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4.6 SR 01-02-2024Request for Action To Item Number Mayor and Ci T Council 4.6 Agenda Section Meeting Date Prepared by Consent January 2, 2024 Cal Portner, City Administrator Item Description Reviewed by Tekstar Broadband Grant Agreement — Project Jared Shepherd, City Attorney #2 Reviewed by Action Requested Approve, by motion, a grant agreement with Tekstar d/b/a Arvig for broadband fiber installation. Background/Discussion One of the Elk River City Council's highest priority goals is the expansion of broadband services to unserved and underserved areas of the community. In 2021, the Council designated funding from the federal American Rescue Plan Act (ARPA) to partner with agencies to expand broadband. Sherburne County developed a Broadband Access Grant Program to help providers extend their services to locations that are not economically feasible without a public -private partnership. In 2022, the city and county partnered with Tekstar/Arvig for service expansion in 2023. Arvig made a second request in late 2022 for a further expansion to be constructed in 2024. On January 3, 2023, the City Council adopted a resolution supporting Sherburne County's grant program pledging $41,950.00 of ARPA funds to the second project. Arvig has begun the preliminary planning and permitting for the 2024 project. This agreement binds the city to assist with the funding of the work. Financial Impact N/A Mission/Policy/Goal The Elk River Vision and Mission Statements Attachments Sherburne County Request • Resolution • Grant Agreement 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.sherburne.mn.us (763) 765-3001 1-800-433-5228 December 9, 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 and in partnership with the State of Minnesota's Border to Border Broadband Program, Arvig has now applied for a grant as part of a project that will bring high-speed broadband to approximately 42 homes (27 unserved and 15 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 is attached to this letter. Because the County has limited funds available for its Grant Program, local participation from the City where the project is located is being requested. For the project involved here, Arvig has applied for $167,795.38 in grant assistance ($542,651 total project cost). Based on the size of the grant request and project in general, the County is requesting the City of Elk River contribute 25% of the grant request or $41,950. 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 January 31, 2023. 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 150 2"d Street SW Perham, MN 56573 RFP Response A - Project Summary Sherburne County ARPA BB Access Grant Application JULY 12, 2022 r, t I � Laura Kangas lye Account Executive m Direct 320-204-1020 Laura. Kan as arvi .corn 26 6th Ave. N I St. Cloud I arvig.com Mark Birkholz Director Customer Operations & Southern Markets C+� , I � 218 346-8$68 �/ mark. birkholz arvi .com 150 Second Street SW I Perham, MN 56573 arvig.com Tekstar Communications, Inc. d/b/a Arvig Project Summary Executive Summary Tekstar Communications, Inc., dba Arvig ("Tekstar/Arvig"), headquartered in Perham, MN, has been providing competitive broadband services to Minnesota communities since 1998 with Arvig roots going back to 1950 including full -suite telecommunications services for businesses, farms, residential customers, counties, schools, libraries, healthcare services and other critical anchor institutions throughout the state. As part of this application, Tekstar/Arvig proposes broadband services for the sparsely populated and rural areas located north and south of the community of Elk River, MN. These areas have been identified as first -in -line to receive and maximize the use of the broadband grant funding for the area provided under the American Recovery Plan Act and Sherburne County due to lack of reliable high-speed internet services and meets the eligibility consideration criteria as unserved and underserved residential territories. Tekstar/Arvig seeks to benefit residents and businesses, improving their way of life, with the delivery of minimum speeds offered at 100/20 and deploying a proposed Fiber -to -the -Home (FTTH) system consisting entirely of fiber optic and Calix XGS PON equipment capable of delivering 100Mbps download and 20Mbps upload high-speed broadband. Using Calix XGS, subscribers have immediate scalability, upon placement of an order, and access to availability of 100/100 symmetrical service. Internet service packages are anticipated to start at 100/20Mbps with offerings available at up to 1Gig and supporting 10G with symmetrical packages upon request. Total number of estimated households proposed as passed is approximately 42 households via FTTH XGS-PON construction. Approximately 64% of households are estimated to be unserved with 36% of households considered underserved. Minimum speeds are planned so as to support data and voice transmission. Areas are currently defined as unserved/underserved and Tekstar/Arvig seeks to benefit residents by delivering in -home remote capabilities, remote educational opportunities, telehealth services, and remote business connections maintaining reliable internet connectivity for office communications. Tekstar/Arvig technicians, construction and network personnel are highly trained and experienced in the maintenance and quality delivery of these systems. Tekstar/Arvig is well -experienced and fully staffed for these types of projects having previously been awarded Minnesota DEED Border -to -Border grant projects in the past. Priorfunded efforts have been managed to successful completion and on -time implementation. Tekstar/Arvig technical and network teams are trained to implement and support our Calix systems delivering services for projects, proving daily, Calix to be a successful platform providing the reliability necessary to feed the demands of today"s substantially increased remote -user needs. Total residences, business and critical community facilities estimated to have access to services post installation equal the total estimated households, business, and institutions passed. For a review of existing area broadband providers and service speeds available please reference the Project Description Section (132) of this response. For Tekstar/Arvig plans currently available making the proposed broadband services affordable please reference the Project Description Section (136) of this response. All equipment proposed to be installed within the City of Elk River area is proposed to receive funding from the Sherburne County ARPA program. The proposed timeline for buildout is during the construction season estimated to begin approximately April 1, 2023 and continuing up to June 30, 2025. Engineering, drafting, and permitting associated with the route is proposed to start in the Spring of 2024. Tekstar/Arvig and its affiliated companies have utilized and deployed Calix FTTH systems successfully for more than 25 years and plan to deliver the entirety of the proposed system during the 2024-5 season. Tekstar/Arvig has the expertise, local presence and ambition to stimulate the economy and population in the City of Elk River area by making available and providing these services to every unserved and underserved household and business. Stand-alone business plans typically do not allow for a project of this nature, however, with the assistance of Sherburne County, City, and Township funds, we can successfully pursue this opportunity of deploying broadband for this rural and mostly unserved area. The entire management team here has been working with broadband since its advent in the late Nineties and will handle any obstacles that may present themselves. Getting this project done through a service provider, especially one with Tekstar/Arvig's vast experience, knowledge, and skills will absolutely create the best across-the-board scenario for a public and private partnership for broadband delivery to the unserved. Tekstar/Arvig, with the use of its subsidiary company AEI Construction, will be able to have this project completed on time or ahead of schedule. Providing services to the unserved and underserved households and business in accordance with the U.S. Department of Treasury's interim Rule on Coronavirus State and Local Fiscal Recovery Funds ( 31 CFR Part 35). TEKSTAR COMMUNICATIONS, INC. D/B/A ARVIG 150 2"d Street SW Perham, MN 56573 RFP Response B - Project Description Sherburne County ARPA 136- Access Grant Application JULY 12, 2022 rA I' Laura Kangas V g Account Executive Direct 320.204-1020 Laura. Kangas(&arvig.com 26 6th Ave. N I St. Cloud I arvig•com Mark Birkholz Director Customer Operations & Southern Markets a r v i g 218 346-886$ mark. birkholz(a�arviq_corn 0 150 Second Street SW II Perham, MN 56573 arvig.com Tekstar Communications, Inc. d/b/a Arvig Project Description B1. Description & Proposed Broadband Improvements Tekstar/Arvig is proposing to invest in an all fiber-optic physical broadband network that will provide last mile fiber all the way to the home offering faster more reliable service than is available today and looking to partner with Sherburne County on a proposed broadband infrastructure project for the qualifying surrounding rural areas of Elk River, MN. Overview maps identifying the locations for the buildout proposed have been included and can be referenced in Section BS — Mapping. The proposed areas have been identified as in need of broadband services to enable residents and businesses to participate in distance learning, remote employment connections, and telehealth services due to the COVID-19 pandemic. In addition to broadband Internet, telephone services could also be provided to these premises utilizing the same network. Tekstar/Arvig proposes to implement an aggregated XGS-PON full fiber buried solution aggregated over a passive optical network and XGS-PON electronics located in