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Loveland council approves Alta Fiber internet contract after members press company on steep rate increase
Summary
The Loveland City Council voted 7–0 to authorize a contract with Honeybell Telephone Company d/b/a Alta Fiber for Internet and Ethernet services despite council concerns that the provider’s initial request would amount to roughly a 75% price jump; the city solicitor said arbitration provisions in vendor contracts do not make arbitration outcomes exempt from public disclosure.
The Loveland City Council on a unanimous vote approved a resolution authorizing the city manager to enter into a contract with Honeybell Telephone Company doing business as Alta Fiber for Internet and Ethernet services.
Council discussion focused on the cost increase and contract terms. Council Member Hamlin urged early action but said residents should be alarmed by the size of the change: “What they are asking for is a 75% increase in rates,” she said, noting that the consumer price index rose roughly 2.4% over the prior 12 months. City staff explained the new term would be a fixed-rate contract and that some line-item savings and one-time transition costs factor into year-to-year totals.
Council Member Winrich described the company’s letter as a routine opening negotiation posture and said staff had consulted an energy consultant. Staff told council that the current annual cost to the city is approximately $40,200 and the new contract year one would be closer to $56,000, with estimated reductions to about $53,000 in 2027 after implementation of planned changes and the removal of certain monthly charges.
Hamlin also asked about an arbitration clause in the draft agreement and whether arbitration outcomes or proceedings could conflict with sunshine/open-records obligations. City Solicitor Joe Braun responded that arbitration proceedings themselves are typically confidential in the way mediation communications are, but any arbitration outcome or final agreement would generate public records and be subject to disclosure consistent with applicable rules: “The outcome of the arbitration is not confidential… any outcome would obviously be subject to the rules,” he said.
Staff noted one operational issue in the contract: certain terms and conditions are referenced by a vendor website rather than printed in the contract. Staff said they have asked Alta Fiber to provide a static exhibit (a screen grab or printout) of the referenced terms to be attached to the agreement so the city has a record of the operative language.
The resolution to authorize the city manager to execute the contract was called and carried 7 to 0.
Next steps: the city will finalize the contract, include the vendor terms as an exhibit, and return documentation for execution consistent with the approved resolution.
