HomeMy WebLinkAboutStaff Report 142-10TO:
FROM:
DATE:
HONORABLE CITY COUNCIL
CITY MANAGER
FEBRUARY 8, 2010
REPORT TYPE: CONSENT
SUBJECT:
DEPARTMENT: UTILITIES
CMR: 142:10
Approval of and Delegation to the City Manager to Execute
Amendment Number Three to Contract No. S09128567 with
Columbia Telecommunications Corporation to Retain Professional
Telecommunication Services in Support of an Economic Stimulus
Grant Application for the Broadband Project in an Amount Not to
Exceed $50,000 in Calendar Year 2010
RECOMMENDATION
Request for the Council's approval of and delegation to the City Manager to execute Amendment
Number Three to Contract No. S09128567 with Columbia Telecommunications Corporation
(CTC).
BACKGROUND
On February 1, 2010, the Council unanimously approved CMR 130.10. The CMR requested the
Council's approval of Amendment Number Three to Contract No. S09128567 with CTC. The
contract amendment is required in order to retain professional engineering services to be
rendered in connection with the City's filing of an economic stimulus grant application for the
broadband project, in an amount not to exceed $50,000 during calendar year 2010.
DISCUSSION
Due to the short lead time to bring CMR 130:10 to the Council on February 1, 2010, it was not
possible to attach the contract amendment to the report. The contract amendment is attached for
the Council's review and approval. The City Manager requests the Council's delegation of
authority to sign the contract amendment in order that the services of the consultant may be
expeditiously retained.
RESOURCE IMPACT
A mid -year budget request will be submitted to request the appropriation of $50,000 from the
Fiber Optics Fund Rate Stabilization Reserve. This transaction will reduce the Fiber Optics
Fund Rate Stabilization Reserve from $6,435,147 to $6,385,147.
POLICY IMPLICATIONS
The report is consistent with the Council's policy and program direction provided to staff.
CMR: 142:10 Page 1 of 2
ENVIRONMENTAL REVIEW
The actions requested in this report do not constitute a project for the purposes of the California
Environmental Quality Act. Build -out of the Broadband System is subject to the requirements of
the California Environmental Quality Act due to the installation, construction and maintenance
of facilities in the public rights -of -way. Necessary environmental review will occur when
appropriate.
ATTACHMENT
A: Amendment Number Three to Contract No. S09128567
PREPARED BY:
Assistant Director — Engineering
1.`'
JA LEMIN
Management Specialist
APPROVED BY:
VALE
Direct
CITY MANAGER APPROVAL:
City Manager
CMR: 142:10 Page 2 of 2
AT TACHMENT A
AMENDMENT NO. 3 TO AGREEMENT NO. S09128567
BETWEEN THE CITY OF PALO ALTO AND
COLUMBIA TELECOMMUNICATIONS CORPORATION
This Amendment No. 3 to Agreement No. S09128567
("Agreement") is entered into February 8, 2010, by and between the
CITY OF PALO ALTO ("CITY"), and COLUMBIA TELECOMMUNICATIONS
CORPORATION, Maryland based firm, licensed to do business in the
State of California, located at 5562 Heron Point Road, Royal Oak,
MD 21662 (PH) 410-745-5958("CONSULTANT").
RECITAL S:
WHEREAS, the Agreement was entered into on July 28, 2008,
between the parties for the provision of ENGINEERING SUPPORT
SERVICES FOR THE ULTRA HIGH SPEED BROADBAND PROJECT; and
WHEREAS, the parties wish to amend the Agreement;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION 1. The section entitled "SCOPE OF SERVICES is
hereby amended, to read as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform
the Services described in Exhibit "A", Exhibit "A-1" and Exhibit
"A-2", in accordance with the terms and conditions contained in
this Agreement. The performance of all Services shall be to the
reasonable satisfaction of CITY.
SECTION 2. The section entitled "TERM" is hereby
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amended, to read as follows:
SECTION 2. TERM. The term of this Agreement shall be from
the date of its full execution through completion of the services
on or before February 28, 2011, unless terminated earlier pursuant
to Section 19 of this Agreement.
SECTION 4. The section entitled "NOT TO EXCEED
COMPENSATION" is hereby amended, to read as follows:
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation
to be paid to CONSULTANT for performance of the Services described
in Exhibit "A", Exhibit "A-1" and Exhibit "A-2", including both
payment for professional services and reimbursable expenses, shall
not exceed one hundred thirty five thousand dollars ($135,000.00).
