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HomeMy WebLinkAboutc2digitalwest FROM: Wayne Padilla, Director of Finance & Information Technology Michael Codron, Assistant City Manager Steve Schmidt, Information Technology Manager SUBJECT: DIGITAL WEST - FIBER SERVICES AGREEMENT RECOMMENDATION 1. Authorize staff to negotiate an amendment of the existing fiber conduit agreement with Digital West to allow Digital West access to additional City owned underground conduits in exchange for providing redundant fiber services to the City’s public safety facilities. 2. Authorize the City Manager to execute an amendment to the existing agreement consistent with Digital West’s proposal, subject to approval by the City Attorney. Background In October of 2002 Council approved the City and Cal Poly entering into a fifty year fiber optic infrastructure partnership. This partnership, or Memorandum of Understanding (MOU), allowed Cal Poly to place, splice and terminate a large fiber cable in existing vacant City underground conduit. A major part of the MOU was that the City would own 24 fiber strands in the new cable (this has since been increased to 48 strands) and Cal Poly would create a fiber optic cable ring in the City. This new fiber link has greatly increased IT staff’s ability to offer and implement new and more efficient fiber services to City Departments. In April of 2011 City IT staff was granted approval from the City Manager to release a Request for Proposals document (RFP) requesting proposals from communications companies to lease available City underground conduit space. This RFP was a part of the many revenue generation concepts that were being pursued by the City due to the economic situation at that time. One of the major vacant and most desirable City underground conduits was the 4” water reuse conduit that ran from the Corporation Yard on Prado Road to the Damon - Garcia Sports Complex on Broad Street. The City received only one proposal to the RFP. That proposal was from Digital West, a local communications and Internet provider. Digital West was very interested in this particular location because it would allow them to provide internet access to the many South Higuera Street businesses as well as provide them with access to their proposed new data center to be located on Tank Farm Road near the sports complex. More importantly to the City, the ability to provide high-speed Internet access would enhance business services and help attract and retain new businesses which is a major Economic Development City goal. An important side benefit to this potential agreement with Digital West is that it would allow the placement of a City owned cable in that conduit which would complete the City/Cal Poly joint-use fiber ring envisioned in the MOU. Meetings were held with Cal Poly, Digital West and the City to discuss the design options for the new fiber facilities that would benefit all parties. It was agreed that Digital West would place a new fiber cable for their exclusive use as well as a separate fiber cable for City/Cal Poly exclusive use. Cal Poly 1-21-2014 C2 - 1 Digital West Fiber Services Agreement Page 2 was very interested in this agreement because it provides them with a potential route to link the Tech companies located at the Airport with Cal Poly labs back on campus. The City not only completed the fiber cable ring, but also gained new access to Digital West’s existing data center located on Sacramento Drive. The importance of a complete fiber ring is that the cable can be cut or damaged and not interrupt City services. The fiber optic signal simply reverses its direction on the ring so fast that users will not notice a degradation of service. The finalized proposal (attached) with Digital West proposes that, in exchange for the City’s agreement to allow Digital West to utilize additional City conduit to install additional Digital West fiber, Digital West will provide for approximately $50,000 in one-time work associated with installation of the City / Cal Poly-owned fiber by Digital West. The proposal also provides for Digital West to provide the City with hosted services valued at approximately $6,000 monthly as follows: • Virtual Hosted Server, Gold Level • Virtual Hosted Server, Platinum Level • 250 GB Additional LUN Storage • 5 TB Archival Storage - SLO • FastE Metro Fiber IP Transit Failover Connection • GigE Metro Fiber Private Pipe to Digital West Data Storage • Server/System/Network Monitoring • IP’s supplied as needed DISCUSSION Overview - Charter Communications For many years the City had a franchise agreement with Charter Communications, which was required the franchise holder to provide a fiber cable connection to all city and educational