The Lindon City Council held a regularly scheduled meeting on Tuesday, February 3, 2004 at 7:00 p.m. in the Lindon City Center, Council Chambers, at 100 North State Street, Lindon, Utah.

Conducting: Larry A. Ellertson, Mayor
Pledge of Allegiance: Eric Hale, Troop 491
Invocation: Lindsey Bayless

PRESENT

Larry A. Ellertson, Mayor
Jeff Acerson, Councilmember
H. Toby Bath, Councilmember
Lindsey Bayless, Councilmember
Bruce Carpenter, Councilmember
Jerald I. Hatch, Councilmember
Ott H. Dameron, City Administrator
Venla Gubler, Administrative Clerk

ABSENT

Kevin Smith, Planning Director

The meeting began at 7:09 p.m.

MINUTES

The minutes of the regular meeting of January 20, 2004 will be reviewed.

The minutes of the regular meeting of January 20, 2004 were reviewed. The following corrections were made:
Page 3, Line 33: Add the word "the" after the word "that."
Page 3, Line 34: Add the word "not" after the word "does."
Page 3, Line 36: Add the words "that were" after the word "language."
Page 4, Line 16: Delete the phrase "numbers had also been added here, as well as."
Page 4, Line 17: Replace the words "if needed" with the phase "had been added here, and that number for the sizes where left blank."
Page 5, Line 37: Add the word "that" after the word "suggested."
Page 5, Line 38: Add the word "parking" after the word " that."
Page 6, Line 2: Delete the word "the" after the word "on."
Page 7, Line 20: Replace the word "bring" with the word "bringing."
Page 8, Line 24: Replace the word "ward" with the words "church boundaries."
Page 12, Line 28: Replace the name "Ahlin" with the name "Bob Kunz, engineer."
Page 14, Line 22: Replace the pronoun "He" with the pronoun "She."
Page 14, Line 40-42: Replace the phrase "for the commuter rail line near the lake and not the light rail line near Geneva Road" with the phrase "only through American Fork and Pleasant Grove and does not reach Lindon."
Page 15, Line 24: Replace the word "plaque" with the word "collage."

COUNCILMEMBER CARPENTER MOVED TO APPROVE THE MINUTES OF JANUARY 20, 2004 AS CORRECTED. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

OPEN SESSION - Citizen's Comments

Mr. Roy Shepherd of 734 East Center pointed out a traffic and safety hazard on the corner of State Street and Center Street. He suggested that more notice needs to be given to motorists that the northbound lanes of State Street narrows at this intersection from three lanes down to two. He also noted that some patrons of the auto dealership use the side of the road to travel the against traffic to get to Center Street. Mayor Ellertson thanked Mr. Shepherd for his observance and noted that UDOT and the auto dealership would be notified. Mr. Shepherd noted that he had a position on fluoride treatment of culinary water, also. He suggested that the only benefit of fluoride is to provide sound teeth and that this chemical does not need to be added to our drinking water. He felt that the freedoms of the many should not be reduced to absolve "Mom and Dad" from "doing their job for them." He thanked the Council for listening.

MAYOR'S COMMENTS/REPORT

Mayor Ellertson asked the residents of Lindon to register for the "Utah Walks" campaign. The goal is to get Utahns to be more physically fit and walk enough miles to reach the planet, Mars. He asked that a link to www.utahwalks.org be included in the utility bill and the web site. He asked if there were any questions. There were none.

CONSENT AGENDA - No Items

CURRENT BUSINESS

1. Discussion - Traffic Concerns at 200 East in the Hollow. Neighbors in this area of the city have requested time with the City Council to discuss traffic concerns within the Hollow portion of this street. A petition has been circulated and more information will be brought to the meeting by the neighbors.

Mr. Lawrence Packer of 251 East 200 North, informed the Council that he had been involved in an accident on 200 East. He explained that the other car was driven by a teenager trying to "catch air" in the Hollow. The accident occurred on the driver's third pass through the Hollow. He asked that the Council commission a traffic study to determine what can be done to enhance the safety of the Hollow area of 200 East. He presented a profile drawing of the Hollow and showed cross streets, blind driveways, and three specific spots that a driver cannot see if there is a car coming. He told the Council that he has lived here since 1990 and has witnessed multiple near accidents caused by teenagers in this area. He presented a petition of 86 signatures from residents in this area.

Mayor Ellertson commented that the information that Mr. Packer has presented in compelling. He asked if the Council had any questions. Councilmember Carpenter asked if Mr. Packer had done any informal counts on the numbers of vehicles. Mr. Packer replied no. He added that if vehicles monitor their speed and stay near the speed limit, there is no problem. There is enough time for both vehicles to stop or slow. Councilmember Bath asked if there was a particular time pattern to the speeding. Mr. Packer replied no. He informed the Council that his accident had occurred at 1:00 p.m. on a weekday. He noted, however, that summer evenings and nights seem to be a favorite time. Mayor Ellertson asked if any of the neighbors had any thoughts or ideas that might help solve the situation.

