HomeMy WebLinkAboutStaff Report 3329 City of Palo Alto (ID # 3329)
City Council Informational Report
Report Type: Informational Report Meeting Date: 12/3/2012
December 03, 2012 Page 1 of 3
(ID # 3329)
Title: Palo Alto Unified School District Dark Fiber Service
Subject: Amendment No. One to Dark Optical Fiber License Agreement with the
Palo Alto Unified School District
From: City Manager
Lead Department: Utilities
Executive Summary
The City plans to build out its fiber network to serve all of the Palo Alto Unified School District
(District) school sites as well as their District Office at 25 Churchill Ave. This network expansion
will serve the needs of both the City and the District. The District will get a high speed, highly
reliable network that offers all of the advantages of a state-of-the-art communications
backbone. The expansion of the network to previously unserved areas allows the City to
provide service as well as additional diverse routes, creating new value for the fiber network.
Under a revised agreement with the District, the City and the District will share equally in the
cost of the capital project to extend the dark fiber system and the City will allow the District to
pay its share of the cost over ten years.
Background
The City and the District executed a Dark Optical Fiber Backbone License Agreement (License
Agreement) on December 16, 2010. Under this License Agreement the City provides dark fiber
services to the Terman School. The City and District plan to amend the License Agreement so
that when the City extends its dark optical fiber backbone system, it will provide dark fiber
services to the District’s business office and seventeen school premises in addition to Terman
School. The City will benefit from the extension of the system as it will have more flexibility to
serve existing and future customers. The District and the City have agreed to each pay one-half
of the cost of the interconnection.
On March 19, 2012, the City and the District signed a Letter of Intent (LOI) for the project. The
LOI was not intended to be a binding contract between the City and the District with respect to
the project, but was intended to facilitate discussion of the project and to clarify the basis on
which the City and District would amend the License Agreement or execute a new License
Agreement regarding the rights and obligations of the parties for the project.
The following is a summary of the terms and conditions in the LOI:
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(ID # 3329)
1. The City will bear one-half of the one-time interconnection fee and the District will
reimburse the City for the other one-half in 120 monthly payments over ten years.
2. The District will pay the Total Base Monthly Fee for services at the Public Agency Rate under
Utility Rate Schedule EDF-3.
3. The term of the amended License Agreement will be five years, in so far as the current
License Agreement’s ten-year term will be shortened to five years). The five-year term may
be extended for one additional five-year term.
4. All capital improvement work on the Stanford campus in order to facilitate services to the
Escondido and Nixon Schools will be performed by the District.
5. The District will be responsible for applying for and securing federal E-rate funding for the
project from the Universal Service Administrative Company.1
In November 2012, an advance engineering study was completed, which determined the total
one-time interconnection fee of $425,910 and the Total Base Monthly Fee of $11,202. The
District’s portion of the interconnection fee for the Project is $199,761, which includes a
deduction of $13,194 previously paid by the District for the advance engineering study. The
design of the system to interconnect with the District’s premises allows for redundancy as
called for in the design the District requested to efficiently and reliably operate its network.
Discussion
The City of Palo Alto Utilities’ Capital Improvement Program (Fiber Optics System
Improvements FO-10001) authorizes the extension of the dark fiber system to increase
capacity, develop fiber sub-rings, and general improvements. A key benefit of extending the
dark fiber system is that dark fiber coverage and capacity is upgraded throughout the
community and the system is more available not only for use by new and existing customers,
but also to support future City initiatives dependent on access to robust communications
infrastructure. For these reasons, it is in the City’s interest to share the cost of the system
extension to serve the additional eighteen District premises with dark fiber connectivity, while
simultaneously improving coverage and capacity for future use.
Examples of possible future uses of an improved dark fiber system include an overlay of a
municipal wireless network capable of supporting a variety of users and applications related to
public safety, field-based City staff requiring mobile broadband access, and public WiFi access.
Fiber optics play an integral role in deploying reliable, high-bandwidth wireless networks since
fiber provides essential communication links. An improved system would also establish a more
ubiquitous platform for a wireless communications network to support the deployment of
Smart Grid technologies in the future.
