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4.3 SR 01-18-2022Request for Action To Item Number Mayor and Ci T Council 4.3 Agenda Section Meeting Date Prepared by Consent January 18, 2022 Suzanne Fischer, Community Development Director Item Description Reviewed by Financial Contribution to the Arvig Broadband Peter Beck, City Attorney Expansion Project Reviewed by Cal Portner, City Administrator Action Requested Approve, by motion, a 25% contribution to the Arvig Broadband Expansion Project in the City of Elk River. Background/Discussion Sherburne County has developed a Broadband Access Grant Program to help broadband providers expand their services to those locations where it may not be economically feasible without a public -private partnership. Arvig has submitted a proposal to bring high-speed broadband service to approximately 247 homes and businesses within the City of Elk River. The applicant is requesting $1.2 million in American Rescue Plan Act (ARPA) funds to supplement the $2 million project. Sherburne County will to contribute 75% of the grant funds and has requested the city to participate with a contribution for the remaining 25%. Without the city's contribution, the project would not be eligible to receive county grant assistance and therefore, not proceed. Financial Impact $301,305 from American Rescue Plan Act (ARPA) funds. Mission/Policy/Goal Improve broadband connectivity. Attachments ■ Contribution Request Letter from Sherburne County ■ Tekstar dba Arvig Project Overview ■ Broadband Overview Map and Addresses ■ Resolution 22-X The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires pi ospei ly. M TUREJ Updated.• August 2020 SHERBURNE C 0 U N T Y Sherburne County Administration Sherburne County Government Center 13880 Business Center Drive Suite 100 Elk River, MN 55330-4668 administration@co.sherbume.mn.us (763) 765-3001 1-800-433-5228 January 5, 2022 City of Elk River Attn: Cal Portner 13065 Orono Parkway Elk River, MN 55330 Dear Mr. Portner, As you may know, Sherburne County has been working for several years to help bring high-speed broadband service to the many unserved or underserved areas of the County that need it. The County recognizes that access to high-speed broadband service has become a basic necessity for businesses and residents to be able to access critical services and participate in the current marketplace. In response to that need, the County has developed a Broadband Access Grant Program to help broadband providers extend their services to those locations where it may not be economically feasible without a public -private partnership. Under the County's Program, Arvig has now applied for a grant as part of a project that will bring high-speed broadband to approximately 247 homes (155 unserved and 92 underserved) and businesses within the City of Elk River. I am therefore writing to inform you of Arvig's request and to ask that the City of Elk River consider participating with the County in facilitating this exciting project for the City's residents and businesses. A copy of Arvig's application was previously sent to City staff. Because the County has limited funds available for its Grant Program, local participation from the City where the project is located is an important part of the County's evaluation of which projects to fund. The County's Grant Program includes scoring criteria to help the County identify which proposals will be most beneficial and impactful when awarding grants from the limited funds available to us. A major component of that scoring criteria (25fo of the total) is whether there will be financial participation from the City where the project is located. Specifically, in order to receive a score, the City must agree to contribute a portion of the applicant's grant request. For the project involved here, Arvig has applied for $1,205,518 in grant assistance ($2,009,197 total project cost). Based on the