HomeMy WebLinkAbout05/04/1999, C3 - CONDUIT SHARING AGREEMENT WITH ZIATECH councit °°�
j acEnaa Report
CITY OF SAN LUIS 0BISPP0
FROM: Bill Statler, Finance Director
Prepared By: Teri Maa, Information Systems Manager
SUBJECT: CONDUIT SHARING AGREEMENT WITH ZIATECH
CAO REC0MNMNDATION
Approve an agreement with Ziatech Corporation for the use of City conduit in exchange for their
installing fiber between the Headquarters Fire Station and Fire Station 3.
DISCUSSION
Overview
We have a unique opportunity to share our fiber system and recover some of our costs. The City
has received a request from Ziatech Corporation to share the City's fiber optic conduit as follows:
■ The City will allow.Ziatech Corporation to share our fiber optic conduit from Ziatech's site
on Southwood Drive to GST Call America's pullbox at Orcutt Road and the railroad crossing.
■ In exchange, Ziatech will install fiber between the Headquarters Fire Station and Fire Station
3, which will be owned, operated, and maintained by the City. We estimate the total value of
this fiber project is about $18,700. Of this amount, Ziatech will contribute $8,800 for use of
the City's conduit,resulting in a net City cost of$9,900.
■ Ziatech will install their own separate fiber cable in City conduit.
■ Ziatech will not use this fiber to extend services to other public or private entities.
■ Use of the City's fiber optic conduit system does not grant Ziatech access into the City's wide
area network(WAN).
Background
In the summer of 1997, the City installed conduit on Southwood Drive from Laurel Lane to
Sinsheimer Pool and on Laurel Lane from Johnson Avenue to Orcutt Road as part of a traffic
signal upgrade project. Ziatech Corporation approached the City with a request to enter into a
private/public relationship. Their desire — to connect with GST Call America on Orcutt Road
through the City's conduit system.
To make this connection happen, they are proposing to pull a 6 fiber single-mode cable from
their site at 1050 Southwood Drive through the City's fiber optic conduit along Southwood Drive
to Laurel Lane and then to the City's pull box at the Orcutt Road railroad crossing. Ziatech will
then transition to GST's conduit and splice into GST's existing fiber facilities.
In exchange for the use of the City's conduit, Ziatech agrees to pay for just over half the cost of
pulling a 12 fiber singlemode cable between Headquarters Fire Station and Fire Station 3.
C3-1
Council Agenda Report—Conduit Sharing Agreement with Ziatech
Page 2
Because we will not be sharing fiber—only conduit—we do not foresee any future operational
conflicts in allowing Ziatech to share our conduit
CONCURRENCES
The MIS Steering Committee concurs with this recommendation.
FISCAL IMPACT
Based on the attached estimate provided by Ziatech's contractor (Continental Construction), the
total cost of pulling City fiber from Fire Station 3 to the Headquarters' Fire Station is about
$18,700. Ziatech will cover $8,800 of this amount in exchange for using the City's conduit.
Since Ziatech will be taking the lead in installing the City's fiber as well as their own, this will
result in a net cost to the City (to be reimbursed to Ziatech) of$9,900. This means that the City
will get 12 strand fiber installed at a cost of 95 cents per foot. This compares very favorably with
our current estimate of$5.00 per foot approved by the Council in October of 1998 as part of the
City's major wide area network project.
No additional appropriation is required; adequate funds are available in the current wide area
network improvement project budget to cover this cost.
ATTACHMENTS
■ Agreement
■ Ziatech's proposal dated April 14, 1999
C3-2
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this
day of , by and between the CITY
OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and ZIATECH
CORPORATION,hereinafter referred to as Ziatech.
WITNESSETH:
WHEREAS, the City has received a request from Ziatech to share City conduit from their
headquarters office on Southwood Drive to GST Call America's pullbox at Orcutt Road and the
railroad crossing.
WHEREAS,the City wants fiber installed between the Headquarters Fire Station and Fire
Station 3.
WHEREAS, pursuant to said request, Ziatech has submitted a proposal which was
accepted by City for said exchange.
NOW THEREFORE, in consideration of their mutual promises, obligations, and
covenants hereinafter contained,the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is
made and entered, as fust written above, until thirty (30) years from the date of this agreement.
Renewal of the Agreement will be as negotiated by both parties.
2. INCORPORATION BY REFERENCE. Ziatech's proposal dated April 14,
1999,is hereby incorporated in and made a part of this Agreement.
