City of Burlington, VT

BURLINGTON CITY COUNCIL

CONTOIS AUDITORIUM, CITY HALL

BURLINGTON, VERMONT

MINUTES OF MEETING

October 16, 2017

MEMBERS PRESENT: Jane Knodell (Council President) – Central District

David Hartnett – North District

Joan Shannon – South District

Richard Deane – East District

Sharon Foley Bushor – Ward 1

Max Tracy – Ward 2

Sara Moore – Ward 3

Kurt Wright – Ward 4

William “Chip” Mason – Ward 5

Karen Paul – Ward 6

Ali Dieng – Ward 7

Adam Roof – Ward 8

ADMINISTRATION: Miro Weinberger, Mayor

Beth Anderson, Interim CAO

Rich Goodwin, DFO

Eileen Blackwood, City Attorney

Brian Lowe, Mayor’s Office

Katie Vane, Mayor’s Office

Lori Olberg, C/T

Amy Bovee, C/T

Noelle Mackay, CEDO

Chapin Spencer, DPW

OTHERS PRESENT: Don Sinex

Jeremy Farkus

Sandy Wynne

Eric Maher

Sandy Baird

Bea Bockchin

Lily Masar

Dave Mayer

Ibnar

Mary Turtchell

Jennifer Ely

Diane Gayer

Phil Hammerslough

Charles Thorpe

Don McDowell

Alex Friend

Bob Hooper

Diane Pearson

Louise Brill

Solvey Overby

Dean Corren

Andrew Simon

Charles Simpson

Liz Curry

Mark Pater

Brian Pine

Lynn Martin

Thomas Hyde

Tray Friar

John Cowell

Michael Long

Caryn Long

Steve Goodkind

Carolyn Bates

Kit Andrews

Teegan Croke

Isabel Shaghan

Greg Hancock

Alan Turnbaugh

David Lansing

JE Carter

Rob Backus

Paco DeFrancis

Amanda Hannaford

1.0 CALL TO ORDER and AGENDA

City Council President Knodell called the meeting to order at 7:10 PM on October 16, 2017 and led the assemblage in the Pledge of Allegiance. There was a moment of silence to reflect on the recent domestic violence tragedy on North Street.

1.01 Agenda

MOTION by Councilor Roof, SECOND by Councilor Shannon, to approve the agenda with the following amendments:

Add Item 7.24 to Consent Agenda (satellite parking)
Note added material for Item 8.03 (BTC development agreement)
Note added material for Item 8.05 (BT sale)

VOTING: unanimous; motion carried.

2.0 COMMITTEE REPORT

Councilor Roof reported the CDNR will meet 10/18/17 to discuss information collection on students living off campus and the Public Safety Committee will meeting 10/19/17 to discuss homeless issues.
Councilor Deane reported the License Committee will meet 10/24/17.
Councilor Hartnett reported the PACC will meet 10/18/17 with the new Director.
Councilor Tracy reported the TEUC will meet 10/17/17 to discuss resolution on the walk/bike project.

3.0 CITY COUNCIL – GENERAL AFFAIRS

Councilor Roof reported Ward 8 has the first installation of protected bike lanes on South Union Street.

4.0 CITY COUNCIL PRESIDENT – COUNCIL UPDATES

No report given.

5.0 MAYOR – GENERAL AFFAIRS

Mayor Weinberger reported:

Condolences are offered to family members who were victims of the recent domestic violence tragedy on North Street. Burlington Police and Fire are grateful to the neighbors who assisted.
Fire Chief Locke has identified five recommendations for follow up relative to water safety and other policies.
Flag redesign competition has brought the community together. The public will vote on the designs on 10/20/17.
Welcome is extended to the Mayor of Honflleur, France, Burlington’s sister city.
Innovative Week (Ignite BTV) offers an entire week of events to strengthen tech systems.

6.0 PUBLIC FORUM

Public forum was opened at 7:25 PM.

