Agenda – CC Communications Management March 2, 2017 Page 1

CHURCHILL COUNTY COMMISSIONERS CC COMMUNICATIONS MANAGEMENT

CHURCHILL COUNTY, NEVADA155 N. Taylor Street

Fallon, Nevada 89406(775) 423-7171 Ext. 1215

Fax: (775) 423-2326Contact Person: Patti Brown, Administrative Assistant

E-mail: patti.brown@cccomm.com

****NOTICE OF PUBLIC MEETING****

AGENDAPLEASE POST

PLACE OF MEETING: Churchill County Administrative Building, Commission Chambers, 155 North Taylor Street, Fallon, Nevada

DATE & TIME: March 2, 2017 at 2:00 PMTYPE OF MEETING: Regularly Scheduled CC Communications Management Meeting

Notes:I. These meetings are subject to the provisions of Nevada Open Meeting Law (NRS Chapter 241).

Except as otherwise provided for by law, these meetings are open and public.II. Action will be taken on all Agenda items, unless otherwise noted. III. The Agenda is a tentative schedule. The CC Communications Management may act upon Agenda

items in a different order than is stated in this notice – so as to affect the people’s business in the most efficient manner possible.

IV. In the interest of time, the CC Communications Management reserves the right to impose uniform time limits upon matters devoted to public comment.

V. Any statement made by a member of the Board of CC Communications during the public meeting is absolutely privileged.

AGENDA:

1. Call to Order.2. Action Items: In accordance with NRS 241.020, those items marked with an asterisk may require an

action or vote by the Board of Churchill Commissioners. A. Approval of Agenda B. Approval of regular meeting minutes for January 3, 2017.3. New Business. A. Consideration and Possible action regarding American Tower Corporation offer to purchase

Agenda – CC Communications Management March 2, 2017 Page 2

a perpetual easement. B. Consideration and Possible action regarding Fiber swap agreement with Zayo.

C. Consideration and possible action regarding engagement of Vantage Point for engineering services.

4. Consent Items: action items generally not requiring discussion or explanation5. Reports. A. General Manager Report.6. Next meeting date April 6, 2017, 2:00 p.m.7. Adjournment.

STATE OF NEVADA ) : ss.County of Churchill )

I, Patti Brown, Administrative Assistant, do hereby affirm that I posted, or caused to be posted, a copy of this notice of public meeting, on or before the 24th day of February, 2017, at the following locations in Churchill County, Nevada:

1. CC Communications;2. Churchill County Law Enforcement Center;3. Churchill County Administrative Complex;4. The CC Communications Website @ www.cccomm.info;5. The State of Nevada Website @ https://notice.nv.gov/.

Patti Brown, Administrative Assistant

On this 24th day of February, 2017, Patti Brown, Administrative Assistant, personally appeared before me, a Notary Public, who acknowledged that she executed the above instrument.

Notary Public

Endnotes:Disclosures: *CC Communications is an equal opportunity provider and employer. Accommodations/Nondiscrimination:*Notice to Persons with Disabilities: Members of the public who are disabled and require special assistance or accommodations at the meeting are requested to notify the CC Communications Executive Office in writing at P.O. Box 1390, Fallon, NV 89407 (Attn: Patti Brown), or by calling 775-423-7654 ext 1215 at least two days in

Agenda – CC Communications Management March 2, 2017 Page 3

advance.*In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its agencies, offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies or complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible agency [(775)423-4092] or USDA’s TARGET Center at (202)720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800)877-8339. Additionally, program information may be available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at: http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the Complaint Form, call (866)632-9992. Submit your completed form or letter to USDA by:

1. Mail: U.S. Department of AgricultureOffice of the Assistant Secretary for Civil Rights1400 Independence Avenue, SWWashington, D.C. 20250-9410;

2. Fax: (202)690-7442; or3. Email: program.intake@usda.gov.

Procedures:*The public meetings may be conducted according to rules of parliamentary procedure.*Persons providing public comment will be asked to state their name for the record. *The CC Communications Management reserves the right to restrict participation by persons in the public meeting where the conduct of such persons is willfully disruptive to the people’s business.*All supporting materials for this Agenda, previous Agendas, or Minutes are available by requesting a copy from the CC Communication Office, 775-423-7171 ext. 1215. During the meeting, there will be one copy available for public inspection. Additional copies are available by making the request from the Clerk. You are entitled to one copy of the supporting materials free of charge.

