Kronmiller's IAC Letter 08-06-2020 page. 1
August 6, 2021
Internet Action Committee Members,
In March of this year, we learned MidCo had been awarded one RDOF Territory and a renegotiated DEED Grant. Hearing
this news, the committee had questions over the details and asked for a copy of the revised Grant application. I also
began asking questions about the reasoning behind the need to revise the grant.
My questions relate to concerns over the appropriateness of Scandia supplementing any RDOF Expansion and to the
grant MidCo renegotiated “on our behalf” that reduced the expansion area without any consultation with the City
Council.
I submitted a list of questions for DEED and offered several alternative funding arrangement proposals that would avoid
any conflicts with the policy issues I felt might exist to Bob and Patti in April. The responses I received from them suggest
the City’s funds are “seed money” and “allowed MidCo to bid lower in the RDOF auction”. If these statements are true,
then our money is simply supplementing the expansion of service inside MidCo’s RDOF area. I questioned whether this is
legal/appropriate and was told at a Council meeting they did not believe there would be any issues.
Those who know me, know that I am an ethical and fact-based decision maker. I try to not act on emotion and do not
accept the “ends justify the means” approach to governing. I believe our government needs to be transparent and that it
is important to do things the right way.
Having gotten the feeling that my questions had not actually been asked of the appropriate policy makers, I personally
reached out to contacts at DEED and the FCC in July.
As you read the rest of this memo, please take time to review the attachments I included to support the following
assertions.
1. Our renegotiated DEED grant reduced the number of homes from 78 to 25 (attachments #1, 2, and 3).
2. Construction of service to one of these 25 homes was completed last year (attachment #4).
3. Giving supplemental funding to a provider for broadband expansion in their awarded RDOF area is not
appropriate (attachment #5).
4. Giving supplemental funding to an RDOF winning provider would be appropriate if a separate agreement were
written that identified an additional list of “things” to be delivered. Some of these “things” might include priority
buildout, higher speeds, or lower consumer pricing. (attachment #5)
I ask the IAC to work with MidCo and come forward to the City Council with a written agreement from MidCo. The
agreement should document Scandia’s $165K payment, for this year’s expansion, is allocated something like this:
$ 0 For expansion of broadband to locations inside MidCo’s awarded RDOF area
$50,769 Prorated support for the reduced number of homes in the revised DEED grant area
($165,000 divided by the 78 homes in the original area multiplied by the 24 homes that remain in the
revised grant area)
$61,346 Prorated support to deliver service to the 29 homes identified as “Other” in attachment #6
$52,885 Guarantees from MidCo they will expedite their construction schedule, so all service to all 100 homes
identified in attachment #7 is constructed in 2021 and the remaining 43 RDOF locations in 2022.
My recommendation will give MidCo all the funding they are expecting and gives Scandia the expansion we are hoping
for... but does so in an appropriate way that will pass legal challenges. Scandia needs a written agreement documenting
what our taxpayer money is being spent on, and just as importantly, what it is not being spent on.
Steve Kronmiller
City Councilmember
page. 2
ATTACHMENTS
1. MidCo Map presented to Scandia Council on April 7, 2021 3
2. Revised Grant Parcel and Address details based on discussions with DEED 4
3. Communications with DEED 5
4. MidCo.com screenshot showing 14757 Oren Rd N address is already served 9
5. Communications with the FCC 10
6. 2021 Potential Expansion Areas Map 13
7. List of 100 homes I am asking to be served this year 14
page. 3
1. MidCo Map presented to Scandia Council on April 7, 2021
page. 4
2. Revised Grant Parcel and Address details based on discussions with DEED
NOTE: 14757 Oren Rd N (in grey) is included in this year’s DEED grant territory but
was served last year (refer to attachment #4).
page. 5
3. Communications with DEED
From: Steve Kronmiller
Sent: Sunday, July 11, 2021 9:44 AM
To: Wells, Diane (DEED)
Subject: Questions
Diane,
Hope this note finds you well! I have a couple of quick questions about positions DEED has taken toward grant
funding:
· Would DEED provide Scandia with a copy of the revised 2020 grant application they renegotiated with
MidCo?
· What is DEEDs position on using their grant dollars to expand broadband into areas where RDOF funding is
anticipated? There are 3 of these areas in Scandia.