COMMENTS

Sandy Wynne advocated for fair trade chocolates.
Sandy Baird, Ward 1, spoke in support of KBTL and local control.
Bea Bockchin spoke in support of KBTL and against giving the internet away to another company.
Eric Maher spoke in support of KBTL.
Lily Mason spoke of the Vermont Ibutwa initiative.
Dave Mayer, New North End, spoke in support of the Schurz bid and basing the decision on facts and figures, not emotion.
Ibnar, resident, spoke in support of KBTL as a community resource that people are willing to pay for and reap the rewards. Ibnar advised if City Council does not work to support KBTL then the people will work to change those on the council.
Mary Twitchell, Ward 6, spoke in support of KBTL, noting BED and City Market are testament to local folks investing in a service that is better off being owned locally.
Jennifer Ely spoke in support of keeping BT local because more people will be signing up for service. The highest bidder is likely to raise rates.
Diane Gayer spoke in support of KBTL because of the opportunity to diversify how to support the city other than the property tax.
Phil Hammerslough urged doing a pilot project with rapid transit and satellite parking with a bus running every 15 minutes.
Charles Thorpe, Ward 2, referred to the Noble Prize for economics founded by the Swedish banks to undo the socialist policies of Sweden as a push for neo-liberal policies.
Don McDowell spoke in favor of KBTL and recalled the lost opportunity by the state to have a portion of hydro-Quebec.
Alex Friend spoke in support of KBTL and privatizing or doing a co-op.
Bob Hooper urged treating BT as a utility and an investment rather than the cash being offered. The fiber is a window to the world for people in Burlington. It would be shortsighted to sell BT.
Diane Pearson, physician and small business group, took exception to the Mayor’s statement that the KBTL offer is not viable when there is nothing more viable than the community.
Louise Brill, Ward 3, spoke in support of KBTL Co-op. Co-ops have a track record in Burlington. Co-ops are run by people for people. The people of Burlington made it clear they want to keep BT local. The elected representatives are urged to do what the people are asking.
Solvey Overby spoke in support of keep BT local and expressed concern about the possibility of losing the net neutrality requirement. The private owners will filter and manipulate the service and collect and sell data on use of the internet for profit. People voted for the municipal fiber optic network in 2001 and now is facing the risk of privatization again. BED began after the city was unsuccessful in getting the private power company to lower rates. The city did this to have lower cost and better service. The situation is the same with BT, but the Mayor is urging a choice that will cost the people more in the long run. The cooperative model will allow access to the integrated resources plan and business decisions like that produced by BED, but a private company will not allow such access.
Dean Corren stated the stakes are larger than the small amount of money being discussed to not have local control. The co-op is a viable offer and the only one that meets the criteria. The key criterion of keeping control local is only met by the KBTL Co-op. The other offers are Comcast by another name and there is no way to stop that. The city cannot operate on the threat of corporate litigation. A sale to a private entity is a recipe for litigation. People owning the co-op are not going to litigate themselves. One key to success of BT is the workforce and the employees will stay. Transition to the co-op model is much more seamless and much more guaranteeing of the future success of BT.
Andrew Simon spoke of fiduciary responsibility and acting in the best interest of the residents of Burlington. The explanation of why the highest bid must be taken includes avoiding a lawsuit from Citibank, but the residents demand a wider view of what is in the best interest and not just for today, but taking a long term financial look at the advantages of owning a co-op. Fiduciary is to trust and people are trusting City Council to look at all aspects and take a wider view. City Council has to trust the residents as well. The residents have studied the complexity of the issue and want to keep BT local.
Charles Simpson thanked City Council and the public for their work on the issue. There has been a referendum of sorts with 7,000 subscribers who put their money into the future of BT. Co-op ownership is a viable model. Burlington is a technology city, but needs to control the direction of the technology. The local co-op keeps the money in the city to circulate in the community. Support of the cooperative model is urged.
Liz Curry read a statement on the profile of Schurz and where the rate revenue will be directed. City Council was urged to honor the sales criteria with the first priority clearly identified by the residents as local control. The agreements with Citibank and Blue Water do not require the highest bidder.
