DEPARTMENT: Information Technology
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Fiber Optic Indefeasible Right To Use Agreement With Dakota 911 And Terminate Existing Fiber Joint Powers Agreement
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PURPOSE/ACTION REQUESTED
Authorize the Deputy County Manager to execute a Fiber Optic Indefeasible Right To Use Agreement (IRU) with Dakota 911 and terminate the existing fiber joint powers agreement.
SUMMARY
In 2018, Dakota County executed a joint powers agreement with Dakota 911 for the use of fiber from the Western Service Center and Rosemount City Hall to the Dakota 911 facility in Empire. Dakota 911 made an initial construction payment of $10,964 and an annual payment of $11,076 for use of the fiber for ten years. The agreement was scheduled to expire in 2028.
A new Indefeasible Right to Use Agreement between Dakota County and Dakota 911 has been created to replace the existing joint powers agreement. This will remove a fiber segment that is no longer required by Dakota 911. As a result of reduced fiber needs, the fees the County will receive from Dakota 911 will be reduced from $11,076 per year to $7,488.
Pursuant to the Indefeasible Right to Use Agreement, Dakota 911 desires to lease the use of four fibers from Dakota County to connect Dakota 911 to Rosemount City Hall and Dakota 911 to the Western Service Center. This agreement has an initial term of ten years, with two separate five-year renewals.
The fiber segments are described as follows:
Segment 1: This segment consists of two strands of fiber from Dakota 911 at 2860 160th Street West, Rosemount to Western Service Center at 14955 Galaxie Avenue, Apple Valley. The County will own and maintain the fiber in Segment 1. Dakota 911 will have the use of two strands of fiber within the cables. This includes 7.2 miles at the rate of $65 pair/mile/month for a total monthly charge of $468 or $5,616 annually.
Segment 2: This segment consists of two strands of fiber from Dakota 911 at 2860 160th Street West, Rosemount to Rosemount City Hall at 2875 145th Street West, Rosemount. The County will own and maintain the fiber in Segment 2. Dakota 911 will have use of two strands of fiber within the cables. This includes 2.4 miles at the rate of $65 pair/mile/month for a total monthly charge of $156 or $1,872 annually.
RECOMMENDATION
recommendation
Staff recommends the County Board authorize the Deputy County Manager to execute an IRU with Dakota 911 for the use of two strands of fiber at 2860 160th Street West, Rosemount to the Western Service Center at 14955 Galaxie Avenue, Apple Valley, and two strands at 2860 160th Street West, Rosemount to the Western Service Center at 14955 Galaxie Avenue, Apple Valley.
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EXPLANATION OF FISCAL/FTE IMPACTS
The existing joint powers agreement, which was scheduled to expire in 2028, will now end in April 2026. This will end the $11,076 annual payment to Dakota County. The new IRU will include a $7,488 annual payment from Dakota 911 to Dakota County, which will be recorded as a revenue in the General Fund.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County and Dakota 911 have a joint powers agreement in place for the use of fiber from the Western Service Center and Rosemount City Hall to the Dakota 911 facility; and
WHEREAS, that joint powers agreement will be replaced with an Indefeasible Right to Use Agreement; and
WHEREAS, Dakota 911 desires to obtain from Dakota County the use of two strands of fiber from Dakota 911 at 2860 160th Street West, Rosemount, MN to Western Service Center at 14955 Galaxie Avenue, Apple Valley, MN; and
WHEREAS, DAKOTA 911 desires to obtain two strands of fiber from Dakota 911 at 2860 160th Street West, Rosemount, MN to Rosemount City Hall at 2875 145th Street West, Rosemount, MN; and
WHEREAS, the County agrees to grant to Dakota 911 the right to use four fibers within certain fiber optic cable segments; and
WHEREAS, Dakota 911 agrees to pay Dakota County $7,488 annually for the use of the fiber; and
WHEREAS, the initial term of this agreement is ten years, with two separate five-year renewals; and
WHEREAS, a Fiber Optic Indefeasible Right To Use Agreement with Dakota 911 is required for use of County fiber optic cable.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to execute an Indefeasible Right to Use Agreement with Dakota 911, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to terminate the existing fiber joint powers agreement with Dakota 911 upon execution of the new Indefeasible Right to Use Agreement.
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PREVIOUS BOARD ACTION
18-160; 5/4/18
ATTACHMENTS
Attachment: Dakota 911 Fiber IRU Agreement
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Tony Gomes
Author: Hamza Akram