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ARF- 6071      2. A.    
Work Session
Meeting Date: 05/26/2020  
Submitted For: Roy Sandoval
Submitted By: Jacque Sanders, Deputy County Manager/Librarian
Department: Deputy County Mgr/Library District  
Fiscal Year: FY2020-20121 Budgeted?: Yes
Contract Dates
Begin & End:
July 1, 2019 to June 30, 2024 Grant?: Yes
Matching
Requirement?:
Yes
Fund?: New

Information
Request/Subject
Acceptance of Universal Services Administrative Company (USAC) ERate and Arizona Department of Education State Match Funding in the total amount of up to $19,817,930.06 for the Gila County Information Education Technology Consortium for construction to build infrastructure to provide high-speed internet to every school and library in Gila County.
Background Information
During the fall of 2018, the Gila County School Superintendent's Office and the Gila County Library District formed the Gila County Information Education Technology Consortium to allow member school districts and the Library District to solicit bids to provide high-speed internet service and qualify for federal rebate funding through the USAC ERate program. The Board of Supervisors acting as the Library District Board of Directors approved the formation and authorized the participation of the Library District on December 4, 2018. Shortly after the formation, the Gila County Information Education Technology Consortium (GCIETC) published a request for proposals (RFP) through the ERate process to expand options for construction costs for increased bandwidth and internet access. After an extensive review process which included the Gila County Finance Department as the Consortium's fiscal agent, along with the GetFunded consulting agency, CableOne (now Sparklight) provided the most responsive bid in the amount of $19,490,128.46. At the time, there was additional funding available from USAC for construction to assist with the expansion of broadband connectivity. Because the plan could still leave a library or school with a substantial cost share responsibility, the Office of the Governor, the Arizona Corporation Commission, the Arizona Department of Education and the Arizona State Library partnered to create an additional grant program to assist schools and libraries with up to 20% of the construction cost-share responsibilities, administered by the Arizona Department of Education.  The project has been in the review stage with USAC since February 2019.

In March 2019, the Arizona Department of Education approved the state match funding request contingent upon successful approval from USAC in the amount of up to $1,949,012.85.

The GCIETC project received a Funding Commitment Decision Letter (FCDL) from USAC on May 13, 2020, in the amount of $17,868,917.21.
Evaluation
The total committed funds from USAC is $17,868,917.21. The total committed State Match Funding is for up to $1,949,012.85. The State Match Funding will fulfill the USAC required matching funds for this construction project. There are no additional Gila County funds required for matching funds.

The actual grant funds will not come to Gila County, but rather the contractor will bill USAC and the state funds directly. Milan Eaton, State ERate Director, will serve as Project Manager for this project.

Following the construction process, the Gila County Finance Department will serve as the fiscal agent for the Consortium for billing and payment of the twenty percent responsibility for the entities for internet access.
Conclusion
Without a doubt, this long awaited endeavor is vitally important to schools and libraries, particularly at this time when the ability to provide online instruction has become critical to meeting the needs of students and residents throughout Gila County.
Recommendation
Staff recommends acceptance of Universal Services Administrative Company (USAC) ERate and Arizona Department of Education State Match Funding in the total amount of up to $19,817,930.06 for the Gila County Information Education Technology Consortium for construction to build infrastructure to provide high-speed internet to every school and library in Gila County.
Suggested Motion
Information/Discussion/Action to accept grants from the Universal Services Administrative Company (USAC) ERate and Arizona Department of Education State Match Funding in the total amount of up to $19,817,930.06 for the Gila County Information Education Technology Consortium. (Roy Sandoval/ Jacque Sanders)

Attachments
USAC FCDL
ADE State Match Funding Letter

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