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HomeMy WebLinkAboutVIII-13 Dakota Broadband Board (DBB) Informational Update City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: May 16, 2022 Item: Dakota Broadband Board (DBB) Council Action Requested: Informational update – no action needed at this time. Background Information: The Dakota Broadband Board (DBB) was formed in 2017 with the approval of a Joint Powers Agreement (JPA) by eleven member participants. Per the JPA, the purpose of the DBB is: • To create a high-performance institutional network (I-Net) for the efficient management of physical network assets owned among members and to enable more efficient and lower cost price agreements for members for a variety of IP-based services. • To utilize excess I-Net capacity to enhance business attraction, business retention and economic development opportunities through the provision of wholesale access to private sector service providers (C-Net). • The DBB will not be a retail provider of services to businesses and residents in Dakota County. Other potential long-term benefits have been noted for economic development, housing, transportation, access to grants, and to encourage incumbent providers to increase services or reduce costs. There has also been a general interest in not falling behind the other cities in the county. The past few years, the C-Net provisions have been a point of contention for several members of the DBB (Dakota County, Burnsville, and Lakeville). In March 2022, Dakota County directed its staff to proceed with a plan to withdraw from the DBB. The County has expressed concern that the current DBB structure is not efficient from a cost/benefit standpoint and is the wrong model to achieve the initial goals. The County recognizes that it would need to hire staff to manage the County’s assets going forward and anticipates a new JPA (or several JPAs) for shared maintenance of I-Net assets. The County contributes about 63% of the DBB budget. VIII-13 The County has proposed development of an orderly exit plan. DBB members have acknowledged that the DBB’s recent community survey would continue and still provide useful information about residential, business, and institutional needs. DBB members have also acknowledged that the 2022 budget is already committed. In April 2022, the DBB Board proposed an ad hoc committee to work on an alternative or modified JPA/structure that could be considered. Financial Impact: Hastings 2022 costs are $18,697 ($14,697 for DBB operational costs plus $4,000 member and access fee). Committee Discussion: N/A Attachments: N/A VIII-13