1 The Universal Service Administrative Company administers E-rate funding for schools and libraries, under the
oversight of the Federal Communications Commission (FCC). In 2010, the FCC expanded the use of E-rate Funds by
schools and libraries to obtain broadband services from any entity, including leasing “dark” fiber from local
government entities. E-rate funding is only applicable to monthly recurring charges for dark fiber services. E-rate
funding is not available for one-time interconnection fees for dark fiber services.
December 03, 2012 Page 3 of 3
(ID # 3329)
Timeline
The Proposal for Dark Fiber Services and the Amendment No. One to License Agreement has
been submitted to the District for consideration. If the District accepts and authorizes the
proposal and executes the contract amendment, it is anticipated the project will be completed
on or after July 1, 2013.
Resource Impact
This project represents an increased workload for Utilities, but can be completed with existing
staff.
Policy Implications
This project does not represent a change to current City policies.
Environmental Review
This project is not subject to the California Environmental Quality Act (CEQA) pursuant to
California Public Resources Code Section 21080(b)(8) and Title 14 of the California Code of
Registration Section 15273(a)(1) and (3).
Attachments:
Attachment A: PAUSD Amendment No 1 to DOFBLA (PDF)
Attachment B: Proposal for Dark Fiber Services (PDF)
Attachment C: PAUSD Letter of Intent March 19, 2012 (PDF)
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AMENDMENT NO. 1 TO DARK OPTICAL FIBER BACKBONE
LICENSE AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
THE PALO ALTO UNIFIED SCHOOL DISTRICT
This Amendment No. 1 to Dark Optical Fiber Backbone License Agreement (the
“Agreement”) is entered into by and between the CITY OF PALO ALTO, a California chartered
municipal corporation (the “CITY”), and the PALO ALTO UNIFIED SCHOOL DISTRICT (the
“CUSTOMER”), a California unified school district, located at 25 Churchill Avenue, Palo Alto, CA
94306 (individually, a “Party” and, collectively, the “Parties”).
R E C I T A L S:
A. The Agreement was entered into on December 16, 2010, between the
parties for the provision of dark fiber services.
B. The Parties wish to amend the Agreement to memorialize the Parties’
understanding that the City is extending its dark optical fiber backbone in Palo Alto and will
agree to pass by the CUSTOMER’s school premises in consideration of the CUSTOMER’s
agreement to pay at least one-half of the interconnection fees attributable to the capital
improvement benefits to the CUSTOMER.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment No. 1, the Parties agree:
SECTION 1. Section 3(a) of the Agreement is hereby amended in its entirety to read,
as follows:
“The Agreement shall commence on the Commencement Date and shall continue until
the Agreement expires or is sooner terminated in accordance with the covenants, terms and
conditions of the Agreement; provided, however, (i) the initial term shall be five (5) years, and
(ii) the initial term may be extended by the CUSTOMER upon one hundred twenty (120) days’
prior written notice to the CITY for one additional five-year term.”
SECTION 2. Section 7(a) of the Agreement is hereby amended in its entirety to read,
as follows:
“The CUSTOMER shall pay to the CITY the current fees that are identified in each
Proposal and referred to in Utility Rate Schedules EDF-2 and EDF-3, including the Dark Fiber
Backbone License Fees, Drop Cable Management Fees, Custom Cable Management Fees, and
any applicable administrative and miscellaneous charges. The CUSTOMER shall pay the fees
identified in each Proposal without set-off or recoupment, in accordance with the covenants,
terms and conditions of the Agreement. Upon the execution of the Proposal, Exhibit B-1, the
CITY shall charge the CUSTOMER only one-half of the total one-time Interconnection Fee, and
the CUSTOMER shall pay and otherwise reimburse the CITY such fee in 120 monthly payments
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over a ten-year period, provided the CUSTOMER duly extends the initial term for the additional
five-year term referred to in Section 3(a). If the CUSTOMER does not extend the term for the
second five-year period, the CUSTOMER’S obligation to make payment of the unpaid portion of
the Interconnection Fee, in an amount not less than the outstanding and unpaid 60 monthly
payments, shall be unconditionally due and payable not less than ten (10) business days prior to
the expiration of the initial term. The obligation to make payment of any and all outstanding
and unpaid amounts shall survive the termination of the Agreement.”