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CHURCHILL COUNTY COMMISSIONERSCC CCOMMUNICATIONS MANAGEMENT

JANUARY 3, 2017

The meeting was called to order at 2:03 p.m. in the Commission Chambers in the Churchill County Administrative Complex by Commissioner Erquiaga

Those present:CARL ERQUIAGA, Telco Commissioner PETE OLSEN, Commissioner BUS SCHARMANN, CommissionerMARK FEEST, General Manager, CC CommunicationsPATTI BROWN, Administrative Assistant, CC CommunicationsJAMIE HYDE, Accounting Manager, CC CommunicationsSHONDA STANDEN, Billings & Collections Supervisor, CC CommunicationsMIKE WEISHAUPT, Private Citizen

CALL TO ORDERCommissioner Erquiaga asked if the agenda was posted in accordance with N.R.S. 241.020, Patti Brown advised that it was posted in accordance to N.R.S. 241.020.

Public Comments: NONE

ACTION ITEMSCommissioner Olsen moved to approve the agenda as submitted as per N.R.S. 241.020. Commissioner Scharmann seconded the motion. Motion carried.

Commissioner Scharmann moved to approve the minutes of the October 6, 2016 and November 3, 2016 as submitted. Commissioner Olsen seconded the motion. Motion carried.

NEW BUSINESSItem #1 Consideration and Possible Action regarding 3rd Quarter 2016 Telco Write Offs in amount of $2,080.78.

Public Comment: None

Shonda Standen, CC Communications We are requesting approval of the 3rd Quarter Telco Write Offs as submitted in the amount of $2,080.78.

Commissioner Olsen moved to approve the 3rd Quarter 2016 Telco Write Offs in the amount of $2,080.78. Commissioner Scharmann second motion. Motion carried.

Item #2 Consideration and Possible Action regarding approval of Training Investment Proposal and Policy.

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Public Comment: None

Mark Feest, CC Communications. We have been looking at some things at the company and this was a little bit sparked from a job announcement that went out and the failure of receiving internal applicants with minimum qualifications. In an effort to ensure that we are developing individuals within the company, I went back and looked at what we had on training and I found that it was inadequate. The rapid changes in technology and increasing competitive nature of the telecommunications industry necessitate a greater investment in training to ensure our personnel are the most competent in the industry. Further, the likelihood of receiving a full return on the investment is increased through a more formal and structured training plan. [refer to Investment Proposal and Policy]

Explanation of Impact: In the event the Policy is fully implemented for the remainder of FY 2017; the training expense will be up to $192,500 during the remainder of FY 2017Funding Source: Current Budget, which may require an increase to overall operating expense budget in FY 17. The first 5 months of FY 17 show approximately $120,000 below budgeted opex. Thus, management will look at budgeted to actual opex later in FY 17 to determine whether the increased training expense will result in exceeding budgeted opex.

Public comment: None

Commissioner Scharmann moved to approve the training investment proposal and policy and necessary operating expense to implement during the remaining FY 2016-17. Commissioner Olsen second motion. Motion carried.

Item #3 Consideration and Possible Action regarding January, 2017 Incentive Pay Schedule.

Mark Feest, CC Communications. The business environment that CC Communications operates within is continually becoming more competitive, which necessitates a focus on creating a more effective and professional business development team. This team was created last year and began developing processes and procedures from best practices within the industry. One such practice is incentive pay. The attached schedule is a conservative initial foray into incentive pay, and I believe is well balanced in consideration of current base pay scales. The schedule provides modest financial rewards for affected employees to focus on the product lines CC Communications is currently seeking to grow.

Mark went over the backup information posted with the agenda report.

Public Comment: None

Commissioner Olsen moved to approve the January 2017 Incentive Pay Schedule. Commissioner Scharmann second motion. Motion carried.

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Item #4 Consideration and Possible Action regarding Resolution #155-2017 authorizing the Dissolution of the CC Communications - Data Services Enterprise Fund and other matters related thereto.