· What is DEEDs position on LTD Broadband? Specifically, does DEED support funding any expansion with their
grant dollars by MidCo into any of the RDOF areas won by LTD, or visa versa?
Thank you in advance! I look forward to hearing your responses to the above.
Steve Kronmiller
From: Wells, Diane (DEED)
Sent: Monday, July 12, 2021 10:16 AM
To: Steve Kronmiller
Cc: Frost, Jennifer (DEED)
Subject: RE: Questions
Steve-
Thanks for the email. I’m including Jenn Frost on our team on this email. She is the grant administrator for the
Scandia project. She will get back to you with answers to your questions.
Thanks,
Diane
Diane Wells
Office of Broadband Development
Minnesota Department of Employment and Economic Development
1st National Bank Building, 332 Minnesota St., Suite E200, St. Paul MN 55101
Direct: 651-259-7610
page. 6
eMail: diane.wells@state.mn.us
Web | Twitter | Facebook
From: Frost, Jennifer (DEED)
Sent: Monday, July 12, 2021 5:39:02 PM
To: Steve Kronmiller
Cc: Wells, Diane (DEED)
Subject: RE: Questions
Hi Steve,
I’ve copied your questions from your email and provided answers below each.
Would DEED provide Scandia with a copy of the revised 2020 grant application they renegotiated with
MidCo?
There is a process to request this but you may want to check with the Scandia City Administrator first. I believe
the application was provided to the City Administrator by Midco in or around February. If not, as a project
partner I expect the City will be able to secure this directly from Midco more quickly than our process will
allow. The State considers this type of request a data practices request and follows that formal process. This
means the DEED legal team will handle the request, gather the information and then redact non-public data.
- What is DEEDs position on using their grant dollars to expand broadband into areas where RDOF funding is
anticipated? There are 3 of these areas in Scandia.
For the FY22 and FY23 funding rounds, the Border to Border broadband infrastructure grant program is being
funded with Capital Project Funds through American Rescue Plan Act. Therefore, we won’t be able to provide
any clarification on whether applications for the state B2B program can include census blocks anticipated to
receive RDOF funding until Treasury issues guidance on how that federal funding can be used. According to
the website, guidance should be issued this summer.
- What is DEEDs position on LTD Broadband? Specifically, does DEED support funding any expansion with their
grant dollars by MidCo into any of the RDOF areas won by LTD, or visa versa?
We don’t have adequate information to take a position on LTD Broadband’s RDOF application as all
information and review is by the FCC. Should the FCC complete its review of LTD’s long form application and
award funding, we would anticipate that LTD will deploy broadband services in accordance with that funding
award.
Let me know if you have additional questions or assistance using the mapping tool/finding project info on our
website.
Thanks,
Jenn
Jennifer Frost | Broadband Grants Administrator
page. 7
Office of Broadband Development
Department of Employment and Economic Development
1st National Bank Building, 332 Minnesota Street, Suite E200 St. Paul MN 55101
Cell:218.330.7500
Office: 651.259.7442
Email: Jennifer.frost@state.mn.us
http://mn.gov/deed/broadband
Sign Up For Broadband Updates Here
From: Steve Kronmiller
Sent: Monday, July 12, 2021 6:53 PM
To: Frost, Jennifer (DEED)
Cc: Wells, Diane (DEED)
Subject: Re: Questions
Thank you so much! These are great future forward answers.
Could you help me understand how my last 2 questions applied to this year’s FY21 grant. Looks like DEED
defunded areas where MidCo received RDOF funding but is funding MidCo expansion into LTD areas currently
set to be funded by RDOF.
MidCo has also proposed another City partnership that would expand further into LTD territory. I’m hoping to
understand DEEDs rationale from this year to help inform an option on their latest request, in lieu of Federal
guidance.
I am very grateful to see the expansion in Scandia and hope to better understand how to get it done and not
run afoul of any federal or state guidance.
Thank you so much!