remote cabinets at provider nodes. This technology supports the delivery of Gigabit and 10 Gigabit services via the Calix GigaFamily of outdoor terminals and residential gateways at customer and business locations. Broadband facilities proposed for placement include 100% buried fiber optic cables for the Elk River, MN area. This broadband infrastructure project will upgrade approximately 42 structures within the proposed area and Tekstar/Arvig shall improve broadband service levels, making available up to 1Gbps speeds, exceeding the State of Minnesota's 2022 and 2026 broadband goals in a Fiber -to -the -Home (FTTH) solution. Households and businesses passed will be able to utilize the fiber access technology for essential remote services and connectivity currently in demand for an estimated 27 unserved and 15 underserved structures and approximately 6.77 route miles. Consumers will not only be able to work from home but will be more effective and efficient with high-speed broadband connections and broadband access will enable inhabitants in the immediate area to utilize new technology and tools to grow their businesses as well as their community. The anticipated benefits to the community and surrounding area includes improvement of quality of living and the ability for rural areas to thrive in our ever -changing technological world. Today's culture demands significant increases in bandwidth to support remote service connectivity and the need for such services has become a critical necessity for daily living. All proposed improvements meet the service requirements and objectives of the request for Proposal and will conform to engineering standard best practices, applicable federal, state and local regulatory requirements, and the Telecommunications Act as amended. Installed infrastructure shall provide the speeds committed to in the RFP Response and application. B2. Project Need The need for this project is directly related to the lack of sufficient broadband availability within the proposed project area and the social economic value of high-speed internet services. This project would connect households and businesses aligning the proposed areas together with current digital necessities and remote requirements improving high-speed connections and opportunities for 42 locations including 15 underserved and 27 unserved. Delivering such proposed broadband speeds and availability is in direct alignment with the American Recovery Plan Act and would also result in direct stimulation for the local economy, create jobs, and provide greater access to remote work, remote education, remote training, telehealth, healthcare information, increased communications for public safety, a host of on-line services, and general welfare of the population. If the proposed project area is not selected to move forward with awarded County grant funds it is likely that services to the proposed areas would remain unserved and underserved until a provider is able to step forward financially supporting such an initiative without grant assistance. Insufficient broadband facilities and lower -level access electronics is not in the best interests of the public and remaining unserved and underserved would not be of benefit for area households struggling for appropriate levels of broadband communications today. Without funding, lack of high-speed internet would continue to negatively impact the inhabitants of the area and necessary connectivity would remain sparse and focused to more urbanized locales. Those requesting high-speed broadband for the first time could be denied service due to limited capacity in existing facilities. Tekstar/Arvig is not aware of any existing Agreements or plans to provide broadband by competing service providers. The RDOF service award territories and mapping have been referenced and there are no RDOF awardees overlapping with the proposed project. Area broadband providers have been reviewed and assessed, as seen below, for existing services and current levels of high-speed connectivity have been found to neither meet or exceed MN state requirements for the definition of broadband. Provider Offerings: Not Available in all Areas CenturyLink DSL Up to 1.5 mbps down CenturyLink DSL 20 mbps down/1.5 mbps up CenturyLink DSL 40 mbps down/3 mbps up CenturyLink DSL 60 mbps down/5 mbps up Nextera Wireless 50 mbps down/50 mbps up Proposed Tekstar/Arvig areas are designed with the future in mind. All polygon areas are set up with a forward -looking engineering perspective for expansions that may be needed as our communities and economies continue grow. B3. Project Eligibility Tekstar/Arvig will improve area broadband service levels up to iGbps exceeding the state of MN 2022 and 2026 broadband goals. Tekstar/Arvig shall use XGS-PON fiber access technology to build out the area in the fiber-to-the-home/premise solution previously mentioned capable of delivering Gigabit internet service to end users. Consumers will not only be able to work from home but will be more effective and efficient with reliable high-speed broadband Tekstar/Arvig connection. Tekstar/Arvig broadband access will enable these businesses and residences to utilize new technology and tools, grow and enhance their businesses and community, and help those that need the connectivity the most by increasing access to online healthcare and education allowing them to thrive in our ever -changing technological world. For additional detail pertaining to the XGS-PON technology proposed in order to make reliable 100/20 available to every location within the project area, please reference the Calix Summary of XGS & PON technologies specification contained in the Supplemental information Section D of this RFP response. Symmetrical business packages are available upon request. The proposed network is scalable to 100/100 and available upon demand and shall be provided for households and businesses with the purchase of a 'business service package'. 134. Demonstration of Need for Grant Stand-alone business plans often do not enable projects of this nature due to little return on investment. Without County grant participation, it is feasible that households and business remote connectivity needs would remain unaddressed until a provider was able to step forward financially supporting build out to the area without grant assistance. Considering today's immediate demand for high-speed remote connections to support teachers and students, work -from -home requirements, telehealth appointments, state and local agency workers, and other local businesses due to the COVID-19 pandemic; delaying implementation of services that can be built would not in the best interests of the public. The alternative, without funding, would be to wait until a positive return on investment would allow for a financially justifiable build. Deferring to such a time could accelerate the digital divide for the area and potentially upsurge continued connectivity challenges for households. B5. Project Mapping Tekstar/Arvig proposed FTTH project area for buildout is wholly located within the rural areas of the Elk River, MN and can be referenced on the following page. Buried fiber optics include approximately six and three quarters of (6.77) miles of buried fiber passing 27 unserved structures and 15 underserved structures. The axial map for the project is wholly located within City / Township of Elk River, MN. Estimated corridor identifying proposed fiber placement is shown in red and estimated project boundaries are shown with an opaque polygon. Tekstar/Arvig Proposec:FTTH Overview Man. City of Elk River Bvildout Elk Lake Rd Proposed Fiber Build(RED) Proposed FTTH Service Pins Tekstar/Arvig Proposed FTTH Overview Map of Elk River Buildout Twin Lakes area 2 Unserved, 9 Underserved XGS-PON Proposed Fiber BuiWRed) Proposed FTTH Service Pins Teks#ar/Arvig Proposed FTTH Overview Map City of Elk River Buildout, Fire Station area 3 Unserved, 7 Underserved XGS-PON Legend Proposed Fiber Build(RED) Proposed FTTH Service Pins B5. Addresses to be served Elk River — Elk Lake Rd NW & 2171h Ave. NW Unserved locations passed 22 Total Cost Area $197,273.75 Cost per sub at 100% $8,966.99 # of unserved structures 22 Unserved # of underserved structures 0 Underserved STREET ADDRESS CITY DISTRICT UNDERSERVED 12890 217TH AVE NW Elk River Elk River unserved 12783 217TH AVE NW Elk River Elk River unnerved 12899 217TH AVE NW Elk River Elk River unserved 13045 217TH AVE NW Elk River Elk River unserved 12860 217TH AVE NW Elk River Elk River unserved 12728 217TH AVE NW Elk River Elk River unserved 12740 217TH AVE NW Elk River Elk River unnerved 22248 ELK LAKE RD NW Elk River Elk River unserved 13175 221 ST AVE NW Elk River Elk River unserved 22112 ELK LAKE RD NW Elk River Elk River unserved 22118 ELK LAKE RD NW Elk River Elk River unnerved 12901 221STAVE NW Elk River Elk River unserved 22205 ELK LAKE RD NW Elk River Elk River unserved 21695 ELK LAKE RD NW Elk River Elk River unserved 21750 ELK LAKE RD NW Elk River Elk River unserved 22275 ELK LAKE RD NW Elk River Elk River unserved 22017 ELK LAKE RD NW Elk River Elk River unserved 21458 ELK LAKE RD NW Elk River Elk River unserved 21351 ELK LAKE RD NW Elk River Elk River unserved 21531 ELK LAKE RD NW Elk River Elk River unserved 21498 ELK LAKE RD NW Elk River Elk River unserved 21562 ELK LAKE RD NW Elk River Elk River unserved Elk River — Twin Lakes Area Unserved/Underserved locations passed 10 Total Cost Area $164,420.00 Cost per sub at 100% $16,442. # of unserved structures 2 unserved # of underserved structures 8 underserved UNSERVED/ STREET ADDRESS CITY DISTRICT UNDERSERVED 9660 201ST AVE NW Elk River Elk River underserved 9607 201ST AVE NW Elk River Elk River underserved 9699 201ST AVE NW Elk River Elk River underserved 9800 201ST AVE NW Elk River Elk River underserved 9823 VIKING BLVD NW Elk River Elk River underserved 9643 VIKING BLVD NW Elk River Elk River underserved 19891 TWIN LAKES RD