sr-021412-3fCity Council Meeting: February 14, 2012
Agenda Item: 3—{-
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: nLayer Communications, Inc. Internet Protocol Transit (IP Transit) for Lit
Fiber Services
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a first modification with
nLayer Communications, Inc., an Illinois -based company, to extend the existing
IP Transit contract for three years. The total amount of this extension for the
three year period will not exceed $300,000, increasing the contract amount to a
total not to exceed $367,000.
2. Authorize the Chief Information Officer to issue any necessary change orders to
obtain additional IP Transit within budget authority.
Executive Summary
The City uses nLayer Communications, Inc. (nLayer) to support the City's fiber optic
network and free public Wi -Fi services. The City's fiber optic network also leverages
niayer's IP Transit to provide local businesses broadband at reduced rates. The
recommended modification to the IP Transit contract with nLayer would ensure the City
can continue to meet existing contractual obligations to provide IP Transit for the City's
lit fiber customers. IP Transit services from nLayer will not exceed $367,000 for the five
year period.
Discussion
The City currently obtains IP Transit from nLayer to support the City's internal network,
Library network, and City Wi-Fi hot zones with internet connectivity. In addition, the City
connects businesses to the internet through the City's fiber optic network, Santa Monica
City Nets°°, providing tech, entertainment, and other businesses broadband at wholesale
rates from nLayer and other Internet Service Providers. This modification will increase
the bandwidth to service the growing number of customers using the City's lit fiber
services. The City obtains revenue from lit fiber customers to cover customer IP Transit
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expenses and all costs associated with supporting the 10 Gigabit per second fiber optic
network.
The recommended contract modification is necessary for the City to maintain existing
contractual obligations to lit fiber customers using nLayer in conjunction with the City's
lit fiber service. The City segments nLayer IP Transit into 100 Megabit per second, 1
Gigabit per second, and 10 Gigabit per second broadband for the City's lit fiber
customers. The original agreement was executed in January 2010 to support the
service requirements of the City and lit fiber customers at that time. As lit fiber customer
demand has increased substantially, the existing contract amount and term requires
modification to procure additional IP Transit for recently acquired lit fiber customers.
Financial Impacts & Budget Actions
The contract modification to be awarded to nLayer is $300,000, for a new contract total
not to exceed $367,000. Funds in the amount of $100,000 for FY 2011 -12 are available
in the following accounts:
C010469.589000 Fiber Optic Network $85,000
M55000612.589000 Telecommunication Services $15,000
TOTAL $100,000
Budget authority for subsequent years will be requested in each budget cycle for
Council approval. Future funding is contingent upon Council approval should the city
utilize the remaining two year optional extension term.
Prepared by: Gary Carter, Senior Administrative Analyst
Approved:
Information Officer
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Forwarded to Council:
Rod Gould
City Manager
Reference Contract No.
9547 (CCS).