Explanation
BACKGROUND:
The City owns approximately 500 miles of fiber optic cabling in various strand count quantities throughout the City. Services are needed to regularly inspect and maintain these assets, and provide emergency restoration in the event of unforeseen damage to the fiber network. This agreement provides labor, equipment, and materials needed to ensure reliable operation of the City’s fiber network.
This ordinance authorizes the Director of the Department of Technology to modify an agreement with Gudenkauf Corporation, for maintenance and restoration services in support of the City’s fiber optic infrastructure. The original agreement was authorized by ordinance 0817-2014, passed May 12, 2014, in award of solicitation SA005282. That agreement included options to renew for two (2) additional one year terms, subject to mutual agreement and approval of proper City authorities. Most recently ordinance number 0773-2016 passed May 09, 2016 authorized the second and final renewal option (third year of a three year agreement), providing service for the period May 22, 2016 to May 21, 2017 at a cost of $120,000.00.
With the implementation of the state mandated Ohio Utility Protection Services program (OUPS), effective January 1, 2016, the fiber optic cable location requests have increased and require an estimated additional funding of $77,000.00 (part of this ask of $120,000.00). Actual numbers vary per month and are averaging $11,000.00 a month in cable locate fees alone. The City has had two fiber issues this year that have caused emergency fiber restoration at a cost of $51,000.00. Therefore, an additional $43,000.00 for emergency fiber restoration funding is also requested in the event of another incident (part of this ask of $120,000.00). The aggregate total of this ordinance for funding is $120,000.00. Additional funding may be necessary if damages to the fiber network and cost to restore fiber continue, exceeding this request.
Contract modification in the amount of $120,000.00
1.1 Amount of additional funds to be expended: $120,000.00
The original contract amount and subsequent renewal years 2 -3 total: $322,555.96
Modification #1 (2016) total: $120,000.00
Total: $442,555.96
1.2 Reason additional goods/services could not be foreseen:
The implementation of the State mandated Ohio Utilities Protection Service (OUPS) in January of 2016 has resulted in a cost increase for fiber maintenance. With the growth of the City’s fiber infrastructure and the large volume of construction in the City, cable locate request volume has increased exponentially. In addition to the cable locate increase; the City has incurred $51,000.00 in emergency fiber restoration services to date. Ensuring that the new service is aligned with the City's ongoing fiber optic maintenance services requires more funds than was originally anticipated.
1.3 Reason other procurement processes are not used:
The City has a fiber maintenance contract in place with Gudenkauf Inc. This contract is in the third year of a three year term and will be rebid in May of 2017. The purpose of this contract modification is to provide additional funds to cover the cost of cable location services and emergency fiber restoration services for the 500 miles of fiber optic cabling that are currently in service.
1.4 How cost of modification was determined:
The costs of the additional services were estimated by taking the first 6 months of cable locate expenditures and averaging to a monthly cost. The fiber repair cost is an estimate that will cover the City for emergency restoration should we incur another fiber break. One repair can be in excess of $40,000.00 using the pricing established in the contract.
CONTRACT COMPLIANCE:
Vendor Name: Gudenkauf Corporation CC# : 31-0908234 Expiration Date: 01/30/2017
(DAX Vendor Account#:004454)
EMERGENCY DESIGNATION:
Emergency action is requested to initiate service from the contractor at the negotiated prices.
FISCAL IMPACT:
In 2014 and 2015, the Department of Technology legislated $132,555.96 (via Ord. 0817-2014) and $70,000.00 (via Ord. 1026-2015) and earlier this year (2016), $120,000.00 (via 0773-2016) with Gudenkauf Corporation for maintenance and restoration services in support of the City’s fiber optic infrastructure. Funds for this modification expense have been identified through reduction in various other contracts to cover this additional expense within the Department of Technology, Information Services Division, Information Services Operating Fund budget. Including this contract modification, the aggregate contract total amount is $442,555.96.
Title
To authorize the Director of the Department of Technology to modify a contract with Gudenkauf Corporation to increase funding for maintenance and restoration services for fiber optic infrastructure; to authorize the expenditure of $120,000.00 from the Department of Technology, Information Services Division, Information Services Operating Fund; and to declare an emergency. ($120,000.00)
Body
WHEREAS, the City is in its final third year of a three year contract with Gudenkauf Corporation, established under ordinance 0773-2016 authorized by council May 09, 2016 to provide fiber maintenance and emergency restoration services to the City’s 500 miles of fiber optic cabling throughout the City; and
WHEREAS, this ordinance authorizes the Director of the Department of Technology to modify the contract with Gudenkauf Corporation for additional funds to cover maintenance and emergency restoration services in support of the City’s fiber optic infrastructure through May 21, 2017; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Technology in that it is immediately necessary to authorize the Director of Technology to modify an agreement with Gudenkauf Corporation to increase funds to cover maintenance and restoration services in support of the City’s fiber optic infrastructure, for the preservation of 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, be and is hereby authorized to modify a contract with Gudenkauf Corporation for additional funds to cover the cost of maintenance and restoration services in support of the City’s fiber optic infrastructure through May 21, 2017 at a cost of $120,000.00.
SECTION 2: That the expenditure of $120,000.00 or so much thereof as may be necessary is hereby authorized to be expended from: (See attachment 2081-2016 EXP)
Department: 47| Division: 47-02| Object Class: 03| Main Account: 63050|Fund: 5100|Subfund: 510001|Program: IT015| Section 3: 470201|Section 4: IT01| Section 5: IT0103| Amount: $120,000.00|
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.