facilities at no charge. This fiber data network was referred to as the Institutional Network or Inet. Information Technology (IT) has been using Charter’s Inet system to provide redundant fiber service connections to eleven City facilities and a primary service connection to the Senior Center. The redundant fiber connections could be utilized in the case of a City owned primary fiber failure such as a cut or damaged cable. In 2006 state legislation was passed (the Digital Infrastructure and Video Competition Act, or “DIVCA”) that granted state wide franchises to video and digital infrastructure providers and restricted the fees and services that local agencies could require of service providers via franchise agreements. The provisions became applicable to the City’s relationship with charter after the expiration of the City’s franchise agreement with Charter and the City adopted its DIVCA ordinance, pursuant to state law in 2010, as Municipal Code chapter 5.72. In January 2013, Charter notified the City that it would no longer provide the Inet service at no charge. At that time Charter and the City began discussions concerning a new pricing structure to maintain current Inet services. In May of 2013 Charter presented the City with a proposal (attached) to continue to provide fiber services to all twelve facilities that were currently being served by the Inet system at a cost of $16,513 per month for a one-year service contract with a $2,000 installation fee for a total yearly cost of $200,156. C2 - 2 Digital West Fiber Services Agreement Page 3 After reviewing Charter’s initial proposal, IT staff began working internally with the affected departments to determine which facilities absolutely needed to retain redundant connections and which did not. Staff from Police, Fire, Parks & Rec and Public Works met and have all agreed that the number of essential City sites that need to retain redundant fiber services could be reduced from the original twelve sites down to five. All five remaining City sites are public safety related sites with the exception of the Senior Center. These departments also agreed to make provisions for a temporary loss of the redundant fiber connection for several months while alternative solutions to the original Charter Cable proposal were developed. On December 11, 2013 after many months of negotiations, Charter agreed to a redesign of the fiber network to accommodate only the five designated City sites and reduced their proposal to $5,626 per month for a five-year service contract or $67,512 per year. The total five-year contract cost would be $337,560. Overview - Digital West During this same time, City IT staff began to look very seriously at other possible solutions to the fiber redundancy problem. Staff contacted Tim Williams at Digital West to discuss the possibility of using their existing fiber network and/or the possibility of Digital West placing and terminating fiber cable that would be owned by the City. In addition to Digital West, staff had also been communicating with other local communications providers (AT&T, Quintron Communications). None of the other service providers in the area had the ability to provide the fiber services that the City required. Digital West was very eager to work with the City to resolve the public safety fiber redundancy issue. Staff asked Digital West for a proposal to provide fiber services to the same five sites as the Charter proposal. Digital West came back with a two-part proposal for providing fiber services for the five sites. The first proposal was a three-year cost proposal for $12,000 per month with an initial setup charge of $6,000 for a yearly total of $150,000. Digital West also provided the City with an alternate proposal for providing the fiber services to the five identified City sites. The alternate proposal for providing services is very similar to the existing digital West/City agreement that provided fiber cable through the Prado Road fiber extension project (attached) that was completed earlier this year. Digital West Alternate Proposal The alternate proposal from Digital West provides for redundant fiber services to the five public safety sites at no cost to the City. The Digital West proposal (attached), reads as follows; “Digital West proposes to expand the City owned and controlled fiber optic network through a fiber and conduit share agreement. By utilizing existing infrastructure between both Digital West and the City of San Luis Obispo, our proposal would be to expand the City’s fiber network at no cost to the City, while utilizing existing City air space (available conduit space) to expand Digital West’s network.” Not only will this increase the City’s resources and eliminate