Steve Kronmiller
From: Frost, Jennifer (DEED)
Sent: Monday, July 12, 2021 5:39:02 PM
To: Steve Kronmiller
Cc: Wells, Diane (DEED)
Subject: RE: Questions
Hi Steve,
Our maps indicate the areas are adjacent but don’t overlap. The purple shaded areas outlined in aqua are the
project area we are funding. The tan areas outlined in brown are RDOF areas.
page. 8
This year’s program will be funded through the Treasury and we did post an update to our website indicating
that there are many unknowns until we receive guidance.
Below is information we used in our Frequently Asked Questions document from last year’s program regarding
the RDOF decision rationale.
Given the state funding available for this round, the many quality applications received, and the historic
investment by the FCC in broadband buildout in Minnesota, the most fiscally responsible decision is being
made to award this round of state grants: funding will go to 39 grant applications serving areas that are not
also scheduled to receive RDOF funding for fiber deployment. This decision should ensure the greatest
number of households and businesses will be in line for broadband infrastructure investments.
As the RDOF auction results are implemented, and the Border to Border Broadband Infrastructure grant
program is funded in FY22 and forward, information known at the time of each future grant round can be
incorporated into the process used and decisions made.
Hopefully this helps.
Jenn
page. 9
4. MidCo.com screenshot showing 14757 Oren Rd N address is already served
page. 10
5. Communications with the FCC
From: Steve Kronmiller
Sent: Thursday, July 8, 2021 2:31 PM
To: Jessica Rosenworcel
Subject: Nexus to State and Federal Broadband Subsidy Programs
Honorable Acting Chairwoman Jessica Rosenworcel,
A question is being asked in my community about whether the City should be providing broadband expansion
subsidies to an ISP that will receive RDOF funding for those same census blocks.
Page 7 of the attached RDOF Policy document addresses State and Federal subsidies, indicating that census
blocks receiving subsidies from these sources would be defunded by the RDOF program. Then Chairman Ajit
Pai stated “… our goal is to not duplicate funding targeted to a particular area”.
My question for you is… what is the FCC’s position about areas receiving RDOF Funding and receiving
additional subsidies from local municipalities?
No one I’ve spoken with at the local or state level know the answer. I look forward to hearing from you on this
important funding policy question.
Steve Kronmiller
From: RuralBroadbandAuctions
Sent: Thursday, July 15, 2021 8:50 AM
To: Steve Kronmiller
Subject: RDOF questions
Mr. Kronmiller,
Your inquiry to Acting Chair Rosenworcel was passed along to the Rural Broadband Auctions Task Force for
response. I would like to call you briefly to explain. Could you let me know your best number and a
convenient time to call?
Audra Hale-Maddox
Chief of Staff
Rural Broadband Auctions Task Force
Federal Communications Commission
From: Audra Hale-Maddox
Sent: Thursday, July 15, 2021 6:35 PM
To: Steve Kronmiller
page. 11
Subject: RE: [EXTERNAL]: Re: RDOF questions
I’ll try to call you about 2 p.m. Eastern. I’ll be calling you from 202-704-1357 (fyi I have heard from folks I have
called that sometimes calls from this number show up as being from someone named “Crystal Hunter,” not
clear why as it is an FCC phone.) Talk to you tomorrow.
From: Steve Kronmiller
Sent: Thursday, July 15, 2021 4:39 PM
To: RuralBroadbandAuctions
Subject: [EXTERNAL]: Re: RDOF questions
I am available anytime Friday afternoon. My number is 1-651-746-4995.
What number might your call come on from?
Steve Kronmiller
From: Steve Kronmiller
Sent: Sunday, August 1, 2021 11:21 AM
To: Audra Hale-Maddox
Subject: [EXTERNAL]: RDOF Question
Audra,
Thank you for the call other day. I found it extremely helpful and informative. I was reviewing my notes and
wanted to confirm a couple of things I thought I heard:
We discussed the policy document I had found. It was drafted to provide guidance in selecting the Census
Blocks that would be eligible in the RDOF Auction later that year. It is not intended to guide program
implementation going forward.
We also discussed a question about a municipality providing additional funding to providers for expanding
broadband into their RDOF funded areas. Would you say the following statement is accurate?
