4.8 SR 01-21-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.8
Meeting Date
January 21, 2025
Prepared By
Cal Portner, City Administrator
Item Description
Amendment #1 to Agreement 23-03: Broadband
Grant Project #2 Extension
Reviewed by
Tina Allard
Action Requested
Approve, by motion, Amendment #1 to Agreement 23-03: Broadband Grant Project #2 Extension
Background/Discussion
The City of Elk River and Sherburne County approved a second broadband project grant with Tekstar d/b/a
Arvig to extend broadband services to unserved areas of Elk River. The grant used allocated funds from the
city and county ARPA funds from the federal government.
The grant closure date was December 31, 2024. Arvig has installed the primary fiber spine to the approved
areas, and the project came in under budget estimates. Arvig has requested the city and county extend the
grant date to December 31, 2025, allowing additional time to market the high-speed broadband services now
available and to assist with the extension of lateral services to residential properties. The remaining funds
would be used as an incentive for residents to offset the approximately $2,000 cost for the lateral connection.
Financial Impact
There is no additional cost to the City of Elk River. The incentives are a legal expenditure from the previously
allocated ARPA funds.
Mission/Policy/Goal
The Elk River Vision and Mission.
Attachments
1. Contract Amendment
2. 2023 Arvig Broadband Grant Project 2
Page 71 of 155
AMENDMENT TO SHERBURNE COUNTY BROADBAND
ACCESS GRANT PROGRAM AGREEMENT
THIS AMENDMENT to Broadband Access Grant Program Agreement is made and
entered into this 21st day of January 2025 (the "Amendment 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, the City and Grantee are parties to that certain Broadband Access Grant
Program Agreement with an Effective Date of January 3, 2023 (the "Grant Agreement");
and
WHEREAS, the Grant Agreement provides for an initial term through December 31,
2024, with construction and installation of project components to be completed during
2024; and
WHEREAS, the Grantee is seeking an extension to seek additional drops to individual
properties; and
WHEREAS, the Parties wish to amend the Grant Agreement to extend its term in order
to provide Grantee additional time to complete the Grant Project (as that term is defined in the
Grant Agreement).
l. Amendment. This Amendment shall be considered a part of the Grant Agreement and
will be governed by the terms thereof. The Parties shall fully comply with the terms and
conditions of the Grant Agreement in their performance of this Amendment. The
words, phrases and capitalized terms used in this Amendment shall have the same
meaning as in the Grant Agreement. In the event of a conflict, the specific terms of this
Amendment shall control, to the extent of such conflict.
2.Term. The term of the Grant Agreement is extended through December 31, 2025,
unless earlier terminated pursuant to the terms of the Grant Agreement.
3.Extension of Time for Completion. Unless an additional extension of time is approved in
writing by the City's Authorized Representative, Grantee shall complete all construction
and installation work relating to the Grant Project no later than December 31, 2025, and
shall submit all invoices and required reports to the City no later than January 2, 2026.
[Signature page follows.]
Page 72 of 155
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to be
effective as of the Effective Date set forth above.
CITY OF ELK RIVER TEKSTAR COMMUNICATIONS
By:By:
Print Name Print Name
Title Title
Date Date
By:
Print Name
Title
Date
Page 73 of 155
Elk s -
River
Request for Action
To Item Number
Ma Tor and CinT Council 5.7
Agenda Section Meeting Date Prepared by
Consent anuar r 3, 2023 Suzanne Fischer, Environmental S ecial Pro ects DirectoY
Item Description Reviewed by
Financial Contribution to the Arvig Broadband Cal Pormer, Cit r Administrator
Expansion Project Reviewed by
Action Requested
Adopt, b T motion, a resolution of support for a 25% contribution local cost share for an Arvig Broadband
Expansion PYoject.
Background/Discussion
Sherburne Count has developed a Broadband Access Grant Program to help broadband pro-iders eYpand
their services to those locations where it may not be economically= feasible without a public-private partnership.
Arvighas submitted a proposal to bring high-speed broadband service to approYimately- 42 homes and
businesses within the Cit= of Elk River.
The Sherburne County= grant program requires a local financial participation to leverage additional funds for
the Yequested project. For this project, Arvig has applied for $167,795.38 in grant assistance (total project
cost of $542,651). Sherburne County= is willing to contribute 75% or, $162,500, and has requested the cit= to
contribute the remaining 25%. Without the city's contribution, the project would not be eligible to receive
county- grant assistance and therefore, not proceed.
Approval of this resolution expresses the Elk River Cit= Council's desire to participate in the grant program
and is needed for the county to process the grant request.
Financial Impact
41,950.00 from ARPA Funds.
Mission/Policy/Goal
Improve Broadband ConnectivityT
Attachments
Sherburne County Contribution Request & Project Overview
Broadband Overview Map
Resolution 23-X
The Elk River Vision
A 2a elcolning co nlnunity 2a ith T evolutiona y and spizzted Tesou cefulness, exceptional
se vice, and coln nunity engagelnent that encou ages and ins iz•es pTo pe zty.
PowEREo er
I'1
Up iited.• August 2020
Page 74 of 155
SHER URNE
CQUNTY
Y
Decernber 9, 202
City of Efk River
Attn: Ca Portner
13065 Orona Parkway
Elk River, MN 55330
Dear Mr. Portner,
Sherburne County Administratian
Sherbume County Government Center
13880 Business Center Drive
5uiie 140
Elic River, MN 5533Q-4668
admin stration@co.sherburne.mn.us
763)765-3001
1-800-433-5228
As yau may know, Sherburne County has been woricing for se era[ years to help bring high-speed
hroadband service to the many unserved or underser ed areas of the County that need it. The
County recognizes that access to high-speed broadband ser ice has become a basic nece5sity for
businesses and residents to be able to access crit cal services and participate in the current
marketplace. In respanse to that ne d, the Caunty has de elopec a Broadband AcceSs Grant
Program to help broadk and providers extend their services to those locations where it may not be
economically feasible without a public-pri ate partnership. l7nder the County's Program and in
partnership with the State of Minnesota's Borcfer to Border Broadband Program, Ar ig has now
appiied far a grant as part of a projeet that will bring high-speed braadband to approximateEy 42
homes (27 unserved and 15 underser ed) and businesses within the City of Elk Ri er. I am
therefore writing to inform you of Ar ig's request and to ask that the City of E1k River consider
partieipating with the County in facilitating this exciting project for the City's residents and
busjnesses. A copy of Ar ig's application is attached to this letter.