Jamie Hyde, CC Communications. The CC Communications – Data Services Enterprise Fund was created to account for the revenue and expenses of Data Services functions included, but not limited to data center, managed service provider and computer repair activities. Thereafter, web development services was added to the Fund. At the time, it was created, management projected significant growth opportunities in both the data center and managed services activities. However, the evolution of the data center and cloud services ecosystem has nearly eliminated geographic barriers to the provision of these services, while major players in this industry have created economies of scale which make competing for large volumes of business unlikely without a commitment of resources that is impractical for CC Communications. One example of the level of commitment data center operators must make is the Supernap facility in TRIC where Switch is investing over $3 billion, with the first building providing over 1 million square feet of data center floor space. Given CC Communications’ strategic capabilities and competitive advantages, our resources are better spent elsewhere.

Significant growth in managed service provider activities is dependent upon access to large quantities of medium sized businesses, which are not easily accessed from Fallon, NV. Moreover, managed services has proved to be extremely difficult to staff for in a rural area, and is outside of the core competencies of most of our employees. As such, CC Communications needs to be very selective with respect to managed services customers we take on. This limits the growth potential for this line of business.

Computer Repair, which existed prior to the creation of the Data Service Fund, primarily supports our broadband customer’s equipment attached to our broadband network. The size of this market is limited to our customers in Churchill County. Further, as this service provides support to Broadband, it is best accounted for within the broadband fund. This is also true of Web Development.

Management projects that there will continue to be one off data center and managed services that can be provided by CC Communications, this is not going to be a core service. Both revenue growth opportunities and staffing growth will be limited. As such, these limited activities are most easily accounted for within the Telephone Fund as deregulated services similar to phone systems or wiring jobs.

While Web Development has greater potential for growth, similar to computer repair, this can best be accounted for within the broadband fund, where both services support our broadband customers.

The dissolution of the fund does not indicate that any particular service will be discontinued, rather, it is an acknowledgement of growth potential and resource focus.

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The activities that we have been doing will continue and be moved to different funds based on what activity it is.

Public Comment: None

Commissioner Scharmann moved to approve Resolution No. 155-2017, a resolution authorizing the dissolution of the CC Communications – Data Services Enterprise Fund, and other matters related thereto. Commissioner Olsen second motion. Motion carried.

Item#5 Consideration and Possible Action regarding Resolution #156-2017 a Resolution authorizing the transfer of all assets, liabilities, and equity of the CC Communications - Data Services Enterprise Fund to CC Communications - Broadband Enterprise Fund and CC Communications - Telephone Enterprise Fund and other matter related thereto.

Jamie Hyde, CC Communications. This resolution is necessary to transfer assets, liabilities and equity from the Data Services Fund to another active enterprise fund. The allocation follows where the activities will be accounted for. See item #4.

Public Comment: None

Commissioner Olsen moved to approve Resolution No. 156-2017, a resolution seeking authorization the transfer of all assets, liabilities and equity of the CC Communications – Data Services Enterprise Fund to the CC Communications – Broadband Enterprise Fund and the CC Communications -Telephone Enterprise Fund and other matters related thereto. Commissioner Scharmann second motion. Motion carried.

Item#6 Overview of New Broadband Packages, Pricing and Promotions.

No action needed just informational.

Mark Feest, CC Communications. CC Communications FTTH buildout provides opportunity to deliver significantly higher speeds to many residents of Churchill County. Speeds available have the potential to create a competitive advantage over the incumbent cable company. However, to date, many rural companies have struggled to communicate the value proposition of higher speeds. CC Communications has encountered the same difficulties. Going forward we will focus more on delivering higher speed connections to those passed by fiber by addressing both existing customers and potential ones. First, we will be eliminating lower speed packages for FTTH locations and use 70Mbps/10Mbps as the base package. Second, we will introduce an introductory rate with speeds higher than the cable company with prices that match their introductory rate. Third, we will transition existing FTTH broadband customers to new higher speeds at the new rates. Fourth, higher speed residential packages will include antivirus protection, antimalware protection, password genie, and data backup at no additional charge.

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Introductory rates, new speeds, and new pricing will be communicated through a six-month campaign aimed at educating the public about the value of FTTH and the changes we have made. Existing customers will receive notice of speed upgrades via letter. FTTH passed customers who do not receive broadband from CC Communications will receive postcards and letters regarding the value of FTTH, together with introductory offers. We will also highlight new pricing and speeds through online ads and the local newspaper.

The budget estimate for this project is $48,000.

