HomeMy WebLinkAboutStaff Report 2408-3368CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, October 07, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
15.Approval of Amendment via Change Order to Contract Number C22183580 with MP
Nexlevel of California, Inc. in the Amount of $1,650,000 for the Fiber-to-the-Premise
(FTTP) Pilot Project inclusive of $150,000 in contingency funding for a Revised Total Not-
to-Exceed Amount of $11,347,390 From March 21, 2022 Through April 30, 2025;
Authorize the City Manager to Execute Change Orders Not-to-Exceed $150,000 for
FTTP ; CEQA Status – Council action on this item is within the scope of the Final Initial
Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises
Project, adopted on June 17, 2024. Consent Questions
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: October 7, 2024
Report #:2408-3368
TITLE
Approval of Amendment via Change Order to Contract Number C22183580 with MP Nexlevel of
California, Inc. in the Amount of $1,650,000 for the Fiber-to-the-Premise (FTTP) Pilot Project
inclusive of $150,000 in contingency funding for a Revised Total Not-to-Exceed Amount of
$11,347,390 From March 21, 2022 Through April 30, 2025; Authorize the City Manager to
Execute Change Orders Not-to-Exceed $150,000 for FTTP ; CEQA Status – Council action on this
item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND)
for the Fiber-to-the-Premises Project, adopted on June 17, 2024.
RECOMMENDATION
Staff recommends that the City Council:
Approve and authorize the City Manager or their designee to execute Change Order No. 1 to
contract C22183580 with MP Nexlevel (Attachment A) for the installation of fiber optic cable
and fiber hut site preparation in support of the FTTP Pilot Project, in an amount not-to-exceed
$1,650,000, inclusive of $150,000 in contingency funding, for a revised total contract not-to-
exceed amount of $11,347,390 through April 30, 2025; and
Authorize the City Manager to execute change orders not-to-exceed $150,000 for FTTP for
related but unforeseen work which may develop during the FTTP pilot.
EXECUTIVE SUMMARY
The City contracts with MP Nexlevel for the provision of substructure installation and trenching
services with a $9.8 million three-year contract. Approval will increase these services to make
the necessary capital improvements for the Phase I Pilot area of FTTP in the amount of up to
$1.65 million. Specifically these funds will provide for the installation of fiber optic cable and
fiber hut substructure site preparation.
BACKGROUND
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to
implement the Fiber Rebuild project and Phase 1 of the FTTP Project. In Phase 1, FTTP would be
built out in selected areas of the city and expanded gradually (Staff Report ID 148001).
Construction of the fiber backbone in the Fiber Rebuild project and last mile infrastructure to
provide FTTP broadband internet to the community in the FTTP project will be a significant
undertaking for the City.
On June 19, 2023, the City Council approved the FY 2024 CIP Budget with the new FTTP Project,
and Grid Modernization for Electrification Project, as described above.
On December 18, 2023, staff informed Council that a pilot area would be used to evaluate how
alignment of the FTTP and Grid Modernization Projects may help control project costs,
minimize construction impacts to the community, and prevent major delays. Additionally, the
FTTP project completed its California Environmental Quality Act (CEQA) review, resulting in a
mitigated negative declaration (Staff Report ID 2403-27132). Specific to the pilot area, the
preliminary construction work for the Grid Modernization Project has already begun, and staff
is now ready to begin the work for the FTTP Project.
On June 19, 2023, the City Council approved the FY 2024 CIP Budget with the new Grid
Modernization for Electrification Project (EL-24000, $250 million) and FTTP project (FO-24000,
$20 million). Staff is deploying a pilot to determine how to align the grid modernization with
FTTP to help minimize utility engineering pole make-ready work, pole replacements, noise
disruption, and construction activity in neighborhoods. With hundreds of miles of overhead and
underground construction activity between electric grid modernization and FTTP, the purpose
of the pilot is to determine the feasibility of engineering designs and construction methods and
implement best practices to facilitate the most cost-effective deployment of resources.
On June 10, 2024 and June 18, 2024, staff recommended the City Council approve a series of
contract amendments (Staff Report 2312-23183 and Staff Report 2403-27144) to leverage
existing on-call construction and engineering contracts to perform the engineering design,
overhead and underground construction, and installation of power for the pilot area
(approximately 409 poles and 1,224 homes), reducing the construction timeline by 6 – 9
months. The pilot area will be treated as a testbed to design and construct both projects in
parallel to minimize community disruption and share construction costs. In 2022, the City
1 Staff Report ID 14800 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/2022/12-19-2022-id-14800.pdf
2 Staff Report ID 2403-2713 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/fttp-staff-report-
june-172024.pdf
3 Staff Report 2312-2318 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/2024/06-10-24-sr-2312-2318.pdf
4 Staff Report 2403-2714 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82934
executed a three-year task order contract with MP Nexlevel to provide substructure installation
and trenching services.