Because the Cpunty has limited funds a ailabie far its Grant Program, local participaiion from the
City where the project is located is being requested. For the praject in nl ed here, Arvjg has
applied for $167,795.38 in grant assistance ($542,651 total project costJ. Based an the size of the
grant request and pro}ect in general, the County is requesting the City of Elk Ri er contrib te 25%
of the grant request or $41,950.
We laak forward to working with you to help bring high-speed braadba d service to this area of
the city that is cur ently underser ed or not served at all. We ask that if you are intere ted in
Page 75 of 155
participating financially in the project, you send us a Board resolution stating your interest and
participation amount by January 31, 2023.
If you ha e any questions about the County's Grant Pragram or Arvig's application for a pro ect in
your City, please contact me at your convenienee.
Sincereiy,
t
I
pan Weber
Assistant County Administrator
Page 76 of 155
TEKSTAR COMMUNICATIONS, INC. D B A ARVIG
150 2"d Street SW
Perham, hAN 56573
RFP Response A- P roiec Sunnmarr
Sherburne County ARPA BB
Access Grant Application
u v z, zozz
drvigg
drV'I,
Laura Kangas
Account Executi e
Direct 320-204-1028
Laura.Kan as arvi .com
26 6th Ave. N St. Cloud arviq.Gom
Mark Birkhoiz
Director Customer Operations & Southern Markets
2 i 8 346-$868
mark.birkholz rvi .cosr
150 5econd Strest SW Perham, MN 56573 ar iq.com
Page 77 of 155
Tekstar Communications, Inc. d/b/a Ar ig
Project Summary
Executi e Summary
Tekstar Cammunicatians, Inc., dba Arvig {"Tekstar/Arvig"), headquartered in Perham, MN, has been providing cor petitive
broadband services to Minnesota comrnunities since 1998 with Arvig roots going back to 1950 including full-suite
telecommunitations services for businesses, farms, residential custamers, counties, schools, libraries, healthcare ser+rices and
other critical anchor institutions throughout the state.
As part of this application, T kstar/Arvig proposes braadband serv'sces for the s arsely populated and rural areas located north
and sauth of the community of Elk Ri er, MN. These areas ha e been identified as first-in-line to re eive and maxim ze the use of
the broadband grant funding for the area pro ided under the American Recov ry Plan Act and 5herburne County due to lack af
reliable high-speed ir ternet services and meets #he eligibility consideration criteria as unserved and underserved residential
territories.
Tekstarf Anrig seeks to benefit residents and businesses, 'rmproving their way of iife, with the deli ery of minimum speeds
offered at 10d/20 and deploying a proposed Fiber-to-the-Fiome (fTTH) system consisting entirely o# fiber optic and Calix XGS
PON equipment capable of deli ering J.ODMbps download and 20Mbp upload high-speed broadband. Using Calix XGS,
subscribers ha e immediate scalability, upon placement of an order, and atcess #o a aifability af 100/10p symmetrical service.
Internet service packages are anticipat2d to start at 100/20Mbps with offerings available at up to ZGig and supparting 10G with
symmetrica! packages upan request.
Total number of estimated households proposed as passed is approximately 42 househoids via FTTH XGS-PON construttion.
Approxirnately 64% of hauseholds a e estimated to be unser ed with 3b% of households considered underserved.
Minimum speeds are planned so as to support data and voice transmission.
Areas are currently defined as unserved/underserved and iekstar/Arvig seeks to 6enefit residents by delivering in-home remote
capabilities, remote educational oppartunities, tel health services, and remote business connections maintaining reliab;e
internet connecti ity far office cammunications. Tekstar/Arvig technicians, construction and network personnel are highly
trained and experienced in the maintenance and quality deiivery of these systems. Tekstar/Arvig is well-experienced and fully
staffed for these types of projects ha ing pre iausly been awarded Minnesota DEED Border-ta-Border grant projects in the past.
Priorfunded efforts have been managed #o suecessful completion and on-time implementation. Tekstar/Arvig technital and
network teams are trained ta implement and su part our Calix systems deli ering services for projects, proving daily, Calixto be
a successful platform providing the reliability necessary to feed the cfemands of today's substantially increased remote-user
needs.
Total residences, business and critical eommuni#y facilities estimated to have atcess to services post installation equai the total
estimated households, business, and institutions passed.
For a re iew of existing area broadband providers arod service speeds a ailable please referenc the Project Description SectEon
B2J of this response.
For Tekstar/Arvig plans currently available making the proposed broadE and servtces aftordable please reference the Project
DescTiptian Seetion (B6) af thi5 response,
All equipment proposed to be installed within the City of Elk Ri er area is proposed to receive funding from the She'hurne
County ARPA program. The aroposed timeline for buildout is during the construction sea5on estimated to begin ap roximately
April 1, 2023 and continuing up to June 30, 2025. Engineering, drafting, and perrnitting associated with the route is proposed to
start in #he Spring of 2024. TekstarJArvig and its affiliated companies ha e u#ilized and de layed Calix FTTH systems succ ssfully
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 opulation in the City af Elk River
area by making a ai6able and providing these services to e ery ur served and underserved household and business. Stand-alone
Page 78 of 155
business plans typically tfo not allow for a project af this r ature, however, with the assistance of Sherburne County, City, and
Township funds, we can successfully pursue this opportunity of deploying broadEaand for this rural and mostly unserved area.
Th entire management team here has been working with broadband since i#s ad ent in the late IVineties and will handle any
obstades tttat may pre ent themselves. Getting this project done through a service pro ider, espe ially one with Tekstar/Arvig's
ast experience, knowledge, and skills will absolutely create the best across-t e-board scenario for a public and pri at
partnership for broadband deliwery to the unserved, Tekstar/Ar ig, with the use of its subsidiary company AEI Construction, will
be able ta ha e this project completed on time or ahead of schedule.