SECTION 3. The following exhibits to the Agreement are hereby amended to read as set
forth in the attachments to this Amendment No. 1, which are incorporated in full by this refer-
ence:
Exhibit “B-1”, entitled “PROPOSAL FOR DARK FIBER SERVICES (Service Request
Authorization Form)” Project Description: [ID # 831] - PAUSD Network - Revision # 4.
Exhibit “G,” entitled “Letter of Intent” (dated March 19, 2012): City of Palo Alto and
Palo Alto Unified School District.
SECTION 4. Except as is herein modified, all other provisions of the Agreement,
including any and all exhibits, shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment No. 1 as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
Senior Asst. City Attorney
APPROVED:
____________________________
Director of Utilities
PALO ALTO UNIFIED SCHOOL DISTRICT
By:___________________________
Name:_________________________
Title:________________________
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Attachments:
EXHIBIT "B-1”: PROPOSAL FOR DARK FIBER SERVICES (Service Request Authorization Form)
Project Description: [ID# 831] - PAUSD Network - Revision # 4”.
EXHIBIT “G”: Letter of Intent for Dark Fiber Services (March 19, 2012): City of Palo Alto and
Palo Alto Unified School District
PROPOSAL FOR DARK FIBER SERVICES Service Request Authorization Form
Palo Alto Unified School District
Project Description: [ID # 831] – PAUSD Network (Rev. 4) v 11/15/12
Date: November 15, 2012
Prepared For: Palo Alto Unified School District Prepared By: City of Palo Alto - Utilities
Attn: Ann Dunkin Josh Wallace, Key Account Mgr.
25 Churchill Avenue 250 Hamilton Avenue
Palo Alto, CA 94306 Palo Alto, CA 94301
Ph. (650) 329-3775 Ph. (650) 329-2275, Fax (650) 617-3140
Project Description: The City of Palo Alto Utilities (CPAU) will furnish materials and equipment to
provide single mode dark fiber (unless otherwise indicated below) interconnection as
specified in Tables A and B.
CPAU will provide tested fiber at the LICENSEE’s property line. LICENSEE will pull
fiber into the respective MPOEs. CPAU will terminate and test fiber on CPAU provided panels
in the MPOEs.
Proposal Remarks: All structural work on the non-City property will be the sole responsibility of the
LICENSEE. All landlord approvals are the responsibility of the LICENSEE. All capital
improvement work to be performed on the Stanford campus in order to facilitate services to the
Escondido and Nixon Schools shall be performed or cause to be performed by the LICENSEE.
*The LICENSEE shall pay the one-time Interconnection Fee pursuant to Amendment No. 1
to the Dark Optical Fiber Backbone License Agreement between the City of Palo Alto and the
Palo Alto Unified School District.
The LICENSEE will assume the sole responsibility for applying for E-rate funding
for the project. CPAU’s Service Provider Identification Number (“SPIN”) is
143035172.
Estimated Schedule: Proposed In-Service Date is on or after July 1, 2013.
Rate Schedule: EDF-3, July 1, 2011, Public Agency Rate
Total One-Time Interconnection Fee: $199,761 (AER fee payment has been deducted). *See Proposal Remarks.
Total Base Monthly Fee: $11,202 (Do not pay until you are invoiced)
Term of Agreement: Five (5) Years
REQUEST IS MADE TO THE CITY OF PALO ALTO UTILITIES, TO PERFORM THE DESCRIBED WORK ABOVE
FOR WHICH THE UNDERSIGNED COMMITS THE LICENSEE TO PAY THE INERCONNECTION FEE AND
SUBSEQUENT MONTHLY FEES FOR THE LICENSE TERM IDENTIFIED ABOVE, AND TO MAINTAIN A CURRENT
DARK OPTICAL FIBER BACKBONE LICENSE AGREEMENT, WITHOUT WHICH THIS PROPOSAL IS NOT
BINDING ON THE CITY OF PALO ALTO.
