board representing the City Council. “How do you fit all of that together, because I think doing what we’re doing is the right thing.” 

Lampland, owner and consultant for Lookout Point, said the physical survey work was completed ahead of schedule. That outside plant architecture deals with measuring the physical layout of 332,640 feet or 63 miles of fiber.

“Once we set that board up, we’re moving forward with this,” said Mack. “We just want to be cautious when we’re ready to make that decision.”

City Administrator Steve Diers said the project can be funded in large part through revenue bonds, where the fees people and businesses pay to use the system would pay off the bonds sold to provide the initial financing.

A feasibility study connected near the beginning of the project gave an optimistic outlook as far as revenue. That study stated the project could pay for itself by the fourth year of operation.

“That sounds pretty rosy,” said Diers.