Pro i{ing services to the unserved and underserved households and business in accordance with the U.S. Department of
Treasury's Interim Rule on Corar a irus State and Local Fiscal Reco ery unds ( 31 CFR Part 35j.
Page 79 of 155
TEKSTAR COMMUN{CATIONS, INf. D B A ARVIG
15Q 2"d St1'eEt SIN
Perham, MN 56573
RFP Res onse Q- Pro,ect Descrip iic r
Sherburne County ARPA B$-
Access Grani Application
JULY 12, ia22
arv gg
arvig
Laura Kangas
Account Executive
Direct 320-204-1024
Laura.Kanqas(a7ar ig.com
26 6th Ave, N Sk. Cloud arvia.com
Mark Birkholz
Director Customer Operations & Southern Markets
218 346-886$
mark.birkha4z(c arv q.carn
150 Second Street SW !'erham, MN 56573 arviq.com
Page 80 of 155
Tekstar Communications, Inc. d/b/a Ar ig
Project DescrEption
B1. Description & Propased Broadband Impro ements
Tekstar/Ar ig is proposing to invest in an all fiber-optic physical broadband network that will pravide last mile fiber all ihe way ta
the home offering faster more reliable service than is auailable today and looking to partner with Sh rburne Caunty on a
proposed broadbanci infrastructure projeci for the qualifying SurrQunding rural areas of Elk Ri er, IVIN. Overview maps
identifying the locations for the buildout proposed have been included and can be referenced in Section 85 — Mapping. The
proposed areas ha e been identified as in need of broadband services to enable resic ents and businesses to participate in
distance learning, remote emplayment connertions, and teleh alth services due to t e COVID-19 pandemic. In addition to
broadt and Internet, tekephone services could afso be provided to these premises utilizing the same network.
Tekstar/Arvig proposes to implement an aggregated XG5-PON full fiber buriec! solutipn aggregated over a passive optical
network and XG5-PON electronics located in remo#e cabinets at pravider nodes. This technology supports the dekivery of Gigabit
and 10 Gigabit services via ihe Calix GigaFamily of outdoorterminais and residential gateways at customer and business
Iocations. Broadband facilities proposed for placement include 100% buried fiber optic cables for the Elk Riuer, MN area.
This broadi and infrastructure project will upgrade approximately 42 structures within the proposed area and Tekstar/Ar ig shall
irnproue broadband service le els, making avai[able up to 3Gbps speeds, exceeding the State of Minnesota`s 2022 and 2026
broadband gaals in a Fiber-to-the-Home (FTTI) solution. Households and businesses passed wil! be abie to utilize the fiber
atce5s technalr gy for essential remote services and connectivity currently in demand for an estimated 27 unser ed and 15
underser ed structures and approximately 6.i7 route miles.
Consumers will not anly be able to work from hame but will be more effective and efficient with hig#-speed braadband
connections and broadband access will enable inhabitants in the immediate area to utilize new technol gy and tools to grow
their businesses as weli as tl eir community.
The antic pated benefits to the community and surrounding area includes improvem nt of quality of ii ing and the ability for
rural areas to thrive in our ever-changing technolagical worid. Today's culture demands signif cant increases in bandwidth to
support remote service connectivity and the need for sueh services has became a critical netessity far daily living.
All proposed irnpro ements meet the se vice requirementS and objecti es of the iequest for Proposal and wiA conform ta
engineering standard be t pra tices, applitable feder l, state and lotal regulatory requirements, and the Te{ecammunications
Act as amended. Installed infrastru ture shall pro ide tfi e speeds committed to in the RFP Response and application.
B2. Project Need
The need for this project is directly related to the lack of s fficient braadband availability within the proposed project area and
the social e onomic value of high-speed internet ser ices. This project woufd eonnect households and businesses aligning the
proposed areas together with current digital necessities and remote requirements impro ing high-speed connections and
opportunities for 42 ioeations including 15 underserved and 27 urtser ed. Defi ering such proposed broadband 5peeds and
a vailability i in direct alignment wi#h the American Reco ery P[an Act and would also result in direct stimulation for the laca!
economy, treate jobs, and provide greater attess to remote wd'k, remote educatian, remote training, telehealth, heafthcare
information, increased communications for public safety, a F ost af on-line services, and general welfare of the population.
If the proposed project area is Rot selected to mo e farward with awarded Caunty grant f nds it is likely that servites to the
propased areas would rernain unser ed and underserued until a pravider is ab{e fo step forward financially supporting such an
initiative without grant assistance. Insuf#icient broadhand 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, laek pf high-speed in#ernet would continue to negati ely impact
the inhabitants of the area and necessary connecti ity would remain sparse and fatused to more urbanized locales. Thase
requesting high-speed broadband for the first time could be denied service due to limited capacity in existing facilities.
Page 81 of 155
Tekstar/Arvig is not aware of any existing Agreements or plans to provide broadband by competing service pro+riders. The RDOF
servic award territories and mapping ha e been eferenced and there are no RDOF awardee5 overfapping with the praposed
project. Area broadband providers ha e been reviewed and assessed, as seen belaw, for existing seruices and current le els of
high-speed connectivity ha e 6een found to neither meet or exceed MN state requirements for the definition flf broadband.
Pro ider
CenturyLink DSL
CenturyLink D5L
CenturyLink DSL
CenturyLink DSL
Nextera Wireless
Offerin s: N t Availahle in all Areas
Upto 1.5 mbps down
20 mbps down/1.5 mbps up
40 mbps down/3 mbps up
60 mbps down/5 mbps up
50 mbps down/50 rnbps up
Proposed Tekstar/Arvig areas are designed with #he 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.
63. Project Eligibility
Tekstar/An+ig will impro e area broadband service levefs up to J.Gbps exeeeding the state of MN 2022 and 2026 broadband
goals. Tekstar/Aivig shall use XGS-PON fiber access technology to build aut the area in the fiber-to-the-home/premise soiution
pre iously rnentioned capable of deli ering 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 cannection.