Mr. Dee Tomlinson of 271 North 200 East commented that he understands that at one point in time speed humps were not considered avisable because of risk management. He suggested that this was not true any more because of speed humps had now been installed on the roads on the hillside. He suggested that some cameras to catch speeders may help. He commented that the police do not arrive in time to catch the offenders. He also suggested levying heavy fines to help deter offenders. He also expressed the opinion that if the road was closed, that the neighbors would drive around the block to access their homes. He felt that the only other alternative is build the Hollow up, which would be really expensive. He told the Council that his wife had also been involved in an accident with a teenage girl. He commented that the car had come upon her so fast that she had no time to react and that there had been no sign of the car when she entered the roadway. He told of one near accident where a doll stroller had been hit that was being pushed by two small girls and another where a bullet bike with no lights had almost been backed into. He suggested that it was time to do something before a serious accident happens.

Mayor Ellertson asked if the Council was comfortable with asking staff to proceed with a traffic study. The Council concurred. Councilmember Bath requested the police department to follow up with more enforcement in this area.

COUNCILMEMBER BAYLESS MOVED TO COMMISSION A TRAFFIC STUDY FOR 200 EAST BETWEEN APPROXIMATELY 150 NORTH AND 300 NORTH. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

2. Appointment - Lindon City Municipal Justice Court Judge. The Mayor and City Council will consider action to reappoint Judge W. Brent Bullock to the position of Lindon City Municipal Justice Court Judge for a 4-year term to expire in February of 2008. The City Council has confirmation authority for this position and may take up to 30 days to confirm an appointment by the Mayor.

Mr. Dameron commented that Judge Bullock was detained because he was teaching a class at the University. He suggested that the Council postpone this item until Judge Bullock arrived. See Below

COUNCILMEMBER BATH MOVED TO POSTPONE THIS AGENDA ITEM UNTIL THE ARRIVAL OF JUDGE BULLOCK. COUNCILMEMBER CARPENTER SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

3. Public Hearing - UTOPIA Bonds Pledge. The City Council will hear public comment and possibly act to approve a resolution which will pledge a portion of the city's sales and use tax revenues pursuant to a Pledge Agreement between the city and UTOPIA for the purpose of securing, in part, either (i) the replenishment of a debt service reserve fund established under the Indenture to the extent that said debt service reserve fund is drawn upon or (ii) the city's payment obligation to UTOPIA (which shall equal the city's proportionate share of the debt service obligation with respect to the Bonds) in consideration for the city's interest in the Network as a member of UTOPIA. The maximum amount of the sales and use taxes that the city may be required to pay under the Pledge Agreement in any one year is $308,681. The pledge of the city is expected to remain in effect for a maximum of 20 years from the date of issuance of the Bonds.

COUNCILMEMBER HATCH MOVED TO OPEN THE PUBLIC HEARING. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

Mayor Ellertson observed that the purpose of this hearing is to get information on this proposal to pledge City resources. Mr. Dameron commented that Mr. Roger Black, deputy director of UTOPIA, and Mr. Joel Sybrowski of Dynamic City, were present to answer questions. Mr. Dameron noted that he would introduce and give background on this item to the Council and audience.

Mr. Dameron explained that the name UTOPIA stand for Utah Telecommunications Open Infrastructure Agency and consists of eighteen member cities. These cities, from Ceder City to Tremonton, have formed this organization to put a fiber optic cable system to their resident businesses and homes. He observed that Lindon's involvement was spurred by the number of calls from residents that indicated a "pent up" demand for high speed internet. He noted that Mayor Ellertson had organized a meeting with current service providers such as Qwest and AT&T and asked them what the City could do to bring these services to Lindon City. He was told that these services were coming within two years. UTOPIA is a result of the private sector not providing service to the residents of Lindon. Lindon joined UTOPIA in May of 2002 with two goals in mind. One is to provide a higher quality of life to the residents of Lindon, and, secondly, to provide services to businesses. He observed that tonight, the Council will consider "backstopping" the bonds to build the system. He noted that Lindon City will not provide services, just the system or the "pipeline." He suggested that this was akin to Lindon providing streets to the residents. This will allow service providers the ability to bring their services to residents. The benefits to subscribers will be alternative choices, a competitive market, and lower prices.

Mr. Dameron informed the audience that the Council approved a feasibility study conducted by UTOPIA and performed by Dynamic City under a subcontract. This feasibility study concluded that bringing fiber optic network to Lindon is a feasible proposition. It was found that if one of every three households take at least one service (phone, cable, or internet) that there will be enough income to service the debt. The results of the feasibility study were verified by Dean and Company. Mr. Dameron acknowledged that, although the study found that the project is feasible, there are some risks. One is that the incumbent service provider may cut prices so much that it will jeopardize UTOPIA's future.