3. CITY'S OBLIGATIONS. For providing fiber for the City's use as specified in
this Agreement, City will (1)pay and Ziatech shall receive therefor reimbursement in a total sum
C3-3
1
not to exceed $9,900.00 and (2) provide Ziatech use of the conduit for Ziatech's fiber from
Ziatech Headquarters to the pullbox on Orcutt Road. The City will own and maintain the fiber
used by the City.
4. ZIATECH'S OBLIGATIONS. For and in consideration of the reimbursements
and agreements hereinbefore mentioned to be made and performed by City, Ziatech agrees with
City to install fiber for City purposes between the Headquarter's Fire Station and Fire Station 3,
and to install and maintain their own separate fiber cable. Ziatech agrees that they will use their
fiber cable solely for their own business purposes; they will not use it to extend services to other
public or private agencies.
5. ASSIGNMENT. Ziatech may assign its rights under this agreement to any entity
that acquires a majority of Ziatech's stock. In the event of such assignment, Ziatech will notify
the City in writing of the assignment. Ziatech may not transfer its rights under this agreement to
any other entity without prior written consent from the City. Such consent will not be
unreasonably withheld.
6. AMENDMENTS. Any amendment, modification, or variation from the terms of
this Agreement shall be in writing and shall be effective only upon approval by the City
Administrative Officer of the City.
7. COMPLETE AGREEMENT. This written Agreement, including all writings
specifically incorporated herein by reference, shall constitute the complete agreement between
the parties hereto. No oral agreement, understanding, or representation not reduced to writing
and specifically incorporated herein shall be of any force or effect, nor shall any such oral
agreement,understanding,or representation be binding upon the parties hereto.
C3-4
2
8. NOTICE. All written notices to the parties hereto shall be sent by United States
mail,postage prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Business President
Ziatech Corporation
1050 Southwood Drive
San Luis Obispo, CA 93401
9. AUTHORITY TO EXECUTE AGREEMENT. Both City and Ziatech do
covenant that each individual executing this agreement on behalf of each party is a person duly
authorized and empowered to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
the day and year first above written.
ATTEST: CITY OF SAN LUIS OBISPO,
A Municipal Corporation
By:
City Clerk Mayor Allen K. Settle
APPROVED AS TO FORM:
By:
oey Ziatech Corporation Title
C3-5
3
=I 1MA'TECH
CORPORATION
April 14, 1999
Mr. Bill Statler-Fnance Director
Mr.Mike McCluskey—Public Works Director
Ms_Terry Maa—MIS Director
City of San Luis Obispo
This letter summarizes the agreement negotiated between Ziatech Corporation and the City of San Luis
Obispo regarding the shared use of the city's fiber optic conduit. The discussions started in April 1997 and
resulted in the following agreement that calls for Ziatech Corporation being granted access to the conduit for
communications purposes. We have agreed to the following:
a. Ziatech will pay tot the material and labor costs to pull a 12 fiber SM cable in the City's conduit
from the comer of Southwood Drive and Laurel Lane to the railroad crossing on Orcutt Street(-1,900 ft).
(The City wiV bear any costs associated with extending this cable up Laurel to Fire Station#3 or beyond the
railroad crossing to Fre Station#1 including any connection costs.)
b.Ziatech will provide and pay for pulling a 12 fiber SM cable from our site at 1050 Southwood
through the City's fiber optic conduit along Southwood to Laurel and then to the City's pull box at the Orcutt
Street railroad crossing (-2,650 fl). (Ziatech will then transition to GST's conduit and splice into their
existing fiber facilities.)
c.Ziatech will be responsible for the maintenance of the 12 fiber SM cable.
This agreement to share the fiber optic cable installation benefits both the City and Ziatech as follows:
a. Ziatech is provided a cost-effective means of obtaining a fiber optic fink.As a vital part of the
city's industrial base Ziatech will have access to sufficient telecommunications bandwidth to allow Tatech to
remain at its present location in the city for the foreseeable future.
b.The City obtains a substantial portion of the fiber connection to Fire station 83 paid for by Ziatech,
and it becomes a one-time transaction eliminating any need for periodic service fees or accounting
procedures.
We are at the implementation phase and are ready to pull cable within days of receiving your final approval
of this agreement. I look forward to receiving the go-ahead.Thank you for this opportunity to work together
with the strong spirit of co-operativeness that has been evident the last several years.Together we can
make things happenl Please direct any technical questions and a copy of the approval to Jeff Robinson, our
MIS engineer in charge of this project.
Sincerely,
2 r d
Richard K Pottratz
Operations Manager
Corporate Headquarte
1050 Southwood Drivt
San Luis Obispo,101gniiJQ3401 USA
FAX(805)541-5088•Telep RM S41-0488