DEPARTMENT: Information Technology
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Amended And Restated Broadband Network Agreement With Dakota Electric Association
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RESOLUTION
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WHEREAS, Dakota County and Dakota Electric Association previously entered into a Broadband Network Agreement in 2017; and
WHEREAS, Dakota County and Dakota Electric Association would like to amend and restate the agreement; and
WHEREAS, Dakota Electric Association desires the use of a total of 36 Dakota County fiber segments in 2026; and
WHEREAS, Dakota Electric Association desires the use of a total of 39 Dakota County fiber segments in 2027; and
WHEREAS, in 2026, Dakota Electric Association will pay Dakota County for 263.35 miles of fiber at a rate of $65 per pair per mile for a total of $17,053 per month; and
WHEREAS, in 2027, Dakota Electric Association will pay Dakota County for 279.6 miles of fiber at a rate of $65 per pair per mile for a total of $18,174 per month; and
WHEREAS, the initial term of this agreement is ten years, with two separate five-year renewals; and
WHEREAS, the effective date of the agreement is when all parties have signed the agreement.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to execute an amended and restated broadband network agreement with Dakota Electric Association, subject to approval by the County Attorney’s Office as to form.
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BACKGROUND
Dakota County has access to existing broadband network facilities in various locations within the county.
Dakota County and Dakota Electric Association previously entered into a Broadband Network Agreement executed on February 14, 2017, under which the County provided a license to Dakota Electric Association for use of certain fiber optic strands within the fiber network. The purpose of the original agreement was to provide high speed, high capacity, and reliable communication for Dakota Electric Association electrical substations and key communication locations in and near Dakota County to support the reliable distribution of electric power to County residences and businesses.
The agreement is being amended to identify the fiber strands currently used by Dakota Electric Association and to update the terms of use for the fiber network.
Exhibit A in the attachment has the information about the annual fee charged by Dakota County. For 2026, segments 1 to 36 will be used and the County will receive annual revenue of up to $204,633. In 2027, segments 37, 38, and 39 will be added and it will increase the annual revenue to $218,088.
RECOMMENDATION
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Staff recommends the County Board authorize the Deputy County Manager to execute an amended and restated broadband network agreement with Dakota Electric Association.
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FINANCIAL AND STAFFING IMPACTS
Dakota Electric Association has agreed to lease 36 segments in 2026 at a distance of 262.35 miles at a rate of $65 per pair per mile for a total of $17,053 per month.
Dakota Electric Association has agreed to lease 39 segments in 2027 at a distance of 279.6 miles at a rate of $65 per pair per mile for a total of $18,174 per month. The annual amount will be recorded as revenue in the General Fund.
The effective date of agreement is when all parties have signed the agreement. Staff will prorate at the rate of $65/mile/pair/month.
PREVIOUS BOARD ACTION
17-037; 1/24/17
ATTACHMENTS
Attachment: DEA Amended and Restated Fiber Agreement 2026
CONTACT
Department Director: Tony Gomes
Author: Hamza Akram