ongoing monthly costs, it will also allow businesses and residences throughout the City to gain access to high speed internet services. C2 - 3 Digital West Fiber Services Agreement Page 4 Proposed Agreement Objectives • Add redundancy to existing City of San Luis Obispo mission critical public safety facilities. • Provide reliable connectivity to existing and future City of San Luis Obispo buildings. • Connect gaps in the City of San Luis Obispo’s existing fiber network. • Expand commercial fiber optic resources to elevate SLO’s economic development. • Meet these objectives with minimum to no up-front or long term expense to the City. Proposed Ongoing Expense The proposed services provided by both Digital West and the City would be offered as a trade with no expense to either party for the ongoing use of the asset, during the duration of the proposed agreement. The cost of further expansion or creation of additional fiber optic infrastructure will be the responsibility of the party seeking the additional access. This proposal before the City has all construction phases listed as Digital West’s responsibility and will be performed and paid for by Digital West as their contribution to the agreement. Conclusion The proposal received from Digital West replaces the redundant public safety fiber service connections now provided by Charter Communications at no cost to the City. The City will compensate Digital West for placing new fiber cable to the five identified facilities by allowing them to place their fiber cable in selected City underground conduits where there is sufficient air space to accommodate the new cable. In addition, Digital West will grant the City the use of a portion of the fiber strands in these new cables to allow the City to grow its fiber network in the future. CONCURRENCES The ITSC Committee has given their concurrence to this agreement as has the Assistant City Manager, City Attorney, Economic Development Manager, Finance & IT Director and IT management. FISCAL IMPACT The Agreement effectively results in a savings to the City of $337,560 over the next five year period. That is the cost of Charter Communications five-year final proposal (attached) to retain redundant fiber services to the five selected public safety sites. Under the Charter Communications proposal, all fiber cable is leased to the City, which means that there would be on-going fees due to Charter Communications each and every month. Under the Digital West proposal there would be no cost to the City for the placement of new fiber cable and the fiber cables that Digital West would place for the City would become the property of the City with no on-going costs. ALTERNATIVE Do not approve the Agreement with Digital West. This is not recommended because it will result in retaining Charter Communications fiber services at great expense to the City. C2 - 4 Digital West Fiber Services Agreement Page 5 ATTACHMENTS 1. Council Agenda Report - 10-15-2002 2. City Of San Luis Obispo - Charter Proposal 3. DWNI Proposal City of SLO 4. Copy of City Of San Luis Obispo Price Spreadsheet May 17 5. Digital West Networks, Inc 09.20.11 Z:\Council Agenda Reports\2014\2014-01-21\Digital West Fiber Services Agreement (Padilla-Codron) C2 - 5 FROM: Bill Statler, Director of Finance SUBJECT: FIBER OPTIC INFRASTRUCTURE PARTNERSHIP WITH CAL POLY CAO RECOMMENDATION Approve a Memorandum of Understanding (MOU) with Cal Poly establishing a fiber optic infrastructure partnership with them and authorize the Mayor to sign the MOU. DISCUSSION Overview The proposed fiber optic infrastructure partnership with Cal Poly will result in significant benefits for both of us as a cooperative project than if we were to each pursue these same improvements individually. Project Summary. Stated simply, Cal Poly wants to install a 144-strand fiber optic cable in some of the City’s already in-place fiber optic conduit in order to create a direct, high-speed, broad-bandwidth connection with the statewide educational network, which includes “K-12” public schools and all institutions of higher education in the state. Of specific interest to Cal Poly at this time is creating a fiber loop from their campus to key fiber optic carrier “points of presence” along the conduit path (the first being Level Three Communications). This will allow Cal Poly to become a “carrier neutral” point of presence, enabling flexible access for educational network connectivity for the local area as well as the state educational system at-large. In exchange for the use of our conduit, Cal Poly will dedicate 24 of these strands for the City’s exclusive use along this route. In those parts of the City’s conduit system that Cal Poly does not need to install fiber—but we