Explanation
BACKGROUND:
Previously ordinance 1296-2009 passed by City Council October 5, 2009 authorized the Director of the Department of Technology to enter into a contract of sale for fiber and underground conduit with Columbus Fibernet, LLC, to acquire a portion of the conduit system known as Fibernet and authorized the expenditure of $250,000.00 from the Department of Technology Capital Improvement Fund. The portion of the conduit system purchased consisted of one (1) point nine inch (1.9") duct with ninety-six (96) strand single mode fiber installed therein.
This ordinance authorizes and directs the Director of the Department of Technology, on behalf of the City of Columbus to modify the existing contract of sale for fiber and underground conduit with Columbus Fibernet, LLC to increase funds by $4,026,556.00 to purchase the remaining portion of the conduit system known as Fibernet (353,278 ft), to acquire the rights and interests in the conduit and fiber. This portion of the conduit system to be purchased consists of one (1) point nine inch (1.9'') duct with a ninety-six (96) strand single mode fiber installed therein as well. Funds for this portion of the acquisition were not available until the August 2010 bond sale. Negotiations were conducted with Columbus Fibernet to determine the pricing structure for the additional goods and services.
Columbus City Council continues to work with the Department of Technology in conjunction with the Department of Development to utilize the conduit and fiber as an economic development asset that can be integrated into an overall strategy to assist current businesses and attract new ones. The conduit and fiber will be used as an economic development incentive to bring high-tech companies to Columbus by providing an existing "telecommunications pathway" within the City's business district, allowing these prospective businesses to avoid the costs associated with constructing their own conduits.
The Department of Technology will also utilize the conduit and fiber to further build out the City of Columbus' existing fiber-optic network, while making the network more robust and redundant. Acquisition of these conduits and fiber will enhance service ability to the City's citizenry by providing the Department of Technology with alternate pathways for future fiber-optic connectivity to City agencies, partner agencies and businesses within the downtown business district. This conduit can provide access points for fiber-optic backhaul to future wireless networks, or fiber-to-the-premise networks.
This contract is a sole source contract, as obtaining access to the Fibernet conduit system may only be obtained through contractual arrangement with Columbus Fibernet, LLC and expansion of the City's existing fiber-optic network through other means would be an endeavor much more costly than the fiscal impact for entering into the arrangement contemplated by this ordinance.
EMERGENCY: Emergency destination is requested in order to expedite processing the necessary contract paperwork and to avoid interruption or delays in the performance of service.
Fiscal Impact: For this project in 2009, $250,000.00 was expended and funded via the 2009 Capital Improvement bond sale. In August, bonds were sold to fund the remaining portion of the purchase cost totaling $4,026,556.00. With passage of this ordinance the aggregate total of the contract of sale for fiber and underground conduit with Columbus Fibernet, LLC to purchase the fiber-optic network to acquire the rights and interests in the conduit and fiber will be $4,276,556.00.
CONTRACT COMPLIANCE: Vendor Name: Columbus Fibernet, LLC Contract Compliance Number: 31-1762185 Expiration Date: 9/30/2011
Title
To authorize and direct the Director of the Department of Technology on behalf of the City of Columbus to modify and increase funds on an existing contract of sale for fiber and underground conduit with Columbus Fibernet, LLC, to purchase the remaining portion of the conduit system known as Fibernet, one point nine inch duct with a ninety-six strand single mode fiber installed therein; and in accordance with sole source procurement provisions of the Columbus City Code; and to authorize the expenditure of $4,026,556.00 from the Department of Technology Capital Improvement Fund and to declare an emergency. ($4,026,556.00)
Body
WHEREAS, broadband access is viewed as being vital to government and business in order to remain competitive in a global economy; and broadband infrastructure is an asset that can be used by the City of Columbus to attract high-tech companies and encourage economic development; and
WHEREAS, fiber and conduit were identified within the City-wide connectivity plan as assets that the City should buy, build or lease; and entering into an agreement shall assist in maintaining the integrity of the public right-of-way by reducing access to right-of-way, pavement openings, and street and sidewalk disruption and closures; and
WHEREAS, under ordinance 1296-2009 the Department of Technology on behalf of the City of Columbus entered into a contract of sale with Columbus Fibernet, LLC to acquire a portion of the conduit system known as Fibernet and authorized the expenditure of $250,000.00, and
WHEREAS, the City of Columbus desires to purchase the remaining portion of the conduit system known as Fibernet (353,278 ft), to acquire the rights and interests in the conduit and fiber for greater connectivity and stronger network capabilities for the betterment of government service delivery and the citizens of Columbus; and
WHEREAS, it necessary to modify the contract of sale to increase funds by $4,026,556.00 to purchase the fiber and underground conduit with Columbus Fibernet, LLC consists of one (1) point nine inch (1.9'') duct with a ninety-six (96) strand single mode fiber installed therein , and
WHEREAS, this agreement is a sole source contract, as obtaining access to the Fibernet conduit system may only be obtained through contractual arrangement with Columbus Fibernet, LLC and expansion of the City's existing fiber-optic network through other means would be an endeavor much more costly that the fiscal impact for entering into the arrangement contemplated by this ordinance; and
WHEREAS, with this contract modification of $4,026,556.00 along with the previous $250,000.00 will now bring the aggregate total amount of the contract to $4,276,556.00, and
WHEREAS, an emergency exist in the usual daily operation of the Department of Technology, in that it is immediately necessary to modify the existing contract of sale with Columbus Fibernet, LLC. to purchase the remaining portion of the conduit system known as Fibernet, to enhance service ability to the City's citizenry so as to not negatively impact the operation of service thereby preserving the public health, peace, property, safety and welfare; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Technology on behalf of the City of Columbus is hereby authorized and directed to modify and increase the amount by $4,026,556.00 of the existing contract of sale for fiber and underground conduit with Columbus Fibernet, LLC to purchase the remaining portion of the conduit system known as Fibernet (353,278 ft), to consist of one (1) point nine (1.9") duct with a ninety-six (96) strand single mode fiber installed therein, to acquire the rights and interests in the conduit and fiber.
SECTION 2. That the expenditure of $4,026,556.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 47-02
Fund: 514
Sub-fund: 004
OCA Code: 474601
Object Level 1: 06
Object Level 3: 6655
Project: 470046-100001 Fiber Optics
Amount $4,026,556.00
SECTION 3. That the City Auditor is authorized to establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds in Section 2 above.
SECTION 4. The Agreement is in accordance with sole source procurement provisions of the Columbus City Code Section 329.07(e).
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.