size of the grant request and project in general, the County is requesting the City contribute 25% of the grant request or $301,305. Please note that according to the County's American Recovery Plan Act Broadband Access Grant Program guidelines, if the City declines to participate financially at all, the project will not be eligible to receive County grant assistance and will not proceed. We look forward to working with you to help bring high-speed broadband service to this area of the City that is currently underserved or not served at all. We ask that if you are interested in participating financially in the project, you send us a Board resolution stating your interest and participation amount by March 31, 2022. If you have any questions about the County's Grant Program or Arvig's application for a project in your City, please contact me at your convenience. Sincerely, Dan Weber Assistant County Administrator Tekstar Communications, Inc. d/b/a Arvig Budget/Expenses C1. Budget and Eligible Expenses The total eligible costs of the proposed City of Elk River Area project are estimated to be $2,009,197.00 for serving the area at an estimated 55% take -rate, covering approximately 24.56 miles of mainline construction. Estimated direct cost recovery of the project without any grant funds would be 16.41 years, but with the requested 60% grant funds, the estimated direct cost recovery improves to 10.01 years. The total estimated funds being requested is $1,205,518.00 with Arvig providing the remaining $803,679.00 for the project. Estimated cost detail is represented by four main areas and has been included for reference in the table below. Tekstar/Arvig commits to use County grant awarded ARPA funds and all agency matching contributions from Cities and Townships for the sole purposes of implementing the proposed broadband project. City of Elk River Area Sherburne County RFP Estimated Costs — FTTH Buildout Total Elk River - Oliver 1235 207th ave Zimmerman Elk River Kelly Farm Area NW,Elk River MN Area Areas Total Mainline Footage 40,618 19,700 69,357 24.56 Material per foot - Mainline $2.50 $2.50 $2.50 Labor per foot - Labor mainline $8.00 $8.00 $8.00 Material per foot - drops - 350' average $2.50 $2.50 $2.50 Labor per foot - drops — 350' average $4.00 $4.00 $4.00 Unserved/Underserved locations passed 70 48 129 247 Total for construction material -mainline $101,545.00 _ $49,248.75 $173,391.25 $324,185 Total for construction labor -mainline $324,944.00 $157,596.00 $554,852.00 $1,037,392.00 PON Cabinet, splitters, etc $12,000.00 $16,000.00 $12,000.00 $40,000.00 Total for construction material -drops $61,250.00 $42,000.00 $112,875.00 $216,125.00 Total for construction labor -drops $98,000.00 $67,200.00 $180,600.00 $345,800.00 Equipment Cost per sub. - $185 $12,950.00 $8,880.00 $23,865.00 $45,695.00 Total Cost $610,689.00 $340,924.75 $1,057,583.25 $2,009,197.00 Cost per sub at 100% $8,724.13 $7,102.60 $8,198.32 $8,134.40 # of unserved structures 57 48 50 155 # of underserved structures 13 0 79 92 # of structures planned not to build to jB5. Addresses to be served Elk River - Oliver Kelly Farm Area Unserved/Underserved locations passed 70 ¢ Total Cost Area ; $610,689.00 Cost per sub at 100 �R�# of unserved structures 57 �;srve # of underserved structures 13 underserved STREET ADDRESS CITY DISTRICT UNDERSERVED 16330 US Highway 10 Elk River City of Elk River underserved 16501 US Highway 10 Elk River City of Elk River underserved 10725 165th Ave. NW Elk River City of Elk River underserved 10700165th Ave. NW Elk River City of Elk River unserved 9943 165th Ave. NW Elk River City of Elk River unserved 9850165th Ave. NW Elk River City of Elk River unserved 9730165th Ave. NW Elk River City of Elk River unserved 16270 Jarvis St. NW Elk River City of Elk River unserved 16234 Jarvis St. NW Elk River City of Elk River unserved 16208 Jarvis St. NW Elk River City of Elk River unserved 9643 161st