FTTP consists of the construction of a fiber optic backbone and fiber distribution infrastructure
to provide communication services throughout the City of Palo Alto. FTTP would provide
municipal high-speed internet service to residences and businesses in Palo Alto. Council also
approved the purchase of a modular building “fiber hut" including ancillary equipment to house
fiber networking equipment and to serve as an aggregation site for FTTP. The MP Nexlevel
contract amendment would expand the contract’s scope of work to include fiber construction
and installation in the pilot area, as well as construction of a concrete pad to support the FTTP
Hut.
ANALYSIS
The design of the pilot area strategically covers initial test area plans for grid modernization,
and a core portion of the Phase 1 FTTP area. The pilot area is bounded by West Bayshore,
Embarcadero Road, Louis Road, and Colorado Ave). The fiber hut required for FTTP will be
located near the Colorado power station, with predominantly aerial construction in the grid
modernization pilot area. FTTP build-out will be constructed in a manner that provides a
pathway from the fiber hut to the areas of higher interest.
The City has been contracting with MP Nexlevel for over the past 10 years for substructure
installations, utility trenching, and fiber conduit installations because of the volume and level of
construction for CIP projects and customer service connections. For customer-related work,
trenching and substructure work are reimbursed by the customers through the customer
connection charges. The City does not maintain the staffing resources to provide substructure
and trenching services because the amount of work varies year over year and use of contracted
services allows for the most efficient and cost effective use of resources for this variable timing.
The current Task Order Construction Contract C22183580 with MP Nexlevel of California, Inc.,
was approved by Council March 21, 2022 in the amount of $8,815,809 for Trenching and
Substructure Installation and Materials and a contingency amount of $881,581, for a Total Not-
to-Exceed Amount of $9,697,390 over three years. In 2022, MP Nexlevel was deemed the
lowest responsible bidder of a competitive solicitation for utility trench and substructure
installation (Staff Report #139535). The performance and quality of work delivered by MP
Nexlevel has been satisfactory over the years. As part of the task order completion process, MP
Nexlevel’s work is inspected and signed off by internal staff.
Staff recommends amending the final year of the contract with MP Nexlevel to provide FTTP
construction support for the pilot, for an additional $1,500,000 and $150,000 in contingency
funding, for a new FTTP pilot area Task Order including the following work:
5 Staff Report #13953 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81767
•Install, lash, splice and test approximately 57,000 feet of aerial fiber optic cable and
2,500 feet of underground fiber optic cable.
•Build underground laterals and pad mounts for six proposed fiber distribution hubs
(FDH) which can serve up to 250 customers individually.
•Excavate and construct a 10’ x 30’ concrete pad to support the fiber hut and emergency
generator.
•Install electric wiring, lighting and HVAC inside the fiber hut.
•Install security fencing and features such as locks, alarms, and surveillance cameras at
the fiber hut site.
The FTTP pilot will inform the City the best mix of insource (internal staff) and outsource
(contractors) to construct and operate the new municipal Palo Alto fiber internet business. The
amendment requested will cover the FTTP Phase 1 pilot area only. Once the pilot area is
complete and can inform the requirements for a competitive solicitation, staff will be
requesting competitive bids for construction of the remainder of the FTTP Phase 1 scope.
FISCAL/RESOURCE IMPACT
Funding for this contract amendment is available in the Fiscal Year 2025 Capital Improvement
Plan budget for the Fiber-To-The-Premises “FTTP“ Capital Project (FO-24000)
STAKEHOLDER ENGAGEMENT
Staff continues to share updates through the Palo Alto Fiber project webpage6 , City
communications channels such as social media7, and Medium.com blog8.
ENVIRONMENTAL REVIEW
The FTTP Project, including construction of the fiber hut, has been assessed in accordance with
the authority and criteria contained in the California Environmental Quality Act (CEQA), the State
CEQA Guidelines, and the environmental regulations of the City. A final Initial Study-Mitigated
Negative Declaration (IS/MND) that incorporated revisions, as appropriate, based on public
comments was adopted by Council Resolution on June 17, 2024 (Staff Report 2403-27139).
