Loveland broadband business plan The Loveland Communications Advisory Board recommended the city create a retail model of broadband utility to be owned and operated by the city while exploring regional partnerships with Longmont, Fort Collins and Platte River Power Authority on infrastructure and service needs. That recommendation was presented to the Loveland City Council on Tuesday based on a detailed business plan, described by the advisory board as the “lowest cost and lowest risk” option. While the council by a split vote chose to refer the issue to the ballot, instead of following that recommendation, most council members spoke about the solid foundation of the business plan. Details of that plan include: • The city estimates that 42 percent of residents and 27 percent of businesses would choose to sign up for the city-offered service, which is a total of just over 16,000 customers • At that level of use, the rates would range from $20 per month to $80 per month for residents, depending upon the speed of service chosen, and from $50 per month to the highest rate of $800 per month for a dedicated line for businesses also based on speed. • The network would include 400 total miles of fiber optic line. About 75 miles of this line would use existing facilities, according to estimates from the study • The total construction costs are anticipated to be $69 million, plus there will be additional design costs as well as some for operations and interest costs until the system begins to pay for itself as the customer base grows. Most of the bonds would be tax exempt, but a portion would be taxable. • The cash flow would move from red to black in year five (2023), and the entire loan would be paid back within 20 years if the utility draws as many customers as anticipated.

Loveland residents will be asked during a special election this February to authorize the city to establish a city owned and operated retail broadband utility.

The Loveland City Council voted 5-4 Tuesday to send the issue to voters instead of council members approving the utility and $93 million in bonds to pay for the network.

The vote came after a meeting in which, at times tempers flared, and the majority of residents who spoke asked the City Council to stop delaying and move forward with the measure they believe will benefit businesses, students and residents through reliable internet service at lower costs.

Mayor Jacki Marsh and council members Steve Olson, Jeremy Jersvig, Don Overcash and Dave Clark voted to send the issue to the voters in an expedited special election, scheduled at the end of February. They said they want to hear from all citizens about the issue, and going to a vote is the right thing to do

“As we have a divided council, I think we have a divided populace,” Marsh said. “I support having a vote of the people.”

The rest of the council, Kathi Wright, John Fogle, Leah Johnson and Rich Ball wanted to skip the election and move forward by a vote of the council on Tuesday. They said that a previous vote in 2015 allowing the city to explore broadband passed by 82 percent, showing citizen support, and that any further delay will cost residents more money in the long run.

“We have studied this to death and now, when the time comes to make a decision, we don’t want to make a decision,” said Fogle. “I think that is sad.”

Wright added that she is “scared to death” with the short election timeframe, saying it’s “darn near impossible” for a citizen committee to raise enough in a few months to run a campaign against the deep pockets of internet companies.

Loveland has been studying the possibility and feasibility of a broadband utility for three years, and on Feb. 6 approved $2.5 million for a detailed study to create a business plan and look into design. The city also formed a citizen-based committee called the Loveland Communications Advisory Board.

That board had recommended the city move forward with a retail model, under some guidelines, after studying detailed information put forth in a business plan created by city staff alongside financial and broadband experts. That recommendation was paired with a proposal to issue $93 million in bonds.

Initially that proposal was the only resolution up for vote on the agenda for a special City Council meeting that followed a study session on the broadband topic. However, late Tuesday afternoon, mere hours before the meeting, the city added another option to the menu — an expedited special election in February.

With approval of that option, City Manager Steve Adams will begin drafting an ordinance to hold a special election and put the issue before the voters. The election itself is expected to cost about $40,000.

But that isn’t the only added cost — described by some council members as an unnecessary cost — by the council’s decision. City staff acknowledged that any delay will add millions of dollars to the overall cost of the project, if approved, through increased interest and construction costs.

“I’m going guess that by the time this is done … that this little adventure is going to cost us $3.5 million to extend this and do an election,” said Fogle, who adamantly argued that the residents already voted in 2015 and, by holding another election, council members are showing they didn’t listen.

“It’s very disingenuous to ask them to vote again,” he said.

Council members in favor of the election said residents voted in 2015 to explore the possibility not to form a utility, and now that the specific costs and details are known, they deserve the right to vote on that proposal.

“I support it, but I respect their right to be able to vote on it because this is a new entity,” said Overcash. “This is a totally new enterprise for the city, and I think that’s why we owe them the right to vote for it, and at the same time begging and pleading for their support.”

Pamela Johnson: 970-699-5405, johnsonp@reporter-herald.com