Tekstar/Arvig broadband access will enable these businesses and residences to utilize new tethnology and tools, grow and
enhance their businesses and commu ity, and help those that need the connectivity the most by increasing ae:ess to online
healthcare and edueation allowing them to thri e in our evEr-changing technolqgical world.
For additional detail pertainir g to the XGS-PON technology proposed i order to make reliable 100/20 available to every location
within the projeet area, pfease reference the Calix Summary of XGS & PON technologies speeification contained in the
Supplemental information Sectian D af this RFP respanse. Symmetrical business packages are a ailable upon request. The
proposed network is scalabie to 100/lE}0 and available upon demand and shall be pro ided for households and businesses with
the purchase of a`business service package'.
B4. Demanstration of Need for Grant
Stand-alone business plans aften do not enable projeets of this nature due to little return on in estment. Withaut County grant
parEicipation, it is feasible that households and business remote connectivity need would remain unaddressed until a prouider
was able to step forward financially supporting build out to the area withaut grant assistanee. Consit ering today's immediate
demand for high-speed remote connections to support teachers and students, work-fram-home requirements, teEehealth
appointments, sta#e and local agency warkers, and other local businesses due to the COVID-19 pandemic; delaying
implementation of ser ices that can be built would not in the best interests of the public. The a ternati e, without fur ding,
would be to wait until a positi e return on in estment would allow for a finanrially justifiable build. Deferring to such a time
co ld atcelerate the digital di ide for fhe rea and potentia4ly upsurge con4inued connecti ity chalfenges for households.
B5. Project Mapping
Tekstar/Arrrig 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 tMree quarters of (6.77} miles of tauried fib r
passing 27 unser ed structures and 15 underserved structures. The arial map for the project is wholly located within City /
Township of Elk River, MN. Estimated torridor identifying prappsed fiber placement is shown in red and estimated project
boundaries are shown with an opaque polygon.
Page 82 of 155
Proposed Fiber Bufld(RED)
Proposed FTTH Service Pins
TekstarlArvig Propase FTTH
Ovefview h ian, City af Elk River Bvildout Elk Lake Rd
Unserved, 22
XGS-PON
Page 83 of 155
TekstarlAr ig Proposed FTTH
Overview Map of Elk River Buildout Twin
Lakes area
2 Vnsarvad. 9 Underserved
xG5 PON
Y
C ,,`,— ,!
s.y S
r,
A
k' 7
1
Proposed Fiber Build{Red)
Proposed FTTH Service Pins
Page 84 of 155
TekstarlArvig Pro aosed FTTH
Oueruiew Map City of Elk River Bwldo jt Fire Station
Legend
Proposed Fiber 8uild(RED)
Proposed FTiH 5ervice Pinsarea
3 Unserved, 7 Underserved
XGS-POl
Page 85 of 155
B5. Addresses to be served
Elk River - Elk Lake Rd NV118 21i°h Ave. NW
Unserrred locations passed
Total Cost Area
Cast per sub at 100%
of unserved structures
of tanderserved structures
STREET ADDRESS
12890 21 iTH AVE NW
127$3 217TH AVE NW
12899 217TH AVE NW
13045 217TH AVE NW
12860 2i7TH AVE fVW
12728 217TH AVE NW
12740 217TH AVE NW
22248 ELK LAKE F2D NW
13175 21 ST AVE NW
22112 ELK LAKE RD NW
22'k 18 ELK LAKE RD NW
1290'E 221 ST AVE NW
222Q5 ELK LAKE RD [VW
21695 ELK LAKE RD NW
21750 LK LAKE RD NW
22275 ELK LAKE RD NW
22017 ELK LAKE RD NW
21458 ELK LAKE RD NW
21351 ELK LAKE R NW
21531 ELK LAKE RD NW
21 198 ELK LAKE RD NW
21562 ELK LAKE RD NW
22
197,273.75
8,966.99
22 l nserved
0 Llnderser ed
CITY DISTRICT
Ik River
Elk River
E1k Ri er
Elk Ri er
Elk River
Elk Riu r
fk Riv r
Elk Ri er
Elk Ri er
Elk River
Elk Ri er
Elk Ri er
Elk River
Elk River
Elk River
Elk River
Efk fti er
Elk I i er
Eik Ri er
Elk River
Elk River
Elk River
EI C Ri er
Elk Ri er
Elk Ri er
Elk Riv r
Elk Ri er
Elk River
Elk River
Elk fti er
Elk River
Elk River
Elk Ri rer
Elk River
Elk River
Elk River
Elk River
Elk River
Elk Ri er
Elk River
Elk River
Elk River
Elk River
Elk River
UNDERSERVED
unserved
unserved
unse ved
unserved
unserved
unserved
unserved
ur served
unserved
unserved
unserved
unserved
unserued
nserved
unserved
unserved
unser ed
unserved
unserved
unserved
unserved
unserved
Page 86 of 155
Eik River — Twin Lakes Area
UnservedlUnderser ed locations passed
Total Cost E1rea
Cost per sub at 144%
of unserv d structures
of und rserved structures
STREET ADDRESS
9660 201 ST AVE NW
9607 201 S? AVE NW
9699 201 ST AVE NW
9800 201 ST AVE NW
9823 VIKING BLVD NW
9643 VIKING BLVD NW
19891 TWIN LAKES RD {VW
20541 TWIN LAKES I D iVW
20295 TWIN LAKES RD NW
20285 TWIN LAKES RD NW
10
sa,a2o.00
16,442.