Mr. Dameron observed that the Council is being asked to pledge an amount of sales tax to guarantee the payment on the bonds that will be issued to build the system. The pledge means that the funds will only be used if the debt cannot be serviced by income from the system. He explained that there are two years of capitalized interest that will allow the system to become functional and self-supporting. The funds will be placed in a savings account for contingency use. He observed that the risk is minimal and manageable. Within two years, UTOPIA will know the take rates and if the system is working. The risk for Lindon City is about $6 per household per month. He noted that the proposed resolution and pledge agreement were included in the staff report.

Mayor Ellertson commented that one of the questions that may exist within the public's mind is "why the backstop." Mr. Black explained that the primary motivation for the "backstop" is to buy down the interest rate so that UTOPIA can borrow money less expensively and use the leverage that municipalities are entitled to. Mayor Ellertson verified that the backstop is not to ensure the feasibility, just to buy down the interest rate. Councilmember Bayless observed that the Council had voted at various times to proceed with some financial commitments, but wondered if a vote had been taken to commit Lindon City to the project. Mayor Ellertson commented that the Lindon City Council had voted on becoming a member of UTOPIA, and had funded the feasibility study. Councilmember Bayless noted that these votes were a commitment to do the research, not a commitment to fund the project.

Mr. Black observed that the interlocal agreement that created UTOPIA has specific language that deals with this question. The UTOPIA Board must give the cities notice of the final financing plan and allow the cities the choice of continuing with the project at that point. He commented that the vote to backstop the bonds is not a commitment that is fixed and irrevocable. UTOPIA will come back to the cities to ask for approval of the financing plan. The cities will have the option to either withdraw from UTOPIA at this point or to withdraw from the financing arrangement. Mr. Dameron observed that there is one more step to take before the final commitment. Councilmember Carpenter commented that this step is necessary because the final details of financing are not known yet. Mayor Ellertson thanked Mr. Black for clarifying this step.

Mr. Harlow Clark, newspaper representative, asked if the City decides not to backstop the bonds, then would this decision be considered a withdrawal from UTOPIA. Mr. Black replied no, it will not be a withdrawal–just that the construction of the fiber optic network will not include Lindon in the first phases. Lindon will have an opportunity to extend the network into their territory during an extended construction period after all the other participating cities are built. He noted that the estimated build out of the system is three years.

(Councilmember Acerson arrived at 8:05 p.m.)

Public comment was opened. Mr. Roy Shepherd commented that he can't believe that UTOPIA is asking for financial backing this early. He felt that Lindon should not be asked to "cosign" for UTOPIA. He asked how long Lindon would have to have the backstopping funds available at $6 per month per household. Mr. Black replied that the bonds have a twenty-year term, but that the first two years are covered by capitalized interest, so the backstop will be in effect for eighteen years. Mr. Shepherd observed that the pledge becomes a legal binding obligation of the city and suggested that this is a "legal maneuver" to put the citizens of Lindon in debt. He felt that Lindon does not need to cosign to get UTOPIA to build the network.

Ms. Marissa Wright told the Council that she is in the process of buying or building a home. A consideration in her decision of where to locate is whether the parcel is in a UTOPIA city. She informed the Council that if Lindon remains a UTOPIA city, she will buy in Lindon. She commented that the reason for this decision is that she wants the best education she can get for her two young children. She felt that adding a fiber network to Lindon would enhance the quality of life for the residents. She expressed dissatisfaction with the current service providers' lack of quality service and chided their efforts to stifle competition. She asked the Council to give Lindon residents the opportunity to choose their own service provider by providing a government-sponsored and built network.

Mr. Jeff Wilson of 194 South 300 East, suggested that building a city-owned system is not without precedent in Lindon and referred to the pressurized water system. He noted that at the time the water system was built, it was an issue that was both forward-looking and risky. He suggested that there is not anyone now that would think that building this system was a mistake. He commented that it has been a boon to the City. He suggested that building a fiber network is similar–it will benefit the residents although, just as the water system, some will use it and some will not. Eventually, everyone will come to use the system and appreciate that fact that the City took the risk and built it. He acknowledged that there is a possibility that the project might fail. He observed that the Council should compare what the City has to gain over what it has to lose. He told the Council that he has been a software engineer for 20 years and has been waiting for 10 years for a decent internet connection in Lindon. He urged the Council not to look this proposal shortsightedly. He commented that it will bring more than the internet to Lindon. He pointed out that Lindon has a large share of residents that are part of the technology market. He asserted that the residents of Lindon want to maintain the values of "a little bit of country" and still move forward into the future. He thanked the Council for listening.