Ave. NW Elk River City of Elk River unserved 16110 Jarvis St. NW Elk River City of Elk River unserved 9656 161st Ave. NW Elk River City of Elk River unserved 16078 Jarvis St. NW Elk River City of Elk River underserved 16038 Jarvis St. NW Elk River City of Elk River underserved 15970 Jarvis St. NW Elk River City of Elk River underserved 16000 Jarvis St. NW Elk River City of Elk River underserved 15980 Jarvis St. NW Elk River City of Elk River underserved 15930 Jarvis St. NW Elk River City of Elk River underserved 15861 Jarvis St. NW Elk River City of Elk River underserved 15932 Jarvis St. NW Elk River City of Elk River unserved 15790 Jarvis St. NW Elk River City of Elk River unserved 15777 Jarvis St. NW Elk River City of Elk River unserved 15749 Jarvis St. NW Elk River City of Elk River unserved 15725 Jarvis St. NW Elk River City of Elk River unserved 15703 Jarvis St. NW Elk River City of Elk River unserved 15688 Jarvis St. NW Elk River City of Elk River unserved 15683 Jarvis St. NW Elk River City of Elk River unserved 15612 Jarvis St. NW Elk River City of Elk River unserved 9745 US Hwy 10 NW Elk River City of Elk River unserved 15526 Adams St NW Elk River City of Elk River underserved 9619 US Hwy 10 NW Elk River City of Elk River underserved 15238 Adams St. NW Elk River City of Elk River underserved 9744 US Hwy 10 NW Elk River City of Elk River unserved 9712 US Hwy 10 NW Elk River City of Elk River unserved 9784 US Hwy 10 NW Elk River City of Elk River unserved 15546 Adams St. NW Elk River City of Elk River unserved 9824 US Hwy 10 NW Elk River City of Elk River unserved 9816 US Hwy 10 NW Elk River City of Elk River unserved 15260 Cleveland St. NW Elk River City of Elk River unserved 15560 Cleveland St NW Elk River City of Elk River unserved 15268 Cleveland St. NW Elk River City of Elk River unserved 15546 Cleveland St. NW Elk River City of Elk River unserved 15560 Cleveland St NW Elk River City of Elk River unserved 9840 US Hwy 10 NW Elk River City of Elk River unserved 15492 Edison St. NW Elk River City of Elk River unserved 15322 Edison St. NW Elk River City of Elk River unserved 15293 Edison St. NW Elk River City of Elk River unserved 9922153rd Ave. NW Elk River City of Elk River unserved 9956153rd Ave. NW Elk River City of Elk River unserved 9976153rd Ave. NW Elk River City of Elk River unserved 9988153rd Ave. NW Elk River City of Elk River unserved 9927 154th Ave. NW Elk River City of Elk River unserved 10078154th Ave. NW Elk River City of Elk River unserved 10094154th Ave. NW Elk River City of Elk River unserved 15410 Fillmore St. NW Elk River City of Elk River unserved 10122 154th Ave. NW Elk River City of Elk River unserved 15434 Fillmore St. NW Elk River City of Elk River unserved 15440 Fillmore St. NW Elk River City of Elk River unserved 15456 Fillmore St. NW Elk River City of Elk River unserved 15472 Fillmore St. NW Elk River City of Elk River unserved 15488 Fillmore St. NW Elk River City of Elk River unserved 15330 Fillmore St. NW Elk River City of Elk River unserved 15510 Fillmore St. NW Elk River City of Elk River unserved 15788 Kelley Farm Rd NW Elk River City of Elk River unserved 10000 US Highway 10 NW Elk River City of Elk River unserved 9940 US Highway 10 NW Elk River City of Elk River unserved 9942 US Highway 10 NW Elk River City of Elk River unserved 9944 US Highway 10 NW Elk River City of Elk River unserved 9950 US Highway 10 NW Elk River City of Elk River unserved 11235 207th Ave. NW, Elk River MN Unserved/Underserved locations passed 48 Total Cost Area $340,924.76 Cost per sub at 100% $7,102.60 # of unserved structures 48 unserved # of underserved structures 0 underserved R UNSERVED/ STREET ADDRESS CITY DISTRICT UNDERSERVED 11235 207th ave NW Elk River City of Elk River unserved 12000 205th Ave. NW Elk River City of Elk River unserved 11895 205th Ave. NW Elk River City of Elk River unserved 11853 205th Ave. NW Elk River City of Elk River unserved 11717 