CC 2014-10-28_08.e. Approve Fiber Agreement with CCO SoCal F NRROYO
O c'P
,' INCORPORATED 7
U m
* JULY 10. 1811
C,q4 N\P
FOR
MEMORANDUM
TO: CITY COUNCIL
FROM: KELLY WETMORE, DIRECTOR OF LEGISLATIVE AND INFORMATION
SERVICES/CITY CLERK
BY: WALT CUZICK, INFORMATION TECHNOLOGY MANAGER
SUBJECT: CONSIDERATION OF A MASTER FIBER AGREEMENT WITH CCO
SoCAL, LLC (CHARTER COMMUNICATIONS)
DATE: OCTOBER 28, 2014
RECOMMENDATION:
It is recommended the City Council: 1) approve a one year Master Fiber Agreement with
CCO SoCAL, LLC (Charter Communications) in the amount of $41,000; 2) Approve use
of $24,000 from budgeted contingency funds; and 3) authorize the Mayor to execute the
Agreement in a form approved by the City Attorney.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
On June 10, 2014, the Council approved $30,000 for INet services in the FY 2014-15
Budget Update Report. it was determined at the time that any additional costs over the
$30,000 would be funded from $50,000 in approved contingency funds. Therefore, no
additional appropriation is needed as the FY 2014-15 Budget has sufficient funds to
cover the cost of the annual agreement. Of the approved amount ($30,000), $13,000
has been used for the purchase of required network equipment to support the new fiber
optic network configuration.
BACKGROUND:
In 2002, Charter Communications (Charter) agreed to install a fiber optic Institutional
Network (INet) for the City of Arroyo Grande at no cost to the City in exchange for a
three-year extension of the existing Franchise Agreement. Since that time, Charter has
provided at no cost a dedicated fiber optic system (INet) to City facilities for connection
of the City's computer network, resulting in a substantial cost savings for the City. In
addition, having a fiber optic network infrastructure has enabled the City to implement a
centralized Information Technology (IT) environment while reducing administrative and
maintenance costs associated with delivering effective IT services.
In June of this year, the City was notified that charges for INet usage would be
implemented upon expiration of the Franchise Agreement on August 27, 2014 based on
terms of use and the amount of fiber utilized. At the time of the Budget Update Report,
Item 8.e. - Page 1
CITY COUNCIL
APPROVAL OF MASTER FIBER AGREEMENT WITH CCO SoCAL LLC (CHARTER
COMMUNICATIONS) FOR USE OF DARK FIBER OPTIC CABLE
OCTOBER 28, 2014
PAGE 2
the cost was estimated at $40,000 - $60,000 annually. City IT staff has since evaluated
and determined the most effective use of the fiber to minimize associated costs for a
one year period while a cost effective long-term solution can be developed.
ANALYSIS OF ISSUES:
Staff has determined the most cost effective use of fiber by reducing the number of fiber
strands required to connect City facilities to a single strand fiber configuration. The
initial cost provided by Charter to maintain connectivity as it exists today was
approximately $115,000 for a one year agreement. By reducing the number of fiber
strands that are utilized, City staff has determined that effective IT services can be
delivered to City facilities for approximately $35,000 for a one year agreement.
However, existing fiber use and network connectivity to the Woman's Center (211
Vernon Ave) is required to remain as-is to support the temporary Police Department
until the Police building remodel project is complete. The additional service will be
billed on a month-to-month basis at a cost of $982.00 per month (estimated for up to 6
months), which is included in the cost of the Agreement. During the (1) year
agreement, staff will work on developing a cost effective long-term network solution that
will enable delivery of IT services to staff, and allow for future growth of the City's IT
environment.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve the Master Fiber Agreement with Charter Communications for (1) year;
2. Do not approve the Master Fiber Agreement and direct staff to seek new proposals;
or
3. Provide direction to staff.
ADVANTAGES:
A one year fiber agreement will enable City staff to continue delivery of IT services and
maintain system integrity while providing sufficient time to develop effective alternatives.
DISADVANTAGES:
There are no identified disadvantages.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, October 23, 2014. The
Agenda and staff report were posted on the City's website on Friday, October 24, 2014.
Attachment:
1. Monthly cost schedule
Item 8.e. - Page 2
ATTACHMENT 1
EXHIBIT A.
This Exhibit A represents those Licensed Fibers which Provider has granted specific license for use to
Recipient and the monthly fees to be paid by Recipient to Provider in consideration of such license.
Monthly Cost
,Strand '.
A Location .,', , Z:Location .%Address *, Count' Miles n Feet Cost at:04 cent
City Hall Fire Dept 300 E. Branch To 140 Traffic Way 1 0.56 2,931 $117.24
City Hall Police Dept 300 E Branch To 200 N. Halcyon 4 1.17 6,170 $987.20
City Hall Women's Club 300 E. Branch To 211 Vernon Ave 1 1.55 8,179 $327.16
Recreation
City Hall Center 300 E Branch To 1221 Ash Street 1 3.36 17,766 $710.64
Council
City Hall Chambers 300 E. Branch To 215 E. Branch 1 0.13 1 668 $26.72
City Hall Old City Hall 300 E. Branch To 214 E. Branch 0 0.09 475 $0.00
Recreation Maintenance
Center Yard 1221 Ash St To 1375 Ash Street 0 5.24 27,678 $0.00
Maintenance 211 Vernon Ave To 1375 Ash
Women's Club Yard Street 1 3.49 18420 $736.80
15.59 82,287 $2,905.76
Term .1 Year
Monthly Cost
`--s � - Ll� •�: - -,�, x � •,a , .., -z:- "r• "..",'ATM—'"'_,
Strand-- 1.
"A Location. Z Location A-ddress r° Count. :Wiles. Feet Cost at,:04,cent
City Hall Women's Club 300 E. Branch To 211 Vernon Ave 3 1.55 8,179 $981.48
$981.48
Month-to-
Term Month
SPECIAL PROVISION. Charter agrees to allow the additional three (3) strands at the Women's Club
continue on a month-to-month basis if the signed Mater Fiber Agreement is returned to Charter by
November 14,2014. In the event the Agreement is not returned to Charter by the aforementioned date,
these additional three (3) strands shall continue on a one year term.
CCO SoCal 1, LLC City of Arroyo Grande
By: Charter Communications, Inc., its Manager
Name: Name:
Title: Vice President Title:
Date: Date:
Confidential Page 1
Item 8.e. - Page 3
THIS PAGE INTENTIONALLY LEFT BLANK
Item 8.e. - Page 4