SR 07-26-2011 3Pc;cyo, City Council Report
Santa Monica
City Council Meeting: July 26, 2011
Agenda Item:
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Dark Fiber Lease
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with The Department of Water and Power of Los Angeles for the
lease of dark fiber, in an amount not to exceed $367,850 over a five year term.
Executive Summary
The City currently requires a redundant dark fiber connection to the data center in Los
Angeles to support City operations during scheduled maintenance on the primary
connection and to enhance the City disaster recovery network. Following a competitive
process, staff recommends awarding the contract to the Department of Water and
Power of Los Angeles for a total amount not to exceed $367,850.00 over a five year
term. The costs of the lease and installation for the first year will not exceed $74,850
and is available in the current fiscal year budget.
Discussion
The City of Santa Monica utilizes the existing fiber optic network for delivering voice,
video, and data communications to City facilities, libraries, businesses, and Wi-Fi hot
zones. The. City executed a dark fiber lease in 2009 and connected to the One Wilshire
data center in Los Angeles, CA. The existing dark fiber lease allowed the City to obtain
broadband rates 67% less than previously offered due to access to over 200 Internet
Service Providers at the data center. In addition, the existing dark fiber lease supports
a primary connection for connecting networks with regional municipal and county
networks for public safety and for disaster recovery. The City currently requires a
1
redundant dark fiber connection to the data center in Los Angeles to support City
operations during scheduled maintenance on the primary connection and to enhance
the City disaster recovery network.
Vendor Selection
In December 2010, the City published Notices Inviting Bids to lease dark fiber pairs for
redundancy according to City specifications. The bid was posted on the City's on-line
bidding site Planet Bids and notices were advertised in the Santa Monica Daily Press in
accordance with the City Charter and Municipal Code provision. After releasing the
RFP, Information Systems Department staff received and reviewed proposals from
three vendors. The two most qualified vendors own 100 percent of their fiber optic
assets, operate a 24/7 operations center staffed with their employees, and demonstrate
a financial position and history of service supporting their qualifications. Of the two
most qualified vendors, the Department of Water and Power of Los Angeles was
selected because it was the lowest cost bidder.
Financial Impacts & Budget Actions
The dark fiber lease and installation costs for the five year term will not exceed
$367,850.00. Funds in the amount of $148,100 are included in the budget for FY2011-
13 in accouht M55000611.589000 and M55000612.589000 at $74,850 and $73,250
respectively. Budget authority for subsequent years will be requested in each biennial
budget cycle for Council approval. If the necessary funds for a future fiscal year are not
appropriated by City Council, the agreement will allow for termination of the contract,
without penalty, at the sole discretion of the City.
2
Prepared by: Gary Carter, Sr. Administrative Analyst
Approved:
Forwarded to Council:
Jory~ olf
Cld„ In rmation Systems Department
~ ~Y~~~
Rod Gould
City Manager
Reference Contract No.
9441 (CCS).