The FCC will not take issue if providers get additional funding from other sources to expand
broadband. However, The RDOF contracts with providers specify expansion will occur to all homes in awarded
territories for the amounts guaranteed by the FCC. According to contract law, no contractor can receive
payments from multiple sources to provide the same products or services. As such, providing additional
funding to RDOF recipients to expand broadband to homes inside an awarded RDOF area would not be
appropriate. However, municipal funding would be appropriate if a separate agreement were written that
identified an additional list of “things” to be delivered. Some of these “things” might include priority buildout,
higher speeds, or lower consumer pricing.
The community I live in is incredibly grateful to the Federal and State governments for their funding of
broadband expansion. Without these programs, over 50% of my neighbors would never have access to reliable
page. 12
high speed internet. Many of us are missing the huge economic benefits broadband provides, especially during
the pandemic where telecommuting for work has become a requirement for many.
Thank you again for your time. I look forward to your confirmation or correction of the above.
Steve Kronmiller
From: Audra Hale-Maddox
Sent: Monday, August 2, 2021 9:41 AM
To: Steve Kronmiller
Subject: RE: [EXTERNAL]: RDOF Question
Yes, that sounds accurate to me. The RDOF commitment is to make service available to all “locations,” which
includes businesses and such in addition to homes. If your municipality puts together a funding program with
additional incentives similar to the California Kicker program, that won’t interfere with already-awarded RDOF
funding. We appreciate your interest in rural broadband expansion.
Audra Hale-Maddox
Chief of Staff
Rural Broadband Auctions Task Force
Federal Communications Commission
page. 13
6. 2021 Potential Expansion Areas Map
Link to 2021 Potential Expansion Areas Map
page. 14
7. List of 100 homes I am asking to be served this year
This list is in addition to the 63 homes in Quality Trail area, which are covered under a separate contract:
Area Street Address PID
RDOF 13815 240TH ST N 03-032-20-12-0001
RDOF 13840 236TH ST N 03-032-20-13-0015
RDOF 13860 236TH ST N 03-032-20-13-0006
RDOF 13865 236TH ST N 03-032-20-13-0014
RDOF 13895 236TH ST N 03-032-20-13-0013
RDOF 13913 240TH ST N 03-032-20-12-0010
RDOF 13925 236TH ST N 03-032-20-13-0012
RDOF 13935 240TH ST N 03-032-20-12-0002
RDOF 13955 236TH ST N 03-032-20-13-0011
RDOF 13970 237TH ST N 03-032-20-12-0004
RDOF 13987 236TH ST N 03-032-20-13-0010
RDOF 14010 237TH ST N 03-032-20-12-0003
RDOF 14017 236TH ST N 03-032-20-13-0009
RDOF 14020 236TH ST N 03-032-20-13-0007
RDOF 14045 237TH ST N 03-032-20-13-0004
RDOF 14047 236TH ST N 03-032-20-13-0008
RDOF 14050 237TH ST N 03-032-20-13-0001
RDOF 14070 236TH ST N 03-032-20-14-0007
RDOF 14075 237TH ST N 03-032-20-14-0006
RDOF 14077 236TH ST N 03-032-20-14-0010
RDOF 14090 237TH ST N 03-032-20-14-0004
RDOF 14115 240TH ST N 03-032-20-11-0002
RDOF 14160 236TH ST N 03-032-20-14-0008
RDOF 14190 236TH ST N 03-032-20-14-0009
RDOF 14195 237TH ST N 03-032-20-14-0005