Mr. Ed McGarr of 730 East 100 North told the Council that he had learned of the proposed project just yesterday. He had found both pros and cons in his research and is reached the point of view that there is no doubt that the project is needed. His objection lies in asking the cities to become venture capitalists. He asked why private funding is not found if the project is so viable. He felt that other funding avenues should be pursued instead of the taxpayer. He objected to the attitude that sends everyone to the government to solve and provide "all things good." He suggested that a wealthy citizen be found that may provide the venture capital.

Mr. Rob Lundgren of 318 North 400 East represented himself as a proud Qwest employee who is adamantly against the concept of UTOPIA. He acknowledged that Qwest has had problems, but have also accomplished some good things. He pointed out the new ten gigabyte system that connects Utah's schools and universities (Utah Education Network). He informed the Council that eventually more fiber drops will be put in Lindon. He observed that he has also lived in Lindon 20 years. He suggested that although everyone profited from the water system, not everyone will need the 10k internet. Some just need the phone lines. He told the Council that he installs DSL and maintains equipment for Qwest everyday. He pointed out that there is not the demand for high speed internet that is being represented here tonight. He commented that there is a system in Provo's Indian Hills subdivision that has just upgraded to 48 connections. There are about 500 homes in this area. He noted that Airswitch had tried to build a system and failed. He told the Council that he was not willing to pay $6 per month and neither would the "little old lady on the corner."

Mr. Robert Wood of 1255 East Canberra Drive introduced himself as a professor of finance in Memphis, Tennessee. He maintains two residences and has a need for a high speed pipe that is dependable. He considers the $6 negligible and anticipates a reduction of costs for cable, phone and internet because of the increased competition. He suggested that the alternative to a city-based system are the "quasi-monopolies" represented by satellite, cable, and dial up. He pointed out that residents would not want a venture capitalist to build roads for us. If a venture capitalist built road, residents would be charged tolls that would cost a lot more. He noted the venture capitalists expect a profit, while cities operate the system as self-supporting. He told the Council that he is a consultant with the New York Stock Exchange and the NASDAQ Stock Market. He told of competition that had improved the trading venues and resulted in a reduction of trading costs.

Mr. Ward Spangenber, an engineer for a local business, told the Council that he had personal experience with fiber to the home. He commented that he had worked for a network in Sacramento, CA before moving to Utah. He told the Council that Sacramento had also received complaints that the residents were not provided with services. He noted that the challenge of such a system is reaching each hone and future-proofing the network against technology advances. He told the Council that the technology has been established by systems such as the one in Sacramento. The project was so popular that some neighborhoods sold out before construction and rents were raised in neighborhoods where the service was available. He commented that some of the applications that the network was used for include video chat, a boy scout troop built their own web site, and the Mayor held video staff conferences. He touted the new opportunities and new businesses that came as a result of the fiber network. He thanked the Council for their time.

Ms. Suzette Lundgren of 318 North 400 East applauded the credentials of all the speakers so far and noted that she was just a resident. She told the Council that she was a resident when the water system was built and that there were some things she liked about it and some that she did not. One result of this system that she does not like is that her water bill has not dipped below $85.00. She acknowledged that things change, but expressed concern about mixing government and private business. She told the Council that her family had just got satellite. She noted that she wants HBO taken off her channel listing. She expressed concern that children have a way of finding things that they should not, and wondered if the fiber network would make adult content more readily available to them. She also suggested that those who want the network and its services should be the ones who pay for it and not the residents of Lindon in general.

Mr. Jay Ekstrom, professor of IT at BYU, told the Council that he also has lived in Lindon for 20 years and has seen a lot of changes. He commented that this infrastructure proposal is a government concern and noted that Qwest extended services into areas where they can make money. He compared the network to city-provided services like roads and garbage. He observed that if each individual resident contracts for garbage, it would be a significant expense. However, if the city provides the roads and offers to have private industry pickup the garbage–if we band together to negotiate a contract, there is a significant savings. He suggested that the public think of the fiber network as the road for delivery of service.

Mr. Ekstrom noted that the Qwest employee had brought up the links between the universities (Utah Education Network), and then informed the Council and public that the State of Utah had paid to have this system installed. He commented that he had been trying for twelve years to get a high speed internet connections from Qwest. He had added his name to a list over and over again. He informed the Council that the only alternative to dial up has been a one megabit wireless connection, which is minimum. He observed that one of the attractions of Lindon is the nice lifestyle–small town but close to the big cities. He has commuted from Lindon to Salt Lake City, Provo, Ogden, Santa Clara and New York City. He noted that if Lindon had fiber, he could have stayed home instead of going to New York.

Mr. Ekstrom commented that if this infrastructure is built, Lindon will see more services put in. He added that it is just not profitable for the current service providers to put in the "last mile" of pipeline. There is no economic justification, not enough profit, for them to put it in. He commented that the telephone was not proliferated until "Ma Bell" was subsidized. He added that there is a 50-60 year payback on this kind of infrastructure. He pointed out that if we build the network as a city, we can control the last mile, just as we police the last miles to our houses. He noted that he would like to say what can't go on this "road," but he can't shut the street to his house either. However, we can preserve our community values and "control the junk." He pointed out that we will never control if we don't own the last mile. He added that it will also be cheaper, because it will promote competition and we can negotiate better prices for the people collectively.