Mark Porter said he has had a choice of services for internet and as a taxpayer he paid money to BT so he should not have to be a subscriber to get his money back. The city is back on good financial ground, but the money in BT is owed to all taxpayers no matter where they subscribe for internet service. There are people in the city other than those who are before City Council now. Do not silence the opposition.
Brian Pine, Ward 3, spoke in support of the city being guided by hopes and values rather than by fears, and noted initiatives such as the bike path in the 1980s, waterfront public trust, north 40 acres, City Market versus Shaw’s which were accomplished due to bold and audacious leadership. The BT decision calls for the same type of audacity. City Council is urged to take the road less traveled and support KBTL.
Lynn Martin spoke of the other bidders needing to make a profit and possibly selling BT to another enticing offer. The majority of residents want to keep BT local. City Council needs to listen and vote with their constituents.
Thomas Hyde, Ward 6, urged disclosing the reason why Citibank will sue the city if the KBTL bid is chosen because it feels like unsubstantiated fear mongering. The people want the truth.
Tray Friar spoke in support of KBTL and expressed appreciation for the community having the opportunity to weigh in.
John Cowell spoke in support of the Schurz and Ting proposals and urged City Council to maintain fiduciary responsibility while looking at experience in capitalization and the future vitality of the community.
Michael Long spoke in support of KBTL because cooperative ownership serves customers and owners as one versus corporate ownership that serves the shareholders first then customers. City Council is urged to represent its constituents and the broad public interest.
Caryn Long spoke of the Mayor and some city councilors undermining the KBTL bid rather than representing the will of the people. Only the KBTL bid provides the confidence and local control the people value as well as long term social and financial benefits to repay the community for the misappropriated funds. The community having a local telecom provider co-op structure works. KBTL should be kept in the running.
Steve Goodkind dispelled the scare tactics of the Mayor saying the Public Service Board will not approve an entity without operating experience to run the telecom system, but the PSB approved the sale to Blue Water and Blue Water put in no money and has no experience. The deal was approved because the city wanted it approve. Also, CitiFinancial does not require the sale. There is not an expectation of a profit. There may not even be a sale. There might be an unwritten understanding of a sale to the highest bidder which confirms the sale process is a charade. The desire for local control trumps CitiFinancial’s desire for profit. BT should not be sold. Blue Water should be bought out.
Carolyn Bates reviewed the history of BT from 1980 and thanked all who saved BT then and urged all to stand up now and save KBTL. Ms. Bates spoke of the original agreement for the lowest bid that Citibank found acceptable, but now is threatening to sue if the lowest bid is taken when their assets are in the billions and trillions of dollars.
Kit Andrews speaking for Deb Flanders, small business owner on Church Street, spoke of BT service being a good business decision due to the rates and service, and concern if BT is sold that both of these elements will change. Keep BT local.
Teegan Cooke spoke of the internet assisting in life and the concern that if BT is sold the buyer will not abide by the contract.
Isabel Shasha expressed concern about a large company raising the BT rates and impacting small businesses. Corporate power does not play be the rules. Keep BT local.
Greg Hancock stated KBTL has a solid business plan and satisfied all the criteria, but now may not be considered due to threat of a lawsuit by Citibank. This is unfair and wrong. BT has a conservative business plan that shows equity value, and has the technical expertise and business people to assist management. Keep BT local.
Alan Turnbaugh, teleworker, spoke in support of KBTL because the people know the local market area and the community to serve the co-op. The other bidders will take the money away from Burlington and give to investors. Then it can be doubted that BT will not pay its debts and do alright in the long run.
David Lansing stated BT is a huge success. All residents and businesses in Burlington benefit from the low rates. The benefit of the co-op is lower rates long term. City Council needs to consider which bid can become the option for the city. KBTL is ready to improve the bid by organized negotiation of priorities. City Council needs to consider how to preserve the best option for the city in the long run, namely a public co-op ownership of BT.
JF Carter Newvisor, UVM Progressives, spoke in support of KBTL which will be accountable to residents, not shareholders.
Robert Backus urged not letting fear of litigation drive the decision and spoke of competition and experience and keeping BT local.
Paco DeFrancis spoke in support of securing the BTC development agreement and in support of the Schurz bid for the BT sale.
Amanda Hannaford commented on the support of KBTL as witnessed at public outreach events.