205th Ave. NW Elk River City of Elk River unserved 11555 205th Ave. NW Elk River City of Elk River unserved 10476 205th Ave. NW Elk River City of Elk River unserved 20600 205th Ave. NW Elk River City of Elk River unserved 10817 205th Ave. NW Elk River City of Elk River unserved 10783 205th Ave. NW Elk River City of Elk River unserved 10691 205th Ave. NW Elk River City of Elk River unserved 10666 205th Ave. NW Elk River City of Elk River unserved 10638 205th Ave. NW Elk River City of Elk River unserved 20573 205th Ave. NW Elk River City of Elk River unserved 10476 205th Ave. NW Elk River City of Elk River unserved 10576 205th Ave. NW Elk River City of Elk River unserved 11452 207th Ave. NW Elk River City of Elk River unserved 11418 207th Ave. NW Elk River City of Elk River unserved 11362 207th Ave. NW Elk River City of Elk River unserved 11336 207th Ave. NW Elk River City of Elk River unserved 11286 207th Ave. NW Elk River City of Elk River unserved 11236 207th Ave. NW Elk River City of Elk River unserved 11235 207th Ave. NW Elk River City of Elk River unserved 11170 207th Ave. NW Elk River City of Elk River unserved 11121 207th Ave. NW Elk River City of Elk River unserved 11120 207th Ave. NW Elk River City of Elk River unserved 11070 207th Ave. NW Elk River City of Elk River unserved 11063 207th Ave. NW Elk River City of Elk River unserved 11024 207th Ave. NW Elk River City of Elk River unserved 20723 Wilson St. NW Elk River City of Elk River unserved 20776 Wilson ST. NW Elk River City of Elk River unserved 20777 Ulysses St. NW Elk River City of Elk River unserved 20727 Ulysses St. NW Elk River City of Elk River unserved 20572 Ulysses St. NW Elk River City of Elk River unserved 20730 Ulysses St. NW Elk River City of Elk River unserved 20663 Ulysses St. NW Elk River City of Elk River unserved 20686 Ulysses St. NW Elk River City of Elk River unserved 20612 Ulysses St. NW Elk River City of Elk River unserved 20613 Ulysses St. NW Elk River City of Elk River unserved 20573 Quincy St. NW Elk River City of Elk River unserved 20575 Quincy St. NW Elk River City of Elk River unserved 20687 Quincy St. NW Elk River City of Elk River unserved 11061 208th Ave. NW Elk River City of Elk River unserved 11037 208th Ave. NW Elk River City of Elk River unserved 10938 208th Ave. NW Elk River City of Elk River unserved 10955 208th Ave. NW Elk River City of Elk River unserved 10923 208th Ave. NW Elk River City of Elk River unserved 10863 208th Ave. NW Elk River City of Elk River unserved 10825 208th Ave. NW Elk River City of Elk River tinsel ved Note: "County Construction Project planned for 205TH AVE NW for 2023 Zimmerman Area Unserved/Underserved locations passed 129 Total Cost Area $1,057,583.26 Cost per sub at 100% ' $8,198.32 # of unserved structures 79 unserved #underserved 50 underserved ,y 'UNSERVED/ Street City DISTRICT UNDERSERVED 22822 Baldwin St NW Elk River City of Elk River unserved 22825 Baldwin St NW Elk River City of Elk River unserved 22715 Baldwin St NW Elk River City of Elk River unserved 11661225th Ave NW Elk River City of Elk River unserved 11602 225th Ave NW Elk River City of Elk River unserved 11650 225th Ave NW Elk River City of Elk River unserved 22460 Us Highway 169 NW Elk River City of Elk River unserved 10711221st Ave NW Elk River City of Elk River underserved 22272 Quinn St NW Elk River City of Elk River underserved 22130 Quinn St NW Elk River City of Elk River underserved 12183 223rd Ave NW Elk River City of Elk River underserved 12265 223rd Ave NW Elk River City of Elk River underserved 12269 223rd Ave NW Elk River City of Elk River underserved 22447 Tipton St NW Elk River City of Elk River unserved 12685 221st Ave NW Elk River City of Elk River unserved 12781221st Ave NW Elk River City of Elk River unserved 12776 222nd Ct NW Elk River City of Elk River unserved 12790 222nd Ct NW Elk River City of Elk River unserved 12789 222nd Ct NW Elk River City of Elk River