6 Palo Alto Fiber Webpage, https://www.cityofpaloalto.org/paloaltofiber
7 City Social Media Channels, https://www.cityofpaloalto.org/connect
8 Palo Alto Connect, https://medium.com/@paloaltoconnect
9 Staff Report 2403-2713, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=2b77638f-b16d-
43a9-ae2a-4b57a96f813d
ATTACHMENTS
APPROVED BY:
CONTRACT CHANGE ORDER
CITY OF PALO ALTO
DEPARTMENT: ELECTRIC UTILITIES OPERATIONS
_____________________________ Project
Contract Change Order #
Project Title: Fiber-to-the-Premises (FTTP) Pilot Project No.: FO-24000
Contract Number: C22183580 Date: 8/29/24
Contractor: MP Nexlevel of California, Inc. Change Order No.: 1
Description of Change Order
Background Information: On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to
implement the Fiber Rebuild project and Phase 1 of the FTTP Project. In Phase 1, FTTP would be
built out in selected areas of the city and expanded gradually (Staff Report ID 148003).
City is deploying a pilot serving 1200 customers to determine how to align FTTP with grid
modernization with to help minimize utility engineering pole make-ready work, pole
replacements, noise disruption, and construction activity in neighborhood.
The original contract C22183580 was approved by City Council on March 21, 2022 under staff
report ID 13953. The original term of the contract was an annual not-to-exceed amount of
$9,697,390 for a total three-year not-to-exceed amount through April 30, 2025.
URL Link: Staff Report 13953 (laserfiche.com)
Change Order Justification: The City does not possess the staffing resources to provide substructure, trenching services and
fiber installation because the amount of work varies year over year. These services have been
contracted out for approximately 30 years and are required to complete CIP and customer
connections in a timely and cost-effective manner. The City has been contracting with MP
Nexlevel for over the past 10 years for substructure installations, utility trenching, and fiber
conduit installations
Staff recommends increasing the task order construction contract by $1,650,000 which consists
of $1,500,000 for base work and $150,000 for contingency for the FTTP pilot. The task order
contract change order requested will cover the FTTP Phase 1 Pilot only. Staff will be requesting
competitive bids for construction of the remainder of the FTTP Phase 1 scope.
Description of Work to be Performed:
As directed by City in a Task Order, Contractor will provide construction work for the installation of
fiber optic cable and fiber hut site preparation in support of the FTTP Pilot Project
• Install, lash, splice and test approximately 57,000 feet of aerial fiber optic cable and
2,500 feet of underground fiber optic cable.
• Build underground laterals and pad mounts for six proposed fiber distribution hubs
(FDH) which can serve up to 250 customers individually.
• Excavate and construct a 10’ x 30’ concrete pad to support the fiber hut and emergency
generator.
• Install electric wiring, lighting and HVAC inside the fiber hut.
• Install security fencing and features such as locks, alarms, and surveillance cameras at
the fiber hut site.
Incorporates Field Order Number(s): Bid items 1 – 20
Cost Time
Docusign Envelope ID: E6992DCE-08AB-40E6-9B76-56AA99CD7587
This Change Order will:
No cost change: N/A
X Increase cost by $ 1,650,000.00
Decrease cost by $ N/A
This Change Order will:
X Not change time
Increase time by ____ days
o ___ days Excusable Delay
o ___ days Compensable Delay
Decrease time by ____ days
The date of completion as of this Change Order is:
April 30, 2025_______________________________
G/L account number (s): 40029512 / 31650
Basis for change in cost:
Unit price(s)
Lump sum
X Time and Materials
Compensation for Compensable Delay
Other:
Docusign Envelope ID: E6992DCE-08AB-40E6-9B76-56AA99CD7587
Contract Change Order – continued
CONTRACTOR CERTIFICATION: By signing below, Contractor agrees that this Change Order constitutes full resolution, settlement, accord and
satisfaction with respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been
asserted, in connection with the Work covered by this Change Order, as more fully set forth in Article 7 of the Contract General Conditions.
FAILURE TO EXECUTE: If Contractor fails to promptly execute this Change Order after it has been submitted for Contractor’s signature, the City
may unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. Contractor may dispute the terms of a
unilaterally-approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth
herein within fourteen (14) days after the Change Order is approved by the City. If Contractor fails to submit a Claim within that 14-day period,
with respect to all or part of the unilaterally-approved Change Order, those portions of the Change Order which have not been disputed by timely
submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above.
Accepted for Contractor: Accepted for City of Palo Alto:
By: By:
Title: Title:
Date: Date:
PC
O
N
o
.