Mr. Mark Nelson of 195 North 980 East, characterized himself as a "strong supporter." He expressed the opinion that the benefits will vastly outweigh the risks. He suggested that the risk of being technologically left behind is more important than any other consideration–that coming from behind may be more costly. He commented that he would like to stay in Lindon, but if high speed internet does not come, he may need to move his business and/or home to a place that it is available. He observed that there is a huge benefit to having fiber everywhere. It makes many more things possible than if it is not available. He felt that it is the proper role of government to build this infrastructure project. He pointed out that Lindon is not providing the services, just the network. He commented that this is a great idea.

Mr. Lawrence Packer weighed in as "for the project." He informed the Council that he is a real estate agent, but spent ten years in IT in his "former life." He felt that it is important to stay up to date with technology–even if a resident does not want a service now. He suggested that there is new technologies looming on the horizon that will make the network more marketable to consumers. He observed that technologies like "smart homes" and monitoring medical patients over high speed lines will make Lindon into a more attractive community. He asked what controls the City will have on content and service providers. He also pointed out that Lindon would not give a venture capitalist the "quickest payback," in fact, little spread-out Lindon may be the "last guy on the totem-pole." He commented that he is one of the few with access to DLS in Lindon and uses it everyday. It is a necessary evil, like the cell phone. He asked if Lindon residents will have influence on what content reaches their home.

Mr. Black replied that there are first amendment issues that are raised by trying to control content on the network, but one of the features UTOPIA is insisting from the service providers is that they provide parental control filter features. He agreed with the points that Professor Wood had touched on–that infrastructure projects do not pencil in profits for investment. He noted that the incentives are different. Infrastructure brings "non-monetary" values to the community. The objective of infrastructure is to make it pay for itself over the long-term, not to return a profit. That is the reason that government entities can borrow less expensively and what make infrastructure projects feasible. He suggested that investment capital that is looking for a return should look to something else. Councilmember Carpenter commented that the pledge guarantees that Lindon will "not be pushed to the back of the pile." Mr. Black agreed. He informed the Council that when the project is starting construction, the crews will be deployed in the member cities simultaneously.

Mr. David Brewer of 15 South 180 West expressed support of this infrastructure project. He noted that he has been a resident since 1975. He indicated respect for Lindon's values and society and he would rather not move to get services. He told the Council that he hosts charitable web sites and has found it frustrating to provide information from Lindon. He also has found that Qwest does not find Lindon viable. He noted that services are very slowly being proliferated by them. He suggested that another issue to consider with a fiber network is not about what we can keep out of our homes, but that it encourages community services in Lindon that are not available from a national provider. A local fiber network will encourage cottage industries and provide services that meet our values.

Mr. Mark Talbot noted that he was in attendance to hear more about UTOPIA. He commented that he was looking at a home on 341 West 470 South in Lindon. He is concerned about the high price of $150 per month for phone, cable and internet. He welcomes the opportunity to lower prices that this will encourage. He feels that he can save up to $500 per year just by bringing the UTOPIA network to Lindon.

Mr. Bruce Armstrong of 670 East 400 North asked how long it would be before service was offered to the public. Mr. Black replied that when financing is arranged, the first homes and business would have service within 60-90 days. The majority of the homes and businesses would have access within one and a half to two years and the final ones in three years. Mr. Armstrong commented that the network does not compare to roads, but compares to replacing the last mile of the roads. He asked if the network is so good, why do the providers go out of business? He answered because they have to capitalize the costs over shorter periods. Government has the ability to bond over 20 years. He asked if the demand is present in Lindon. He answered yes, absolutely.

Mr. Lundgren told the Council that Qwest's DSL had sold slowly, the costs are enormous and the margins are slim. He observed that people are not buying the service, but Qwest has still opened more sites this year than in previous years.

Mr. Tyler Dallas, representative of Qwest and resident of Sandy, agreed that Qwest had made promises that were not kept. He noted that many here had probably noticed that stock priced were low and Qwest was near bankruptcy. He agreed that Qwest had opened over 400 sites this year as told by Mr. Lundgren, and had increased their capital expenditure about 300 percent. He observed that as time passes, technology provides more solutions to costs and connection speeds. He commented that "stinger" now serve just 28 customers. He told about the new 802.16 technology that is a low cost alternative to fiber. He told the Council that he was here tonight to ask for a continuance to allow Qwest the opportunity to present their concerns about the feasibility studies.