Item #7 Consideration and Possible Action regarding Presentation on the Audited Financial Statements for the Fiscal Year Ended June 30, 2016 for the CC Communications Telephone, and Broadband Enterprise Funds and Presentation of the Compilation of Financial Statements for the Data Services and Long Distance Enterprise Fund for the Fiscal Year Ended June 30, 2016. Jamie Hyde, CC Communications. A presentation by CC Communications Accounting Manager, Jamie Hyde and discuss CC Communications Telephone, and Broadband Enterprise Funds Audited Financial Statements and the Compilation of Financial Statements for the MDS and Long Distance Funds for the fiscal year ended June 30, 2016 and other matters related thereto.

Public Comment: None

Commissioner Scharmann moved to accept the audit report and related findings for the Audited Financial Statements and compilation reports for the Year Ended June 30, 2016. Direct the Accounting Manager to file with the Churchill County Comptroller a copy to be used in the compilation of the Comprehensive Annual Financial Report filed with the Department of Taxation as required by statutes. Commissioner Olsen second motion. Motion carried.

Item #8 Consideration and Possible Action regarding General Manager Annual Performance Evaluation for 2016 conducted Pursuant to N.R.S. 241.031.

Public Comment: None

Jamie Hyde, CC Communications. The General Manager is due for an annual performance evaluation by the Board. Pursuant to NRS 241.031, together with AG Opinions, the Open Meeting Manual, and interpretation of these sources, the evaluation must be conducted in an open meeting. Individual Board members have previously completed rating forms and the HR Generalist has compiled those forms into a matrix that shows the aggregate ratings and comments. At this time the Board, as a public body, must review this document and produce an evaluation attributable to the Board as a whole. The Board may choose to discuss and refine any aspect of the aggregate ratings and comments. Thereafter, in order to finalize the evaluation process, the HR Manager will need a motion to approve the evaluation with the content and form acceptable to the Board.

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Commissioner Olsen moved to approve the general manager’s aggregate performance evaluation as compiled and presented. Commissioner Scharmann second motion. Motion carried.

CONSENT ITEMS (action items generally not requiring discussion or explanation)Notification of Purchases made Pursuant to N.R.S. 332.112, N.R.S 332.115 or N.R.S.332.146.None

GENERAL MANAGERS REPORTMark Feest, CC CommunicationsFirst thing I would like to thank Jamie Hyde for a great job. I really appreciate the work she puts in. Also, I want to thank Alan Kalt during this process and he has been a great help. I really believe that the relationship today with our accounting department and comptroller’s office has been the best in many years.

1. Regulatorya. Overview of USF Reform Order (Updates)

i. Still waiting on Accounting Rulesii. Stand Alone Broadband implementation requires adoption of

accounting rules1. CBOL rate has been determined and would require rates in

excess of today’s rate with telephone. 2. We are seeking clarification on options

iii. Disaggregation requires proceeding to determine whether there is an unsubsidized competitor

1. This continues despite the fact that the FCC’s time line passed2. Operations

a. UP RoW Issueb. Network Planningc. E911 issues – we need to revisit the County’s E911 plans d. NOC Transition – fully transitioned to I&R and NOC being located together.

i. Increased collaboration ii. Raises question of whether CC Communications should come up with

plan to locate all employees together. Specifically1. CSR’s/NOC/I&R/Engineering Group2. Facilities

3. HRa. Hired:

1. Combo Tech2. Accountant

b. Trainingi. Joint Training with VEA (21 employees)

ii. Training policyiii. Working on Safety Policy rewrite

c. Safety Policy

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i. Working to flesh out1. An employee raised the issue2. Assign greater responsibility and accountability3. Increase monitoring4. Increase training

d. Working with DA to contract for set number of professional services from deputy DA

Public Comment: None

Next meeting is set for February 2, 2017ADJOURNMENTThe meeting adjourned at 3:36 pm

Respectfully Submitted,

Patti BrownAdministrative Assistant

Approved by:

________________________________General Manager

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.

Date Submitted: February 23, 2017 Agenda Item #: New Business - A Meeting Date Requested: March 2, 2017 To: Board of Churchill County CommissionersFrom: Mark Feest Subject Title: Consideration and Possible action regarding American Tower Corporation offer to

purchase a perpetual easement.

