Council approves Connect Superior budget and wholesale contracts; city expects first neighborhood service this spring

The Superior Common Council voted March 18 to approve an updated Connect Superior budget, wholesale contracts with two internet service providers and a network operations contract, clearing key steps before the municipal fiber pilot goes live.

The council approved the updated annual Connect Superior budget and set wholesale rates for ISPs at three tiers: $35, $40 and $45, down from higher draft rates discussed earlier. The motion to adopt the budget was made by Councilor Allen and seconded by Councilor Ludwig; the measure passed on a voice vote.

“We had more wiggle in our budget than previously expected,” the broadband manager told the council, noting that negotiations for the network‑operations contract reduced recurring operating costs by about $100,000 annually and allowed staff to lower wholesale rates to improve adoption.

Wholesale provider contracts and operations

The council separately approved wholesale broadband service agreements with Duluthian Networks LLC and Advanced Stream Broadband LLC and awarded the network operations center contract to Win LLC.

- Duluthian Networks LLC: motion by Councilor Moffitt, second by Councilor Ludwig; motion carried. - Advanced Stream Broadband LLC: motion by Councilor Allen, second by Councilor Ludwig; motion carried. - Network operations (Win LLC): motion by Councilor Holmes, second by Councilor Ludwig; motion carried. The initial Win LLC fee is $16,200 with recurring monthly charges of $6,210.

Project timeline and take‑rates

Project staff and multiple councilors discussed timing and take‑rate projections. Project leads said the system’s core network elements are online and that Nokia equipment and final provisioning work are scheduled “at the end of the month,” with an internal target of mid‑May to begin turning up the pilot neighborhood. Staff suggested that some serviceable portions could be available to customers by mid‑June, though availability will depend on ISP onboarding and household drop installations.

“Now that we have the NOC and the contracts in place, mid‑May is when things should begin firing up,” the broadband manager said.

Retail pricing and competitiveness

Councilors repeatedly asked about retail prices for consumers. Mitchell Shook of Advanced Stream said retail offers vary by market and promotional pricing, and suggested retail prices could be roughly $10 a month above wholesale in some cases. Patrick Malley of Duluthian Networks said introductory offers, free routers or temporarily low prices are possible and that retail pricing will also depend on the ISPs’ upstream costs.

“There's a range and ultimately it'll depend on what our costs are, and those are not completely determined,” Shook said, adding that he had offered gigabit service at promotional prices as low as $9–$10 a month in other markets for introductory periods.

Public comment and local endorsements

Several speakers from the region addressed the council during the item. Suzanne Herstead, mayor of Rice Lake, and business leaders including Kim Parmeter (Hermantown Area Chamber of Commerce) and local residents offered endorsements for Duluthian Networks, describing the company’s prior work in nearby communities and urging the council to approve local wholesale options.

Why this matters: the city is building an open‑access fiber utility that will wholesale dark‑fiber or lit services to private ISPs; the council’s approvals finalize the local pricing and operator relationships that will shape retail availability and competition for consumers.

What the council approved (high level)

- Updated Connect Superior budget, with wholesale rates set at three tiers (motion Allen; second Ludwig) — approved. - Wholesale broadband service agreement with Duluthian Networks LLC (motion Moffitt; second Ludwig) — approved. - Wholesale broadband service agreement with Advanced Stream Broadband LLC (motion Allen; second Ludwig) — approved. - Network operations contract (Win LLC) — approved; initial and recurring charges recorded.

Next steps

Staff said they will finalize ISP onboarding, begin household drop scheduling with the city’s contractor (Hanco in the transcript) and open lists for customers as neighborhoods become serviceable. Councilors asked to be included in upcoming late‑April meetings with downtown businesses and requested regular updates as the pilot progresses.

The city projected break‑even on the enterprise enterprise fund in later years; staff continued to note the schedule and retail pricing depend on adoption and competitive responses in the market.