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City Council Study Session - 03/21/05 Minutes - Page 14 Councilmember Schroeder provided input from his involvement with this topic at a recent retreat; noting the city advantages internally; right-of-way issues; and infrastructure maintenance considerations. Councilmember Schroeder noted the need for a market analysis; and opined his openness to this progressive technology. Councilmember Maschka noted the incredible capital required to approach such an opportunity; and supported coalitions of cities and/or suburbs to make it more cost-effective. Discussion included economies of scale and size of market; public/private partnerships; construction of a private fiber network; at cost or for profit potential and philosophy; depreciation; upfront costs; implications of wireless; liability and security issues; existing and pending litigation related to restricting and/or limiting municipalities in this area; connectivity and topography concerns with wireless communication; and managed steps in initiation of a project. Councilmember Ihlan questioned City Attorney Hedtke on legal regulations; and status of public utility or communications compames. City Attorney Hedtke addressed municipal utility status (i.e., water, sewer) that would not be governed by the Public Utilities Commission. Mayor Klausing sought Council consensus on how to direct staff to proceed. Further discussion included consulting fees; industrial/commercial class offerings at a higher speed, with residential service a slightly slower speed for marketing techniques to meet demand; and whether internal systems would prove more useful, rather than a more expansive network. Mr. Miller concluded that Council direction appeared to be that staff continue research internally at this time; attempt to frame philosophical issues; and provide the Council with general ideas on how a municipal network may look and operate.