NW Elk River Elk River underserved 20541 TWIN LAKES RD NW Elk River Elk River underserved 20295 TWIN LAKES RD NW Elk River Elk River unserved 20285 TWIN LAKES RD NW Elk River Elk River unserved Elk River - Fire Station Area Unserved/Underserved locations passed 10 Total Cost Area $180,957.50 Cost per sub at 100% $18,095.75 # of unserved structures 3 unserved # of underserved structures 7 underserved UNSERVED/ STREET ADDRESS CITY DISTRICT UNDERSERVED 18434 CLEVELAND ST NW Elk River Elk River underserved 9721 181ST AVE NW Elk River Elk River underserved 18519 CLEVELAND ST NW Elk River Elk River underserved 18479 CLEVELAND ST NW Elk River Elk River underserved 9678 181ST AVE NW Elk River Elk River underserved 9638 181ST AVE NW Elk River Elk River underserved 9720 181STAVE NW Elk River Elk River underserved 18605 CLEVELAND ST NW Elk River Elk River unserved 18575 CLEVELAND ST NW Elk River Elk River unserved 18655 CLEVELAND ST NW Elk River Elk River unserved 136. Affordability and Digital Literacy Assistance and Accessibility Programs for Tekstar/Arvig subscribers can be found at https://arvig.net/assistanceprograms The applicant is an ETC, therefore provides Lifeline benefits for broadband and telephone service customers for those who are eligible. Lifeline is a federal program dedicated to making Internet and Telephone service more affordable for low-income households providing eligible consumers a monthly discount of up to $9.25. Consumers living on Tribal lands are eligible for an enhanced discount of up to $34.25 per month. Customers who are eligible for Lifeline, SNAP, Medicaid, Federal public Housing Assistance, SSI, or WIC are also eligible for the Affordable Connectivity Program, a long-term program that will replace the Emergency Broadband Benefit Program (EBB) that provides discounts today. The Affordable Connectivity Program provides a discount of up to $30 per eligible household on your internet service and up to $75 per eligible household on Tribal lands. The Tekstar/Arvig Internet Education Assistance Program also provides households with a discount of $10 on the internet plan of their choice as long as they participate in the National School Lunch Program annually and enroll in AutoPay agreeing to receive their billing statement via email. This program is currently available if the household is participating in the Lifeline and EBB programs. The Minnesota Telephone Assistance Program is also available where low-income eligible participants are provided monthly telephone service discounts on one landline or wireless telephone per household. Tekstar/Arvig does advertise these assistance programs and they are typically discussed with current and potential customers as they are available as a standard for all existing and new Tekstar/Arvig subscribers and households. At the time new service is requested, inquiries are made regarding any need for assistance programs. For additional information, details, weblinks to forms and applications regarding participation and individual assistance, please refer to the following website: https://arvig.net/assistanceprograms Digital Literacy Tekstar/Arvig has well -established support mechanisms to facilitate, increase, and improve digital literacy throughout their service territories including training and technical support assistance actively available via Arvig.net. Several how-to technical support videos are also available for review and accessible via YouTube at https://www,youtube.com/user/ArvigHQ. Technical support and training promotional materials are available on an on -going basis through Arvig's social media pages, newsletter articles and blog. Examples of articles include internet applications, security, and instructional documentation on how to surf the net . In addition, frontline staff are always available to provide live customer care via telephone, chat, email, and by appointment. New customers are encouraged to chat, call, and email us for technical support and one -one walk-through for assistance. 137. Community Support Information Letters of engagement and community support from the City of Elk River and Superintendent of Elk River Schools (Dr. Bittman) are attached. No other in -kind, contribution of funds, easements, permissions to use public property, or other financial assistance is anticipated at this time. ilk River December 28, 2021 Laura Kangas Arvig, Account Executive 26 6th Ave. N. St. Cloud, MN 56303 Dear Ms. Kangas: This letter is to express support of broadband expansion within the City of Elk River's urban service area. Like many rural areas in Minnesota and across the country, the city has areas with no or limited access to high-speed internet. As a result, some residents in our community lack the business, education, and recreational opportunities that those with broadband experience. Internet has become a quality -of -life issue for many residents with school age children, young; adults attending college and those who operate businesses out of their homes. Without funded broadband infrastructure projects, these areas would remain unserved for the foreseeable future. It is my understanding that Tekstar dba Arvig, wishes to use federal funding from the American Rescue Flan Act to expand internet access. This project supports the city's commitment to expand broadband in the community and will make a tremendous impact for the families living in the unserved and underserved areas. The City of Elk River is excited to partner with Tekstar/Arvig in this grant application and will follow the state law guidelines for the Border -to -Border Broadband Grant Program. Sincerely, Suzarnt-te M. Fischer Community Development Director 763.635.1030 13065 Orono Parkway Elk River, MN 55330 763.635.1000 PIIERED IV NATURE ElkRiverMN.gov INDEPENDENT SCHOOL DISTRICT 728 ELK RIVER OTSEG4 ROGERS ZIMAIERMAN January 4, 2022 Sherburne County American Rescue Plan Grant Application City of Elk River Area To Whom It May Concern: 11500 193rd Ave. NIN Elk River. MN 55M 763.241.3400 feedtock4 id728.or9 www.lsd728.org As Superintendent and on behall'of'ISD 728, 1 support a plan as proposed by Arvig to access government funding from Sherburne County to specifically improve broadband in the Elk [fiver area. The endorsement is based upon identified needs and priorities of ISD 728. With the potential assistance of government funding, Arvig plans to upgrade to fiber intemel in several areas which would greatly help both students and staff. Please feel free to contact me directly for any additional information. Sincerely, Dr. Daniel Bittman Superintendent of Schools B8. Proposed Project Timeline Overall Timeline Proposed: 4/1/2023 to June 30, 2025 Tekstar/Arvig Sherburne Grant 2023/2025 Proposed Timeline Applicant Name: Tekstar Communications, Inc. d/b/a Arvig Name of Project: Arvig Fiber Extension — Elk River Areas Individual Milestones for Project Est. Start Date Est. Comnlatw nata Create Internal Work Order for Tracking 4/1/2023 4/5/2023 Permit(s) 4/1/2023 8/1/2024 Finish Environmental Review N/A N/A Complete Archeological Review N/A N/A Inventory - Order Fiber, Material & Electronics 6/1/2023 7/31/2024 Create Staking Sheets & Release to Construction 6/1/2023 8/29/2023 White Flag Routes 5/1/2024 9/29/2024 Plow and/or Bore Mainline Fiber 6/1/2024 9/29/2024 Splice Fiber into Vaults 8/1/2024 9/29/2024 Test Electronics 10/1/2024 9/29/2024 Obtain Consent Forms from Customers 5/1/2024 9/29/2024 Install Drops to Customer Premises 7/1/2024 6/30/2025 Pay Vendors 12/1/2024 12/31/2024 Marketing, Sales and Installation at Premise 10/1/2024 9/29/2024 Submit Invoicing to Sherburne County 12/30/2024 6/30/2025 arvig arviga TEKSTAR COMMUNICATIONS, INC. D/B/A ARVIG 150 2"d Street SW Perham, MN 56573 RFP Response C - Project Budget/Expenses Sherburne County ARPA BB Access Grant Application JULY 12, 2022 Laura Kangas Account Executive Direct 320-204-1020 Lau ra.Kana as(&a rvia.com 26 6th Ave. N I St. Cloud I arvici.com Mark Birkholz Director Customer Operations & Southern Markets 218 346-8868 mark. birkholz(Darvig.com 150 Second Street SW I Perham, MN 56573 arvig.com 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 $542,651.25 for serving the area at an estimated 55% take -rate, covering approximately 6,77 miles of mainline construction.The total estimated funds being requested is $162,795.38 from the County, $217,060.50 MN 13213 grant, and Arvig providing the remaining $162,795.38 for the project. Estimated cost detail is represented by 3 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 Elk River— Fire Elk River — Twin Station #3 area Lakes Area Total Mainline Footage Material per foot - Mainline Labor per foot - Labor mainline Material per foot -drops - 350' average Labor per foot - drops — 350' average Unserved/Underserved locations passed Total for construction material -mainline Total for construction labor -mainline PON Cabinet, splitters, etc Total for construction material -drops Total for construction labor -drops Equipment Cost per sub. - $185 Total Cost 13915 $2.50 $8.00 $1.50 $4.50 10 $34,787.50 $111,320.00 $12,000.00 $5,250.00 $15, 750.00 $1,850.00 $180,957.50 13340 $2.50 $8.00 $1.50 $4.50 10 $33,350.00 $106,720.00 $1, 500.00 $5,250.00 $15,750.00 $1,850,00 $164,420.00 Total Elk River — Elk Riven Elk Lake A Rd NW 13857.5 24.E $2.50 $8.00 $1.50 $4.50 22 42 $34,643.75 $102,781.25 $110,860.00 $328,900.00 $1,500.00 $15,000.00 $11,550.00 $22,050.00 $34,650.00 $66,150.00 $4,070.00 $7,770.00 $197,273.76 $542,651.25 Cost per sub at 100% $18,095.75 $16,442.00 $8,966.99 $12,920.27 # of unserved structures 3 2 22 27 # of underserved structures 7 8 15 Total 10 10 22 42 C2, Ownership and other Contributing funds Tekstar Communications, Inc. d/b/a Arvig will own, support, maintain and operate the proposed network. Funding sources to be contributed from other entities is not anticipated at this time, however, the Company understands and acknowledges that Sherburne, as part of their RFP