December 9, 2022 at 12:16 p.m.
Broadband system enhancement: Board awaits feedback
Chisago County is putting out what might be described as “last call” for interest in broadband enhancements. Turnout was a bit lackluster for a meeting Nov. 30 convened to go over a countywide report covering internet fiber construction and financing. The data was put together by Hometown Fiber— which has been in-the-field for months, taking inventory of existing fiber optic systems (high speed, high capacity) and locating infrastructure hubs. The company has also mapped levels of internet service and developed a list starting with ‘most-underserved’ regions which consist of 4,987 properties.
In addition there are 2,992 parcels lying in areas where service providers have already been awarded federal (RDOF) internet enhancement monies. These grants commit these areas to the provider and aren’t really available until 2030.
Plus— approximately 1,995 properties are under pending grant applications. The State of MN for example, should be announcing grant winners for state broadband monies soon. The amount any of these pending grants bring locally will have an impact, county commissioners were advised last week.
And, there are areas that have acted already; independent of Chisago County improving internet— such as Fish Lake Township. The township has already used a large Border-to-Border broadband program grant, plus its own taxpayers are covering another $1.5 million, for a fiber project serving the township. Michelle Meis, from Fish Lake, explained via Zoom connection to the meeting last week, that the county needs to reorganize this when distributing funds. She requested, that as the county is considering how to use its $3 million earmarked towards internet out of county ARPA funds, “...don’t ignore us.”
A consultant with Hometown Fiber, however, said ARPA monies can not be used to “reimburse” completed expenses, but she would look into the Fish Lake request.
Hometown Fiber also provided rough cost estimates for internet fiber optic enhancements, for each township and city.
There can be cost savings if a more populated internet service area is packaged with those parcels that are spread distances apart in townships.
After about two hours of review and discussion—County commissioners didn’t want to put any plan in motion without knowing who exactly is interested in participating.
Commissioner Ben Montzka stated he needs to “think about” the system report just received, and have firmer numbers on the county’s expected expenses in context of which townships and cities are interested.
Commissioner Marlys Dunne said in a perfect world the entire county could be done at once and piecemeal internet projects avoided. Doing this “collectively” with every location chipping in and developing a comprehensive system would be her preference.
Just for information purposes, IF Chisago County were to borrow to finance all the internet enhancement needs— it would be $65 million.
But, subscriber fees would be revenue for the county and will go to pay off the debt.
Or, the costs could be shared one third-two thirds with the fiber consultants. Hometown Fiber would operate and market and do administrative tasks.
This could be serviced at $5 million annually through the county and Hometown Fiber would assume two-thirds of the budget at $43 million. Revenue from subscribers will again go to pay off its investment. ARPA funds, with $3 million currently set aside by the County Board for internet, could go to other eligible county sanctioned uses.
Commissioner Chris DuBose questioned if the county were to offer matching grants— to subsidize but not totally pay for internet systems improvements— what would be available financially for this? He too stressed the county needs to know more from leaders in townships and cities on what types of internet improvements. they seek.
Lent Township Supervisor Jess Eischens questioned combining a high density urban area with a rural township territory and how much does this improve the viability of future internet projects?
One issue with Lent Township is that neighboring urban North Branch probably can’t be expected to get excited about fiber and participating. Hometown Fiber spokesperson Marlene Pfieffer mentioned the North Branch area is not in this report because it is involved in a wireless system.
North Branch promoted point-to-point wireless internet service using city-installed and owned antennae. Operations and customer service are through Genesis Wireless. North Branch redirected $400,000 two years ago from what would have been spent on covid-related budget expenses, to pay for this system, and covered the pandemic related extra budget items with CARES money, out of that 2020 Congressional appropriation.
Pfieffer said this new slate of federal American Recovery Program (ARPA) monies are not authorized to be spent on wireless. In certain types of geologic terrain, she continued, wireless is the most feasible, but there is an opinion that costs and upkeep are downfalls.
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