2
l l
Elk Ri er
Elk River
Elk Ri er
Elk River
Elk River
Elk River
Elk River
Elk River
Elk River
Elk River
unserved
underserved
DISTRICT
Ik River
flk River
Elk Ri er
Elk Ri er
Elk River
Elk Ri er
Elk River
Elk River
Ik River
Elk River
UNSERVEDJ
UNDERSERVED
underserveci
underserved
underserved
underserved
underserved
underserved
underserved
underserved
unserved
unserved
Page 87 of 155
Elk River - Fire Station Area
llnservedlUncierserved locations passeti
Total Cost Area
Cost per sub at 100°/a
of unserved structures
of underserved structures
5'REEi ADDRESS
18434 CLEVELAND ST NW
9721 18' ST AV E N W
18519 CLEVELANd ST NW
18479 GLEVELAND ST NW
9678 1815T AVE NW
963$ 1815T AVE NW
9720 181 ST AVE N W
18605 CLEVELAND ST NW
18575 CLEVELAND ST NW
18655 CLEVELANn S7 NW
ia
180,957.50
18,095.75
3
7
CITY
Elk Riv r
Elk Ri er
Elk Ri er
Elk Ri er
Elk River
Elk Ri er
Elk River
E!k Ri er
Elk Ri er
Elk Ri er
unserved
underserved
DISTRICT
Elk River
Elk River
Elk River
Eik River
Elk River
Elk River
Elk River
Elfc River
EI C Ri er
Elk River
UNSERVED/
UNDERSERVED
underser ed
unders r ed
underserved
underserved
underserved
underserved
underserved
unserved
unserved
unsetved
Page 88 of 155
B6. Affordability and Digital Literacy
Assistante and Accessibility Programs forTekstar/Arvig sub5cribers can be found at https://arvi.net/assistancepro rarns
The applicant i5 an ETC, therefore pra ides Lifeline benefitf for broadband and elephone service customers for those who are
eligi le. Lifeline is a fet eral program dedicated to making Internet and Telephone service more affordable for iow-income
households providing eligible consumers a monthly discount af up to $9.25. Consumers I'r ing on Tri al 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 Assistanee, 551, or WIC are also eligibfe for the Affordable Cannectivity Program, a long-term program that will replace
the Emergency Broadband Benefit Prograrn (EBB) that provides discounts today. The Affordable Connectiuity Program
provides a discaunt af up to $30 per eligible household on your internet service and up to $75 per el'rgible househald on Tribal
lands.
The Tekstar/Arvig Internet Education Assistance Program also provides householt s with a discount of $10 on the internet plan
of their choice as long as they partitipate in the National School Lunch Program annually and enroll in AutoPay agreeing to
reteive their billing statement ia emaiL This program is currently available if the hausehold is partitipating in the Lifeline and
EBB programs.
The Minnesota Telephone AssiStan e Program is also a ailable where low-income eEigible participants are provided monthly
telephone service discounts on one landline or wireless telephane per household.
Tekstar/Arvig does advertise these assistante programs and they are typically discussec with current and potential custorners
as they are available as a standard for all existing and new Tekstar/Arvig subscribers and hauseholds. At the time new service
is requested, inquirieS are made regarding any need far assistance programs. For additionai infarmation, details, web[inks to
farms and applicat ons regarding participation and individual assistance, please refier to the following website:
htt s: arvi .net assistance ro rams
Di ital LiteracV
7ekstar/Arvig has well-established suppart methanisms to facilitate, increase, and improue digital literacy throughout their
service #erritories including training and technical support assistance actively a ailable ia Arvig.net. Se eral haw-to technicaf
support ideos are also available for re iew and accessible via YouTube at https:f/www.vautube.comJuser/ArvigHQ.
Technical support and training promotional materials are a ailable on an an-going basis through Arvig's social media pages,
newsletter articles ar d blog. Examples of articles intlude internet applications, security, and instructional documentation on
how to surF the net .
In addition, frontltne staff are always available to pro ide li e customer care via telephone, chat, email, and by appointment.
New customers are encauraged to chat, call, and email us far technical support and one-one walk-through fior assistance.
B7. Community Suppvrt In#ormation
Letters of engagement and community support from the City of Elk Ri er and Superintendent of Elk River Schools {Qr. Bittman}
are attached. No other in-kind, contribution of funds, easements, permissions ta use public property, or other financial
assistante is anticipated at this time.
Page 89 of 155
ecemt er S. 2421
Laura Kangas
Arvig. Accout t Executive
2G 6th Ave. 1.
St. C[ad. MN Sb 03
Dear Ms. Kangas:
I his leitcr is to exp ess suppoi t of broadband expansic n U itl in the City of Elk River's urban seevice ar-e.
Like n any rural aeeas in Min33escata ar c across the co mi y, the city has aeeas vith no or limited access to
hi h-speed internet. As a res tlt, so ne residents in our community lack the business, educatic,l, anci
recreational o porlunities that tl ose 1 ith broadt and exUerie ce.
l lternet has L eca 3e a quality-c f-li#e issue fejr man r side»ts witl schoc l age children, _yc un adults
atte iding college and ti ose vi o operat busirtesses out of tlleir f c i es. Withnut t unded 1 9 oadba jd
i»frastructure pr jects. these areas wc uld remain iyseiv d fnr the foreseeaUle future_
It is my ui derstar7 in that Tekstar dl a Arvi, wisl es tc use federal f nding ti•oaii the American E escue Plan
Act tc ex anc! ittternet ccess. `I'his project supports tkte tity's commit e t to expand E roac b nd ir1 thc
cUmn3ui itti and ti°ill mal:e a teemende t s impaci tor th families livin n Ihe nseeved and underserved reas.
The City of Elk River is excited to artne with Tekstar/Ar ig i tllis 1•ant aE plieatic n and ill ft llow
the state 1a, uidelines 1or the Bc rder-to-6arder Brc adL an! Grant Program.
Siiicerely,
Suzaitine M. I ischer
Co i7niunit Devel ment Director
7b3,63S.1 Da0
13U6 Orano P rkr a
Efk Riv r. MN 53;(f
76;i.C.i.100U
PIIEREL7 IY
NATU E
E1kRiverl'v1N.gov
Page 90 of 155
INDEPE DENi
D15iRICT 7 8
c.. •,,,, H Ees Zna 7JEhl ta r
anuar}, q, ?p2?
