HomeMy WebLinkAboutItem 06.uLakeville
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April 18, 2016
Item No.
JOINT POWERS AGREEMENT BETWEEN THE DAKOTA COUNTY COMMUNITY
DEVELOMENT AGENCY AND THE CITY OF LAKEVILLE FOR THE
DEVELOPMENT OF A COUNTY -WIDE FIBER SYSTEMS PLAN
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Joint Powers
Agreement between the Dakota County Community Development Agency and the City of
Lakeville for the Development of a County Wide Fiber Systems Plan.
Overview
The City has been working with Dakota County, the Dakota County Community Development
Agency (CDA) and the ten other large cities in the county on a comprehensive broadband project
over the past two years. The goal of the group was to investigate the potential development of an
overall broadband fiber network that would serve the needs of the government agencies within
the County.
The attached joint powers agreement (JPA) advances this concept to the next step through the
preparation of a systems plan. The systems plan will provide a full inventory of the fiber assets
currently in place and will catalog the terms under which the assets are currently being used. The
systems plan will also identify future fiber needs and will provide a framework for installing the
needed infrastructure for completing a County -wide fiber network.
Upon the completion of the systems plans, participating cities have the option to proceed to the
next step in the process which would include an additional JPA that would outline details
regarding the creation of a board to manage and operate the consolidated systems, potential
expansions of the system, operation and maintenance cost sharing associated with the system,
establishing usage rates, and identifying funding sources.
The cost of preparing the systems plan is $170,763.50, which is proposed to be evenly split
among the participating jurisdictions based on population. Lakeville's portion of the cost would
be $8,396.03. Funds to support this expenditure were included in the 2016 budget.
Primary Issues to Consider
Who will administer the JPA?
• The JPA will be administered through the Dakota County CDA which will be authorized to
exercise the JPA on behalf of and in cooperation with the participating cities.
Supporting Information
• Joint Powers Agreement.
Financial Impact: $8,396.03 Budgeted: Y❑X NO Source: Communications Fund
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Allyn G. Kuennen, Assistant City Administrator
� Lakeville
1
JOINT POWERS AGREEMENT
BETWEEN
THE DAKOTA COUNTY COMMUNITY DEVELOMENT AGENCY
AND
THE CITY OF LAKEVILLE
FOR
THE DEVELOMENT OF THE COUNTY WIDE FIBER SYSTEMS PLAN
Dated as of 92016
Table of Contents
1. Statement of Purpose and Powers to be Exercised .................................................. 1
2. Manner of Exercising Powers.................................................................................. 1
3. Defined Terms......................................................................................................... 1
4. Participants...............................................................................................................2
5. CDA's Powers......................................................................................................... 2
6. Systems Plans........................................................................................................... 3
7. Acquisition of Interests in System Components...................................................... 3
8. Default; Remedies................................................................................................... 4
9. Limitation of Liability............................................................................................. 4
10. Amendments............................................................................................................ 4
THIS JOINT POWERS AGREEMENT (as amended from time to time, this
"Agreement") is entered into as of , 2016, by and between the parties
described on Schedule A attached hereto (the "Participants"), pursuant to Minnesota Statutes,
Section 471.59.
1. Statement of Purpose and Powers to be Exercised. The purpose of this
Agreement is to provide for the joint exercise of the statutory powers common to the Participants
(defined below), to prepare Systems Plans; including, but not limited to, the power to enter into
agreements necessary or convenient to the exercise of such powers and to take such other actions
reasonably necessary to complete the System Plans (together with other powers described herein,
the "Joint Powers"). Notwithstanding any other provision of this Agreement, this Agreement
does not authorize the use of Participants' statutory authority to: (a) establish, operate, maintain
and improve the existing Systems or establish fees and charges with respect thereto; (b) acquire,
own and convey real or personal property; (c) issue bonds or obligations under any law under
which the Participants may independently issue and use the proceeds of the bonds or obligations
to carry out the purposes of the law; (d) exercise power of eminent domain; (e) exercise any
taxing powers; (f) pledge the full faith or taxing power of any of the Participants for any purpose
whatever; or (g) issue general obligation indebtedness of any Participant. Participants agree that
any of the powers specifically excluded from this Agreement may be authorized by the
Participants pursuant to a subsequent joint power agreement as described in paragraph 7.
