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SANDPOINT — A $1.6 million contract to expand broadband in Bonner County was signed by commissioners on Thursday.

The contract between the Idaho Department of Commerce and internet companies Ziply Fiber and Kaniksu Internet will be funded with Coronavirus Aid, Relief, and Economic Security Act money.

The aim of the project is to improve telehealth, tele-education, and telecommuting in rural areas across Idaho.

“We bowed out the first time, we had legal issues,” said Scott Bauer, civil deputy prosecutor at Thursday’s meeting. “We’ve worked out to our satisfaction the legal issues this round.”

The legal issues focused on whether county taxpayers would be on the hook for the seven-figure bill if federal auditing did not approve the way CARES Act money was spent in the county. Sept. 30 marked the deadline for when CARES Act money could be spent.

“This is money that is just being passed through. It’s state CARES act money,” said Bauer in late August. “This distribution is $10 million statewide and they’re offering Bonner [County] a relatively large percentage of that.”

A contract that was already signed by all of the involved parties, besides the commissioners, was presented to commissioners Thursday.

After no one from the public offered comment, commissioner Jeff Connolly moved to approve the resolution. Commissioner Dan McDonald stepped down from the chair to approve the resolution. Commissioner Steve Bradshaw was not present.

$1.3 million was awarded to Northwest Fiber, doing business as Ziply Fiber, for broadband improvements in the Blanchard area. The remaining $300,000 was awarded to Kaniksu LLC for broadband improvements in the Spring Creek area near Clark Fork.

“The way that this was structured by the state is that the vendors themselves would drive this,” Bauer said. “Just Ziply and Kaniksu are the only vendors that came in with very specific plans.”

Even though it is unknown at this time when the projects are set to begin, the proceedings have always been on a time crunch. The application window lasted for 10 days this summer at the end of June and early July, according to Bauer at the Aug. 24 commissioner’s meeting.

Upon completion, the project will aim to increase connectivity for rural Idaho residents.

“This project is to deliver last-mile, gig-speed fiber connectivity to nearly 700 homes and businesses in the area,” said Dan Miller, senior vice-president of Ziply Fiber.

The expansion will focus mostly on smaller and rural towns, and is part of the company’s multi-year $500 million investment in its network and improved service in both urban and rural settings throughout the region, Ziply officials said in a press release earlier this year.