Mr. Armstrong asked if the $380,000 bond payment per year at $6 per month is a worst case scenario. Mr. Black replied that this assumed that the network is built, there are no customers and no residual value in the system. He added that this scenario is not likely to happen because there will be a "ramp-up" of building as well as a "ramp-up" of spending. Mr. Armstrong commented that this network is replacing infrastructure currently being provided by other providers such as Qwest. He asked if Qwest had a monopoly agreement. The Council replied that this franchise agreement is nonexclusive. Mr. Armstrong noted that probably the city and UTOPIA will not be court. He commented that he supports the initiative and added that the greatest risk is not from Qwest, but from competing technology. He observed that 802.16 may cost less to deploy and maintain, but the advantages of having broadband will give the city financial gains from economic growth that will far outweigh the risks of obsolescence.

Ms. Leslie Packer of 251 East 200 North asked how much bandwidth is in DSL. She was told that DSL is generally 256 kilobits. Mr. Black commented that UTOPIA is planning 100 megabits to service homes. Ms. Packer asked how Qwest can compete with that. Mr. Lundgren replied that he had seen what can be done on a pair of copper wires. He also noted that technology is changing daily. He added that fiber is not the all-time great transport. Mr. Spangenber explained that the distances covered are what limits copper transports. He noted that with fiber and WDM multiplexing, data transfers are from 1 meg up to 150 gig. Mr. Lundgren agreed that WDM is wonderful, but only one percent of the population needs this greater speed. Ms. Packer observed that two years ago, not many had cell phones, but now that is not the case. She commented that we now work cell phones into our budgets to accommodate the changes.

Mr. Matt Jolley commented that he is a former resident of Lindon and an employee of Dynamic City. He told the Council that a local businessman had written a letter to the Council that he wanted read in this meeting. He read the letter from the owner of Galaxies Lighting, Mr. John Clawson. Mr. Clawson wrote that he had recently moved his small business to Lindon and has found that his first headaches are not the usual ones. He has struggled with internet service. He reported that satellite connections are not reliable and he needs more bandwidth. He wrote that internet service, to his business, is not just a convenience, but is as critical as the freeway. Some of his neighbors have resorted to paying for T1 lines. He concluded by stating that before he opens another new location, he will first investigate the internet service.

Mr. Wood told the Council that the reason Qwest is in financial trouble is that they are stuck with the old technology. He observed that the future is IP phone. He disputed that idea that the demand is low, because it is now growing exponentially. Mr. Lundgren commented that Qwest has IP service in Minnesota. He expressed the opinion that this service is one that some need, but the majority neither need or want it. He predicted that Qwest will drop prices and that technology will find a way for this to do so profitable. He observed that Japan has 7mg download speeds available on cell phone. He did not agreed that fiber is the ultimate option, and that there are other alternatives.

Mr. Ben Gould, resident of Orem, told the Council that he was a shareholder in a Lindon-based venture capital company. He agreed that private venture capital would not be interested in funding this type of infrastructure improvement. He observed that the bond market would be very interested. He added that government is usually responsible for infrastructure improvements and that the government has given a monopoly to Qwest. He noted that it is the government's responsibility to provide for an educated populace. This responsibility is now dependent on broadband, the internet and similar forms of communication. It will allow for fair and robust competition. He suggested that it is important to consider the motivations of the persons speaking and compared this to a "ferry operator hating the new bridge." He also suggested that cost to catch up with technology from behind is greater than the cost of the risk. He agreed that there is a risk, but this is only a $6 risk. He expressed the opinion that residents will be saving more than $6 per month and will be saving it again and again.

Mr. Eric Heath of Orem told the Council that his firm is an academic provider of library services. He commented that one fo the hottest issues facing educators is distance learning. He noted that it is great to hook the schools together, but asked, "What about the constituents." He observed that the real test is tying in the homes and rural areas to education. He commented that his travels around the country have prompted many discussion of UTOPIA, and he is asked how this can happen in Utah. They are astounded that such forward looking technology can come from a state that is not known for its forward-looking. He strongly urged the Council to help change the way we educate our children and bring things to pass that were only dreamed of.

Ms. Kristen Anderson of 450 East 710 North told the Council that she had come to Lindon from a smaller Utah community. She observed that coming to Lindon was not hard because it is a small town in the midst of bigger cities. She commented that UTOPIA sounds wonderful and added that her father, as a councilmember in her hometown, has regretted rejecting similar forward-looking projects. He has told her that their town should have taken the risks and built their economic base. She said that her husband has also tried to get high-speed internet and is on a waiting list. She commented that UTOPIA will allow Lindon to keep the little town atmosphere, but branch out and allow the residents to make a good living and stay.

Mr. Brewer commented that one thing he can see as a benefit is that this will cut through the chicken and egg syndrome. He pointed out that Mr. Lundgren says there is not a demand, but expressed the opinion that the demand is low because the cost is high. He observed that although 802.16 may be a good alternative, wireless is not secure. He noted that a 256k DSL is not enough to do what we need or want. This can all be resolved with UTOPIA. It is the solution to allow the connections for a reasonable price.