process, shall be engaging Cities and Townships so that they may consider participation by granting additional ARPA contributions and that such a contribution is critical for the purposes of consideration for eligibility. As such, our executive account team has reached out to the Townships identified as part of this project and has received positive response / interest relating to support. No partnerships or joint build efforts are anticipated to be part of the proposed project at this time and start to finish implementation including field engineering, permitting, construction, and subscriber connectivity are all scheduled to occur using Company affiliates. C3. Applicants Ability to Complete In 1950, Royal B. Arvig bought the Perham Telephone Company, located in Perham, Minnesota. In subsequent years, Perham Telephone Company purchased the lines from the farmers and started to replace the existing lines and phones with more modern technology. The Company continued to purchase local exchanges in the immediate area over the following years. Arvig Enterprises, Inc. was organized in 1984 to facilitate diversification beyond what is allowed by various regulatory bodies. This corporate structure provides operating efficiencies in managing the Company's various business entities and lends to the technical feasibility, experience, deliverability, and organizational capacity of the applicant to commit and implement the proposed project with the schedule specified and proposed timeframe for buildout. Today, Arvig provides entertainment and communication services to residential and business customers throughout Minnesota, North Dakota, South Dakota, Nebraska, and Iowa with Company wholly owned (except where noted) subsidiaries as follows: Holding Companies: Martinsen Communications, Inc.; Midwest Information Systems, Inc.; diversiCom, Inc.; Alliance Telecommunications Corporation; V3 Technologies, LLC; Perham Investors, LLC; Osakis Telephone Company; The Home Telephone Company; and The Peoples Telephone Co. of Bigfork Regulated Incumbent Local Exchange Carriers ("ILECs"): East Otter Tail Telephone Company; Twin Valley-Ulen Telephone Company; Callaway Telephone Company, Inc.; Midwest Telephone Company; Redwood County Telephone Company; Melrose Telephone Company; Clements Telephone Company; Felton Telephone Company; Eagle Valley Telephone Company; Loretel Systems, Inc.; and Arrowhead Communications Corporation•, Osakis Telephone Company; The Home Telephone Company; and The Peoples Telephone Co. of Bigfork Competitive Local Exchange Carriers ("CLECs"): Tekstar Communications, Inc.; Southern Cablevision, Inc.; Mainstreet Communications, LLC Long Distance: Redwood County Long Distance Company and Royale Comtronics, Inc. Affiliate Companies: All State Communications, Inc.; AEI Construction, Inc.; AEIS Construction, Inc., CD Communications, Inc.; Time Communications, Inc.; Partially Owned: Central Minnesota Network Systems, LLC Arvig provides corporate services to all subsidiaries including management, accounting, billing, HR, marketing, executive leadership, employees, purchasing, data processing, IT support, customer services and plant maintenance services. AEI Construction, Inc., an affiliate company, provides fiber optic network and utilities construction services positively affecting turn- key implementation for this proposal and other projects. Arvig also provides all cash management services and the credit facility is maintained at the corporate level. All borrowing and spending decisions are made by the Arvig leadership team and Board of Directors. Employees may provide labor to several different subsidiaries and will direct code their time sheets to reflect which subsidiary they are working for on any given day. The employees track their time by business units and/or jobs. Each of these business units and jobs are owned by a specific company so tracking of labor hours is very specific based on work performed each day. Tekstar/Arvig has the expertise, local presence and ambition to stimulate the economy and population of Sherburne County. The entire management team here has been working with broadband since its inception in the late Nineties deploying one of the first Rural Utilities Service funded Fiber -to -the -home initiatives in the New York Mills exchange. Tenured staff, engineering technicians, construction operators and installation technicians handle complications with ease communicating any necessary adjustments needed. Our AEI Construction teams boast more than thirty (30+) years of experience specific to broadband communications installations including an average of over one thousand miles (1000+) of mainline fiber solutions and over three thousand (3000+) drops annually. Installation of mainline fiber and subscriber solutions occur throughout both the metropolitan and greater Minnesota areas. Crews are led by industry -tenured Superintendents and experienced Construction Management having a cumulative of 375 years of experience in the telecommunications industry. Construction teams are accustomed to working under the strict deadlines and aggressive timeframes required for the delivery of agency administered and funded broadband solutions. AEI construction crews have delivered broadband projects successfully in conjunction with the USDA RUS traditional Broadband Loan Program, USDA RUS Broadband Initiatives Program (BIP), NTIA Broadband Technology Opportunities Program, the Alternative Connect America Cost Model (A -CAM) Program, the MN Department of Employment and Economic Development (DEED) Border to Border Program and most recently, funded projects associated with the CARES Act. Over two thousand miles alone have been constructed and delivered under A -CAM. All projects are constructed in compliance with Federal, state, and local laws, regulations, and ordinances including meeting or exceeding speed requirements associated with State and locally funded projects. An average 40% take rate with a high percentage of retention speaks to network reliability, overall facility improvements and customer satisfaction ratio. Completing the proposed project with Tekstar/Arvig's solution unique and vast experience, knowledge, and turn -key subsidiaries and affiliates will undoubtedly create the most efficient and effective scenario for a public and private partnership in delivering sufficient broadband to the unserved and underserved of Sherburne County Tekstar/Arvig financial information can be made available upon request. TEKSTAR COMMUNICATIONS, INC. D/B/A ARVIG 150 2"d Street SW Perham, MN 56573 RFP Res onse D — Supplemental Information Sherburne County ARPA BB Access Grant Application J U LY 12, 2022 a r v i g Laura Kangas Account Executive Direct 320-204-1020 Laura.Kangas@arvig.com 26 6th Ave. N I St. Cloud I arvig.com Mark Birkholz Director Customer Operations & Southern Markets a ry i g 2 346-8868 mark. birkholz(cDarvig.com 150 Second Street SW I Perham, MN 56573 arvig.com Tekstar Communications, Inc. d/b/a Arvig Supplemental Information — Calix Tech Specs C,q Calix Calix FTTP Systems Support Symmetrical l (Kibps % A the explosion of denund in hroadband becau-s of the Patridernic and new applications like A4p xnied Reahty and Victual Rcalaay. 11) (i3pAbi1 scrvicex :are gtimmg rapidly. It is ALSO expected that thew services will be regwmd by mate and local funding sotirccs as. wcll as teeing• business s. Lme of the primary benefits of F MI nc-morks i<c their ability to scale to high bandv%idths. with new PON teJutulugies near xtaa du itz"uti thrt will enable SO Gigabit PON and bc%4,'nd Consumers and husinc+scs may not flood these bandwidths today. but with batrwJwtdth consumption growing 500,,s each year. network infrastructure placed in service today ntist be able to Ii arxilc hniidu adtli deinattds I1t= year% in else future. As dic Lvgcxt pro%idct al' 1-I I'll x?luttuns in the United States, Calix ufCers the following standards -based technologies ti►dsy: thgabit Passivc Optical 'Nctwork WKWI. and Paint -to - Point Gigabit Ethernet ialso reftared to as Active Ethemetl, XGS-PUN and NG-PON21. OPON and Point-to-Pomi Gigabit Fthcmet icchnologics can support up to (igahit s mmctrir,al smiees. Point-tv.-Point 10 Gigabit Edwrtict. XGS-PON and NO-PON2 wchnolugi en, can prusEde up to Ile Gigahrt %)mmctncal sLnwcs. The fi.11owing Calm sytitcRns sttppors ihc%c tecliruiltigac+ E3-2. E7- 2. E9-2 (GPON, XGS-PONING-PON2 and Point -to -Point 10G !Gigabit Ethernet). To deliver (itgsbit and 10 Gig■bit scrvicri.. t1w Calm Gigat~analy ONTs and tesidenthd gateways buppon de -livery ofGPON. Point -lei -Point I11 & ! OF. Ethcmct. X6S-P0\ and NG-PON2 at the s-uusuawl or business kwation. Passi`c Optical Network. and Point -to -Point Ethernet differ in how they aggregate traffic. GPON. XGS-PON and N(;4`0N2 traffic is aggregated over the paissi►e optical ttrtwurk (PUN) and in the electronics lncatc-d at the data center or remote cabinet, A single lair at the data czritct gpically acrwce lap to 32 or fan stibscribsrx on a PUN. Handw-iddi. is dytt.utuc,ally alkx-ated river the PON in !with the downxtrca+m and upxtrca ni allnwing bcst effort inieruat tranic tci talc up to 10 Gigabit. In Point -to -Paint Ethan t there is a dedicated laser for each subscriber at the data center or remote cabinet, so baatds,. Ah aggregation t t-., place only in the OLT line card or the uplink from the t LT Cali-% estimates that the average conxunwr bandu idth usage. during peak periods. will exceed !tell Megabits after 21ll25. This moans 2 S GPON sati;fics most coin.