There were no further comments. Public Forum was closed at 8:43 PM.

7.0 CONSENT AGENDA

7.01 PROCEDURAL: Amend/Adopt Consent Agenda and Take Action(s) as Indicated

7.02 COMMUNICATION: Accountability List

7.03 COMMUNICATION: Ratification of Refund to Customer

7.04 COMMUNICATION: Step Placement – Nathan Lavallee

7.05 COMMUNICATION: Step Placement – Lisa Roach

7.06 COMMUNICATION: Step Placement – Ashley Walenty

7.07 COMMUNICATION: Lead Program Outreach Specialist I – Enrollment

7.08 COMMUNICATION: Fire Truck Purchase

7.09 COMMUNICATION: Oakledge After Action Report

7.10 COMMUNICATION: Purchase of Computer Aided Dispatch System

7.11 COMMUNICATION: FY18 Vehicle Purchase

7.12 COMMUNICATION: Analysis of Three Prospective Buyers of BT

7.13 COMMUNICATION: Nuclear Weapon-Free World Our Common Good

7.14 COMMUNICATION: Some Co-op Advantages

7.15 COMMUNICATION: Petition Keep Burlington Telecom Local

7.16 COMMUNICATION: Sweep Report August 2017

7.17 COMMUNICATION: FIO Document(s)

7.18 RESOLUTION: Enhanced 911 System and E-911 Coordinator

7.19 RESOLUTION: Chittenden County Public Safety Authority

7.20 RESOLUTION: Snow Plowing/Removal Contract 2018-2020 Church Street Marketplace District

7.21 RESOLUTION: Building Removal Contract Burlington Airport

7.22 RESOLUTION: Burlington All Hazards Mitigation Plan 2017

7.23 RESOLUTION: Quitclaim Deed 24 Cayuga Court

7.24 COMMUNICATION: Satellite Parking

MOTION by Councilor Roof, SECOND by Councilor Bushor, to approve the consent agenda and take the action indicated for Item 7.01 through Item 7.24.

VOTING: unanimous; motion carried.

Council President Knodell recessed the City Council meeting at 8:44 PM to convene the City Council with Mayor Presiding meeting. The regular City Council meeting resumed at 8:54 PM.

8.0 DELIBERATIVE AGENDA

8.01 Public Hearing: ZA-18-01 PlanBTV Downtown Code

MOTION by Councilor Mason, SECOND by Councilor Roof, to postpone the public hearing on ZA-18-01 PlanBTV Downtown Code until November 13, 2017. VOTING: unanimous; motion carried.

8.02 CCRPC Alternate (term expires 6/30/19)

MOTION by Councilor Bushor, SECOND by Councilor Roof, to postpone the appointment of the alternate representative on the Regional Planning Commission and re-advertise the vacancy. VOTING: 11 ayes, one nay (Councilor Tracy); motion carried.

8.03 BTC Development Agreement – Board of Finance

MOTION by Councilor Wright, SECOND by Councilor Paul, to waive the reading and adopt the resolution to execute the Burlington Town Center Development Agreement.

DISCUSSION:

Councilor Wright said it is exciting to move forward with the BTC development agreement which was passed unanimously by the Board of Finance.
Council President Knodell said the agreement includes added language that was accepted by the developer on reporting on labor standards and construction of private and public improvements.
Councilor Bushor explained her support was not for the project as it moved forward, but rather for redevelopment of the mall with all the components but in a different form and on a smaller scale. Councilor Bushor said she supported the predevelopment agreement in hopes there would be opportunity for modifications, but this did not happen. The city’s job is to work with the owner of the project for the best deal for the citizens. The agreement tried to give direction on what the city wanted in the development. Some inclusionary zoning was mandated to include workforce housing, rooftop observation tower, community space, livable wage for construction workers, and a reporting mechanism. The agreement also considers BT and working with BED on district energy. This needs to be in place moving forward. The new development will be integrated into the existing development to grow and enhance the community. CEDO will work with the small businesses near the new development to ensure their needs are addressed and to mitigate destruction as the change is made.
Councilor Moore asked how workforce housing will be done. Don Sinex said workforce housing in the area will be reviewed and if some units can be designated as such this will be done. Suggestions from the city and City Council will be considered. Work has been ongoing with the city and CEDO for the past three years and the housing issue has been discussed many times.
Councilor Tracy said he will not support the development agreement due to the lack of affordable housing and livable wage jobs, and the development not being accessible to people across the range of the spectrum. Other issues include the city being “gifted” the streets from the development, but the development is not possible without the land for the streets so this is not really a gift. The development needs to be held to the same standards as other developments in the city without special treatment. It is upsetting to see underground parking in the agreement when City Council was told earlier that underground parking would not be possible due to the soils. Trust issues are now raised. The negotiations on the agreement both in substance and process could have been better. Answers to questions were not received until late and just before the agreement went public.
Mayor Weinberger expressed appreciation for the agreement which is a tribute to the hard work by the team. Much is at stake for the future and use of public dollars to reinvigorate this part of the city. Benefits to the community with the signed agreement include hundreds of new downtown jobs, massive increase in revenue to the city and state (tripling of property taxes on the property in just the first phase), a win for the environment and protection of the lake, meeting energy goals, and creating hundreds of new housing units. The collaboration of City Council to get to this point is greatly appreciated.