Shcrburne County
Amcriean IZ4uuc Pian Gran1 Application
Cily ot Elk Rrv r Arca
Tc V4`ham It h iay Cnncttn:
i i S{, 143rd Ave. NV,
Eik Ri er. MN 553 C1
7G3.2d 4 .3t;i0
r eats ck u s or28.orq
www.isd7;t$.arg
As Supc intcn ient ancl an hchxlf of ISil 72K, I support a plan ati prn aosed b An•ig t acress
gcrvemm nt I nding frc n Shcr}umr County tc sjx°cifitall}• im ro c hrcradhand in the Elk tivcrsrGs.
Thc rndars m mt is t scci u son id ntitird n ds and ric>riti s of ISO 72$. Vl'th 1he aotentia! ssislancc
af gnvemrnent funciing, An i, plans ta upgrade to tibc:r inlcrncl in seti•rrxi areas which ivoui rc tly
hcl r boih siudcnts snd stafl'.
Pleasr £Lcl Itee tc contact mc directl_y 1or any addiEinnal infcx n t on..
Sincctcly,
3.,
Dr_ Danirl Bittrnan
5upc;rintendrnt of Schools
Page 91 of 155
B8. Proposed Projett Timeline O eralf Timeline Pro osed: 4/1/2023 to lune 30, 2025
Tekstar/Arwig Sherburne Grant 2023/2025
Fropvsed Timeline
A plicant fame: Tekstar Communications, Inc. d/b/a Ar ig
Name af Project: Arvig Fiber Ex#ension — Elk River Areas
Page 92 of 155
TEKSTAR COMMUNICATIONS, INC. D%B A ARVIG
150 2"d Street SW
Perham, M!V 56573
R P Resaanse C- Pra'ec B ad et E enses
Sherburne County ARPA BB
Attess Grant Application
JULY 12, 2022
al'VI,
s
arvlg
Laura Kangas
Account Ex cuti e
Direct 320-204-1024
Laura.KanqasCa arvig.com
26 8th Ave. N St. Cloud arviq.com
Mark Birkholz
Director Customer Operations & Southem Markets
218 346-8868
mark.iairkhoaz(a afrriq.com
150 5econd Street SW Perham, MN 56573 arviq.com
Page 93 of 155
Tekstar Communications, Inc. d/b/a Ar ig
Budget/xpenses
Ci. Budget and Eligible Expenses
The total eligible tosts of the proposed City of Elk River Area project are estimate i to be 542,65.25 for serving the area at an
estimated 55°fo take-rate, co ering approximately 6.77 miles of mainline construction.he total estimated funds being requestedis $162,795.38 from the Caunty, $217,06Q.50 MN B2 grant, and Arvig providing the remaini g $162,795.38 for the praject.
Estimated cost detail is repres ented by 3 rrtain areas and has heen included for reference in the table belpw. Tekstar/Arvig
commits to use County grant awarded ARPA funds and all agency matching contributions from Cities and Tawnships for the sole
purposes of implementing the praposed broadband project.
City af Ik Ri er Area
Sherburne County R P Estimated Costs — FTTH Buildout
Efk River- Fire Elk River - Twin
Station #3 area Lakes Area
Total Mainline Foatage
Material per foot - Mainline
Labor per foot - Labar mainline
Material per foot - drops -
350` average
Labor per foot - d ro s -
350' average
UnservedlUnderserved
locations pass d
3915
2.0
8.00
1.50
4.50
10
13340
2.50
8, 00
1.50
4.50
10
Total for construction
material-mainline
Total for eonstruction
lalaor-mainline
PON Cabinet, splitters, etc
Total for construction
materiaf-drops
Total for construction
labor-drops
Equipment Cost per sub. -
185
Total Cost
Cost per sub at 100%
34,787.50
111,320.00
12,000.00
5,250.00
15, 750.00
s a.00
180,957.50
1 B,U95.75
33,350.OD
106,720.00
1, 54Q.00
5,250.04
15,750.00
a5o.ao
164,a a.00
1 fi,442.OQ
of unserved structures 3 2
of underserved siructures 7 g
Total 10 10
Total
Eik River — Elk River
Elk Lake Areas
Rd NW
13$57.5 24.5fi
2.5p
8.00
1.50
4.50 '
22 42
34,643.75 $102,781.25
110,860.0 $328,900.10
1,500.00 $'15,flQ0.00
11,550.00 $22,050.00
34,fi5p.00 $66,150.00
4,070.00 $7,770.00
197,273,?5 542,651.25
8,9fi6.99 $72,920.27
22 27
15
22 42
Page 94 of 155
C2, Ownership and other Contributing funds
Tekstar Communitations, Int. d/b/a Arvig will own, support, maintain and operate the proposed network. Funding sources to be
contributed frorn other entities is not anticipated at this time, howe er, the Company understands and acknowledges that
5herburne, as part of their RFP process, shall be engaging Cities and Townships so that they may consider par icipation by
granting additional ARPA contributions and that such a contrihutian is critical for the purposes 4f consideration for eligibility. As
such, our executive accou t team has rea hed out to the Townships identified as part of this project and has recei ed pos ti e
response / interest relating to su}port.
No partnerships or jaint build efforts are anticipated to be part of the propdsed praject at this time anci start to finish
implementation inciuding field engineering, permitting, construction, and subscriber connectivity are all stheduled to o cur
using Company affiliates.
C3. Applicants Ability to Complete
In 195U, Royal B. Arvig bought the Perham Telephane Company, located in Perham, fVlinrtesata. In subsequent years, Perham
Telephone Company purchased th lines from the farmers and started to replace the existing lines and phones with more
modem technology. The Company continued to purchase local exchanges in the Emmediate area overthe following years. Arvig
Enterprises, Inc. was organized in 1984 ta faciEitate diversifieation beyond what is allowed by variaus regulatory kaodies. This
corporate Structure provides aperating efficiencies in managing the Company's variaus business entities and lends to the
technical feaSib lity, experience, deli erability, and organizational capacity of the applicant to commit and implement the
proposed project with the schedule specified and propased tim frame far buildout.