%unwr demand However. XG5-PO\ and I G-PON2 systemb are :available ncsw enabling the sere irc provider to deploy xyicteam today that will inert hatndwidth noels beyond the next decade Mrariwhtle Point-tr- Point GE %sill meet bandwidih demands, until av rage consunwr usage exceeds a Gigabit, projected to be 2033 to bc+itrnd 2777 Orchard t>kwy San sow, CA 95134 7 406.S14.3000 WWW ralix-corn Tekstar Communications, Inc. d/b/a Arvig Supplemental Information —Community Impact In addition to existing affordability programs, Tekstar/Arvig is accustomed to giving back to its communities. The communities we serve are also the communities we live and work in and our friends, families and neighbors live here, too. We believe in giving back to the communities that support us and want to help ensure our communities are vibrant and dynamic places to live. That's why we invest in community causes throughout the Arvig service footprint through donations, sponsorships, and volunteerism. Ada Borup Booster Club Grand Meadow Poppy's Park Rapids FireDept BullRide Redwood Friends of the Park Ada HOV Bench Sponsor Grand Meadow Post Prom Park Rapids Grad Bash Redwood Girl Scouts Ada Lions Club Hawley Lions Holes Park Rapids Hubbard Co. Sr. Richmond River Lakes Days Sponsorship Nutrition Ada Norman County Hawley NDSU Team Make Park Rapids Panther Booster Rocori Grad Bash Agricultural Society Hole Sponsor Ada Score Board Hendrum Lutheran Church Park Rapids Parade Sponsor Sauk Centre Booster Hole Sponsor Audubon Fire Department Henning Bike Rodeo Paul Bunyan Days Sauk Centre Area Community Center Audubon Fire Department OTC Bulldogs Wrestling Park Rapids Post Prom Sauk Centre Community Relief Association Legacies Foundation Battle Lake Area Community Henning Landmark Center Park Rapids Rotary Golf Sauk Centre Grad Bash Centre Battle Lake Fireworks Henning Post Prom Park Rapids Skating Holy Family Battle Lake Post Prim Henning Summer Rec Park Rapids Street Center Stearns County American Cancer Society Bemidji Pinnacle Hole Hubbard County Food Shelf Parkers Prairie Fire St. Augusta Fire Department Sponsor Department Bertha Fire Department Kimball Lions Golf Parkers Prairie Post Prom Staples Grad Bash Tournament Bertha -Hewitt Sports Kimball Baseball Pelican Rapids Ducks Lakewood Health Boosters Unlimited City of Bertha Kimball Boy Scouts Pelican Rapids Pool Twin Valley Tumbling& Cheer Bigfork Booster Club Kimball Fire Relief Pelican Rapids Post Prom Twin Valley Mud Slinger Association Bluffton Fire & Rescue Lake Park Post Prom Perham 180 Twin Valley Post Prom Carlsonville Relief Firefighters Longville YMCA Camp Perham Area Community Wabasso Post Prom Center HUB Clarissa Fire Department Mahnomen Area Baseball Perham Area Community Wabasso Area Baseball Association Boys & Girls Club Melrose Centra Card Center Summer Rec Wabasso Booster Club Detroit Laker Open Melrose Food Shelf Perham Arvig Relay for Life Wabasso Lions Becker County Fair Melrose Graduation Party Perham Athletic Association Wabasso Score Board Becker County Human Melrose Project Give a Gift Perham Bio Girls Wadena Chamber of Service Summer Camp Commerce Detroit Lakes Boosters Score St. Andrew's Church Perham Chamberof Wadena County Ag Board Commerce Boys & Girls Clubs WeFest St. John's Church Perham Cross Country Team Wadena County Humane Camper Society Detroit Lakes Chamber of St. Mary's School EOT County Fair Wadena Fire Department Commerce Fireworks City of Detroit Lakes Holiday St. Peters & Paul Rock the Empowering Kids Whitetail Run Golf Course Decorations Block Detroit Lakes Downtown Menahga Bird Busters School EOT 4H Sponsor June Jubilee Days Alive Trapshooting Detroit Lakes Grad Bash Minneapolis Studio One Perham Feed the Fish Tri-County Golf Classic Eighty Highway of Hope Detroit Lakes Historical Nevis Senior Citizens Center Perham Fire Department Wadena County Veterans Society & Museum Park Detroit Lakes Holmes New York Mills Booster Club Perham Health Wadena Youth Hockey Detroit Lakes Holy Rosary New York Mills Childcare Perham Kinship Walker Area Community Center Detroit Lakes Flyers Club Finn Creek Perham Lakes Area Walker Fire Department Basketball Association Eden Valley Watkins Post NYM VFW Poppies Lutheran Social Services Walker Area Food Shelf Prom Eden Valley Community NYM Post Prom Perham Deer Hunters Walker Golf Course Education Banquet Eden Valley Post Prom Osakis Post Prom PACC Leech LakeChamberof Commerce Fargo Moorhead Redhawks Osakis Sportsman Club Perham Pirates Walnut Grove Fire Department Fargo Sanford Health Osakis United Way Backpack Perham Post Prom City of Watkins Foundation Program Frazee Community Club Park Rapids Business Perham Rotary Barn Associates Frazee FFA Park Rapids Chamber of St. Henry's Church Commerce Parade Frazee High School Sports Park Rapids Chamberof St. Paul's Lutheran Church Board Commerce Powersports Gary Cares Downtown Webcam Turtle Fest City of Glyndon Park Rapids Downtown Perham Youth Hockey Business Association Association Grand Meadow Athletic Park Rapids Fire Department Redwood County Ag Advertising ',tart ''te rel a r.,?i,,e' Aspha1' Part LFPark ° I V:ood a^d TradS Pal, or of e,.,e t • r r t 1 1 1 ■C T- Nit I -77 0 � X Area 4 - approx ,r N. t _ 1 l i /VGYi SFect,ummHigh School Athletic Fields _ Soul Essentials '-an�.c��,,s � City of Elk River City Council Resolution 23-2 A Resolution of the City Council of the City of Elk River in Support of Sherburne County's Broadband Expansion Project to Under/Unnerved Areas of the City WHEREAS, the Cityof Elk River recognizes that access to high-speed broadband service has become a 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 42 (27 unserved and 156 underserved), 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 total project cost of $542,651.00 from the City of Elk River. 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 grantto Arvig and willcontribute $41,950.00 from its American Rescue Plan Act (ARPA) funds to the grant Passed and adopted this aid day of January 2023. ATTEST: r ' 'Tina Allard, City Clerk )hn ..� 'Dietz, 'ayor 1 Broadband Access Grant Program Agreement This Broadband Access Grant Program Agreement (the "Grant Agreement") is made and entered into this 3rd day of January, 2024 (the "Effective Date") by and between the City of Elk River, a political subdivision of the State of Minnesota (the "City"), 13065 Orono Parkway, Elk River, Minnesota 55330, and Tekstar Communications, Inc., d/b/a/ Arvig, 150 2nd St. SW, Perham, Minnesota 56573 (the "Grantee"). WHEREAS, in an effort to mitigate the economic distress and disparities in access to necessary services caused or exacerbated by COVID-19, Congress passed the American Rescue Plan Act (ARPA) to provide funding to States and local governments to aid in the recovery from the pandemic. WHEREAS, guidance issued by the federal government provides that ARPA funding is intended to cover a variety of costs incurred by local governments in responding to and mitigating the effects of COVID-19, including by making investments in expanding access to broadband infrastructure. WHEREAS, the City has established the City of Elk River Broadband Access Grant Program (the "Grant Program") to provide grant funding to broadband providers to further the City's goal of universal broadband access. WHEREAS, pursuant to the Grant Program, grant recipients must comply with certain terms and conditions to ensure that broadband projects that receive assistance from the grant Program provide broadband access that is reliable and affordable, at acceptable speeds and serves the long-term public interest. WHEREAS, the Grant Program also requires grant recipients to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards as provided in 2 C.F.R. Part 200 (the "Uniform Requirements"). WHEREAS, Grantee has applied for a grant award for a broadband project (the "Grant Application") and has been selected by the City for grant funding, subject to compliance with the Grant Program and this Grant Agreement. WHEREAS, the City has determined that Grantee has the characteristics of a beneficiary of federal ARPA funds and that certain aspects of the grant award might also be considered a "subaward" of federal ARPA funds, and the City accordingly intends to adopt those portions of the Uniform Requirements applicable to beneficiaries and subawards as appropriate for the Grant provided herein. WHEREAS, certain information required by the Uniform Requirements to be included as part of the grant funding is provided on Exhibit A attached to this Agreement. NOW THEREFORE, The City and Grantee agree as follows: 229334d2 1. TERM AND AMOUNT OF GRANT. 1.1 Effective Date and Term. This Grant Agreement shall be effective as of the Effective Date and shall expire on December 31, 2024, or when all obligations have been fulfilled to the satisfaction of the City, whichever occurs first, unless earlier terminated pursuant to this Grant Agreement. 1.2 Grant Amount. The total amount of the Grant is $41,950.00 (the "Grant Funds"). In no event shall the City be obligated to reimburse the Grantee for eligible expenses that exceed the amount of the Grant Funds nor shall the City be obliged to make payments pursuant to this Grant Agreement from funds other than those received by the City from the federal award identified on Exhibit B. 2. GRANTEE'S DUTIES AND RESPONSIBILITIES. 2.1 Installation of Broadband Improvements. Grantee will construct and install a fiber optic broadband network that will provide last -mile fiber to properties located within the project area maps attached as part of Exhibit C. Specifically, Grantee will acquire, construct, and install broadband infrastructure and provide access to broadband service to approximately 42 passings in the project areas at speeds and at retail prices as stated in the Grant Application, attached as Exhibit C (the "Grant Project"). The broadband infrastructure shall have the capability to scale to speeds of at least 100 megabits per second download and 100 megabits per second upload. 