There were no further comments.

VOTING: 11 ayes, one nay (Councilor Tracy); motion carried.

8.04 City Council Voting Process to Narrow BT Sale Finalists to Two – City Council

MOTION by Councilor Shannon, SECOND by Councilor Wright, to adopt the resolution that outlines the process to narrow the BT bidders to two.

DISCUSSION: Councilor Shannon read the resolution and thanked City Council for the work on the resolution.

VOTING: unanimous; motion carried.

8.05 Narrowing BT Sale Candidates

Interim CAO Anderson facilitated the meeting so Council President Knodell could make comment.

Councilor Hartnett stated he was elected to represent the citizens of Burlington and will take the same approach with BT. The process has been a difficult one. Lots of time has been spent on the issue. There is concern with all three bids. All need improvement. The city does not own BT. Councilor Hartnett said he supports keeping KBTL in the process, but that is not an indication of his final vote.

Councilor Roof acknowledged the process has been emotional, but it appears a hint of fear has crept into the conversation. Councilor Roof stressed he is not fearful of Citibank or the Mayor or City Council, and takes the process very seriously. The bids from Ting and Schurz are preferred. The KBTL bid needs work to show the entity can survive short term to reap long term benefits.

Councilor Wright said the KBTL bid is not in compliance with the four criteria, but the BTAB Chair feels the bid is in compliance while the Mayor does not. Also, explanation of what Citibank can sue the city for is needed. The majority of the public present is in support of KBTL and there is an outside independent analysis that says the numbers can work barring any problems. The 14% interest rate is a red flag and indicates something is wrong with the bid if the lender is setting the interest rate so high. Councilor Wright said he will support the Schurz bid. Schurz is a family owned business which has been in business for a long time and appreciates having free and open exchange of ideas and comments.

Mayor Weinberger stated BTAB was clear there were concerns with the KBTL offer meeting the criteria and had differences to be addressed in order for the proposal to become viable. Concerns were about financial capacity and viability and management capacity. There is a communication from Terry Dorman regarding the communications from Schurz and Ting on the concerns that have been raised. Terry Dorman feels there is value in having both strategies before them.

Attorney Blackwood advised regarding the question on a potential lawsuit it would not be in the city’s best interests to state this in public.

Council President Knodell pointed out City Council has done due diligence and shared as much information as possible with the public. The proformas project over a 10 year period of time. All show there is tremendous growth potential in BT. As earnings grow valuation grows. City Council needs to think big and pick the bid with the most powerful partnership with BT Ignite. Regarding long term interest of taxpayers, the city having ongoing equity interest in the company is the best path. Schurz and Ting can get through the next 10 years, but the city loses local control of BT which Burlington values. KBTL bid is not there yet and needs to continue to improve the financial package it presented. BT has been funding its expansion out of current profits. The debt and interest rate means it will be tight and must be flawless. Council President Knodell said she will support KBTL, but more work is needed.

Councilor Bushor stated the process has been splintered and uneven. City Council deviated from the process once the list was winnowed to four proposers. More information is needed on all three bids. The KBTL bid has a vision for future growth and value.

Councilor Moore stated it helped with conversations with the public by having information available to the public. BT was started to provide affordable, quality internet access. Thought has to be given to the next decade. Councilor Moore said she will support keeping KBTL in the process.