want to install fiber for City purposes—they will “piggyback” our fiber installation work onto their contract, and pull 24 strands of fiber optic cable (which the City already owns) for the City’s sole use, at their direct incremental cost of doing so ($40,000). In short, for $40,000 the City will have 24 strands of fiber covering 22.9 kilometers (15.4 miles) and connecting all of our key facilities within the City limits as well as the Stenner Canyon water treatment plant. In exchange for this, we simply allow Cal Poly the passive use of our fiber conduit, which is already in place. This is one of those rare “win-win” situations where at no extra cost to either agency (beyond the amounts they were otherwise willing to pay), they both get far more value than they otherwise could achieve on their own, without any adverse impacts on service or system performance. Background In May 1996, the Council adopted a strategy for creating a City fiber optic network that would ultimately connect all key City facilities. By closely coordinating water, sewer, traffic signal 10-15-02 C2 - 6 Fiber Optic Infrastructure Partnership With Cal Poly Page 2 interconnect and private telecommunication projects, the conduit for this fiber optic network is largely in place today. In most cases, this conduit was installed at no (or very low) additional cost to the City, either as a minor addition as part of another City “below-ground” project, or as a negotiated condition for in-street work by private telecommunication companies. And in one case, in-lieu of conduit, we successfully negotiated for eight miles of 24-strand fiber optic cable, which is currently in storage at the Corporation Yard. However, except in a few instances, no fiber optic cable has been installed in this conduit. And this is why the partnership with Cal Poly presents a unique opportunity to complete our fiber optic network at a very minimal cost. Current City Wide Area Network The City currently has fiber connectivity between many of our facilities in the City. However, this is not primarily achieved via our fiber optic network, but through the single-strand fiber (in most cases) provided to us by Charter Cable under our franchise agreement with them. Connecting the City’s wide area network (WAN) via our own fiber optic network has several advantages over the current set-up, including: 1. Faster and more efficient data transmission by having 24-strands of fiber rather than one. 2. Direct connection of three facilities not currently on the City’s wide area network: Stenner Canyon water treatment plant, Fire Station No. 4 and the golf course. 3. System back-up: After installation of the fiber optic cable, we will retain the single-strand capability we currently have with Charter Cable, but as a back-up capability. For example, during reconstruction of the Santa Rosa Bridge, we had to cut our direct fiber connection that serviced several City facilities; however, we were able to maintain connectivity by switching to the Charter Cable system. For this reason, completing the WAN infrastructure improvements (including purchasing and installing higher-performance network switches to better manage data traffic and make full use of the greater bandwidth provided by the fiber “backbone”) was one of the highest priority projects in the Information Technology Strategic Plan approved by the Council in March 2001. Proposed Fiber Installation Attachment 1 shows the routes where the City will have direct fiber connectivity once the cooperative project is complete, summarized as follows: Miles of Fiber Connectivity 24-Strands Via Shared Cable With Cal Poly 8.7 24 “Standalone” Strands Owned Directly by the City 6.7 Total 15.4 Upon completion of this project, the following seventeen City facilities will be directly connected to the City’s WAN via this fiber infrastructure: C2 - 7 Fiber Optic Infrastructure Partnership With Cal Poly Page 3 City Facilities Connected Via the Enhanced Fiber Network City Hall City/County Library Community Room Public Works Administration and Engineering Offices (955 Morro) Utilities Administration Offices (879 Morro) Police Station Headquarters Fire Station Fire Station No. 2 Fire Station No. 3 Fire Station No. 4 Corporation Yard Water Reclamation Facility Parks and Recreation Administrative Offices Parking Administrative Offices Palm Street Parking Garage Marsh Street Parking Garage Golf Course Stenner Canyon Water Treatment Plant Benefits of the Proposed Partnership with Cal Poly The following summarizes the main advantages of taking a cooperative approach with Cal Poly compared with completing this project on our own: 1. Project Design and Construction Management Resources. Cal Poly will take responsibility for preparing the project plans and specifics, and for managing construction after the contract is awarded. This is a significant staff savings for us. 2. Faster Completion. Given our limited staff resources in Engineering and Information Systems, this project will be completed faster with this approach. 