HomeMy WebLinkAboutStaff Report 339-07City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COI~CIL
CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:AUGUST 6, 2007 CMR: 339:07
SUBJECT:BROADBAND VENDOR PACKETFRONT ACQUIRING DYNAMICCITY
This is an informational report and no Council action is required.
DISCUSSION
PacketFront, one of the consortium vendors selected in the Broadband RFP process, is in the
process of acquiring DynamicCity. The latter was one of two responders to the original
Broadband RFP the City issued and is the operator of the UTOPIA broadband system in Utah.
Attached is a letter from PacketFront informing the City of this acquisition and its potential
impacts.
This transaction exemplifies the fluidity of the telecommunications industry and the changes the
City can expect in the future. Accustomed to long-term business relationships, the City will be
challenged to develop contracts ensuring the consistency and quality of broadband services at
minimal or no cost to the City. Acquiring DynamicCity will affect PacketFront’s financial
condition. Once this transaction is complete and prior to delivery of a final business plan, staff
wil! evaluate the financial condition of the consortium partners responsible for constructing and
operating the broadband system.
As directed by Council, City staff is in the process of identifying assets and resources that can be
used to implement an ultra high-speed broadband project. The 180 Connect consortium, with
staff’s support, is in the process of developing a business plan which is expected to be completed
in 6 months.
RESOURCE IMPACT
This report has no resource impact.
POLICY IMPLICATIONS
This project is consistent with Council direction.
E3,WIRONMENTAL REVIEW
This report does not pertain to a project for CEQA purposes and thus an environmental
assessment is not required.
CMR:339:07 Page 1 of 2
PREPARED BY:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
~.!OSEPH SACCIO
Deputy Director, Administrative Services
Director, Administrative Services
EMILY HARRISON
Assistant City Manager
ATTACHMENTS
Attachment A:July 30, 2007 Letter from PacketFront Informing City of DynamicCity
Acquisition
CMR:339:07 Page 2 of 2
Will DynamicCity continue to operate the UTOPIA nem, ork?
..... ....Pacl( tFront
The UTOPIA contract is being transferred to PacketFront, and PacketFront expects to
operate the UTOPIA network for many years into the future. The people within
DynamicCity who operate the UTOPIA network are all being transferred to PacketFront.
Does this change in any way our approach to Palo Alto?
Not at all. This acquisition simply strengthens our current consortium partner approach
offered to Palo Alto by adding further proven expertise to the PacketFront team.
Does this acquisition change the organizational structure of PacketFront?
Yes, it enables us to fully evolve our team around the needs of our clients. We now have
departments fully dedicated to technology architectures and solutions for our clients,
departments focused on managing the assets of our clients, departments focused on
managing the required financing and governance approach for our clients and teams
focused on ensuring the marketing of our joint initiatives are successful.
I expect that you find this news of positive interest to the City of Palo Alto.
PacketFront looks forward to providing an ultra-high-speed network to the citizens and
businesses of Palo Alto. This network will support an array of Service Providers and
Internet Protocol (IP) services, enabling each customer to self-select the provider and
services that they desire. We firmly believe that Palo Alto provides the perfect location
for an open access FTTH network that can foster local economic development and
provide a foundation for creative new seladces to be developed that should include
benefits to commerce, healthcare and education, among many others.
I look forward to discussing any questions, concerns or comments that you may have.
Kind regards,
Tim Scott
VP Sales and Marketing
PacketFront Inc
Tel. 978 204 1452
~¥.packet~ont.com
PacketFront Inc - 98 SpitBrook Rd - Suite 304 - Nashua, NH - 03062 - tel (603)888 5100 - fax(603)888-5101