Councilor Paul said she looked at the financials for all three offers and the audited financials for Schurz Communications. Schurz is not at all about getting rich quick. The company has “patient capital” and does not buy and sell businesses rapidly. Schurz will likely be in Burlington for the long haul. KBTL is local if answers to questions are needed and the support for local businesses and the KBTL bid is recognized, but there is also support for the other bids. The KBTL proforma works. Assumptions are not outrageous but the concern is no financial cushion for a tight proforma. BT is a small business with not much cash on hand and unless more money is raised the city will not have the ability to take equity out to pay the unfunded liability on pensions as required. The KBTL bid will be considered if these concerns can be ameliorated. Ting is a company that has never sold its stock and has the ability to grow the tech economy and create jobs. Ting is committed to bringing technology to Burlington. Councilor Paul said she will support the Ting offer, but is hopeful all the offers will become more perfect in the next two weeks.

Councilor Tracy mentioned the lack of accountability and transparency with the $17 million that got the city into the situation with BT so involving the public and getting feedback on the criteria is important. One criterion was local control, having a local say and local accountability. Overwhelming evidence has been received that this is what the public wants. People like the value of control they will have with the cooperative model and all that entails for the members and the benefit to the community. Net neutrality can be maintained. Councilor Tracy spoke of the “sandbagging attempts” with threats of a lawsuit and concern for taking on debt. Net metering by Schurz will hurt entrepreneurs in the city. The Schurz board is not an opaque structure that the city will have access to and see how decisions are made. Ting is incredibly leveraged and will have to pay back debt which impact rates. Both entities do not have tremendous experience in fiber-to-home systems. In sum, bet on Burlington, the individuals in Burlington, and the strength of the community to make something that may be difficult work. Keep BT local.

Councilor Mason spoke in support of Ting because the offer best meets the BTAB criteria and results in the long term success of BT. The “sandbagging” claim renders the KBTL offer not viable because it will result in embroiling the city in litigation and denial by the Public Utilities Commission. Councilor Mason briefly reviewed the terms of the agreement with Citibank and Blue Water. The Schurz and Ting offers are cash considerations of fair market values of $28 million and $30 million. The KBTL offer is 60% lower at $12 million with $16 million to $18 million in value given to KBTL members with no consideration and no portion to be shared with parties in contractual agreements. There was no sandbagging. Once the offers were made public the city received correspondence threatening litigation. Damages would be over $4.5 million and those funds would have to come from the General Fund because the KBTL offer has no funds to satisfy the judgement. The city would have legal expenses as well and the sale could be put on hold indefinitely. Schurz and Ting may not put in an offer after the litigation. There is also more potential for taxpayer lawsuits. Citibank actually threatened litigation and the city cannot be put at this risk.

Councilor Shannon spoke positively of local ownership and the co-op model. There is no mission of privatization of BT. KBTL has worked hard to bring forth the best offer they could, but there are concerns with the offer. The decision on the offers must look out for the long term interest, but BT must get through the short term first. One concern is financial risk. The numbers can work, but the interest rate is 14% and that money is going out of state. The plan to refinance is not a guarantee. The KBTL offer has less than a month of cash on hand. If the operation fails then there would be foreclosure and BT would be owned by Maine Fiber. Every bid needs to strengthen the anti-monopoly clause, but that does not apply to foreclosure and Maine Fiber controlling BT. KBTL rates are driven by what needs to be charged to make ends meet so rates could be lower or higher depending. Dividends are not a foregone conclusion. KBTL has only members. Non-members do not benefit BT. BED is a monopoly as a city owned utility. The city owning the telecom utility is not an option and there is competition to consider. It cannot be said that just the for-profit corporations will raise rates. Everyone cares about profits. Pricing is based on the quality of the product and what the marketplace will bear. Rates can be kept low if the market share is expanding and service is improving. The legal risk is real and the biggest factor. The future is bright if litigation can be avoided which can be done by choosing Schurz or Ting. Councilor Shannon said she will support Ting because the offer provides the community benefit of growing the tech economy and money is given to BTV Ignite and other initiatives for free advertising to startup businesses, and economic development and community events. Ting advocates for net neutrality and is a public and transparent company with good customer services. Terry Dorman and Stephen Barrenclough are thanked for getting BT to be a saleable company. The city has good options.