2. Manner of Exercising Powers. The Joint Powers of the Participants will be
exercised through the Dakota County Community Development Agency (the "CDA"), having
the powers and duties described herein. The CDA is authorized to exercise the Joint Powers on
behalf of and in cooperation with the Participants as provided herein.
3. Defined Terms. Capitalized terms used, but not otherwise defined, herein
shall have the following meanings:
"Backbone" means the central portion of the network consisting of redundant optical
fiber ring segments interconnecting diverse communications network elements (switches,
routers, etc.), including connections at the co -location facility or facilities. Generally, the
backbone capacity is greater than the networks connected to it.
"C -Net" means the use of the System on any basis other than by the Participants for their
governmental and institutional purposes.
"CDA" means the Dakota County Community Development Agency, and its successors
and assigns.
"I -Net" means the use of the System by the Participants for their governmental and
institutional purposes.
"Inventory" means a detailed list and summary of the Participants' Systems Components
and Backbone, which may become a part of a consolidated system, if any, in the future.
"IRU" or "Indefeasible Rights to Use" means agreements between a Participant with
respect to the use of System Components in which the Participant has an ownership or other
legal interest.
"Participation Fee" means, as to Participants, the non-refundable fees identified on
Schedule A hereto next to their respective names.
"Systems" means each Participants' telecommunication infrastructure including, without
limitation, fiber optic cables, hand holes, switches and routers and other network elements that
provide broadband, I -Net and C -Net services within the boundaries of each of the Participants.
"Systems Components" means the various necessary or convenient elements of the
Systems, including, without limitation, fiber optic cables, hand holes, switches and routers,
together with contract rights and agreements necessary or convenient in connection with the
operation, maintenance, development and use of such components.
"Systems Plans" means general information sufficient for Participants to evaluate the
Systems' physical aspects and the methods for funding or financing the costs associated with the
operation, maintenance, and development of the Systems. The Systems Plans shall identify the
ownership, operation, maintenance, improvement use, and methods of funding, and/or financing,
the Systems.
4. Participants.
A. General. The Participants are: the CDA, Dakota County, Apple Valley,
Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville,
Mendota Heights, Rosemount, South St. Paul and West St. Paul.
B. Participation Fee. The aggregate of the Participation Fees described on
Schedule A is intended to be an amount sufficient to pay the costs identified on
Schedule B attached hereto. Such fees were allocated to the Participants using the
formula that was used for cost sharing for the initial Design Nine study.
5. CDA's Powers. The CDA shall have the general powers described in paragraph 1
of this Agreement, including, but not limited the powers to do the following:
A. To negotiate and enter into contracts for professional services and
consultants for the gathering of information necessary to complete the
System Plans and determine the cost of operating the Systems;
B. To sue and be sued with regard to contracts entered into pursuant to the
authority granted hereunder;
C. To review and present the Systems Plans to the Participants; and
D. To discharge other duties consistent with the purposes of this Agreement
and/or as required by statute.
6. Systems Plans.
A. Content. The Systems Plans shall include the following components:
i. The design, construction, operation, marketing, public relations,
maintenance, expansion and lifecycle replacement costs of the
Systems and Systems Components;
ii. An Inventory;
iii. The terms under which Systems Components presently owned by
Participants will be available for use as part of the Systems;
iv. A valuation for all Systems Components presently owned by
Participants which will be available for use as part of the Systems;
V. User fees for the Systems; and
vi. Methods of funding and financing.
B. Methodology. They Systems Plans shall be prepared capitalizing on the
recent work completed by the various committees of the City -County
Managers group utilizing it to the extent deemed appropriate by the
Participants. City -County Managers will review the Systems Plans or portions
thereof as they are prepared or become available.
C. Review of the Systems Plans. Following the preparation of the
Systems Plans, the CDA shall distribute the Systems Plans to the Participants for
review.