Today, Arvig pro ides entertainment and communication services to residential and business customers thrflughout Minnesota,
North Dakota, 5outh Dako'ka, Nebraska, and lowa with Company wholly owned (except where noted) subsidiaries as fallaws:
Holding Cpmpanies: Martinsen Communica#ions, Inc.; Midwest Information Systems, Inc.; diversiCom, Inc.; Alliance
Telecommunications Corporation; V3 Technologies, LLC; Perham Investors, LLC; Osakis Telephone Company; The Home elephone
Company; and The Peo les Telephone Co. of Bigfork
Regulated Incurnbent Local Exthange Carriers ["ILECs"j: East Otter Tail Telephone Company; Twin Valley-Ulen Telephone Company;
Callaway Telepfione Corr pany, Inc., Midwest Telephone Company; itedwood County Telephone Company; Melrose Telephone
Company; Clements Telephone Company, Felton Telephone Company; Eagle Valley Telephone Cvmpany; Loretel Systems, Inc.; and
Arrowhead Communications Carporation; Osakis Telephone Company; The Hame Telephone Company; and The Peoples Telephone
Co. of Bigfork
Competiti e Local Exchange Carriers ("CLECs"j: Tekstar Communieations, Inc.; Sauthern Cahlevisian, Inc.; Mainstreet
Communications, LLC
Long Distance: Redwaod County Long Distance Company anc! Royale Comtronics, Inc.
Affiliate Companies: All State Communications, Inc.; AEI Construction, Inc.; AElS Construction, Inc,; CD Communications, Inc.; Time
Communications, Inc.;
Partially Owned: Central Minnesota Network 5ystems, LLC
Arvig pro ides corporat services to all subsidiaries intluding management, accoun#ing, billing, HR, marketing, executiue
leadership, employees, purchasing, data processing, IT support, ce stomer seruice5 and plant maintenance ervices. AEI
Construction, Inc., an affiliate company, pro ides fiber optic network and utilities construction senrices positively affecting turn-
key implementatian #or this proposa! and other projects. Arvig also provides all cash management services and the credit facility
is maintained at the corporate level. All borrowing and spending decisians are made by the Arvig leadership team and Board of
Directors.
Page 95 of 155
Employees may pro ide labor to several different subsidiaries and will direCt code their time sheets tv reflect which subsidiary
they are working for on any giuen day. The employees track their time by business units and/or jabs. Each of these business
units and jobs are owned by a specifit company so tracking of labor hours is very specific based on work perFormed each day.
Tekstar/Ar ig has t te expertise, local presence and ambitian to stimulate the ecanomy and popula#ian of Sherburne County. The
entire rrtanagement team here has been working witf broadband since its inception in the late Nineties cieploying or e of the
first Rural Utilities Seruice funded Fiber-to-the-home initiati es in the New York Mills exchange. Tenured 5taff, engineering
technicians, construdion operators and ins allation technicians handie complications with ease communicating any necessary
adjustments needed.
Our AEI Construction teams boast more than thirty (30+) y ars of experience specific to broadband communications installations
including an average of over one ihousand rriiles [iDQO+) of mainline fiber solutions and over three thousand (30QOfj drops
annually, Installatian of mainline fiber and sub5criber salutions occur throughout both the metropolitan and greater Minnesota
areas. Cr ws are led y industry-tenured Superintendents and experienced Construction Management ha ing a cumulative of
375 years of experience in the telecommunications industry.
Constructian teams are accustomed ta working underthe strict deadlines and aggressi e timeframes requireci forthe deli ery of
ageRcy administered and funded broadband solutions. AEi anstruction crews ha e delivered broadband projects s ccessfully in
conjunction with the USDA RU5 traditional Broadband oan Program, USDA RUS Broadband Initiatives Program (B!P}, NTIA
Broadband Technology Opportunities Program, the Alternative Connect America Cost Model A-CAMj Program, the MN
Department af Employment and Economic Deveiopment (bEED] Border to Border Program and most recently, funtled prajects
associated with the CARES Act. O er two thousand miles alone ha e been constructed and deli ered under A-CAM.
All projects are constructed in compliance with Federal, s#ate, and local law5, regulations, and ordinances including meeting or
exceeding speed requiremen#s associated with S#ate and locally funded projects. An average 40% take rate with a high
percentage of retention speaks to network reliability, overall faeility impro ements and custamer satisfaction ratio.
Completing th proposed project with Tekstar/Ar ig's solutian unique and vast experience, knowledge, and #urn-key subsidiaries
and affiliates will unc oubtedly create the mo5t efficient and effecti e scenario for a public and private partnership in deliverin
sufficient broadband to the unserved and underserved of Sherb ame County
Tekstar/Arvig financial information can be made available upon reques4.
Page 96 of 155
TEKSTAR C IVIM[JNICATIONS, INC. D B A ARVIG
150 2"d Street SW
Perham, MN 56573
RFP Res onse D— Su lemental fnforma iorr
Sherburne County ARPA BB
Access Grant Application
JULY 12, Za2x
arvlgs
arvi
R
Laura Kangas
Account xecutive
Direct 320-204-1020
Laura.Kangas@arvig.com
2B 6th A e. N j St. Cloud # arvig.cam
Mark Birkholz
irector Customer Operations 8 Southern Markets
218 346-8868
mark.birlct olz(c arviq.com
150 Second Street SW Perham, MN 56573 arviq.com
Page 97 of 155
Tekstar Communications, knc. d/b/a Ar ig
Supplemental Information — Calix Tech Specs
t i
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busi nes sea.
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aew "(i`v t k i+s ar r st uu rctdx finm tlwt will k 5(1 Cii b t f'i rd bc}nd
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and n the ckctma.c t cnicci :t thc .iata centrr c r r c t nfipne.-t. A atnglc I at I,he +dai a
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Sain Ja x, A 513d
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Page 98 of 155
Tekstar Communications, lnc. d/b/a Ar ig
Supplemental Information — Community Impact
In addition to existing affordability ,rograms, Tekstar/Anrig is accustamed to giving back to its communities. T#re communities
we serve are also the communities we live and work in and our friends, families and neighbors li e here, too. UVe believe in
gi ing baek to the cornmunities that suppart us and want to hel ensure our communities are vibrant and dynamic places to live.
That's why w invest in community causes throughout the Arvig service footprint through danations, sponsorshi s, and
olunteerism.