Type of Action Requested:Accept

Does this action require a Business Impact Statement? No

Recommend Board Action: I move to approve/deny acceptance of the American Tower Corporation offer to purchase a perpetual easement.

Discussion: ATC rents approximately 2650 square feet of ground space at Pioneer for placement of a tower and small building. Rent is $643.90 per month with 20% escalations every 5 years (next escalation in 2018) This lease in up in 2023 with 6 five-year lessee options. ATC has offered to purchase a perpetual easement for (a) a lump sum of $120,000, (b) $1,610 / month for 84 months ($135,035) or (c) $1,180.00 / month for 144 months ($161,035).

At current rent $120,000 = 2030 Offer = 2017At current rent $135,259 = 2037 Offer = 2024At current rent $161,035 = 2039 Offer = 2029

Alternatives: N/A

Fiscal Impact: N/A

Explanation of Impact: N/A

Funding Source: N/A

Prepared By: Patti Brown, Administrative Assistant

Reviewed By: Patti Brown, Administrative Assistant Created/Initiated - 02/23/2017Mark Feest, General Manager Approved - 02/24/2017Jamie Hyde, Accounting Manager Final Approval - 02/24/2017

Board Action Taken:

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.

Motion: 1) Aye: 0 2) Nay: 0

(Vote Recorded By)

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.

Date Submitted: February 23, 2017 Agenda Item #: New Business - B Meeting Date Requested: March 2, 2017 To: Board of Churchill County CommissionersFrom: Mark Feest Subject Title: Consideration and Possible action regarding Fiber swap agreement with Zayo.

Type of Action Requested:Accept

Does this action require a Business Impact Statement? No

Recommend Board Action: I move to approve/deny authorizing the general manager to enter the fiber swap agreement as presented.

Discussion: As of delivery of this packet, final terms have not been reached regarding a fiber swap agreement. Generally, CC Communications possesses an unbalanced number of fibers going east from TRIC as opposed to those going west from TRIC. Additionally, due to electronics deployed on the fiber route, together with projected customer demand, CC Communications management is of the opinion that either selling some of these fiber assets, or swapping some for access to fiber routes not currently in CC Communications’ possession, would be beneficial to the company. More specifically, management has been negotiating an exchange of fiber between TRIC and 50/ALT 50 for a combination of Reno metro fiber, fiber to Washoe north valleys, fiber to Ely, and/or fiber to Gardnerville. The parties have agreed in principle on fiber mile values and the threads the other party wants. We continue to evaluate the value of the fiber they have offered in return. In the event we reach agreement, we will need to gain approval at the earliest possible meeting. As such, this item is placed on the March 3, 2017 agenda, and it will be placed on the County’s mid- month agenda if needed.

Alternatives: N/A

Fiscal Impact: N/A

Explanation of Impact: It is the goal of both parties to swap assets as close as possible to equal value.

Funding Source: N/A

Prepared By: Patti Brown, Administrative Assistant

Reviewed By: Patti Brown, Administrative Assistant Created/Initiated - 02/23/2017Mark Feest, General Manager Approved - 02/24/2017Jamie Hyde, Accounting Manager Final Approval - 02/24/2017

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.

Board Action Taken:Motion: 1) Aye: 0 2) Nay: 0

(Vote Recorded By)

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.

Date Submitted: February 23, 2017 Agenda Item #: Reports - A Meeting Date Requested: March 2, 2017 To: Board of Churchill County CommissionersFrom: Mark Feest Subject Title: General Manager Report.

Type of Action Requested: None; Informational Only

Does this action require a Business Impact Statement? No

Recommend Board Action: N/A

Discussion: General Manager will give month report.

Alternatives: N/A

Fiscal Impact: N/A

Explanation of Impact: N/A

Funding Source: N/A

Prepared By: Patti Brown, Administrative Assistant

Reviewed By: Patti Brown, Administrative Assistant Created - Mark Feest, General ManagerJamie Hyde, Accounting Manager

Board Action Taken:Motion: 1) Aye: 0 2) Nay: 0

(Vote Recorded By)

Churchill CountyAgenda Report

The submission of this agenda report by county officials is not intended, necessarily, to reflect agreement as to a particular course of action to be taken by the board; rather, the submission hereof is intended, merely, to signify completion of all appropriate review processes in readiness of the matter for consideration and action by the board.