AS
I
FO
CO
R
CO
Description Amount Reason for Change
1
Cutoff Saw
Scope of Work
Docusign Envelope ID: E6992DCE-08AB-40E6-9B76-56AA99CD7587
9/19/2024
Robbi Pribyl
President
16
Total for this Change Order $1,500,000
Docusign Envelope ID: E6992DCE-08AB-40E6-9B76-56AA99CD7587
Document Preparation
By: Dave Yuan
Title: Utilities Strategic Business Manager
Date: August 29, 2024
City Approval – Division Head
Signature required on all Change Orders
By :
Title : Tomm Marshall
Assistant Director, Electric Engineering and Operations
Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000
By:
Title: Dean Batchelor
Director of Utilities
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only)
Original Contract Sum: $ 9,697,390.00
Previous Change Orders $ 0.00
This Change Order $ 1,650,000.00
Revised Contract Sum: $ 11,347,390.00
Compare to:
Original Contract
Authorization:$ 8,815,809.00 Contingency: 881,581.00
Contract Amendment
Authorizations $ 0.00 Contingency added: 0.00
Contingency Authorizations: $ 0.00 Used to date (0.00)
Total Authorized Funding: $ 8,815,809.00 Balance remaining 0.00
Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the
total authorized funding amount.
Docusign Envelope ID: E6992DCE-08AB-40E6-9B76-56AA99CD7587
Certificate Of Completion
Envelope Id: E6992DCE08AB40E69B7656AA99CD7587 Status: Completed
Subject: Complete with Docusign: Contract Change Order - MP Nexlevel for FTTP Pilot.pdf
Source Envelope:
Document Pages: 5 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Kaylee Burton
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Kaylee.Burton@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
9/17/2024 1:43:50 PM
Holder: Kaylee Burton
Kaylee.Burton@cityofpaloalto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Robbi Pribyl
rob.pribyl@mpnexlevel.us
President
MP MP Nexlevel
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 96.39.129.44
Signed using mobile
Sent: 9/19/2024 4:10:32 PM
Resent: 9/19/2024 6:28:15 PM
Viewed: 9/19/2024 6:44:18 PM
Signed: 9/19/2024 6:44:35 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Tony Sturtz
Tony.Sturtz@Mpnexlevel.us
Regional Vice President
Security Level: Email, Account Authentication
(None)
Sent: 9/19/2024 4:10:34 PM
Viewed: 9/19/2024 4:11:03 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Dave Yuan
dave.yuan@cityofpaloalto.org
Utilities Strategic Business Manager
Dave Yuan
Security Level: Email, Account Authentication
(None)
Sent: 9/19/2024 6:44:36 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/17/2024 1:47:06 PM
Envelope Updated Security Checked 9/19/2024 1:42:25 PM
Envelope Updated Security Checked 9/19/2024 1:42:25 PM
Envelope Updated Security Checked 9/19/2024 2:30:47 PM
Envelope Updated Security Checked 9/19/2024 2:30:47 PM
Envelope Updated Security Checked 9/19/2024 2:30:47 PM
Certified Delivered Security Checked 9/19/2024 6:44:18 PM
Signing Complete Security Checked 9/19/2024 6:44:35 PM
Completed Security Checked 9/19/2024 6:44:36 PM
Payment Events Status Timestamps
Dear Mayor and Council Members,
On behalf of City Manager Ed Shikada, please see staff responses below for questions from
Council Member Tanaka on the Monday, October 7 Council Meeting.
Item 9: Authorize the City Manager or their Designee to Exercise the Option to Renew the
Lease Between the City of Palo Alto and Steve Nash and Dennis Ryan for 4 Months at 975
Terra Bella Ave in Mountain View at a Monthly Rent of $35,587.95 for a Total Not-to-Exceed
of $213,527.70 through February 28, 2025; Direct Staff to Explore Purchase of Property to
Meet the Future Needs of Grid Modernization and Other Capital Projects; and Approval of an
Amendment to Fiscal Year 2025 Budget Appropriation in the Electric Fund; CEQA Status –
Categorically Exempt; Sec. 15301.
1. Given the current volatility of real estate prices in the Bay Area, has the city conducted a
thorough risk assessment of how delaying the purchase of 975 Terra Bella could result in
significantly higher future costs or the potential loss of the property to another buyer?
Furthermore, how does this short-term lease renewal align with our long-term financial
strategy when property values are predicted to increase, possibly outpacing the savings
from leasing and ultimately forcing the city into a more expensive lease or purchase
arrangement later?
Staff response: 975 Terra Bella has been on the market for over 2 years. Under the lease
agreement, the City has the option to purchase the property at a mutually agreeable price.
