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• <br />• <br />• <br />WS — Item 2 <br />WORK SESSION STAFF REPORT <br />Work Session Item <br />Date: March 28, 2011 <br />To: City Council <br />From: Jeff Karlson, City Administrator .094 <br />Re: Connect Anoka County Fiber Project <br />Background <br />Connect Anoka County is a county -led project to increase the amount of fiber optic cable in <br />the county. The initiative resulted in a partnership between Anoka County and Zayo <br />Bandwidth of Louisville, Colorado, who applied for and received a National Communications <br />Information Administration (NTIA) grant paying 70 percent ($13.4 million) of the fiber <br />construction cost and initial equipment. <br />The Connect Anoka County project will link 145 anchor institutions with three core rings, <br />creating a 286 -mile backbone. The backbone will connect police, fire, public works, libraries, <br />K -12 schools, colleges, city halls, and county buildings. The network will provide a direct <br />advantage to local businesses, passing directly through the county's key business districts and <br />economic development zones. Ultimately, the fiber will provide faster and more reliable <br />service. <br />The countywide fiber network will be owned and operated by Zayo Bandwidth, a private <br />company, allowing service to local businesses and homes. The agreement for connectivity <br />services is with Anoka County. The monthly fee for broadband service is $75 /month for 100 <br />MB service and $400 /month for 1 GB service. These initial fees will be used primarily to pay <br />the proportionate share of the county's match ($2.9 million) to the project. Once the <br />proportionate share of this match is recovered, it is expected the fees will decrease if other <br />factors remain constant. <br />The Agreement specifies that there is no cost to Lino Lakes for the purchase and installation <br />of the Zayo equipment. The Agreement also provides that the Zayo equipment will be <br />maintained and replaced at no expense to City until August 17, 2017. Thereafter, the City <br />would pay the pro rata costs incurred when the equipment needs to be replaced to support the <br />network services. The two designated co- location sites in Lino Lakes are at city hall and the <br />public works facility. Staff has identified the most suitable location for the network <br />equipment in each building. <br />Through Anoka County, Zayo may request permission to place additional equipment at the <br />city hall or public works facility to solely service commercial customers. If the City elected <br />