3. Lower Cost. Based on initial “soft quotes” we received for installation of the 24-strand fiber we already own, this approach will save over $150,000 in installation costs. 4. Ongoing Operating Savings for Internet Access. Once the conduit is in place, the MOU calls for Cal Poly to provide us with Internet access, assuming that there are no conflicts with applicable law in doing so. While there are no direct added costs to Cal Poly in doing so, it will save us $18,000 annually in telecommunication costs. Next Steps After City approval of the MOU (Attachment 2), Cal Poly will finalize the bid documents and solicit proposals. Their goal is to award the contract by November 1, 2002. Under the MOU, our work is to be completed within 120 days after contract award. This means the City’s enhanced fiber network could be in place as soon as February 1, 2003. CONCURRENCES The Assistant CAO, Director of Public Works, Director of Finance and Information Systems Manager have worked closely with Cal Poly’s staff in developing the recommended MOU, which covers the key issues presented by this cooperative approach such as cost ($40,000), term (50 years), schedule, and infrastructure operation and maintenance once the improvements are completed. This team concurs that the recommended MOU negotiated with Cal Poly adequately protects the City’s interests and ensures that we will receive the intended benefits. C2 - 8 Fiber Optic Infrastructure Partnership With Cal Poly Page 4 FISCAL IMPACT There is currently $367,300 available for wide area network improvements. This will be adequate to fund the proposed fiber installation ($40,000) and the remaining switch and internal cabling improvements that still need to be made after the fiber installation is completed. We will be returning to the Council in the near future for approval of a Request for Proposals for these data communication improvements. ATTACHMENTS 1. Schematic of the City’s fiber network after completion of the project 2. Memorandum of Understanding with Cal Poly Note: Exhibits A (Detailed Map) and B (Detailed Route Description) of the MOU are available for review in the Council office G: Information Systems/Cal Poly Partnership/Council Agenda Report C2 - 9 The following proposal is made by Charter Business® and shall not be considered an acceptance or any offer by the San Luis Obispo or otherwise create a binding contract between San Luis Obispo and Charter Business. This proposal is submitted with the express understanding that the specific, comprehensive terms under which Charter Business and the may enter into a binding contract are understood to be subject to negotiation between the parties hereafter. C2 - 10 Whether your business is looking to ensure network uptime, enjoy reliable voice services or transmit essential data flawlessly, you can count on Charter Business Fiber solutions for your mission critical business needs. There is no comparison to what you get with Charter Business versus traditional telecommunications companies. We take more of an interest in helping your business find success and provide superior service through a dedicated account executive that understands your business and the way you work. The benefits of switching to Charter Business couldn’t be more compelling. Here’s what you can expect when you work with us: Better value Get the bandwidth and voice services your business needs without paying more than you should with powerful, cost- efficient services that help your business connect with customers and vendors more easily than ever. Greater flexibility No matter how quickly your networking needs change, we can accommodate your request with bandwidth changes in increments of 1Mbps that are quickly implemented. More reliability Our best-in-class network is physically diverse from the phone company routes and proactively monitored 24/7/365 to enable your business to work faster, more securely and with fewer interruptions so you can reduce downtime. Charter Business Fiber solutions offer a range of scalable, affordable solutions that include: ”They offer a fiber-optic network that has proven its reliability. Sometimes Charter Business will know about a problem before we do, even if it is after hours.” -Dr. Angela G., District Curriculum and Technology Coordinator, Alabama C2 - 11 The following is a price estimate for Charter Business services that takes into account the conversations we’ve had around the specific solutions that are best suited to meet your needs. Please review and let me know if you have any questions or concerns. I value the opportunity to provide your business a better alternative to your current provider. Option 1: Optical Ethernet One-Time Costs – 60 month term agreement • Installation $0.00 • Equipment $0.00 Monthly Costs – 60 month term agreement 1. The monthly service charge includes the edge equipment required to complete the network connections. 