The applicable rates and schedule of payment are set out in Exhibit
"C", entitled "COMPENSATION," which is attached to and made a part
of this Agreement.
EXHIBITS. The following exhibit(s) to the Agreement
is/are hereby amended to read as set forth in the attachment(s) to
this Amendment, which are incorporated in full by this reference:
a. Exhibit A-2 entitled: Scope of Service (Revised)
b. Exhibit C entitled: COMPENSATION.
Except as herein modified, all other provisions of the
Agreement, including any exhibits and subsequent amendments
thereto, shall remain in full force and effect.
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100203 9000050 Amend.agt
Rev. July 31, 1998
IN WITNESS WHEREOF, the parties have by their duly
authorized representatives executed this Amendment on the date
first above written.
CITY OF PALO ALTO COLUMBIA TELECOMMUNICATIONS
CORPORATION
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Purchasing Manager
By:
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Title: ireS\d-ert
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Attachments:
EXHIBIT "A-2" SCOPE OF SERVICE (REVISED)
EXHIBIT "C" Revised: COMPENSATION
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Rev..luly31, 1998
EXHIBIT A-2
Columbia Telecommunications Corporation
Statement of Work
NTIA Second Round Technical Support
to the City of Palo Alto
Task 1. Prepare Engineering Evaluation and Aggregate System -Level
Design
Subtask 1: Engineering Planning (Estimated cost allocation: $5,000)
The engineering planning will include:
• Further analysis of the assets (including fiber) already owned and operated by the City, and
how those assets can be strategically used to facilitate construction of the network.
• A technical assessment of installing a dark fiber network, including engineering
requirements and logistical issues.
• A technical governance model to support a fiber network design.
• Consideration of potential partnerships (e.g., fiber backbone service providers and wireless
operators).
Subtask 2: Technical Design (Estimated cost allocation: $20,000)
The aggregate technical design will demonstrate to NTIA the City's preparedness to build and
operate the network and justify how stimulus funds will be spent. The plan will include:
• Network logical design
• Recommended peering and interconnection method
• Application hosting and delivery recommendations
• Core network schematic
• Justification for technology choices
• Backbone routing
• Recommended use of utility poles
• Recommended construction technique for underground service areas
• User premises recommendations for anchor tenants (if identified) to be served over the
anticipated network service area
• Facility entry recommendations
• Multiplexing technology and recommended aggregation points
• Migration and upgrade plan
• Bill of materials
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Statement of Work — Palo Alto
• Cost estimates
• Labor estimate
• Recommended training and classification of labor force
• A buildout schedule that will enable the City to meet the ARRA-mandated two-year window
for substantial completion of the project
• Project plan
• Description of areas of risk and measures to mitigate risk
Task 2. Evaluate Sustainability and Prepare Aggregate Business Plan
(Estimated cost allocation: $15,000)
Based on the findings in the previous tasks and the level of infrastructure required to meet the needs
of participating members and potential anchor tenants, we will evaluate the sustainability of the
model and build a business case to demonstrate to NTIA that sustainability.
The sustainability analysis is intended to demonstrate the financial risks versus the financial and
functional benefits of the selected model. We will project capital and operating costs and, as
appropriate, potential revenues.
Through these analyses, we will be able to quantify the net operating cost of the model to the City so
that decision -makers are fully aware of the cash -flow requirements beyond the period of the BTOP
grant.
The analysis will provide schedules that detail:
• Net present value analysis
• Debt service analysis
• Reserve fund requirements
• Uses and sources of funds
• Operating expenses
• Operational savings
• Depreciation summary
• Projected construction costs summary for network, hardware, buildings and other equipment
The cost/benefit analysis will follow accounting standards. The analysis will also highlight the
critical assumptions that have the greatest impact or sensitivity to the models' projected outcomes.
Significantly, the analysis will also demonstrate the impact of Recovery Act funding on the models
at various levels. Specifically, we'll project and document how the risk of the project is reduced by
different amounts of grant funding for capital costs, ranging from 20 percent up to 100 percent
funding of capex.
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Statement of Work — Palo Alto
Task 3. Prepare and Present Report and Documentation (Estimated cost
allocation: $2,500)
CTC will provide the City with a detailed draft report in electronic form documenting all of our
findings and recommendations from the feasibility study. We will provide a final, edited version
within 5 days of receipt of your comments.
