SR-301-001-01 (5)
Santa Monica, California
Council Meeting: April 13, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Agreement with the Santa Monica-Malibu Unified School District
and Santa Monica College for Operations of an Institutional Fiber
Optic Network (I-Net)
Introduction
This report recommends that the City Council authorize the City Manager to
negotiate and execute an agreement with the Santa Monica-Malibu Unified
School District and Santa Monica College for operation of an institutional fiber
optic network (I-Net).
Background
On May 21, 2002, the City Council authorized the City Manager to negotiate and
execute an agreement with Adelphia Communications Corporation (“Adelphia”)
for lease of an Institutional Fiber Optic Network (I-Net) as part of the Adelphia
cable franchise . An I-Net provides high bandwidth communications for support
of voice, data and video applications. By operating an I-Net, the City, Santa
Monica-Malibu Unified School District (“School District”) and Santa Monica
College (“College”) can experience cost savings by eliminating expensive
communications circuits leased from telecommunications carriers.
Discussion
Adelphia has completed construction of the I-Net in accordance with their lease
agreement and cable franchise. A total of forty three buildings have been
connected to the I-Net, including twenty four City, thirteen School District and six
College facilities with the objective of realizing secure and redundant emergency
communications between the three agencies and to continue the commitment to
reducing utility costs for Santa Monica’s public agencies begun with the Energy
Conservation Fund. I-Net construction has been paid for by the City, but the
City, School District and College will share equipment costs and ongoing costs
for maintenance and operations of I-Net fiber optic cable and equipment.
An I-Net Operations Agreement will define ownership rights, procedures for
operation and maintenance, policies for use, duties of an I-Net Committee and
costs associated with maintenance of I-Net fiber optic cable and purchase and
maintenance of I-Net equipment. The City will purchase I-Net equipment and
make payments to Adelphia and other vendors for maintenance of I-Net fiber
optic cable and equipment. The School District and College will reimburse the
City for their share of the costs annually, pro-rated on a monthly basis. It is
estimated that savings from reduced communications costs will significantly
exceed these payments.
The on-going fixed annual cost of I-Net fiber optic cable maintenance is $37,200.
The City’s annual costs are $20,763, the School District’s costs are $11,247 and
the College’s costs are $5,191. The cost to purchase the equipment and
equipment maintenance will be determined based upon an equipment study, to
be completed shortly. Annual costs for the City, School District and College will
be adjusted as equipment is purchased and subsequently enhanced or replaced.
Each party’s pro-rata share use of I-Net equipment will also affect costs.
Budget/Financial Impact
For FY2003/04, funds for the proposed I-Net fiber optic cable maintenance costs
are budgeted in account C55000604.589000. Upon approval of the agreement,
the revenue budget at account 01223.407610 will be established in the amount
of $3,500. Future revenue and expenditure amounts will be reflected in annual
budgets.
Recommendation
It is recommended that the City Council:
1. Authorize the City Manager to negotiate and execute an agreement with the
Santa Monica Malibu Unified School District and Santa Monica Community
College for Operations of an Institutional Fiber Optic Network (I-Net).
2. Approve the revenue budget changes identified in the Budget / Financial
Impact Section.
Prepared by: Jory Wolf, Chief Information Officer
Kathryn Vernez, Assistant to the City Manager for Government Relations
Joe Lawrence, Assistant City Attorney