2. Please allow 60-90 days for installation. 3. Frost charges may apply if the contract is signed after January 21, 2014. Service Location Speed Price Installation Charter Business Optical Ethernet: WAN (City Hall) 990 Palm St. 1GB $896.00 $0.00 Charter Business Optical Ethernet: WAN (Parks and Rec.) 1341 Nipomo St. 1GB $896.00 $0.00 Charter Business Optical Ethernet: WAN (Fire Station 3) 1280 Laurel Ln. 1GB $896.00 $0.00 Charter Business Optical Ethernet: WAN (Fire Station 4) 1395 Madonna Rd. 1GB $896.00 $0.00 Charter Business Optical Ethernet: Point to Point (Police Department) 1042 Walnut St 1GB $896.00 $0.00 Charter Business Optical Ethernet: Point to Point (Fire Station 1) 3160 Santa Barbara St. 1GB $896.00 $0.00 Service Level Agreement All Locations Included Included Included 24/7 Circuit Monitoring & NOC Support All Locations Included Included Included Total Per Month All Locations All Speeds $5,376.00 $0.00 C2 - 12 A LA CARTE: Managed Security One-Time Costs – 60 month term agreement • Installation $200.00 Monthly Costs – 60 month term agreement 1. The monthly service charge includes the edge equipment required to complete the network connections. 2. Please allow 60-90 days for installation. 3. Frost charges may apply if the contract is signed after January 21, 2014. This estimate will remain in effect through January 21, 2014 and are based on a 60 month term, subject to these contingencies: • Final engineering, design, and site visits • Complete terms and conditions are provided in our service contract and at CharterBusiness.com I appreciate the opportunity to provide City Of San Luis Obispo with a proposal for Optical Ethernet. Please feel free to call me with any questions. I’ll be following up with you by December 20, 2013 to help your business connect with the power and reliability it needs to find greater success. Sincerely, Geno Maestas Major Account Executive Geno Maestas | Major Account Executive C: 626-430-1306 | P: 626-430-3436 | F: 626-430-3424 The terms of this proposal are confidential and should not be disclosed directly or indirectly to any third party, except as may be required by law. If you and/or your agents or representative makes any unauthorized disclosure, Charter shall be entitled to damages arising from such unauthorized disclosures, as well as to injunctive relief. This proposal is an estimate for discussion purposes only and is not intended to give rise to binding obligations for either party. Any contractual relationship between us will be the result of formal negotiations and will become effective only upon execution of a binding contract by representatives of the parties authorized to enter into such agreements. During any negotiations, each party will bear its own costs and will not be responsible for any costs or expenses of the other party, unless separately agreed to in writing. The offer herein proposed by Charter is contingent upon Customer’s acceptance of Charter’s standard terms of service. ©2012 Charter Communications. All trademarks belong to their respective owners. Services not available in all areas. All pricing and services provided subject to terms of applicable tariff and subscriber agreement and subject to change. Other restrictions and limitations may apply. Taxes and franchise, installation and other fees apply. Actual amounts may vary depending on services ordered. Always contact Charter for verification of current rates, services and terms and conditions. Discounted rates may be available on a service term commitment basis. Internet speeds may vary. Service Location Speed Price Installation Charter Business Managed Security: Firewall 1042 Walnut St N/A $125.00 $100.00 Charter Business Managed Security: Firewall 3160 Santa Barbara St. N/A $125.00 $100.00 Service Level Agreement All Locations Included Included Included 24/7 Circuit Monitoring & NOC Support All Locations Included Included Included Total Per Month All Locations All Speeds $250.00 $200.00 “The bottom line is that they are as worried about making sure our network is running perfectly as I am.” -Jimmy B., Network Administrator, Bethel University C2 - 13 !!!!!!!!!!!Digital'West'Networks.'Inc.!!!!!3620!Sacramento!Dr.!