5.3. ERMUSR 08-13-2012 $4b-- W
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
August 13, 2012 5.3
SUBJECT:
Fiber Optic Network Partnership
BACKGROUND:
The Utilities has been struggling with limitations in our phone and computer network systems.
Dependent upon a third party provider of communication conductivity between the office and the
field services building, the Utilities have experienced limited bandwidth, poor sound quality, and
poor customer service. The Utilities has been considering installing a dedicated communication
link between the field services building and the office.
The City of Elk River has been experiencing similar issues serving their remote buildings. The
IT Division has been exploring options to create a city fiber optic network. Sherburne County
and the City of Elk River have also been discussing the installation of a dedicated
communication link between the Sherburne County Government Center and City Hall.
DISCUSSION:
Mi-Tech, a division of Michel's Corporation, will be installing fiber optics throughout Elk River
for a third party communications company. They contacted the Utilities about attaching to our
power poles and the opportunity presented itself for a cost sharing partnership on their project.
The Utilities, the City of Elk River, and Sherburne County entered into discussions with Mi-Tech
and Michel's to explore the possibility of collaborating to build a fiber optic network loop.
Because Mi-Tech will already be installing a mixed overhead and underground fiber optic
network, there would be significant cost savings to coordinate with them and have them install
dedicated facilities for us at the same time. Michel's provided a quote of$241,000 for an 8 mile
fiber optic network loop with an addition charge of$2,000 to connect to each identified location.
The loop would connect the County, City, and Utilities facility with the option of connecting
additional facilities in the future like substations, water towers, and waste water lift stations.
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A three-way partnership between the County, City, and Utilities would be mutually beneficial,
provide solutions to many of our current communication issues, and provide a communication
backbone for future expansion and other possible collaborative opportunities.
The cost of participating in this partnership opportunity is significantly less than going alone.
The estimated cost would be approximately $20 per foot, or over$800,000. The City IT
Division is also comparing alternate options and cost through the State Contract to ensure best
value.
Some of the benefits for the Utilities of partnering with the County and the City in a fiber optic
network loop being installed by Mi-Tech and Michel's would be:
• Shared ownership with other government entities of a dedicated communication network.
• Improved bandwidth and phone system audio quality.
• Elimination of dependence on a third party for communication system service and
maintenance.
• Ability to eliminate redundancies in inventory management between the Utilities' field
services building and the office systems.
• Ability to provide video conferencing at the field services building.
• Ability to install dedicated communication infrastructure to water towers, wells,
substations, and other remote Utilities facilities.
On August 6 at a workshop session, the City Council gave City staff direction to progress with
this project and bring contracts back to the Council for execution. It is expected that the County
Board will support the partnership in this fiber optic network loops as well.
FINANCIAL IMPACT:
The County, City, and Utilities would equally share in the cost of the 8 mile fiber loop. The total
cost of the loop and engineering is approximately $241,000. The cost of the connections to
identified locations is $2,000 per location.
ACTION REQUESTED:
Staff requests Commission discussion and approval to participate in a three-way partnership with
the County and City in the creation of an 8-mile fiber optic network loop.
ATTACHMENTS:
• Map of proposed fiber loop
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