Mr. Jim Hacking of 601 West 100 South commented that he worries about not joining from a business standpoint. He asked, "What if Lindon is passed by?" He noted that Lindon has spent time competing for business. He pointed out the business park near the freeway and the land available near the new freeway interchange. He suggested that Lindon needs the latest ability to entice more businesses. He commented that the City is in the business of providing a place for business and it is to the advantage of the residents to have this property producing.

Mr. Mike Proper of 129 South 1170 East introduced himself as a Lindon business owner. He pointed out that the businesses of Lindon will gain because the majority of the infrastructure base will be in Lindon. He suggested that other cities will gain, but Lindon will gain more than just connections–it will gain jobs and economic growth. He agreed that Lindon must be cautious, but Lindon must also take into account the competitive advantage of broadband. He suggested that the decision is easy and the Council should vote to approve. Mayor Ellertson asked if there was any other comment. There was none.

COUNCILMEMBER BATH MOVED TO CLOSE THE PUBLIC HEARING. COUNCILMEMBER CARPENTER SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

Mayor Ellertson commented, that for the sake of discussion, there are certain concerns about the project. One is–should the city be involved. Another is– will the people use the system. He commented that there are benefits beyond the immediately visible ones. There are risks if certain things occur. He noted that there are indications that proposal is viable. The take rate is projected at breakeven point of one-third of the customers taking only one of three services within seven years. He noted that concerns have been raised on whether or not all the costs have been identified. Some others have looked at this proposal from a conservative point of view and think it is viable. He asked if the Council is willing to support the concept of a backstop for a partial guarantee. He pointed out that the bonding community stepping up to this and not all the risk is on the City. He also noted that UTOPIA will come back to Lindon for a final approval of the financing package.

Councilmember Acerson verified that if the pledge is approved tonight, the final financing arrangements must be approved at a future date. Councilmember Carpenter pointed out the pertinent clause from the resolution. Councilmember Acerson asked if Lindon is independent of the other cities take rates. Mr. Black replied that the pledge is dependent and will be "one for all and all for one." Councilmember Acerson observed that the $308,000 is an annual amount and asked if it is not needed, would the amount be pushed forward for the next year. He verified that the amounts are not cumulative. Mayor Ellertson confirmed that Lindon had two years to accumulate the committed amount and if it was not drawn upon for that year's bond payment, the amount would remain in the account for the next year. He added that if an amount is drawn from the account, the reserve remains and would only need to be replenished up to the original amount. Councilmember Acerson asked if the tax revenue from the new Walmart can be committed to this venture. It was commented that the City anticipates that this amount would exceed the pledged amount and could be committed.

Mayor Ellertson commented that with the new businesses that are coming to Lindon, and with the current tax structure available, committing to this pledge would not cut current services. Councilmember Bayless commented that Lindon's lean years may correspond with UTOPIA's lean years. Councilmember Hatch commented that Spanish Fork has had a take rate of 65%, which is much higher than the break even take rate of 33% projected. He suggested that it is a very realistic scenario that the 20 year bonds may be 7 year bonds. Mr. Black agreed that accelerated payment is possible. He noted that any profit from the network would be returned to the cities for their purposes. Mayor Ellertson asked if the Council was prepared to make a motion.

COUNCILMEMBER HATCH MOVED TO APPROVE RESOLUTION 2004-2 AUTHORIZING AND APPROVING A PLEDGE OF LINDON'S SALES TAX REVENUES; AUTHORIZING THE MAYOR TO EXECUTE, ON BEHALF OF THE CITY, A PLEDGE AND LOAN AGREEMENT AND ANY OTHER DOCUMENTS REQUIRED IN CONNECTION THEREWITH. COUNCILMEMBER ACERSON SECONDED THE MOTION. THE VOTE IS RECORDED AS FOLLOWS:
COUNCILMEMBER ACERSON AYE
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS NAY
COUNCILMEMBER CARPENTER AYE
COUNCILMEMBER HATCH AYE
THE MOTION CARRIED WITH ONE DISSENTING VOTE (4-1).

Mayor Ellertson commented that he had some background in the issues of a utility model and commented that this may provide a facility that is an asset for the benefit of the residents. He suggested that the project move forward and attempt to bring benefit to as many residents as possible and added that this includes Qwest and all other service providers where they can work together. The Council thanked the audience for the comments and amicable discussions.

The Council noted the presence of Judge Bullock and returned to item two.

2. Appointment - Lindon City Municipal Justice Court Judge. The Mayor and City Council will consider action to reappoint Judge W. Brent Bullock to the position of Lindon City Municipal Justice Court Judge for a 4-year term to expire in February of 2008. The City Council has confirmation authority for this position and may take up to 30 days to confirm an appointment by the Mayor.