#102!!!!!!!888.781.9378!TEL! !!!!!!!!!!!!!!www.digitalwest.net!!!!!!!!!!!!!!!!!!San!Luis!Obispo,!CA!93401!!!!!!!!805.781.9379!FAX! ! '''' ! ! Miguel!Guardado! Network!Services!Supervisor! City!of!San!Luis!Obispo! September!12,!2013! ! ! Dear!Miguel,! ! ! Thank!you!for!the!opportunity!to!serve!the!City’s!communications!needs.!We!are!pleased!to! offer!you!a!quote!for!the!requested!services!to!the!4!locations!specified!by!the!City.!! ! We!have!also!submitted!an!alternate!proposal!that!we!feel!would!better!serve!the!needs!of!the! City,!as!well!as!improve!Fiber!Optic!connectivity!throughout!our!business!and!residential!areas.! Utilizing!the!existing!agreement!between!the!City!and!Digital!West,!we!believe!this!alternate! proposal!can!be!easily!amended!into!the!current!agreement!with!a!rapid!deployment!plan!to! follow,!once!the!concept!of!the!proposal!is!agreeable!to!you!and!your!department.! ! Please!see!the!attached!Quote!for!Services!–!Metro!Fiber!as!our!response!to!your!request.!! Please!see!the!attached!Alternate!Proposal!–!SLO!City!Fiber!Expansion!as!our!more!complete! solution!to!your!request.!! ! If!you!have!any!questions,!please!contact!me!directly!via!email!or!phone.!We!would!like!to!get! started!right!away.!! ! Thank!you!again!for!working!with!Digital!West.! ! ! Sincerely,! ! !! Tim!Williams! Founder/CEO! Digital!West!Networks,!Inc.! ! Attachments:!!Quote!for!Services!–!Metro!Fiber! !!Alternate!Proposal!–!SLO!City!Fiber!Expansion! C2 - 14 3620 Sacramento Dr. #102 | San Luis Obispo, CA 93401 | (888) 781-9378 DWNI: Metro Fiber Services v3.3 !!!!!__________ Initial Digital'West'Networks,'Inc. Quote'of'Services'for: Ethernet'IP'Transit Customer:City!of!SLO Date:!9/10/2013 Term:3!Year Quote#:!100913=SLO=MF Qty Description Monthly Setup 1 GigE!Pt=Pt!!Ethernet!IP!Transit!=!1042!Walnut!to!2160!Santa!Barbara!$3,000.00 $1,500.00 1 GigE!Pt=Pt!!Ethernet!IP!Transit!=!1280!Laurel!Lane!to!990!Palm!Street $3,000.00 $1,500.00 1 GigE!Pt=Pt!!Ethernet!IP!Transit!=!1395!Madonna!Road!to!990!Palm!Street $3,000.00 $1,500.00 1 GigE!Pt=Pt!!Ethernet!IP!Transit!=!1341!Nipomo!to!990!Palm!Street $3,000.00 $1,500.00 1 Basic!Network!Monitoring Included $12,000.00 $6,000.00 Additional!Terms: • • • • • Monthly Setup DUE'UPON'SIGNING:$12,000.00 $6,000.00 Quote!was!created!by!Tim!Williams!and!is!valid!for!30!days!from!the!date!above Digital!West!!!!!805.781.9378!!!!!www.digitalwest.net! The!bandwidth!will!be!symmetrical!on!all!connections. Setup!costs!include!the!build=out!to!the!customer!MPOE!and!the!Optical!to!Ethernet!device. Customer!is!responsible!for!all!inside!wiring!from!MPOE!to!your!equipment. Each!GigE!Link!will!provide!a!full!1000Mbps!to!the!City!at!a!connect!point!that!is!most!convenient.!Digital!West! will!coordinate!with!the!City!to!choose!where!the!networks!shall!intersect. The!initial!fiber!build=out!may!take!8=10!weeks!or!more!to!allow!for!permit!approval,!directional!boring,!trench! work,!fiber!pull!and!equipment!installation.!!Digital!West!will!work!with!your!business!to!set!a!target!completion! date!so!that!you!can!order!equipment!(if!need!be).!!Once!the!fiber!build!is!completed,!we!will!test!the!circuit!for! 24=48!hours!to!ensure!the!integrity!of!the!circuit.!!When!our!testing!is!successfully!completed,!we!will!begin! billing.!! C2 - 15 !!!!!!!!!!!Digital'West'Networks.'Inc.!!!!!3620!Sacramento!Dr.!#102!!!!!!!888.781.9378!TEL! !!!!!!!!!!!!!!www.digitalwest.net!!!!!!!!!!!!!!!!!!San!Luis!Obispo,!CA!93401!!!!!!!!805.781.9379!FAX! ! '''' ! ! Miguel!Guardado! Network!Services!Supervisor! City!of!San!Luis!Obispo! September!12,!2013! ! ! RE:!Alternate!Proposal! ! Dear!Miguel,! ! ! It!is!our!pleasure!to!provide!this!alternate!proposal!for!the!City!of!San!Luis!Obispo’s!network! expansion!request.!In!seeking!better!ways!to!serve!your!request,!Digital!West!has!incorporated! several!elements!into!this!proposal!that!will!not!only!meet!the!City’s!required!connection! points,!it!increases!the!City’s!control,!access!to!expansion,!and!community!requests!of!more! rapidly!building!out!a!faster!fiber!optic!infrastructure.!! ! Seeing!the!City!as!a!partner!and!not!a!competitor,!it!is!in!our!interest!to!work!closely!with!the! City,!keeping!our!mutual!build!costs!at!a!minimum,!and!providing!benefits!to!the!City!in!cost! reductions!that!will!help!focus!City!assets!in!other!areas.! ! Attached!is!a!general!description!of!the!alternate!proposal!to!be!used!as!a!starting!point!in!our! discussion.!! ! ! ! Sincerely,!! ! ! !! Tim!Williams! Founder/CEO!–!Digital!West!Networks,!Inc.! C2 - 16 !!!!!!!!!!!Digital'West'Networks.'Inc.!!!!!3620!Sacramento!Dr.!