2.2 Contract Provisions and Payment of Contractors. Grantee must include in any contract and sub -grant, in addition to provisions that define a sound and complete agreement, such provisions that require contractors and sub -grantees to comply with applicable state and federal laws. Where applicable these provisions will include the equal opportunity clause provided under 41 CFR 60-1.4(b). Grantee must ensure that all contractors and subcontractors performing work covered by this grant are paid for their work that is satisfactorily completed. Grantee shall pay wages at or above the City's minimum livable wage standards for labor used in the installation of the project infrastructure. For purposes of this requirement, the minimum wage standards shall be an hourly wage at or above the living wage established by MIT for Sherburne County (available at: ls_//1iv qgg.illi,t.edu/coun'ties/2714-1). 2.3 Time for Completion. Grantee shall complete the Grant Project within the timeframes specified on Exhibit C. 2.4 Compliance with Grant Agreement and Applicable Laws. Grantee shall fully comply with the terms of this Grant Agreement and the Grant Program. Grantee acknowledges that the Grant Funds are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards as provided in 2 C.F.R. Part 200 and shall fully comply with the Special Conditions attached hereto as Exhibit B. 2.5 Duty to Make Conduit Available to Other Providers. No later than 10 years after the Effective Date, Grantee must make any conduit installed within public right-of-way as part of the Grant Project available to other broadband providers through lease, license or other reasonable terms to be determined by the Grantee. This provision shall survive termination or expiration of this Grant Agreement. 229334d2 3. GRANTEE'S CERTIFICATIONS. Grantee makes the following representations and certifications and understands that its representations and certification in this Grant Agreement and the Grant Application are material requirements of the Grant award: (a) Grantee has the full right and power to enter into and perform this Grant Agreement. (b) Grantee has secured all necessary funds to complete the Grant Project. (c) To the best of Grantee's knowledge and based on reasonably accessible information, Grantee certifies that there are no existing agreements or plans for Grantee or any other provider to provide broadband service to the Grant Project area. (d) With the exception of the contributing grant funds from Sherburne County and the State of Minnesota as referenced in section 4.4 of this Grant Agreement, Grantee has not and will not receive any other award of state or federal funds in connection with the Grant Project. 4. PROJECT BUDGET AND PAYMENT OF GRANT FUNDS. 4.1 Budget. Grantee shall complete the Grant Project in accordance with the Grant Project budget attached as Exhibit D (the "Budget"). The Budget does not include an allocation of Grant Funds for reimbursement for any indirect costs. Any amendments to the Budget must be approved in writing by both the City and the Grantee. The total estimated amount of the Grant Project is $542,651.00. All costs and expenses exceeding the amount of the Grant Funds shall be the responsibility of the Grantee. 4.2 Payment of Funds. The City agrees to reimburse Grantee for costs actually incurred and paid or to be incurred or paid by Grantee in accordance with the Budget in an amount not to exceed the total amount of the Grant Funds. Grantee may submit to the City itemized requests for payments of Grant Funds in advance of purchasing material, equipment and labor, provided that such purchases are consistent with the Budget and will be incurred within a reasonable time following payment. Requests for payment must be accompanied by documentation from the Grantee demonstrating that all procurements for which payment is requested have been or will be made in accordance with this Grant Agreement, along with any other information and documentation requested by the City to ensure compliance with this Grant Agreement. Payment will be made upon submission by Grantee of a properly executed request for payment in a format provided or approved by the City, along with all supporting invoices, bills, time sheets, and other documents necessary to justify the payment. 4.3 Limitations on Expenditures. Grantee shall not be reimbursed or otherwise compensated for any expenditures incurred following the earlier of the expiration or termination of this Agreement. The Grantee may be reimbursed for expenses incurred before the effective date, so long as they are incurred after March 1 st, 2023. The City shall only reimburse Grantee for documented expenses incurred and expended in accordance with all applicable requirements for the expenditure of funds payable under this Grant Agreement. 4.4 Requirement to Report Potentially Duplicative Funding. The City acknowledges that Sherburne County will be contributing grant funds to the Grant Project in an amount up to $120,845.00 and the State of Minnesota will be contributing grant funds to the Grant Project in 229334d2 an amount up to $217,060.00. If Grantee receives any other award of federal, state or local funds during the period of performance for this Grant award, Grantee must determine whether the funds from such other source are eligible to be used for one or more of the items identified in the Budget. If so, Grantee must promptly notify the City in writing of the potential duplication. The City will determine, in consultation with Grantee, whether any modification of the Budget or any change in scope of the Grant Project is necessary to eliminate inappropriate duplication of funding. 5. AUTHORIZED REPRESENTATIVES. Cal Portner, City Administrator shall serve as the Authorized Representative of the City and as the liaison with Grantee. The City will inform Grantee if it changes its Authorized Representative at any time during the term of this Grant Agreement. The Authorized Representative has the responsibility to monitor Grantee's performance. Grantee shall submit reports, invoices and other materials prepared pursuant to this Agreement to the City's Authorized Representative, by mailing or delivering them to: Cal Portner, City Administrator, 13065 Orono Parkway, Elk River, MN 55330, Cportner@elkrivermn.gov. The Grantee's Authorized Representative is David S. Schornack, Director of Business Development and Sales, 150 2nd St. SW Perham, MN 56573, david.schornack@arvig.com. Grantee's Authorized Representative shall be responsible for ensuring Grantee's compliance with the terms of this Grant Agreement. If the Grantee's Authorized Representative changes at any time during the term of this Grant Agreement, Grantee must immediately notify the City. 6. REMEDIES FOR NONCOMPLIANCE; TERMINATION. 6.1 Termination by City. If the City determines that Grantee has failed to comply with any term, condition or requirement of this Grant Agreement, The City may, in its discretion, suspend or terminate this Grant Agreement or exercise any other remedy for noncompliance as provided for in 2 CFR 200.339. Failure to comply with any requirement of this Grant Agreement includes but is not limited to the following: (a) Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, guidelines relating to the use of the Grant Funds as may become applicable at any time; (b) Failure, for any reason, of Grantee to fulfill in a timely and proper manner its obligations under this Grant Agreement; (c) Ineffective or improper use of Grant Funds; or (d) Submission by Grantee to the City of any reports, audits, or other documentation that are incorrect or incomplete in any material respect. The City will promptly notify Grantee in writing of its determination and the reasons for the termination together with the date on which the termination shall take effect. Upon termination, the City retains the right to recover any improper expenditures from Grantee and Grantee shall return to the City any improper expenditures no later than thirty (30) days after the date of termination. 6.2 Termination for Convenience. Pursuant to 2 CFR 200 Appendix II (B), this Grant Agreement may also be terminated for convenience by either the City or Grantee, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of 229334d2 partial termination, the portion to be terminated. If, in the case of a partial termination, the City determines that the remaining portion of the Grant award will not accomplish the purpose for which the award was made; the City may terminate the award in its entirety. In the event this Grant Agreement is terminated by Grantee for convenience prior to completion of the Grant Project, Grantee shall promptly return to the City any and all Grant Funds received by Grantee. 7. RELATIONSHIP BETWEEN THE PARTIES. 7.1 Independent Contractor. Nothing in this Agreement shall be construed as creating the relationship of co-partners, joint ventures, or an association, nor shall Grantee, its employees, representatives or contractors be considered employees, agents or representatives of the City. Any and all personnel of Grantee or other persons engaged in the performance of the Grant Project will have not relationship with the City and will not be considered employees of the City. Such personnel or other persons shall not be entitled to any compensation, rights or benefits of any kind from the City, including, without limitation, Worker's Compensation, medical care, disability, severance pay and retirement benefits. 7.2 No Agency. The City will not assume or accept any agreement, representation, commitment or warranty made by Grantee, nor shall the City be obligated for damages to any person or organization for personal injuries or property damage directly or indirectly arising out of Grantee's conduct or caused by Grantee's negligence, willful act, or failure to act. 8. INDEMNIFICATION. The Grantee must indemnify, save, and hold the City, its officers, agents, and employees harmless from any claims or causes of action, including attorney's fees incurred by the City, arising from the performance of this Grant Agreement by the Grantee or the Grantee's agents, contractors or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the City's failure to fulfill its obligations under this Grant Agreement. 