unserved 12781222nd Ct NW Elk River City of Elk River unserved 12747 222nd Ct NW Elk River City of Elk River unserved 22200 Watson St NW Elk River City of Elk River unserved 22210 Watson St NW Elk River City of Elk River unserved 22220 Watson St NW Elk River City of Elk River unserved 22230 Watson St NW Elk River City of Elk River unserved 12626 223rd Ct NW Elk River City of Elk River unserved 12642 223rd Ct NW Elk River City of Elk River unserved 12660 223rd Ct NW Elk River City of Elk River unserved 12678 223rd Ct NW Elk River City of Elk River unserved 12696 223rd Ct NW Elk River City of Elk River unserved 12693 223rd Ct NW Elk River City of Elk River unserved 12673 223rd Ct NW Elk River City of Elk River unserved 12651223rd Ct NW Elk River City of Elk River unserved 12633 223rd Ct NW Elk River City of Elk River unserved 22312 Watson Cir NW Elk River City of Elk River unserved 22332 Watson Cir NW Elk River City of Elk River unserved 22342 Watson Cir NW Elk River City of Elk River unserved 22343 Watson Cir NW Elk River City of Elk River unserved 22339 Watson Cir NW Elk River City of Elk River unserved 22329 Watson Cir NW Elk River City of Elk River unserved 22301 Watson Cir NW Elk River City of Elk River unserved 22316 Watson St NW Elk River City of Elk River unserved 22336 Watson St NW Elk River City of Elk River unserved 12558 224th Ct NW Elk River City of Elk River unserved 12572 224th Ct NW Elk River City of Elk River unserved 12586 224th Ct NW Elk River City of Elk River unserved 12604 224th Ct NW Elk River City of Elk River unserved 12620 224th Ct NW Elk River City of Elk River unserved 12634 224th Ct NW Elk River City of Elk River unserved 12648 224th Ct NW Elk River City of Elk River unserved 12656 224th Ct NW Elk River City of Elk River unserved 12653 224th Ct NW Elk River City of Elk River unserved 12641224th Ct NW Elk River City of Elk River unserved 12625 224th Ct NW Elk River City of Elk River unserved 12601224th Ct NW Elk River City of Elk River unserved 12591224th Ct NW Elk River City of Elk River unserved 12577 224th Ct NW Elk River City of Elk River unserved 12565 224th Ct NW Elk River City of Elk River unserved 12531224th Ct NW Elk River City of Elk River unserved 22372 Tipton St NW Elk River City of Elk River unserved 22376 Tipton St NW Elk River City of Elk River unserved 22382 Tipton St NW Elk River City of Elk River unserved 22394 Tipton St NW Elk River City of Elk River unserved 22412 Tipton St NW Elk River City of Elk River unserved 12423 223rd Cir NW Elk River City of Elk River unserved 22417 Tipton St NW Elk River City of Elk River unserved 22428 Tipton St NW Elk River City of Elk River unserved 22444 Tipton St NW Elk River City of Elk River unserved 22468 Tipton St NW Elk River City of Elk River unserved 22511 Tipton Cir NW Elk River City of Elk River unserved 22531 Tipton Cir NW Elk River City of Elk River unserved 22532 Tipton Cir NW Elk River City of Elk River unserved 12442 225th Ct NW Elk River City of Elk River unserved 12454 225th Ct NW Elk River City of Elk River unserved 12468 225th Ct NW Elk River City of Elk River unserved 12494 225th Ct NW Elk River City of Elk River underserved 12516 225th Ct NW Elk River City of Elk River underserved 12538 225th Ct NW Elk River City of Elk River underserved 12554 225th Ct NW Elk River City of Elk River underserved 12551225th Ct NW Elk River City of Elk River underserved 12531225th Ct NW Elk River City of Elk River underserved 12501225th Ct NW Elk River City of Elk River underserved 12495 225th Ct NW Elk River City of Elk River underserved 12489 225th Ct NW Elk River City of Elk River underserved 12481225th Ct NW Elk River City of Elk River underserved 12477 225th Ct NW Elk River City of Elk River underserved 12210 221st Ave NW Elk River City of Elk River unserved 21566 Us Highway 169 NW Elk River City of Elk River underserved 11755 213th Ave NW Elk River City of Elk River underserved 21884 Us Highway 