#102!!!!!!!888.781.9378!TEL! !!!!!!!!!!!!!!www.digitalwest.net!!!!!!!!!!!!!!!!!!San!Luis!Obispo,!CA!93401!!!!!!!!805.781.9379!FAX! ! '''' ! September!12,!2013! ! City'of'San'Luis'Obispo'–'Network'Infrastructure'Proposal' ' Objectives' ' • Add!redundancy!to!existing!City!of!San!Luis!Obispo!missionMcritical!buildings.! • Provide!reliable!connectivity!to!existing!and!future!City!of!San!Luis!Obispo!buildings.! • Connect!gaps!in!the!City!of!San!Luis!Obispo’s!existing!fiber!network.! • Expand!commercial!fiber!optic!resources!to!elevate!SLO’s!economic!development.! • Meet!these!objectives!with!minimum!to!no!up!front!or!long!term!expense!to!the!City.! ' Proposal'Summary' ! Digital!West!proposes!to!expand!the!City!owned!and!controlled!fiber!optic!network!through!a! fiber!and!conduit!share!agreement.!By!utilizing!existing!infrastructure!between!both!Digital! West!and!the!City!of!SLO,!our!proposal!would!be!to!expand!the!City’s!fiber!network!at!no!cost,! while!utilizing!existing!City!air!space!(available!conduit!space)!to!expand!Digital!West’s!network.!! ! Not!only!will!this!increase!the!City!resources!and!cut!ongoing!costs,!it!will!allow!the!businesses! and!residences!throughout!the!City!to!gain!the!highest!level!of!connectivity,!keeping!road! construction!and!costs!to!a!minimum.!! ! ' Proposed'construction'details'by'Digital'West'for'the'City'of'San'Luis'Obispo' ' • Place!13,830’!of!aerial!fiber!along!Foothill!Rd.!from!the!south!side!of!Los!Osos!Valley!Rd! to!Foothill!Rd.!and!Ferrini!Rd.! • Place!4,350’!of!underground!conduit!and!fiber!along!the!south!side!of!Los!Osos!Valley! Rd.!from!Foothill!Rd.!to!just!west!of!Diablo!Dr.! • Place!3,800’!of!aerial!fiber!along!the!north!side!of!Johnson!Ave.!from!Bishop!St.!to!Laurel! Ln.! • Place!335’!of!underground!conduit!and!fiber!between!Osos!St.!and!Mill!St.!to!1042! Walnut!St.!and!place!925’!of!aerial!fiber!from!Osos!St.!and!Mill!St.!to!1042!Walnut!St.! ! ' C2 - 17 !!!!!!!!!!!Digital'West'Networks.'Inc.!!!!!3620!Sacramento!Dr.!#102!!!!!!!888.781.9378!TEL! !!!!!!!!!!!!!!www.digitalwest.net!!!!!!!!!!!!!!!!!!San!Luis!Obispo,!CA!93401!!!!!!!!805.781.9379!FAX! ! '''' Proposed'Air'Space'Share'in'City'Communications'Conduit' ' • From!Foothill!Rd.!and!Ferrini!Rd.!to!Foothill!Rd.!&!Casa!St.' • Los!Osos!Valley!Rd.!and!Diablo!Dr.!along!LOVR,!along!Madonna,!along!Camino!Mercado,! along!Elks!Ln.,!along!S.!Higuera!and!South!St.!to!Beebee!just!north!of!South!St.' • From!Laurel!Ln.!and!Johnson!Ave.!to!Orcutt!Rd.,!along!Sacramento!Dr.!to!3620! Sacramento!Dr.' • From!Foothill!Rd,!and!Bishop!St.!to!Johnson!Ave.!and!Monterey!St.' • The!greater!downtown!area!as!shown!on!the!highlighted!map.' ' Proposed'Ongoing'expense' ' The!proposed!services!provided!by!both!Digital!West!and!the!City!would!be!offered!as!a!trade,! with!no!expense!to!either!party!for!the!ongoing!asset!use!during!the!duration!of!the!agreement.! Expenses!in!building!out!future!or!nonMexistent!infrastructure!will!be!the!responsibility!of!the! party!in!charge!of!the!future!build.!This!proposal!before!the!City!has!all!construction!phases! listed!as!Digital!West’s!responsibility,!and!will!be!performed!and!paid!for!by!Digital!West!as! their!contribution!to!the!agreement.! ' Attachments:'' See!attached!maps!and!diagrams!rendering!the!proposed!network!expansion.! C2 - 18 C2 - 19 A LocationCost at .04 centCost at .03 centCost at .025 centCost at .04 centCost at .035 centCost at .03 centCost at .025 City Hall$178.80$134.10$111.75$178.80$156.45$134.10$111.75 Rec Center$237.76$178.32$148.60$237.76$208.04$178.32$148.60 PD$36.72$27.54$22.95$36.72$32.13$27.54$22.95 Police Station$698.40$523.80$436.50$698.40$611.10$523.80$436.50 Fire Station #2$1,253.36$940.02$783.35$1,253.36$1,096.69$940.02$783.35 Senior Center$239.12$179.34$149.45$239.12$209.23$179.34$149.45 City Parking$164.72$123.54$102.95$164.72$144.13$123.54$102.95 City Rec Department$1,861.12$1,395.84$1,163.20$1,861.12$1,628.48$1,395.84$1,163.20 Fire Station #4$1,767.44$1,325.58$1,104.65$1,767.44$1,546.51$1,325.58$1,104.65 PW-Corp Yard$1,999.68$1,499.76$1,249.80$1,999.68$1,749.72$1,499.76$1,249.80 Adult Education$658.00$493.50$411.25$658.00$575.75$493.50$411.25 Fire Station #3$981.92$736.44$613.70$981.92$859.18$736.44$613.70 Fire Station #1$1,762.16$1,321.62$1,101.35$1,762.16$1,541.89$1,321.62$1,101.35 City Building$92.04$69.03$57.53$92.04$80.54$69.03$57.53 City Library$61.36$46.02$38.35$61.36$53.69$46.02$38.35 Public Works$178.80$134.10$111.75$178.80$156.45$134.10$111.75 Charter Hub$3,362.16$2,521.62$2,101.35$3,362.16$2,941.89$2,521.62$2,101.35 Charter Hub$980.16$735.12$612.60$980.16$857.64$735.12$612.60 $16,513.72$12,385.29$10,321.08$16,513.72$14,449.51$12,385.29$10,321.08 1 year term3 year term5 year term1 year term2 year term3 year term5 year term Current Fiber Strand CountNeeded Fiber Strand Count C2 - 20 C2 - 21 C2 - 22 C2 - 23 C2 - 24 C2 - 25 C2 - 26 C2 - 27 C2 - 28 C2 - 29 C2 - 30 C2 - 31 C2 - 32 C2 - 33 C2 - 34 C2 - 35 C2 - 36 C2 - 37 C2 - 38 C2 - 39 C2 - 40 C2 - 41 C2 - 42