9. GOVERNMENT DATA PRACTICES. The Grantee and the City must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data created, collected, received, maintained, or disseminated under this Grant Agreement. If Grantee receives a request to release data referred to in this section, Grantee must immediately notify the City. The City will give Grantee instructions concerning the release of the data to the requesting party before the data is released. The Grantee's response to the request shall comply with applicable law. 10. AUDIT. Grantee shall maintain complete and accurate records with respect to performance of the Grant Project and costs incurred pursuant to this Grant Agreement for a period of at least six (6) years after the termination of this Agreement. Pursuant to Minn. Stat. § 16C.05, Subd. 5, Grantee shall allow the City or other persons or agencies authorized by the City access to the records of Grantee at reasonable hours, including all books, records, documents, and accounting procedures and practices of Grantee relevant to the subject matter of the Agreement, for purposes of audit. 229334d2 I L SURVIVAL OF TERMS. The provisions of this Grant Agreement which, by their terms, impose obligations that are continuing in nature and which must survive in order to give effect to their meaning will survive the expiration or termination of this Agreement, including, without limitation, the following clauses: Sections 2.5 (Duty to Make Conduit Available to Other Providers), 6 (relating to remedies for noncompliance); 8 (Indemnification); 10 (Audit); 12.3 (Governing Law; Jurisdiction; Venue); and the Special Conditions identified on Exhibit B. 12. GENERAL PROVISIONS. 12.1 Entire Agreement; Amendments; Conflicts. This Grant Agreement (including the exhibits attached hereto) constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, documents and proposals, oral or written, between the parties with respect thereto. The terms and conditions of the exhibits are integral parts of this Agreement and are fully incorporated herein by this reference. Any amendment or modification to this Agreement shall not be valid unless such amendment or modification (i) is in writing and signed by authorized representatives of both parties and (ii) references this Agreement. Notwithstanding the foregoing, the City may, in its discretion, amend this Grant Agreement if required to conform with Federal or State regulations and guidelines, and available funding amounts. 12.2 Waiver. No delay in the exercise of any power, right, or remedy under this Grant Agreement operates as a waiver thereof, nor shall any single or partial exercise of any other power, right, or remedy. 12.3 Compliance with Applicable Law. Grantee agrees to comply with applicable federal, state, and local laws or ordinances, and applicable rules, regulations, and standards established by any agency of such governmental units, which are in effect as of Grantee's performance of the Grant Project. 12.4 Governing Law; Jurisdiction; Venue. This Grant Agreement shall be governed by the laws of the State of Minnesota, without regard to its conflict of laws rules. For the purpose of resolving conflicts related to or arising out of this Agreement, the parties expressly agree that venue shall be exclusively in the State of Minnesota, City of Elk River. The parties hereby expressly consent to the exclusive personal jurisdiction of the federal and state courts located in the State of Minnesota, regardless of the citizenship or residency of either party at the time of the commencement of any legal proceeding. 12.5 Debarment. Grantee certifies that it is not prohibited from doing business with either the federal government or the State of Minnesota as a result of any debarment or suspension proceedings, including without limitation under 2 CFR 200 Appendix II(H). Grantee's certification is a material representation upon which the City's approval of this Agreement is based. Grantee shall provide immediate written notice to the City's authorized representative if at any time Grantee learns that this certification is erroneous or becomes erroneous due to changed circumstances. 12.6 Equal Employment Opportunity. In connection with the execution of this Agreement, Grantee agrees that it will comply with Federal law and Minn. Stat. § 363A.08, to not discriminate against any employee or applicant for employment because of race, color, 229334d2 creed, religion, national original, sex, marital status, status with regard to public assistance, membership or activity in a local commission, disability, sexual orientation, or age. Grantee and all of its subcontractors will take affirmative actions to ensure that applicants are employed, and that employees are treated during employment without regard to factors stated in Minn. Stat. § 363A.08. Such actions shall include, but not be limited to, the following: hiring, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment. 12.7 Worker's Compensation. Grantee certified that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers' compensation insurance coverage. The Grantee's employees and agents will not be considered City employees. Any claims that may arise under the Minnesota Workers' Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the City's obligation or responsibility. 12.8 Conflict of Interest. Grantee affirms that, to the best of Grantee's knowledge, Grantee's involvement in this Grant Agreement does not result in a conflict of interest with any party or entity, which may be affected by the terms of this Agreement. Grantee agrees that should any conflict or potential conflict of interest become known to Grantee, it will immediately notify the City of the conflict or potential conflict, specifying the part of this Agreement giving rise to the conflict or potential conflict, and will advise the City whether Grantee will or will not resign from the other engagement or representation. If the City reasonably determines that a conflict of interest reported pursuant to this section cannot be satisfactorily addressed and Grantee refuses to resign from the other engagement or representation, the city may terminate this agreement. 12.9 Assignment and Delegation. Neither party shall assign its rights or delegate its duties under this Grant Agreement without receiving the prior written consent of the other party. 12.10 Successors in Interest. The provisions of this Grant Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. 12.11 Severability. In the event that any portion of this Grant Agreement shall be held to be invalid, such invalidity shall not affect the validity of the remainder of this Agreement. 12.12 Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and to constitute one and the same instrument. Electronic copies of this Agreement, including without limitation, those transmitted by facsimile or scanned to an image file, shall be considered originals. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the Effective Date set forth above. 229334d2 City of Elk River Print Name Title Date Print Name Title Date Tekstar Communications, Inc. I0 Print Name Title Date By: Print Name Title Date 229334d2 EXHIBIT A SUBAWARD DATA 2 CFR � 200.332(a)(1): (i) Subrecipient Name Tekstar Communications (ii) Subrecipient Unique Entity Identifier: (iii) Federal Award Identification Number: SLT-2973 (iv) Federal Award Date (date of award to the Pass- May 21, 2021 Through Entity by the Federal Agency): (v) Subaward Period of Performance Start Date: Effective Date of Agreement Subaward Period of Performance End Date: December 31, 2024 (VI) Subaward Budget Period Start Date: Effective Date of Agreement Subaward Budget Period End Date: December 31, 2024 (vii) Amount of Federal Funds obligated by this action by $41,950 the Pass -Through Entity to the Subrecipient: (viii) Total Amount of Federal Funds obligated to the $41,950 Subrecipient by the Pass -Through Entity, including the current obligation: (ix) Total Amount of the Federal Award committed to $41,950 the Subrecipient by the Pass -Through Entity: (x) Federal Award Project Description: Funding provided through the American Rescue Plan Act is intended to cover a variety of costs incurred by local governments in responding to and mitigating the effects of COVID-19, including by making investments in expanding access to broadband infrastructure. (xi) Name of Federal Awarding Agency: US Dept of Treasury Name of Pass -Through Entity: City of Elk River Contact Information for Pass -Through Cal Portner, City Administrator Entity Authorizing Official: 13065 Orono Parkway, Elk River, MN 55330 CPanerr(c7),elkrivermn..gay (xii) Assistance Listing Number and Name: 21.027 Coronavirus State and Local Fiscal Recovery Fund (xiii) Identification of whether the award is for R&D: Not for R&D 229334d2 (xiv) Indirect cost rate for the Federal Award: Not applicable EXHIBIT B SPECIAL CONDITIONS RELATING TO UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES AND AUDIT REQUIREMENTS 1. Applicability of 2 CFR Part 200 Uniform Requirements. Grantee acknowledges that the Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.F.R. Part 200 apply to this Grant award from the City of Elk River. 