Explanation
Background
Ordinance 1297-2009, passed by City Council on October 5, 2009, authorized the Director of the Department of Technology to enter into a contract with James H. Hyland, III to acquire the rights and interests in one (1) fiber-optic conduit to be populated with seventy-two (72) strand single mode fiber optic cable and authorized the expenditure of $250,000.00 from the Department of Technology Capital Improvement Fund - Fiber Project.
Ordinance 1329-2010 authorized and directed the Director of the Department of Technology, on behalf of the City of Columbus, to modify the then-existing contract of Sub-Indefeasible Rights of Use (Sub-IRU) with James H. Hyland, III to increase funds by $775,000.00 to acquire the remaining portion of the rights and interests in one (1) fiber-optic conduit contained within the duct bank system known as Citynet (7.5 miles), to be populated with seventy-two (72) strand single mode fiber optic cable and located within the downtown business district of the City of Columbus.
Since that time, the Department of Technology, in conjunction with the Department of Development, has utilized the conduit and fiber as an economic development asset by integrating it into an overall strategy to assist existing downtown businesses and attract new enterprises 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 is transitioning away from the Hyland conduit infrastructure because the City has successfully deployed its own network across the downtown district, making continued reliance on the Hyland system obsolete. The City will migrate all existing fiber connections currently housed in the Hyland conduit system into the City's own established infrastructure.
This ordinance authorizes a second modification of the Sub-IRU to afford the Department of Technology the time necessary to transition existing fiber connections and move them into existing, or new, city conduit, to compensate Hyland for added costs and maintenance fees during the period of transition, and to provide both parties a firm contract termination date by which to effectuate these actions.
1.1 Amount of additional funds to be expended:
Original contract: $250,000.00 (Ord. 1297 -2009)
Modification #1: $775,000.00 (Ord. 1329-2010)
Modification #2: $100,000.00 (This ordinance)
The contract amount including all renewals/modifications: $1,125,000.00
1.2 Reasons additional goods/services could not be foreseen:
The need for additional services was not anticipated because the complex, multi-stage migration of active fiber connections to the City’s new, independent network necessitated an extended transition period to ensure service continuity. Consequently, this prolonged timeline created unforeseen maintenance requirements and additional operational costs, requiring a formal contract modification.
1.3 Reason other procurement processes are not used:
The City currently contracts with Hyland for its conduit infrastructure, and therefore, the vendor must be utilized for the transition. It is in the best interest of the City to modify this contract.
1.4 How cost of modification was determined:
The cost of this contract modification is based on the pricing as defined in the original proposal.
EMERGENCY DESIGNATION
Emergency legislation is requested to meet project deadlines and third-party contractual obligations dependent upon execution of the modification to the Sub-IRU.
FISCAL IMPACT
For this project in 2009, $250,000.00 was expended and funded via the 2009 Capital Improvement bond sale. In August 2010, bonds were sold to fund the remaining portion of the cost totaling $775,000.00. With passage of 1329-2010, the aggregate total of the contract of the Sub-IRU with James H. Hyland, III to acquire the rights and interests in one (1) fiber-optic conduit to be populated with seventy-two (72) strand single mode fiber optic cable contained within the duct bank system known as Citynet (7.5miles) was $1,025,000.00. This ordinance provides for costs and maintenance for the upcoming year in the amount of $100,000.00 from the Information Services Fund, bringing the total to $1,125,000.00.
CONTRACT COMPLIANCE
Vendor Name: James H. Hyland, III.
Vendor Account: 001492
Expiration Date: 1/25/2023
Vendor is a sole proprietor, and is not required to register with the Ohio Secretary of State.
Vendor will obtain contract compliance prior to the issuance of a purchase order.
TITLE
To authorize and direct the Director of the Department of Technology to modify and increase funds on an existing contract of Sub-Indefeasible Rights of Use with James H. Hyland, III; to authorize the expenditure of $100,000.00 from the Department of Technology Information Services Fund; and to declare an emergency. ($100,000.00)
Body
WHEREAS, under ordinance 1297-2009, the Department of Technology, on behalf of the City of Columbus, entered into a contract of Sub-Indefeasible Rights of Use with James H. Hyland, III to acquire rights and interests in one (1) fiber-optic conduit known as Citynet, and authorized the expenditure of $250,000.00, and
WHEREAS, under ordinance 1329-2010, the contract was modified and the funds increased by $775,000.00 to acquire the remaining portion of the rights and interests in one (1) fiber-optic conduit known as Citynet (7.5 miles), populated with seventy-two (72) strand single mode fiber optic cable installed therein; and
WHEREAS, the City has deployed infrastructure throughout the downtown district that makes continued use of the Hyland conduit system unnecessary, and will transition existing fiber connections and move them into existing, or new, city conduit; and
WHEREAS, this ordinance authorizes a second modification of the Sub-IRU to afford the Department of Technology the time necessary to transition existing fiber connections and move them to existing, or new city conduit, to compensate Hyland for added costs and maintenance fees during the period of transition, and to provide both parties a firm contract termination date by which to effectuate these actions; and
WHEREAS, an emergency exists in the daily operations of the Department of Technology such that it is immediately necessary to authorize the Director of the Department to enter into a contract modification of the Sub-Indefeasible Rights of Use with James H. Hyland, III in order to meet project deadlines and third-party contractual obligations dependent upon execution of the modification to the Sub-IRU; NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Technology is hereby authorized and directed to modify and increase an existing contract for the Sub-Indefeasible Rights of Use with James H. Hyland, III in the amount of $100,000.00, with a contract termination date of August 23, 2027.
SECTION 2. That the expenditure of $100,000.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized to be expended as shown in the attachment to this ordinance. (2207-2026EXP)
SECTION 3: That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4: That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
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.