MOTION by Councilor Knodell, SECOND by Councilor Tracy, to suspend the rules to allow working after 10:30 PM to complete the agenda. VOTING: unanimous; motion carried.

Councilor Deane stated two preferred bidders will be identified so the proposals can be refined in the next two weeks. The bidder should be financially stable and have readily available financial resources, have proven managerial and technical expertise, have the best chance of a favorable evaluation by the Public Service Commission and the best chance of getting a Certificate of Public Good, and offer the best assurance that $16.9 million in taxpayer dollars inappropriately allocated by the previous administration are returned to everyone, not just a subset of Burlington voters. The lack of financial resources and exposure to litigation make the KBTL bid not commercially reasonable, and it is not responsible management of the city to steer toward virtually certain failure. To be re-evaluated for support KBTL needs to assemble a commercially reasonable offer that addresses the flexibility of the city to decide on carried interest equity at the city’s discretion.

Councilor Dieng stated KBTL did an incredible job of making their offer better. City Council is here to find ways to build a better community. Outside of Burlington the world is a mess. Burlington is the only community that has a chance to bring back the power of human beings, of what life is about, of caring for one another, of taking care of the children and the children 50 years from now, of making a better and brighter future. Everyone is connected by the internet. Burlington wants to show the rest of the nation what a sustainable community is all about. KBTL gives the opportunity to keep the city’s broadband internet local. Councilor Dieng mentioned some city councilors supporting companies that are hosting white supremacy websites and neo-Nazi websites, and that threats have been received because of the BT issue by members of City Council. There are many risks to deal with. KBTL is friends and neighbors capable of making BT continue to become what the city wants to see. Those who are not BT subscribers need to have access to the asset.

Mayor Weinberger said there are a couple more weeks to explore the options. The new undercurrent is to fight the banks and not be afraid of litigation. The city did fight the banks and won in many ways to make it possible to have the current conversation. The city was facing a claim for $33.5 million plus damages and the city protected the taxpayers. The bank tried to have the city pull up the fiber and put BT into a receivership. Both did not happen as a result of the settlement agreement. The city earned the right to continue to operate BT and control the destiny and final outcome. The city does not own BT. The system was built with money invested by others and that defines the options forward. To control the future of an asset that the city does not own is unusual. The city needs to take advantage of that opportunity. The question is whether the city is going to make good on the commitment to settle that litigation. The city needs to learn from the mistakes of the past and determine if the proposals meet the criteria that were deliberately and carefully written to protect BT customers, taxpayers, and the city. The answer needs to be “yes” or there will be trouble ahead and risk of losing control of the destiny of BT. If the answer is “yes” then 15 years of BT challenge will have been resolved with an outstanding outcome that ensures high speed, high quality internet access available to Burlington for many years to come.

Councilor Wright pointed out no one should attempt to put themselves in a higher position than anyone else and different points of view should be respected, not invalidated.

Councilor Dieng said he respects everyone and their service. Each person can have their point of view. That is what democracy is about – how to work together to get things done and move on.

Voting on the bidders was as follows:

KBTL – 6 votes
Schurz – 1 vote
Ting – 5 votes

KBTL and Ting will move forward with their bids.

Council President Knodell resumed facilitation of the meeting.

Councilor Mason asked the due date for the final offers and when City Council will receive the information. Council President Knodell will work with Mayor Weinberger on materials for the next meeting.

Councilor Paul suggested having the employees of BT speak on the issue of new owners. Council President Knodell will arrange this.

Councilor Shannon mentioned corresponding with City Council by email prior to the meeting.

Councilor Paul said she would like to work with CTC on any financial information that comes forward and have an expert on co-ops do a financial analysis.

Councilor Dieng asked about the two finalists doing a presentation so the public can ask questions. Councilor Bushor suggested the two finalists be available to answer questions. Councilor Roof cautioned that the time needed to prepare a presentation may interfere with improving the bids.

9.0 ADJOURNMENT

MOTION by Councilor Wright SECOND by Councilor Mason, to adjourn the meeting. VOTING: unanimous; motion carried.

The meeting was adjourned at 11:10 PM.

RScty: MERiordan