Mayor Ellertson commented that the Council has had the opportunity to recertify the court and now have the authority to continue the Lindon Justice Court. The duty now falls to appoint someone to administer the Justice Court. He commented that Judge Bullock has served admirably for the last five and a half years. Judge Bullock presented the Council with figures showing that the Justice Court system in Utah handles 85% of the cases. They have limited jurisdiction to adjudicate traffic tickets, Class B, D and D misdemeanors and infractions. He noted that the cases that are reported are fairly level in the years 2000 through 2004 and not much of an increase is reported to the State, even though the case load has actually increased. He commented that the reason for this is the traffic school program. He explained traffic school to the Council and noted that these cases are not reported to the State and do not appear on the statistics. These are not reported to insurance companies. The traffic school revenues stay in city budgets. He commented that there is a move by the State to attempt to capture that money. He suggested that the League of Cities and Towns needs to lobby to retain that money for the running of the courts in the cities.

Mayor Ellertson asked if highway patrol citations are offered traffic school. Judge Bullock replied no, only the Pleasant Grove/Lindon police department can offer traffic school. Mayor Ellertson highly recommended the program and felt that it creates better drivers. He expressed the opinion that this idea could be used in defending the city's position.

Judge Bullock explained the processes for traffic citations, restitution, and his program of night court. Mr. Dameron commented that night court is a great service to community. Judge Bullock noted that his is the only court in Utah County that offers this service that he is aware of. He asked if there were questions.

The Council asked questions about the funding of district courts, disposition of payment arrangements, and repeat offenders. Councilmember Carpenter asked for a report card on the court system. Judge Bullock reported that crimes of domestic violence are increasing in particular. The Council discussed the problems and how they were being handled.
Mayor Ellertson asked Judge Bullock if he was willing to continue to serve as Municipal Court Judge. Judge Bullock replied yes.

COUNCILMEMBER BATH MOVED TO APPOINT JUDGE W. BRENT BULLOCK TO A CONTINUING TERM OF FOUR YEARS. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

Mayor Ellertson noted that the Center for Women and Children had requested support in their search for grant money. He noted that he plans to sign in memo of understanding in favor of their endeavors. He commented that the police department is also in favor of this program.

COUNCIL REPORTS:

WATER, SEWER, SOLID WASTE, HOUSING CONSORTIUM

Councilmember Hatch reported that the Landfill District has hired a consultant to assess and make recommendations on the operations. They are now acting on the recommendations. The operations manager and the megabaler were discussed briefly.

TRAILS, PLANNING, ZONING, BOARD OF ADJUSTMENT, ADMINISTRATION

Councilmember Bayless commented that she had no report for tonight.

PUBLIC SAFETY, COURT, BUILDING INSPECTIONS

Councilmember Bath commented that he had no report for tonight.

PARKS, RECREATION, ENGINEERING, LINDON FAIR, NEWSLETTER

Councilmember Acerson reported that he was continuing the search for a chairperson for the Lindon Days event. There was a discussion of the Timpanogos Storytelling Festival and the Youth Council.

GENERAL PLAN, STREETS & SIDEWALKS, PUBLIC BUILDINGS

Councilmember Carpenter commented that he had nothing to report tonight.

ADMINISTRATOR'S REPORT

Mr. Dameron:
1. Reported that he received an update on pending initiatives with Alpine School District. The items were discussed briefly.
2. Asked if any items from the Project Tracking should be brought for Council review. The list was discussed and no items requested.
3. Announced the Retreat for February 28th. The items on the agenda were reviewed. He asked if there were other items. None were noted at this time.
4. Presented a map of the Bonneville Shoreline Trail prepared by the Forest Service. Some discrepancies were noted and he was asked to set up a work session to iron out the differences.
5. Noted that efforts were underway to obtain long term funding for trails and in particular the Timp-Lake Trail.
6. Presented a letter from Nadine Gibb requesting permission to participate in a nationwide program to record information in cemeteries. The Council discussed the request and asked about privacy issues. Mr. Dameron was asked to consult the City Attorney.
7. Reported that Lindon has received a request to turn the rental units by the Junior High into condos. The request was discussed.
8. Announced a meeting to discuss a new Animal Control building. The costs and legal issues with creating a new special service district were discussed. It was decided to proceed with the proposal.
9. Presented the City's snow removal costs to date for this winter. He noted that it has cost $12,623.00 or about $600 per event.
10. Reminded that Council that Ms. Gubler would be taking some vacation time and will be absent at the next Council meeting and Ms. Lile Lavaki would be taking minutes.

COUNCILMEMBER BAYLESS MOVED TO APPROVE THE PAY VOUCHERS. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

ADJOURN

COUNCILMEMBER BAYLESS MOVED TO ADJOURN THE COUNCIL MEETING AT 11:37 P.M. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.

APPROVED - February 18, 2004

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