Explanation
BACKGROUND:
This ordinance authorizes and directs the Director of the Department of Technology to enter into contract with James H. Hyland, III to acquire the rights and interests in one (1) fiber-optic conduit, which is to be populated with seventy-two (72) strand single mode fiber optic cable.
The fiber-optic conduit is contained within the duct bank system known as Citynet and is located within the downtown business district of the City of Columbus. Columbus City Council seeks 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 also will 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 legislation authorizes and directs the Director of the Department of Technology, on behalf of the City of Columbus, to enter into a contract of Sub-Indefeasible Rights of Use (IRU) with James H. Hyland, III to acquire the rights and interests in the conduit and fiber. This ordinance waives the competitive bidding provisions of the City Code Section 329, as it has been determined that there are only two providers of conduit/fiber optic cabling serving the downtown area. Both companies provided information and quotes to assist with determining what would be suitable for this project. The information and quotes received were from Citynet and James H. Hyland, III, which was the lowest quote.
This ordinance also authorizes the transfer of $250,000.00 from the Special Income Tax Fund to the Department of Technology Capital Improvement Fund - Fiber Project.
EMERGENCY ACTION: Emergency legislation is requested in order to facilitate immediate purchase and implementation of this conduit system in order to increase economic development.
Fiscal Impact: This project was funded in the original 2009 Capital Improvement Budget. Bonds have yet to be sold for the whole project, necessitating a certification of $250,000.00 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed.
CONTRACT COMPLIANCE: Vendor Name: James H. Hyland, III. - Contract Compliance #207483531 Expiration Date: 9/15/2011
Title
To authorize and direct the Director of the Department of Technology to enter into a contract of Sub-Indefeasible Rights of Use with James H. Hyland, III to acquire the rights and interests in one (1) fiber-optic conduit, which is to be populated with seventy-two (72) strand single mode fiber optic cable installed therein; to waive the competitive bidding provisions of the Columbus City Codes; to authorize and direct the City Auditor to transfer $250,000.00 from the Special Income Tax Fund to the Department of Technology Capital Improvement Fund; to authorize the City Auditor to appropriate $250,000.00 within the Department of Technology Capital Improvement Fund; and to authorize the expenditure of $250,000.00 from the Department of Technology Capital Improvement Fund; and to declare an emergency. ($250,000.00)
Body
WHEREAS, the City of Columbus desires to purchase conduit and fiber for greater connectivity and stronger network capabilities for the betterment of government service delivery and the citizens of Columbus; and
WHEREAS, broadband access is viewed as being vital to government and business in order to remain competitive in a global economy; and
WHEREAS, 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
WHEREAS, entering into 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, this ordinance requests approval to waive the competitive bidding provisions of the Columbus City Codes Section 329, as it has been determined that there are only two providers of conduit/fiber optic cabling serving the downtown area. Both companies provided information and quotes to assist with determining what would be suitable for this project. The information and quotes received were from Citynet and James H. Hyland III, from this information James Hyland III was chosen; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this purchase is presently expected not to exceed $250,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the "Project"); and
WHEREAS, an emergency exists as immediate acquisition of the conduit and fiber is necessary to sustain the Department of Technology's broadband and technology needs, and is also necessary to expand the scope of the City's service delivery to attract potential business which shall assist in the economic betterment of the City and its citizenry, and preserving of the public health, peace, property and safety; 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 acquire the rights and interest in one (1) fiber optic conduit contained in the duct bank system known as Citynet from James H. Hyland, III.
SECTION 2. The sum of $250,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2009 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Department of Technology Capital Improvement Fund 514, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the amount of $250,000.00 is hereby transferred and appropriated to the Department of Technology, 47-02, Fund 514 Subfund 002, Fiber Optics- 470046-100001, Object Level One Code 06, Object Level Three Code 6655, OCA 470041.
SECTION 5. That upon obtaining other funds for the acquisition of fiber the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 2.
SECTION 6. 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 transferred in Section 2, above.
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $250,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of the Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 9. That the expenditure of $250,000.00, 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 Subfund 002
OCA Code: 470041
Object Level 1: 06
Object Level 3: 6655
Project: 470046-100001 Fiber Optics
Amount $250,000.00
SECTION 10. That the competitive bidding provisions of Chapter 329 of the Columbus City Codes, 1959, be and hereby are waived.
SECTION 11. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 12. 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 ans 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 or vetoes the same.