Task 4. Assist City Staff in Preparing a BTOP Grant Application
(Estimated cost allocation: $7,500)
With input from City management, CTC will prepare a grant application to submit to NTIA for the
second round of BTOP funding. This proposed statement of work assumes that the City will work
cooperatively and actively with us to provide information and materials about its processes and
experiences —all of which we believe will be essential for the grant application.
NTIA has not yet released the application for the second round of funding, but based on discussions
with agency sources, our experience in the first round of funding, and our reading of the Notice of
Funding Availability (NOFA) for the second round, we expect to focus your application on the
following:
First, a "comprehensive communities" approach. The NTIA has announced its intention to focus on
a Comprehensive Community Infrastructure (CCI) model that prioritizes middle mile projects
serving community anchor institutions. We will therefore work with the City to craft an application
that, to the extent possible, meets the CCI preference items. Specifically, NTIA will give priority to
CCI projects that propose to serve anchor institutions "that have expressed a demand or indicated a
need for access or improved access to broadband service." In addition to that general criteria, the
NOFA establishes priority for Middle Mile broadband infrastructure projects that, in order of
importance, intend to:
(1) offer new or substantially upgraded service to community anchor institutions;
(2) incorporate a public -private partnership among government, non-profit and for-profit
entities, and other key community stakeholders;
(3) bolster growth in economically distressed areas;
(4) serve community colleges;
(5) serve public safety entities;
(6) include (i) a Last Mile infrastructure component in unnerved or underserved areas; or (ii)
commitments or non -binding letters of intent from one or more Last Mile broadband service
providers; and
(7) contribute a non-federal cost match that equals or exceeds 30 percent of the total eligible
costs of the project.1
1 BTOP NOFA, Section II(B)(1)(b).
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Statement of Work — Palo Alto
Second, past performance and sustainability. The law requires a grantee to demonstrate that it is
"capable of carrying out the project or function to which the application relates in a competent
manner in compliance with all applicable Federal, State, and local laws."
We therefore will demonstrate the selected governing entity's proven capability —in terms of
technical expertise, business processes, and a realistic business model —to operate a network once
the grant funding and construction are complete. We will document the governing entity's past
performance in both network construction and operations. We will also document sustainability, in
the form of a business plan that demonstrates your project will be viable when the federal grant
funding period of two years (for substantial completion) expires.
Third, accountability. NTIA will require grantees to demonstrate that they have internal controls and
procedures for responsible expenditure of public monies. Applicants must show accountability for
spending the money they receive. The law requires grantees to report quarterly, in a format to be
specified by NTIA, regarding "use of the assistance and progress fulfilling the objectives for which
such funds were granted." The reports will be available to the public.
Fourth, efficiency and imminence. Applicants must commit to spending their funding expeditiously,
within two years of receiving it. This requirement favors so-called "shovel -ready" projects, and
those submitted by municipalities, utilities, and other entities with experience designing,
constructing, and operating communications networks. Thus, we will work to ensure that your grant
application demonstrates shovel -readiness, in the forms of:
1. appropriate levels of engineering and design, including specifications, detailed budget, and a
build -out schedule for the residences and small businesses that will be served
2. proof of commitments from partners, in the forms of Memoranda of Understanding or letters
of commitment from public and private partners.
3. demonstration that procurement processes will be efficient and/or expedited
4. copies of existing contracts, procurements, and/or purchase orders, or, if these are not yet
feasible, bid documentation
5. copies of permits, if feasible
Fifth, metrics and data collection. The administration very much sees the grant process as being a
source of important data for the development of a national broadband strategy and for the
administration's ongoing and long-term broadband plans. This focus on data suggests a few things.
First, your project will be more fundable if your grant application includes a thoughtful and nuanced
discussion of what metrics you will use to determine your project's success, how those
measurements will be made, and what kind of data —from deployment and cost to uptake, benefits,
and outcomes —will be collected and made available.
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EXHIBIT "C" REVISED
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached to Agreement as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed
$135,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost.
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel
and meal expenses for City of Palo Alto employees, and will be subject to pre -approval by the
CITY..
B. Long distance telephone cellular phone, facsimile transmission and postage charges are
reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $250.00 shall be approved in advance by the CITY's
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT' s proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C -l. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY's Project Manager and CONSULTANT prior to commencement of the
services. . Payment for additional services is subject to all requirements and restrictions in this
Agreement.
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