HomeMy WebLinkAboutItem 06.m
Date: Item No.
FIBER NETWORK QUOTE ACCEPTANCE AND RESOLUTION
AMENDING THE 2017 BUDGET
Proposed Action
Staff recommends adoption of the following motion: Move to accept quotes and award contracts
to MPNexlevel for the construction of fiber optic network lateral segments to the Police Station,
Fire Station 4, Fire Station 2, Water Treatment Facility, and Central Maintenance Facility and
approve a resolution amending the 2017 General Fund, Water Operating Fund, Sanitary Sewer
Operating Fund, Liquor Fund and Communication Fund Budgets.
Overview
On June 5, 2017, the City of Lakeville entered into a Joint Powers Agreement (JPA) with Dakota
County to build a fiber optic network to connect city facilities. Phase I of the project was
completed in August of 2017. Phase II of the project includes the construction of the backbone
segment and the lateral segments from the backbone to the Police Station, Fire Station 4, Fire
Station 2, Water Treatment Facility, and Central Maintenance Facility. Dakota County has
awarded the construction of the fiber backbone to MPNexlevel, LLC. This work has already
begun along Dodd Blvd. from the Police Station to the intersection of Dodd Blvd. and Cedar
Avenue. Completion of this segment should occur in the next 2 weeks. The cost of the fiber
backbone is $147,656.
It was determined it would be in the City’s best interest to have the same firm build the laterals to
expedite the project, maintain coordination with Dakota County, and maintain consistency
across the entire fiber optic network build. IS Staff obtained construction quotes for each
individual lateral segment from MPNexlevel, LLC. The total cost of the lateral segments in Phase
II is $86,054. Overall costs for Phase II of the project are approximately $238,872 (including
estimated engineering costs of $5,162), which is approximately $53,000 under the original
estimates.
The City identified General Fund reserves, Water Operating Fund, Sanitary Sewer Operating
Fund, and the Liquor Fund as the funding sources available for this phase of the fiber project.
Project expenses will be recorded in the Communications Fund. A budget amendment is
required to appropriate funds for this project.
November 20, 2017
Primary Issues to Consider
Issues with existing leased fiber network include:
• Inadequate bandwidth and no ability to manage network for current and future needs
• Cost prohibitive to upgrade bandwidth from current provider
Supporting Information
• Resolution amending the 2017 General Fund, Water Operating Fund, Sanitary Sewer
Operating Fund, Liquor Fund and Communications Fund budgets
• MPNexlevel Lateral Quotes
Financial Impact: $238,872 Budgeted: Y☒ N☐
Source: General Fund, Water Operating Fund, Sanitary Sewer Fund, Liquor Fund, and
Communications Fund
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Ralph Vetter, I.S. Manager
General Fund &
CIP and 2017 Budget
CITY OF LAKEVILLE
RESOLUTION NO. ________
RESOLUTION AMENDING THE 2017 BUDGET
WHEREAS, the goals for the City fiber optic network are to improve network
performance between facilities, network servers, connection to other government entities, and
reduce annual costs; and
WHEREAS, Phase II of the fiber optic network project includes construction of the
backbone segment and the lateral segments from the backbone to the Police Station, Fire Station
4, Fire Station 2, Water Treatment Facility, and Central Maintenance Facility; and
WHEREAS, the General Fund, Water Operating Fund, Sanitary Sewer Fund, and Liquor
Fund were identified as funding sources available for Phase II; and
WHEREAS, the 2017 General Fund, Water Operating Fund, Sanitary Sewer Fund, Liquor
Fund and Communications Fund budgets were adopted on December 5, 2016;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota as follows:
1. The recitals set forth above are incorporated herein.
2. The following 2017 budgets are amended for transferring funds to the Communications
Fund: General Fund in the amount of $181,957, Water Operating Fund in the amount of
$23,876, Sanitary Sewer Operating Fund in the amount of $23,876, and Liquor Fund in the
amount of $9,163. Staff is hereby authorized to make the appropriate transfers between funds
for up to 10% above these estimated project costs.
3. The 2017 Communications Fund budget is amended in the amount of $238,872 for Phase II
of the City fiber optic network project.
ADOPTED by the Lakeville City Council this 20th day of November 2017
CITY OF LAKEVILLE
___________________________
Douglas P. Anderson, Mayor
ATTEST:
__________________________________
Charlene Friedges, City Clerk