2. Compliance with Rules Governing Prime Award. Grantee acknowledges that it is a beneficiary of grant funds issued by the City from the Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") awarded to the City through the American Rescue Plan Act. Grantee's use of Grant Funds must conform to the requirements and limitations on the use of SLFRF as provided in 31 CFR Part 35 and the accompanying guidance issued by the U.S. Treasury. This includes, but is not limited to, the requirements relating to the use of SLFRF for broadband investments provided for in 31 CFR § 35.6(e)(2). Pursuant to 31 CFR § 35.6(e)(2)(C), Grantee must, for as long as the SLFRF-funded broadband infrastructure is in use: (a) Participate in the Federal Communications Commission's Affordable Connectivity Program (ACP) through the lifetime of the ACP; or (b) Otherwise provide access to a broad -based affordability program to low-income consumers in the proposed service area of the broadband infrastructure that provides benefits to households commensurate with those provided under the ACP through the lifetime of the ACP. 3. Procurement. a. Federal Procurement Standards. Grantee shall comply with the procurement standards provided in 2 CFR § 318-326 when procuring property or services with Grant Funds. Grantee shall impose the Grantee's obligations under this Agreement on its contractors, specifically or by reference, so that such obligations will be binding upon each of its contractors. Grantee shall maintain oversight of all activities under this Agreement and shall ensure that for any procured contract or agreement, its contractors perform according to the terms and conditions of the procured contracts or agreements, and the terms and conditions of this Agreement. b. Use ofRecycled Materials. Grantee will emphasize the use of recovered or recycled goods and materials where practical and cost competitive. Use of Small and Minority Businesses. Grantee will take affirmative steps to use minority and women's business enterprises and labor surplus area firms are used when possible. These efforts shall include soliciting such businesses when they are a potential source. d. Preference for Domestic Materials. Grantee will, to the extent appropriate, practicable and consistent with the law, provide a preference for the purchase, acquisition, or use of goods, products or materials produced in the United States, as provided for in 2 CFR § 200.322. 229334d2 4. Insurance and Bonding. Grantee shall comply with the insurance and bonding requirements set forth in 2 CFR § 200.310 and 200.326. 5. Indirect Cost Rate. The Parties do not intend to reimburse indirect costs as part of the Grant. 6. Financial Management. a. Accounting Standards. Grantee agrees to comply with the financial management standards provided for in 2 CFR § 200.302(b) and agrees to adhere to the accounting principles and procedures required therein. b. Cost Principles. Grantee acknowledges that the cost principles provided for in 2 CFR § 200.400-416 apply to this Agreement and that Grantee's use of Grant Funds are limited to only those costs that are reasonable, allocable to the federal award (SLFRF) and otherwise in compliance with the cost principles. 7. Records to be Maintained; Access to Records; Reports. a. Records. Grantee shall maintain all records relating to its use of Grant Funds as required by 2 CFR § 200.334. Such records include, but are not limited to, records relating to all costs incurred and procurement methods used by Grantee in connection with the Grant Funds and any performance measurement information. The records must be retained for the minimum periods identified in 2 CFR § 200.334, unless a longer retention period is provided for in this Agreement. b. Access to Records. Pursuant to 2 CFR § 200.332(a)(5), Grantee shall permit the City and auditors to have access to the Grantee's records and financial statements as required for the City to meet its audit requirements relating to SLFRF. Reports. Grantee shall submit to the City such reports and other information as may be required by the City, including without limitation such reports and information as may be required for the City to submit its own financial and other reports for purposes of the Prime Award. d. Survival. The provisions of this section 6 shall survive expiration or termination of this Agreement with respect to any reports or information that Grantee is required to submit to the City following expiration or termination of the Agreement. 8. Closeout. The City and Grantee will closeout Grantee's use of SLFRF according to the closeout procedures in 2 CFR § 200.344-345. 9. Audits, Inspections and Monitoring. a. Audits. The Grantee must be audited as required by 2 CFR part 200, subpart F if the Grantee's total expenditure of federal awards will be more than the threshold set forth 2 CFR § 200.501 (currently $750,000) or as otherwise required by 2 CFR § 200.503. Grantee must notify the City if its total expenditure of federal awards will exceed the threshold in any year during the term of this Agreement. b. Inspections. Notwithstanding any audit requirement or exemption form the audit requirements, Grantee shall make available to the City and its auditors and to the U.S. Treasury and the Government Accountability Office the Grantee's records and financial statements. 229334d2 Monitoring. Grantee shall give the City access to Grantee's records as often as is necessary for the City to comply with its obligations under 2 CFR part 200. Grantee shall also submit to monitoring of its activities by the City as necessary to ensure that the subaward is used for authorized purposes and in compliance with federal regulations and the conditions of the Grant award to Grantee. Monitoring activities may include, at a minimum, the activities set forth in 2 CFR § 200.332(d). d. Corrective Action. The City may require Grantee to take timely and appropriate action to correct any deficiency relating to the subaward detected through audit, inspection or other means. The City may also impose additional conditions on Grantee's use of the Grant Funds to ensure future compliance. e. Improper Payments. Any item of expenditure by Grantee under the terms of this Agreement which is found by the City or its auditors, investigators, and other authorized representatives, the U.S. Government Accountability Office to be improper, unallowable, in violation of federal or state law or the terms of the Prime Award (SLFRF) or this Agreement, or involving any fraudulent, deceptive, or misleading representations or activities of Grantee, shall become Grantee's liability, to be paid by Grantee from funds other than those provided by the City under this Agreement or any other agreements between the City and Grantee. This provision shall survive the expiration or termination of this Agreement. 10. Conflict of Interest. Grantee shall comply with the conflict of interest provisions in 2 CFR § 318 when procuring supplies, equipment, construction and services pursuant to this Agreement. 11. Restrictions on Lobbying. Grantee shall comply with the restrictions on lobbying in connection with the Grant Funds as provided for in 2 CFR § 200.450, 31 U.S.C. § 1352 and other applicable law. 12. Certifications. Grantee shall provide the City with the certifications required by in 2 CFR § 200.415 and 200.450 with each request for disbursement of Grant Funds and at other times as may be requested by the City. 13. Suspension and Debarment. Grantee represents that neither it nor any of its principals has been debarred, suspended or determined ineligible to participate in federal assistance awards or contracts pursuant to 2 CFR part 180 or any other state or federal regulation. Grantee must notify the City immediately if it or any of its principals is placed on the list of parties excluded from federal procurement or nonprocurement programs. 14. "High Risk" Designation. Grantee must disclose whether it has been designated as "high risk" by any other local government or state or federal agency for purposes of monitoring Grantee's activities in connection with the use of a federal award or subaward. For purposes of this disclosure, the term "high risk" includes any status under which an awarding agency provides additional oversight due to the Grantee's past performance, or other programmatic or financial concerns with the Grantee. 15. Federal Funding Accountability and Transparency Act. Grantee agrees to provide the City with all information required to enable the City to comply with the reporting requirements of the Federal Funding Accountability and Transparency Act. 16. Prohibition on Certain Telecommunications Services or Equipment. Grantee is prohibited from 229334d2 using Grant Funds to procure or obtain or to enter into, extend or renew any contract to procure or obtain any of the services, equipment or systems identified in 2 C.F.R. 200.216. 17. Disposition of Real Property. The use and disposition of any Real Property (as that term is defined in 2 CFR § 200.1) acquired with Grant Funds shall comply with the requirements of 2 CFR § 200.311. 18. Hatch Act. Grantee agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 19. Air and Water Quality. Grantee shall comply with the requirements of the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act (33 U.S.C. 1251- 1387) as they may apply to the performance of the Grant Project. 229334d2 EXHIBIT C GRANT APPLICATION This Grant Agreement incorporates Grantee's grant application as a part of this Agreement. If there is a conflict between the Grant Agreement terms and Grantee's application, the Grant Agreement terms will control. 229334d2 EXHIBIT D PROJECT BUDGET Sherburne County RFP Estimated Costs — FTTH Buildout Total Elk River —Fire Station #3 area Elk River —Twin Lakes Area Elk River —: Elk Lake Rd NW� Total Mainline Footage 13915 13340 13857.5 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 $1.50 $1.50 $1.50 Labor per foot - drops — 350' average $4.50 $4.50 $4.50 Unserved/Underserved locations passed 10 10 22 Total for construction material -mainline $34,787.50 $33,350.00 $34,643.75j Total for construction labor -mainline $111,320.00 $106,720.00 $110,860.00 00y 0� PON Cabinet, splitters, etc. $12,000.00 $1,500.00 $1,500.00 $15,000.00 Total for construction material -drops $5,250.00 $5,250.00 $11,550.00 0040,5 Total for construction labor -drops $15,750.00 $15,750.00 $34,650.00vA Equipment Cost per sub. - 185 $1,850.00 $1,850.00 $4,070.00 %T0° Total Cost $180,957.50 $164,420.00 $197,273.75 $542,651.25 Cost per sub at 100% $18,095.75 $16,442.00 $8,966.99 $12,920.27 # of unserved structures 3 2 22 27 # of underserved structures 7 8 15 Total 10 10 22 4 229334v2