08.c Internet Action Committee Report for Scandia City Council Meeting 8-16-22Internet Action Committee Report for Scandia City Council Meeting
8-16-22
Background:
Both MidCo and Frontier have provided communication services to Scandia for decades.
Each company has a current franchise agreement with the city to provide certain services and
each has an estimated customer base around 800 households each.
Scandia has worked with MidCo the last 3 years to facilitate the expansion of broadband within
the city, including both political and financial support. The completed and planned projects
have added a total of 587 homes passed for high-speed broadband from an existing base of 852
homes. Between committed or intended funding Scandia will have provided a total of around
$1 million to MidCo through the 2023 construction season.
Frontier has not been involved in high-speed broadband expansion projects locally, but their
exit from bankruptcy last year and the availability of grants has changed that. Frontier
currently has multiple projects and grant applications throughout Minnesota including
Washington County and Scandia.
Recent Activity:
The IAC reached out to Frontier late last year after their exit from bankruptcy. We met
(virtually) with Scott Bohler, Frontier’s Manager for Government and External Affairs during our
November 25, 2021, meeting. This acted as a introduction between Frontier and the IAC. No
specific action was discussed.
June 3
State announced the Minnesota Broadband Grant program would resume with an application
deadline of August 4th.
June 6
Told MidCo the IAC was working on a new funding proposal for 2023 and the importance of the
new grant deadline.
June 14
Asked MidCo for update on their grant plans. Nothing to report, still under review.
June 17th
IAC recommended letter be sent to MidCo showng city’s intent to suport (on approval) a 2023
MidCo expansion with $432,000 of city funds and asked MidCo to persue grants from both the
state and county to help leverage those funds for the greatest benefit to the city.
June 22
Council approved letter of intent to MidCo. MidCo alerted immediately and letter was sent
shortly thereafter.
July 12
Frontier informs us they‘re working on a possible state grant application for Scandia and
surrounding areas. This is one of 18 state grants Frontier is considering.
July 19
Asked MidCo for an update on their planning for grants. No response.
July 28
Frontier (Scott Bohler) says they will apply for State grant for Scandia area. Asked if city would
send letter of support for application of grant. No monetary component.
Sent message to MidCo asking for status on their grant applications. MidCo (Justin Forde)
responds. MidCo will not apply for grant for Scandia this round. Other projects had higher
priority (Isanti County and Forest Lake). Asked Justin to continue to look at another
Washington County grant. Here said they would.
Asked Frontier for clarification on their propsoal.
Reviewed Frontier and MidCo developments with Marschall Smith, John Carney and Ken
Cammerelli. Handed off letter of support to Ken for follow up.
July 29
Ken worked on letter of suport and said it would be sent to Frontier followng week. Informed
Frontier letter of support from Scandia was forcoming.
August 2
Frontier gets letter of support for state grant application for Scandia.
August 4
Frontier submits grant appliation to state.
August 9
Asked MidCo for an update on applying for Washington County grant. Expressed conern grant
funds were running out and we may miss oppurtunity to leverage city’s intended $432,000
contribution to a 2023 expansion project.
August 12
MidCo (Justin Forde) phoned, asked if Scandia is supporting Frontier’s grant. I confirm. MidCo
will oppose and challenge grant. Says grant area overlaps with currently served area. Asked if
Scandia will support MidCo’s challenge or rescind support of Frontier project. I said this
requires city to review MidCo’s challenge and to understand impact on Scandia.
August 15
Followed up with email to MidCo (Justin). Asked again about Washington County grant. Re-
iterated city would need to see challenge to Frontier grant befroe making any decison on
withdrawing support for Frontier or backing MidCo challenge.
Questions?
See information in packet regarding grant challenge process, state braodband service
requiremtnts and goals, Frontier grant map, Frontier Exits Bankruptcy article, spreadsheet of
state grants for this round, letter to Frontier in support of grant and Frontier project summary.