Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Radio Communications topic
No spam. Unsubscribe anytime.
Staff advises against joining BugTussle partnership, warns of county exposure and recommends tower‑build alternative
Summary
After a limited PMA due‑diligence review, county staff told the committee they do not recommend moving forward with the multi‑county BugTussle broadband/radio partnership because of incomplete financials and potential county liability up to $16 million; staff recommended evaluating leases and a two‑tower Gencomm build estimated at about $2.75 million.
County staff presented the financial analysis on a proposed public‑private partnership with BugTussle for a combined radio/broadband network and told the Sawyer County Public Safety Committee they were not recommending moving forward at this time.
"We did get a limited analysis done by PMA… they were unable to do a credit analysis given the limited information," staff said, noting missing 2023 financials for a guarantor and other data gaps. Staff summarized PMA's modeling assumptions: initial subscription take rates between 40% and 60% of homes passed and that revenue stress appears when take rates fall below about 70% of projections.
Staff said the structure would have lowered upfront capital costs for the county because BugTussle would provide towers and fiber access, but that it also creates shared long‑term debt exposure. "If the revenues don't work and if Hilbert can't fulfill it, then the counties are each responsible for their portion of the debt," staff said, estimating potential county exposure of up to $16,000,000 on a 30‑year bond scenario.
Given the missing financial information, the committee's financial adviser and staff recommended not advancing the BugTussle agreement; instead staff recommended the county explore leasing existing tower space and, if necessary, pursue a Gencomm plan to build two towers and microwave equipment at an estimated project cost of about $2.75 million.
Committee members emphasized the priority of reliable public‑safety radio coverage for law enforcement, EMS and fire operations and expressed reluctance to take long‑term debt with uncertain revenue projections. The item was scheduled for the county board that evening with staff's recommendation attached.
No formal committee vote was recorded to approve a contract; the committee endorsed staff's recommendation to bring the analysis and recommendation to the full county board.
