10.4. SR 08-06-2012REQUEST FOR ACTION
TO
ITEM NUMBER
Mayor and City Council
10.4
AGENDA SECTION
MEETING DATE
PREPARED BY
Work Session
August 6, 2012
Bob Pearson, IT Manager
ITEM DESCRIPTION
REVIEWED By
Discuss Opportunity for Fiber Optic Network Partnership
Cal Portner, City Administrator
REVIEWED BY
ACTION REQUESTED
Council discussion and direction regarding a potential fiber optic network partnership with Sherburne
County and Elk River Municipal Utilities (ERMU).
BACKGROUND /DISCUSSION
The IT Division set a 2013 goal to create a plan for a city fiber optic network. The plan would be a
blueprint to connect city facilities with fiber.
IT scheduled a meeting with ERMU, city departments, and a consulting group, Elert and Associates,
specializing in fiber projects. At the meeting, ERMU Line Superintendent Mark Fuchs shared with the
group that he was working with a company that was installing a fiber loop in the city that would closely
approximate what the city would eventually build.
In a meeting with the contractor building the fiber network, Michel's, we were informed that they are
installing a 288 strand overhead and underground fiber network. Eric Graning of Michel's indicated we
would have a significant cost savings if we were to pull fiber cable at the same time.
We were given a quote of $241,000 for a loop in the city with an additional charge of $2,000 to connect
each of the identified locations. Staff has met with ERMU and county IT staff to discuss a 3 -way
partnership to share the network and the $241,000 cost. The network would only be government use for
interconnectivity between city, county and utilities facilities. Currently, each entity uses DSL or T1
networks which do not have the bandwidth or reliability of a looped fiber network.
The main benefits of fiber are its ability to provide high bandwidth over long distances. It would give us
the ability to provide the same speed at off campus locations that we have on campus.
Immediate benefits:
• Elimination of approximately $600 in monthly operating expenses
• Ability to install local software at off campus locations
• Eliminate poor phone voice quality problems at off campus locations
• Ability to provide faster Internet speeds at remote locations
• Ability of off campus locations to take web training
POWERED By
N: `,Public Bodies City ( omlial Counal RCA Agenda Packet o8-o6-2o12 ,Fiber Staft Repo ctdoch INAMIRE1
Long term
1. Ability to either acquire or provide technology /IT services to or from others:
a. An example would be for us to share in the county phone system (we currently have
identified $150k to replace our system in 2014)
b. We could provide services to either the county or the school district
c. We could jointly purchase and implement technology
2. Ability to connect in to school district fiber network
3. Ability to provide video conferencing to off campus locations
4. Ability to video conference between city and county Emergency Operation Centers
5. Ability to provide backup facilities with the county
6. Ability to grow the network to touch other city facilities like substations
Michel's is obligated to start the project by August 16. If the Council is interested, staff would work
immediately on:
• Assurance of significant cost savings of doing it now, comparison to State contract pricing
• A 3 -way cost sharing Memorandum of Understanding
FINANCIAL IMPACT
The anticipated total cost shared by the three entities for the entire 8 mile fiber loop is $233,033.47 plus
$8,000 engineering for a total of $241,033.47. After the initial loop each location connection would be
$2,000. The city share could be split between the Liquor and Wastewater Enterprise Funds.
ATTACHMENTS
■ Map of the proposed fiber loop
■ 2012 -2016 Capital Improvement Plan (Page 69)
Action Motion by Second by Vote
Follow Up
N:APublic Bodies \City Council \Council RCA \Agenda Packet \08 -06- 2012 \Fiber Staff Report.docx
Capital Improvement Plan
City of Elk River, Minnesota
Project# TC -01
Project Name Annual Technology Upgrades
2012 thr, 2016
Type Equipment Department Technology Communications
Useful Life 5 years Contact IT Coordinator
Categor} TechnologyiCormnuniciations Priority na
Description
2012 - Hardware /enterprise switch, UPS hardware/Virtualization payback/Laptops Council/Security Camera
replacements
2013 - 2004 -Phone System Replacement /Virtualization payback/Fiber project /Security Camera replacements
2014 - Hardware /enterprise switch, UPS hardware/Virtualization payback/Virtual Desktop
2016 - Virtualization refresh hardware /soffivare
2016 - Hardware /enterprise switch/LTPS hardware
Justification
Annual replacement and upgrade of information technology software /hardware
Expenditures
2012
2013
2014
2015
2016
Total
Equipment
68,400
200,900
162,900
70,000
52,000
554,200
Total
Funding Sources
68,400
2012
200,900
2013
162,900
2014
70,000
2015
52,000
2016
554,200
Total
Capital Outlay Reserve
General Fund Operating
57,500
10,900
170,000
3D,900
152,000
10,900
70,000
52,000
431,500
122,700
Total
68,400
200,900
162,900
70,000
52,000
554,200
2012 -2016 CAPITAL IMPROVEMENTPLAN Page 69