169 NW Elk River City of Elk River underserved 21591 Us Highway 169 NW Elk River City of Elk River underserved 21401 Us Highway 169 NW Elk River City of Elk River underserved 21475 Us Highway 169 NW Elk River City of Elk River underserved 21372 Us Highway 169 NW Elk River City of Elk River underserved 11631219th Ave NW Elk River City of Elk River underserved 11684 219th Ave NW Elk River City of Elk River underserved 11349 219th Ave NW Elk River City of Elk River underserved 21310 Brook Rd NW Elk River City of Elk River underserved 21375 Brook Rd NW Elk River City of Elk River underserved 21446 Brook Rd NW Elk River City of Elk River underserved 21538 Brook Rd NW Elk River City of Elk River underserved 21500 Brook Rd NW Elk River City of Elk River underserved 21453 Brook Rd NW Elk River City of Elk River underserved 21587 Brook Rd NW Elk River City of Elk River underserved 21615 Brook Rd NW Elk River City of Elk River underserved 11038 217th Ave NW Elk River City of Elk River underserved 10977 217th Ave NW Elk River City of Elk River underserved 10965 217th Ave NW Elk River City of Elk River underserved 21737 Brook Rd NW Elk River City of Elk River underserved 21800 Brook Rd NW Elk River City of Elk River underserved 21850 Brook Rd NW Elk River City of Elk River underserved 10790 Brook Rd NW Elk River City of Elk River underserved 10760 Brook Rd NW Elk River City of Elk River underserved 10785 Brook Rd NW Elk River City of Elk River underserved 10700 Brook Rd NW Elk River City of Elk River underserved 10801 Brook Rd NW Elk River City of Elk River underserved 21975 Brook Rd NW Elk River City of Elk River underserved 21887 Olson St NW Elk River City of Elk River underserved 21771 Olson St NW Elk River City of Elk River underserved 21777 Olson St NW Elk River City of Elk River underserved 11711221st Ave NW Elk River City of Elk River unserved 12163 223rd Ave NW Elk River City of Elk River underserved 12137 223rd Ave NW Elk River City of Elk River underserved 11770 213th Ave NW Elk River City of Elk River underserved 12451221st Ave NW Elk River City of Elk River underserved 21310 Us Highway 169 NW Elk River City of Elk River underserved 22596 Us Highway 169 NW Elk River City of Elk River unserved 11591217th Ave NW Elk River City of Elk River underserved 11595 225th Avenue NW Elk River City of Elk River unserved City of Elk River City Council Resolution 22- A Resolution of the City Council of the City of Elk River in Support of Sherburne County's Broadband Expansion Projectto Under/Unnerved Areas of the City. WHEREAS, the City recognizes that access to high-speed broadband service has become a basic necessity for businesses and residents to be able to access critical services and participate in the current marketplace; and WHEREAS, Sherburne County has developed a Broadband Access Grant Program to help broadband providers expand their services to those locations where it may not be economically feasible without a public -private partnership; and WHEREAS, Sherburne County has received a broadband expansion grant application from Arvig that would bring high-speed broadband service to approximately 247 homes and businesses within the City of Elk River; and WHEREAS, Sherburne County has limited funds available for its grant program and requests a 25% contribution to the grant amount of $1.2 million from the city. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: The City of Elk River supports Sherburne County's proposed grant to Arvig and will contribute $301,305.00 from its American Rescue Plan Act (ARPA) funds to the grant. Passed and adopted this 18th day of January 2022. ....................................................................................................................................................................................................................................................... John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk