Companies seek $1 million for leverage aid to extend rural broadband service

By Mary Zielinski
Posted 3/29/23

Faced with a March 31 application deadline for funds, Liberty Communications and Kalona Cooperative Technology Company Tuesday asked Washington County Supervisors for a $1 million pledge to provide …

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Companies seek $1 million for leverage aid to extend rural broadband service

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Faced with a March 31 application deadline for funds, Liberty Communications and Kalona Cooperative Technology Company Tuesday asked Washington County Supervisors for a $1 million pledge to provide “leverage” for state/federal funds for an estimated $2 to $2.5 million project.  The project currently concerns 177 customers in the West Chester area in the northeast part of the county.

Both Casey Peck, KCTC CEO, and Mary Audia, Director of WEDG, apologized for the three-day notice, stressing, “we just learned of it.”

KCTC also involves Liberty Communications, and both serve eight communities with some 1,300 customers, specifically in Washington (county and city), Riverside and Kalona.  The planned project is in line with the state goal of providing service to underserved rural areas for both Internet and cable.  It was also noted that there are other potential providers seeking funding.

During the discussion, both Liberty and KCTC detailed the difference between wireless and fiber broadband technology, explaining that fiber, which is underground, does not have “air traffic issues” ranging from weather to mechanical, and that while wireless is initially cheaper it has more maintenance issues.   

“The better option is with fiber,” said Jeremy Google of KCTC, with far fewer challenges to the system than wireless where even trees can present problems.  The planned project would involve moving from fixed wireless to fiber, with costs varying on the locations.   Peck said that for the 177 customers in the area using the $2 million estimate, it is $19,300 per location; however, it is expected actual costs will vary with some coming in lower.  

“It is a big project,” she said, explaining that it will need state funding, for which a $1 million county commitment, supporting the plan, would be leverage for the grant.

A representative from Iowa Communications Association (ICA), the state broadband group, noted the wide range of uses for broadband that would level the playing field for those in rural areas, not only for communications but especially for remote learning and meetings.  It also was noted that the state already has surveyed all its areas, showing a number of dark blue dots on the map where service ranges from none to minimal.

“We really are passionate about getting services to those in our areas,” said Peck, adding, “It is looking for the future.”  

The county had presentations from KCTC and from wireless providers last year, including suggestions that American Relief Program Act funds would be used.

Although the board took no action Tuesday, members noted a special session could be called.

In other business, the board:

•Approved two personnel changes for the sheriff’s office: employment termination for Colton Schneider and Aaron McPherson, both county jailers, effective March 30 and March 23, respectively.

•Learned in a brief report that there has been a 76 percent increase in caseloads for the Outreach service since the new director took over three and a half years ago.  It was noted it is indicative of the need for the service.

•Unanimously approved participation in the new national opioid settlements with Teva, Allergan, CVS, Walgreens and Walmart, approving each individually.  Deadline for submission is April 18. It was noted that the county’s total settlement would be $127,935.74.  The amounts vary by county, depending on affected populations.

•Approved employment termination for Cody Mellinger, equipment operator in Secondary Roads, effective March 31. It was noted he is leaving to take another job.

•Recessed the meeting to go into closed session under Iowa Code 21.5(1)(J) to discuss the purchase or sale of real estate where premature disclosure could be reasonably expected to increase the price the governmental body would have to pay for the property.  They returned to open session approximately 55 minutes later and in open session approved authorizing hiring Ahlers & Cooney law firm, Des Moines, to represent the county in a county road project.  The firm specializes in handling issues for educational and governmental entities.