RDOF 14197 240TH ST N 03-032-20-11-0003
RDOF 14210 237TH ST N 03-032-20-14-0001
RDOF 14560 OREN RD N 02-032-20-34-0001
RDOF 14604 OREN RD N 11-032-20-21-0001
RDOF 14700 OREN RD N 11-032-20-13-0001
RDOF 22780 OLINDA TRL N 11-032-20-12-0001
RDOF 22860 OLINDA TRL N 11-032-20-12-0003
RDOF 22900 OLINDA TRL N 11-032-20-12-0002
RDOF 22970 OLINDA TRL N 11-032-20-12-0004
RDOF 23020 OLINDA TRL N 02-032-20-43-0003
RDOF 23160 OLDFIELD AVE N 03-032-20-44-0001
RDOF 23183 OLDFIELD AVE N 02-032-20-33-0002
RDOF 23359 OLDFIELD AVE N 02-032-20-32-0003
RDOF 23377 OLDFIELD AVE N 02-032-20-23-0002
RDOF 23490 OLDFIELD AVE N 03-032-20-14-0013
page. 15
RDOF 23496 OLDFIELD AVE N 03-032-20-14-0012
RDOF 23703 OLDFIELD AVE N 02-032-20-23-0005
RDOF 23770 OLDFIELD AVE N 03-032-20-11-0005
RDOF 23800 NOVAK AVE N 03-032-20-12-0008
RDOF 23935 OLDFIELD AVE N 02-032-20-22-0002
RDOF 23950 OLDFIELD AVE N 03-032-20-11-0004
RDOF OLDFIELD Vacant Lot 02-032-20-32-0002
Other 14221 230TH ST N 10-032-20-11-0001
Other 15280 PILAR RD N 02-032-20-44-0006
Other 15400 PILAR RD N 12-032-20-22-0001
Other 15540 PILAR RD N 12-032-20-22-0010
Other 15610 PILAR RD N 12-032-20-24-0003
Other 15680 230TH ST N 01-032-20-34-0001
Other 22730 PENFIELD AVE N 12-032-20-23-0001
Other 22810 PERKINS AVE N 12-032-20-21-0011
Other 22811 PERKINS AVE N 12-032-20-21-0008
Other 22845 PERKINS AVE N 12-032-20-21-0007
Other 22867 PERKINS AVE N 12-032-20-21-0006
Other 22880 PERKINS AVE N 12-032-20-21-0010
Other 22891 PERKINS AVE N 12-032-20-21-0005
Other 22970 PERKINS AVE N 12-032-20-21-0009
Other 23039 PERKINS AVE N 01-032-20-34-0002
Other 23193 PARIS AVE N 02-032-20-44-0003
Other 23200 PARIS AVE N 02-032-20-44-0002
Other 23277 PARIS AVE N 01-032-20-33-0003
Other 23284 PARIS AVE N 02-032-20-41-0002
Other 23330 PARIS AVE N 01-032-20-32-0002
Other 23345 PARIS AVE N 01-032-20-32-0003
Other 23367 PARIS AVE N 01-032-20-32-0007
Other 23370 PARIS AVE N 01-032-20-32-0004
Other 23389 PARIS AVE N 01-032-20-31-0004
Other 23411 PARIS AVE N 01-032-20-31-0003
Other 23416 PARIS AVE N 01-032-20-32-0005
Other 23432 PARIS AVE N 01-032-20-32-0006
Other PERKINS Vacant Lot 12-032-20-21-0004
Other PILAR Vacant Lot 12-032-20-22-0009
DEED 14363 OREN RD N 11-032-20-22-0003
DEED 14401 OREN RD N 11-032-20-22-0002
DEED 14461 OREN RD N 11-032-20-22-0005
DEED 14649 OREN RD N 11-032-20-24-0002
DEED 15171 PILAR RD N 11-032-20-11-0007
DEED 15261 PILAR RD N 11-032-20-11-0010
DEED 15359 PILAR RD N 12-032-20-22-0007
DEED 15451 PILAR RD N 12-032-20-22-0005
DEED 22605 OLINDA TER N 11-032-20-14-0011
page. 16
DEED 22695 OLINDA TRL N 11-032-20-14-0006
DEED 22727 OLGILVIE AVE N 11-032-20-23-0005
DEED 22732 OLGILVIE AVE N 11-032-20-23-0007
DEED 22739 OLGILVIE AVE N 11-032-20-23-0004
DEED 22744 OLGILVIE AVE N 11-032-20-23-0009
DEED 22761 OLGILVIE AVE N 11-032-20-22-0009
DEED 22766 OLGILVIE AVE N 11-032-20-22-0012
DEED 22770 PENFIELD AVE N 12-032-20-22-0004
DEED 22787 PENFIELD AVE N 12-032-20-22-0006
DEED 22793 OLGILVIE AVE N 11-032-20-22-0008
DEED 22798 OLGILVIE AVE N 11-032-20-22-0011
DEED 22825 OLGILVIE AVE N 11-032-20-22-0007
DEED 22830 OLGILVIE AVE N 11-032-20-22-0010
DEED 22839 OLINDA TRL N 11-032-20-11-0008
DEED 22959 OLINDA TRL N 11-032-20-11-0002