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 this 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. Ordinance 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 (PO010702). The agreement was most recently modified through ordinance number 2081-2016 establishing PO031829 passed September 19, 2016 authorizing additional funds in the amount of $120,000.00 to cover fiber maintenance and restoration cost. This ordinance will authorize a second modification to provide addition funds for fiber maintenance and restoration services for the remaining term period expiring May 21, 2017 at a cost of $70,000.00.
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 continue to require additional funding.
Contract modification in the amount of $70,000.00
1.1 Amount of additional funds to be expended: $70,000.00
The original contract amount and subsequent renewal years 2 -3 total: $322,555.96
Modification #1 (2016) total: (under ord.: #2081-2016) $120,000.00
Modification #2 (2017) total: (under ord.: #0818-2017) $ 70,000.00
Total: $512,555.96
1.2 Reason additional goods/services could not be foreseen
With the implementation of the state mandated Ohio Utility Protection Services program (OUPS), effective January 1, 2016, the fiber optic cable location requests and ticket screening have increased and require additional funding. Actual numbers vary per month and are averaging $12,000.00 a month in cable locate fees alone. Since the first of the year (2017), locate costs have almost doubled to $22,000 due to increased construction around the city and its roadways.
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 2017. The purpose of this contract modification is to provide additional funds to cover the increasing cost of cable location services and emergency repair for the 500 miles of fiber optic cabling that are currently in service.
1.4 How cost of modification was determined:
The cost of the additional services were estimated by averaging past cable locate expenditures to an approximate monthly cost. If the need arises, and excess funds are available, these additional funds can also be utilized to cover emergency fiber repair.
EMERGENCY DESIGNATION:
Emergency action is requested to initiate service from the contractor at the negotiated prices.
FISCAL IMPACT:
In 2015 and 2016, the Department of Technology legislated, $70,000.00 (via Ord. 1026-2015), and $240,000 (via Ord. 0773-2016 and Ord. 2081-2016) respectively with Gudenkauf Corporation for maintenance and restoration services in support of the City’s fiber optic infrastructure. Funds for the remaining term period (05/22/2016 - 5/21/2017) have been identified to cover this expense within the Department of Technology, Information Services Division, Information Services Operating Fund. Including this modification for additional funds for $70,000, the aggregate contract total amount is $512,555.96.
CONTRACT COMPLIANCE:
Vendor Name: Gudenkauf Corporation CC# : 31-0908234 Expiration Date: 06/10/2018
(DAX Vendor Account#:004454)
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 $70,000.00 from the Department of Technology, Information Services Division, Information Services Operating Fund; and to declare an emergency. ($70,000.00)
Body
WHEREAS, the original contract with Gudenkauf Corporation was authorized by ordinance 0817-2014, passed May 12, 2014, in award of solicitation SA005282 and included options to renew for two (2) additional one year terms, subject to mutual agreement and approval of proper City authorities; and
WHEREAS, this is the third year of the contract with Gudenkauf Corporation, modified by ordinance 0773-2016 (PO010702) 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, the agreement was most recently modified through ordinance number 2081-2016 (PO031829), passed September 19, 2016, authorizing additional funds in the amount of $120,000.00 to cover fiber maintenance and restoration cost; and
WHEREAS, it is necessary to authorize the Director of the Department of Technology to modify the current contract again with Gudenkauf Corporation for additional funds in the amount of $70,000.00 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 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 $70,000.00.
SECTION 2: That the expenditure of $70,000.00 or so much thereof as may be necessary is hereby authorized to be expended from: (See attachment 0818-2017 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: $70,000.00|
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.