ITEM: 12.4 ADMINISTRATION - Joe Huss, Finance Director
Title
ANOKA COUNTY FIBER CONNECTIVITY AND INTERNET SERVICE PROVIDER (ISP) APPROVAL
Background
At the June 6 Council Workshop, staff presented information regarding both the status of the Anoka County Fiber Connectivity Project and the selection process for an Internet Service Provider. Staff was seeking Council direction to both activate the Anoka Fiber system and to further explore changing the Internet Service Provider (ISP). At this point staff is seeking Council approval to activate the Anoka County connections at City Hall and the City's water towers; to approve staff's recommendation for the City's ISP; and to approve the purchase of a computer server to handle load balancing and data transmission for the fiber network.
As discussed at the June 6 Workshop, the first application where Blaine could take advantage of the fiber network is with the City's automated meter reading (AMR) system, which would use higher data transmission speeds to improve and make more efficient the utility billing process. To implement the new AMR technology requires the activation of Blaine's fiber system in five locations - City Hall, and Aquatore, Paul Parkway, Hamline, and Lexington water towers. While there are no costs to activate (or light) the fiber, there are monthly costs to maintain the service once it is activated. Monthly costs are based on the speed of service at each location, $75/month for 100 Megabits per second (Mbps) speed, and $400/month for one Gigabit per second (Gb) service. The four water tower locations have 100 Mbps service, while City Hall has 1 Gb service, resulting in monthly charges of $700 with $300 to be charged to the Water Utility Fund and the remaining $400 charged to the General Fund.
In addition to the high-speed service, the City would also require an Internet Service Provider (ISP) to provide access to the internet. Currently, the City is served by two ISP - Windstream Communications, which provides buried internet service, and Nextera Communications, which provides wireless service. Combined, these ISP provide 9 Mb service at a cost of $1,100 per month. Staff has solicited Requests for Proposals (RFP) from ISP and received over a dozen proposals from ten potential ISP. Based on proposals received, staff recommends the selection of Hurricane Electric as the City's ISP. Per their proposal, service speeds would increase to 100 Mb at a cost of $482 per month. Total monthly charges to the General Fund, including the $400 for access to the Anoka County system, would be $882. Compared to current charges of $1,100 per month, the new improved system would result in annual savings of over $2,600.
As discussed in the Workshop, the upgrade in service will require an upgrade to the equipment that handles the load balancing and data transmission for AMR, ISP, and other data transmitted to City Hall through the internet. The unit the City currently uses will not be able to handle the increased bandwidth, or speed, that the new service will provide. The estimate for this equipment is $7,700. The cost would be split evenly between the Water Utility Fund and the Capital Equipment Fund and there would be no additional annual or monthly charges associated with the new machine. Adequate funds exist in both the Capital Equipment Fund and the Water Utility Fund to cover the cost of the equipment upgrade.
Recommendation
Staff is recommending the following:
- Council authorize City Manager to execute the agreement with Anoka County activating the broadband fiber connections at the Aquatore, Hamline, Lexington, and Paul Parkway water towers and City Hall;
- Council approve the selection of Hurricane Electric as the City's ISP and authorize the Mayor and City Manager to execute an agreement with Hurricane Electric; and
- Approve the purchase of an Ecessa Power Link 100 to control Internet traffic as required for activating the Anoka County connections at a cost not to exceed $7,700.
Recommendation
By motion, approve and authorize the above.