7. Acquisition of Interests in System Components. Upon completing their review of
the Systems Plans, Participants may elect to proceed with a joint powers agreement for the
following purposes: (a) creating a board to manage and operate consolidated Systems; (b)
potential expansion of the Systems; (c) operation and maintenance cost sharing associated with
the Systems; (d) complete, update and/or expand the Backbone network interconnecting the
Systems; (e) establishment of usage rates; and (f) identifying funding. Those participants that
choose to proceed with a subsequent joint powers agreement will enter into an IRU with the
board created thereby and other electing participants pursuant to the terms of the subsequent joint
powers agreement and the IRU(s).
8. Default, Remedies. Upon the occurrence of any default hereunder, the CDA and
each Participant shall have any and all remedies available to it at law or in equity.
9. Limitation of Liability. As provided in Minnesota Statutes, Section 471.59,
Subd. 1 a, no Participant shall be liable for the acts or omissions of another Participant, unless it
has specifically agreed in writing to be responsible for the same. For purposes of determining
total liability for damages, each Participant and the CDA are considered a single governmental
unit and the total liability for all of the Participants and the CDA shall not exceed the limits on
governmental liability for a single governmental unit as specified under Minnesota Statutes,
Sections 466.04, Subd. 1, or as waived or extended by the CDA or all Participants under
Minnesota Statutes Sections 466.06; or 471.981. This provision does not protect a Participant or
the CDA from liability for its own independent acts or omissions not directly related to the
exercise of the Joint Powers under this Agreement. Neither the CDA nor any Participants shall
have the power hereunder to do any act or thing the effect of which is to create a charge or lien
against the property or revenues of the CDA or another Participant, except as expressly provided
in herein or in any of the documents authorized herein.
10. Amendments. This Agreement may be amended, at any time and from time to
time, by the Participants.
IN WITNESS WHEREOF, each of the Participants has caused this Agreement to be
executed on its behalf by its respective authorized officers, all as of the date first above written.
DAKOTA COUNTY COMMUNITY
DEVELOPMENT AGENCY
Date: By:
Its:
DAKOTA COUNTY, MINNESOTA
Date: By:
Its:
Approved as to Form
Assistant County Attorney Date
Date:
CITY OF LAKEVILLE
I�
Matt Little, Mayor
Attest:
Date: By:
Justin Miller, City Administrator
SCHEDULE A
Dakota County Broadband
Systems Plan Participation Fee
Cost -Share Concept
One-third of costs borne by Dakota County Community Development Agency
One-third of costs borne by Dakota County
One-third of costs borne by cities of over 10,000 pro -rata on population
Estimated Systems Plan Costs $ 148,490.00
Contingency 15% $ 22,273.50
Total Estimated Cost $ 170,763.50
CDA Share $ 56,921.17
County Share $ 56,921.17
City Share $ 56,921.17
City cost distribution based on % of total of 11 cities with population over 10,000
Participants
Population
% of Population
Amount Due
Apple Valley
49,084
12.94%
$
7,365.17
Burnsville
60,306
15.90%
$
9,049.06
Eagan
64,206
16.93%
$
9,634.26
Farmington
21,086
5.56%
$
3,164.00
Hastings
22,172
5.84%
$
3,326.96
Inver Grove Heights
33,880
8.93%
$
5,083.77
Lakeville
55,954
14.75%
$
8,396.03
Mendota Heights
11,071
2.92%
$
1,661.23
Rosemount
21,874
5.77%
$
3,282.25
South St Paul
20,160
5.31%
$
3,025.06
West St Paul
19,549
5.15%
$
2,933.37
TOTAL
379,342
100.00%
$
56,921.17
SCHEDULE B
Dakota County Broadband
Estimated Systems Plan Elements and Costs
Project Component
Est. Costs
Legal Services $8,000
Preparation of Systems Plan
Provider
Inventory, Design, etc $68,990 Elert 4/17/15 proposal, all options
Balance of Systems Plan work $15,000 Design Nine - assumed split
Preparation of Systems Funding $51,500 Design Nine - assumed split
Plan
Additional consulting costs $5,000
Contingency $22,274
Total $170,764