The City also has the first right of refusal if another buyer offers to purchase the property,
the City has 10 days to purchase the property under the same terms. The short term lease
renewal will allow Staff the time necessary to perform property appraisal, construction cost
estimate to make the office ADA compliant, negotiate the purchasing cost and seek council
approval on the purchase amount and evaluate other commercial properties.
2. With property values in Mountain View rising unpredictably, how has the city factored in
the financial risks of delaying a decision to purchase 975 Terra Bella? Specifically, what
contingency measures are in place if property prices rise beyond our current projections,
and how would such an increase affect our overall budget and operational costs? Is the
city prepared for the potential of overpaying for a property that could have been secured
at a lower cost, or worse, losing access to this critical storage site?
Staff response: Staff needs time to perform our due diligence before we make a purchase
offer. Staff has hired land appraisers to estimate the as-is market value of the property. The
existing offices on the property have been deemed as non-ADA compliant and non-
permissible for use. Staff needs to obtain construction cost estimates for rehabilitation or
building of a new office. Staff has factored in the purchase of 975 Terra Bella into the FY
2026 Electric budget and rate forecasts. Staff is also considering including the property
purchase as part of the grid modernization debt financing plan.
3. The staff report mentions the risk of increased contractor pass-through costs if the city
does not secure a permanent laydown yard but fails to detail any strategies to mitigate
these rising costs during the lease period. How does the city plan to manage the financial
impact of this ongoing reliance on external contractors, and what steps are being taken to
reduce the long-term operational inefficiencies that come with outsourcing storage needs
rather than securing a stable, owned facility?
Staff response: The Geng Road site has been an ideal laydown yard due to its proximity to
the MSC and low leasing costs. Staff has been exploring a permanent laydown yard for the
past several years including rezoning unused open space land and building a laydown yard
at a substation. Since vacant commercial properties in Palo Alto are scarce and expensive,
staff is also evaluating properties outside of Palo Alto.
Item 15: Approval of Amendment via Change Order to Contract Number C22183580 with MP
Nexlevel of California, Inc. in the Amount of $1,650,000 for the Fiber-to-the-Premise (FTTP)
Pilot Project inclusive of $150,000 in contingency funding for a Revised Total Not-to-Exceed
Amount of $11,347,390 From March 21, 2022 Through April 30, 2025; Authorize the City
Manager to Execute Change Orders Not-to-Exceed $150,000 for FTTP ; CEQA Status – Council
action on this item is within the scope of the Final Initial Study and Mitigated Negative
Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024.
1. Considering the upfront financial commitment, what specific data or projections
demonstrate the expected adoption rate of this fiber network, and how has the city
calculated the break-even point? If the adoption rate is significantly lower than
anticipated, what alternative strategies are in place to ensure this investment doesn't
become a long-term financial burden on the city budget?
Staff response: Based on the citywide broadband survey, the projected take rate or
subscription of Palo Alto Fiber ISP is between 37% - 42%. The minimum take rate for
revenues to exceed expenses is between 25% - 30%. Council adopted a phased approach
using fiber reserves without debt financing. The pilot allows the City to build expertise on
construction and providing the new ISP service. We have the flexibility to modify our
approach in subsequent phases. If the adoption rate is significantly low, the City can invest
more in sales and marketing; improve time to market; rescope the buildout; and/or reduce
planned expenditures.
2. Given the rapid advancements in technologies like 5G and satellite internet, how has the
city ensured that this investment in fiber will remain relevant and competitive over the
next 10 to 20 years? What provisions have been included to allow the city to pivot or
adapt if future technologies outpace fiber in terms of cost, speed, or reliability, preventing
this project from becoming outdated?
Staff response: The City is building a new fiber backbone with 432 counts of fiber compared
to 144 count in the existing backbone. Of the 432 fiber count, we have approximately 150
spare fiber for future City needs or leasing services. The fiber network architecture is
scalable requiring only equipment upgrades.
3. While the focus has been on the initial construction costs, what specific projections have
been made regarding long-term maintenance and operational expenses for the fiber
network? How will the city ensure that these ongoing costs are covered, especially if
revenue from subscriptions falls short of expectations? What is the plan if the city is
forced to allocate additional funds in the future to sustain this network?
Staff response: The City has developed a 10 year proforma which includes operating,
maintenance, and replacement costs (i.e. staffing, data center, vehicle, software, legal,
marketing, administrative). With the phased construction and outsourcing approach, the
City has the flexibility to accelerate or decelerate the FTTP build out. After the pilot, staff
will return to Council with key metrics such as take rate, cost per passing, and customer
satisfaction along with funding options for subsequent phases.