03/28/2011 Council Packet - Laserfiche WebLink

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lS. (.9(t. -t AnokaCountv What is this project? This project is a private /public partnership between Anoka County and Zayo Bandwidth. Zayo bandwidth was awarded $13.4 million in federal grant funds to construct a fiber network in Anoka county. Zayo and Anoka County have an agreement whereby Zayo will provide capacity services at 145 public facilities. Anoka county, in turn desires to enter into agreements with public agencies such as cities to allow them to participate. What is the cost of the project and how will it be paid for? The total project cost is $19 million. 70 percent of the project is funded by grant money and 30 percent is being split between Zayo and Anoka County (approximately $2.8 million each). Anoka County plans to repay a portion of the match by charging the entities for service. The proposed cost for service is $75 /month for a 100MB connection and $400 /month for a 1GB connection. Can my city opt in later? As part of the initial project, equipment is contemplated at all 145 public sites. Once the equipment is installed, the city may chose to initiate service later. What does the agreement require of my city? The agreement requires that the entity provide the underlying rights to access the space so that the fiber can be installed across the property and run into the building. The agreement also requires the entity to provide space for the equipment. The equipment consists of a switch that fits into a computer rack. Additionally, the agreement requires that the city provide access to the equipment and that the city assume responsibility for its negligent acts that result in damage to the equipment. Who pays for the equipment? The initial equipment is paid for by the project. Zayo provides a warranty through 2017. After the expiration of the warranty, the city is responsible for the cost of the equipment at its sites on a pro -rata basis. Does this project give Zayo an unfair advantage? Zayo was selected after an RFP process as the firm best able to meet the county's requirements. Zayo is a middle mile fiber provider and does not provide to the home service. The grant requires that Zayo make the system available so any carrier is able to purchase service from Zayo. The system will also allow service to to areas that are currently un- served or underserved. What advantages does this project create for the business community? This project will construct an open access fiber network throughout Anoka County. The open access nature of the network will allow incumbent providers to purchase service, as well as allow new entrants into the area providing for additional competition and choices for local businesses and residents. Will any new jobs be created for design and construction? Zayo currently employs 22 people in Minnesota. They will contract for engineering and construction services. The engineering vendor estimates that they will hire 4 -5 local staff to complete the project. The construction vendor will be selected later this year. What guarantees are there that Zayo will complete the project? Zayo's network spans 30 states, 153 markets, and over 22,000 unique route miles of fiber. Zayo has the business capacity to construct and operate the fiber for this project. Zayo is contractually bound to Anoka County and is also bound by the NTIA grant rules which require it to construct and operate the network.