Authorized By: ___________________________________
Print Name and Title
Authorized Signature: ___________________________________
Licensee: ___________________________________
Company Name
Date: ___________________________________
THIS PROPOSAL IS GOOD FOR 90 DAYS
Project ID: 831 Proposal: Page 1 of 3
PROPOSAL FOR DARK FIBER SERVICES
Dark Fiber License Agreement Exhibits F-1 and F-2
PAUSD Project Description: [ID#: 831] - V 2.0-Jan 08 - PAUSD Network (Rev. 4) v11-15-12
Date: 11/15/2012
Prepared For: PAUSD
Attn: Ann Dunkin
25 Churchill Ave.,
Palo Alto, CA 94306
Phone: (650) 329-4388; Fax:
Exhibit F-1: Dark Fiber Backbone License Fees
Segment Name # of Fiber Strands Segment Distance Segment Fiber Feet
AD - AE 4 3,650 feet 14,600 feet
AE - AG 4 4,550 feet 18,200 feet
AE - BY 2 500 feet 1,000 feet
AG - AH 2 5,200 feet 10,400 feet
AM - BM 2 2,150 feet 4,300 feet
AQ - AM 2 2,280 feet 4,560 feet
AQ - CF 6 2,880 feet 17,280 feet
AR - BI 6 1,607 feet 9,642 feet
AS - AT 4 3,350 feet 13,400 feet
AT - AX 4 3,130 feet 12,520 feet
AX - AZ 4 4,150 feet 16,600 feet
AZ - BA 6 1,380 feet 8,280 feet
BA - BB 6 2,600 feet 15,600 feet
BB - CK 10 1,100 feet 11,000 feet
BI - AS 10 2,200 feet 22,000 feet
BJ - AN 6 910 feet 5,460 feet
BM - BT 2 2,050 feet 4,100 feet
BT – AK 2 1,284 feet 2,568 feet
BY - BJ 6 3,140 feet 18,840 feet
CF - AR 6 963 feet 5,778 feet
CK - DA 12 2,797 feet 33,564 feet
DA – DB 2 2,848 feet 5,696 feet
DB - DC 2 2,265 feet 4,530 feet
DC - AD 2 3,418 feet 6,836 feet
DK - AQ 4 2,340 feet 9,360 feet
AH - DT 2 2,650 feet 5,300 feet
DT - AK 2 3,450 feet 6,900 feet
BT - AK 2 1,284 feet 2,568 feet
BB - BE 2 5,400 feet 10,800 feet
BE - BF 2 4,500 feet 9,000 feet
AB - AD 2 5,080 feet 10,160 feet
AC - AD 2 3,940 feet 7,880 feet
DX - AB 2 1,175 feet 2,350 feet
__________________________________________________________________________
Route Distance: 17.09 miles
Total Fiber Miles: 62.7 miles
Backbone Fee /Month: $10,117.03
Project ID: 831 PROPOSAL: Page 2 of 3
Exhibit F-2: Drop and Custom Cable Management Fees
Splice Point Location # of Strands Total Distance City Structure Customer Structure
AZ Addison 12 2,286 ft 2,000 ft 286 ft
AG Briones, Barron Daisychai 12 10,000 ft 9,000 ft 1,000 ft
BB Duvenek 12 4,750 ft 4,000 ft 750 ft
AN El Carmello 12 2,350 ft 2,000 ft 350 ft
DX Palo Verde 12 3,200 ft 3,000 ft 200 ft
CK Walter Hayes 12 1,500 ft 1,000 ft 500 ft
New Ohlone 12 2,750 ft 2,000 ft 750 ft
DA Jordan 24 1,200 ft 1,000 ft 200 ft
AH Gunn 12 1,250 ft 1,000 ft 250 ft
AS PAUSD Hub 24 1,600 ft 1,000 ft 600 ft
AE JLS 24 2,650 ft 2,000 ft 650 ft
AC Greendell 12 1,350 ft 1,000 ft 350 ft
Fiber Optic Cable Management Fees: $1,084.79
Project ID: 831 PROPOSAL: Page 3 of 3