Ada Borup Booster Club Grand Meadaw Poppy's Park Rapids Fire ept BuIlRide Redwood Friends nf the Park
Ada HOV Bench Sponsor Grand Meadow Post Prom Park Rapids Grad Bash Redwood Giri Scouts
Ada Lions C1ub Hawley l.ions Holes Park Rapids Hubbard Co. Sr. Richmond River Lakes Days
Sponsorship Nutritior
Ada Normar County Hawley NDSU Team Make Park Rapids Panther Booster Rocori Grad Bash
Agricultural 5ociety Hole Sponsor
Ada Scare Board Hendrum Lutheran Church Park Rapids Parade Sponsor 5auk Cen4re Booster Hole
Sponsar
Audubon Fire Department Henning Bike Rodeo Paul Bunyan Days 5auk Centre Area Community
Center
Audubon Fire Depar ment OTC Bulldogs Wrestlqng Park Rapids Post Prom SaukCentre Cammuni#y
telief Association Leg cies Foundation
Battie Lake Area Community Henning LandmarkCenter Park Rapids Rotary Golf Sauk Centre Grad Bash
Centre
Battle Lake Firewarks Henning Post Prom Park Rapids Skating Haly Family
Battle ake Post Prim Henning Summer itec Park Rapids Street Center Stearns County American
Cancer Society
Bemidji Pinnacle Hole Hubbard County Faod 5helf Parkers Prairie Fire St. Augusta Fire Department
5ponsor 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
Boasters Unlir ited
City af Bertha Kimball Boy 5couts Pelican Rapids Pool Twin Valley'umbling&
Cheer
Big#ork Booster Club Kimball Fire Relief Pelican Rapids ost Prom Twin Valley Mud Slinger
Assaciation
Bluffton Fire & Rescue Lake Park Post Prom Perham 180 Twin Valley Post Prom
CarlSonville Relief Firefighters Longvi le YMCA Camp Perham Area Community Wabasso Post Prom
Center HUB
CEarissa Fire Department Mat nomen Area Baseball P rham Area Community Wabasso Area Baseba[I
Association
Boys & Girls Club Me6rose Centra Card Center Summer Rec Wabasso Booster Club
Detrait Laker Open Melrose Foad Sheff Perham Arvig ftelay for Life Wabassa Lians
Becker County Fair Melrose Graduation Party Perham Athletic Association Wabasso Scare Board
Becker Coun#y Human MelroSe Projec4 Giv a Gift Perharr Bio Giris Wadena Chamb r of
5ervit Summer Camp Com rnerce
Detroit Lakes Boosters Score St. Andrew's Churth Perham Chamberof Wadena County Ag
Board ommerce
Boys & Girls Clubs WeFest 5t. Jahn's Church Perham Cross Country Team Wadena Caunty Hurnane
Camper Society
Page 99 of 155
etroit Lakes Chamber of St. Mary's School EOT Coun y Fair Wadena Fire epartment
Commerce Fireworks
City of Detroit Lakes Holiday St. PeterS & Paul Rockthe Empowering Kids Whitetail Run Golf Course
Decoratians Black
Detroit Lakes Downtown Menahga Bird Busters 5chaol EOT 4H Sponsor June Jubilee Days
A1ive Trapshnoting
Detroit Lakes Grad Bash Minneapolis Studio One Perham Feed the Fish Tri-County Goif Classic
Eighty Highway of Hope
Detroit Lakes Historical Nevis Senior Citizens Center Perham Fire Departrnent Wadena County Veterans
5ociety & Museum Park
Detrait Lakes Holmes New York Mills Sooster Club erham Health Wadena Yauth Hockey
Detrpit Lakes Holy Rosary New York Mills Childcare PerF am Kinship WalkerArea Community
Center
Detrait Lakes FVyers Club Finn Creeic Perham Lakes Area Wal Cer Fire Department
Baslcetbal! Association
Eden Val ey Watkins Post NYM VFW Poppies Lutheran Sacial Services Walker Area Food Shelf
P rom
Eden Valley Community NYM Post Prom Perham Deer Hunters Walker Golf Course
Education Banquet
Eden Valley Post Prom Osakis Post Prom PACC Leech akeChamberof
Commerce
Fargo I'Vloorhead Redhawks Osakis Sportsman Club Perham Pirates Walnut Grove Fire
Department
Fargo Sanford Health Osakis United Way Backpack Perham Post Prom City of Watkins
Founda#ion Program
Frazee Community Club Park Rapids Business Perham Rotary Barn
Associates
Frazee FFA Park Rapids Chamber of St. Henry'S Church
Cammerce Rarade
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 bowntown Perham Youth Hockey
Business Associatian A55ociation
Grand Meadow Athletit Park Rapids Fire Depa tment Redwood County Ag
Advertising
Page 100 of 155
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Page 101 of 155
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Page 102 of 155
ELK RIVER AREA 2
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Page 103 of 155
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Page 104 of 155
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Broadband Coverage for areas around the city of Elk River
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City of
Elk --
RiVer City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River in Support of
Sherburne County's Broadband Expansion Projectto Under/Unserved
Areas of the City
WHEREAS, the Cit=of Elk River recognizes that access to high-speed broadband
ser rice has become a necessitv foY businesses and residents to be able to access critical
services and participate in the current marketplace; and
WHEREAS, Sherburne Count- has developed a Broadband Access Grant Program to
help broadband providers ezpand their services to those locations where it ma= not be
economicall- feasible without a public-private partnership; and
WHEREAS, Sherburne CountyT has received a broadband expansion grant application
from Arvig that vould bring high-speed broadband service to approximatel T 42 (27
unserved and 156 underserved), homes and businesses within the Cityr 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 Ri`-er.
NOW, THEREFORE, BE IT RESOLVED b T the CityT Council of the CityT of Elk
River, Minnesota, as follows: The Cit- of Elk River supports Sherburne Count-'s
proposed grant to Arvig and will contribute $41,950.00 from its American Rescue P1anAct
ARPA) funds to the grant
Passed and adopted this 3`d dayr of Januaryr 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, CityT Clerk
rowEREo er
V
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