HomeMy WebLinkAboutRES 4350CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4350
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE
MAYOR AND CITY CLERK TO ENTER INTO AN INTERLOCAL AGREEMENT WITH THE
CITY OF BELLEVUE, CITY OF KIRKLAND, CITY OF REDMOND, KING COUNTY,
BELLEVUE SCHOOL DISTRICT 405, LAKE WASHINGTON SCHOOL DISTRICT, AND
RENTON SCHOOL DISTRICT, ENTITLED "CONSORTIUM PROJECT AGREEMENT 73,"
REGARDING THE EASTSIDE RAIL CORRIDOR (ERC) FIBER OPTIC FEASIBILITY
STUDY, WITH SUCH STUDY BEING A PROJECT OF THE COMMUNITY
CONNECTIVITY CONSORTIUM WHICH WAS PREVIOUSLY FORMED BY
INTERLOCAL AGREEMENT.
WHEREAS, in 2011, the City of Renton, together with other local governments and state
agencies, and pursuant to Chapter 39.34 RCW, entered into the Interlocal Agreement
Establishing the Community Connectivity Consortium, which entity was formed under the
authority of RCW 35.21.730 through 35.21.759 ("Consortium"); and
WHEREAS, since its creation, several other jurisdictions have joined the Consortium, and
the current members are the Cities of Renton, Algona, Auburn, Bellevue, Federal Way, Kent,
Kirkland, Milton, Newcastle, Pacific, Redmond, Seattle, and Tukwila, King County, Bellevue
College, Bellevue School District, Federal Way Public Schools, Lake Washington School District,
Northshore School District, Renton School District, University of Washington, Evergreen Hospital,
Valley Medical Center, NORCOM, South Sound 911, Valley Communications Center, and South
Correctional Entity (SCORE); and
WHEREAS, the purpose of the Consortium is to acquire, construct, operate, manage and
maintain a regional communications network that meets the needs of community institutions,
including but not limited to government agencies, hospitals, schools and universities; and
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RESOLUTION N0. 4350
WHEREAS, the Consortium has periodically executed project agreements for specific
regional projects, some of which do not require participation by all members of the Consortium;
and
WHEREAS, presently, certain members of the Consortium, namely the Cities of Renton,
Bellevue, Kirkland, Redmond, King County, Bellevue School District 405, Lake Washington School
District, and Renton School District ("Project Agreement Members"), intend to enter into
Consortium Project Agreement 73, which provides for participation in the Eastside Rail Corridor
("ERC") Fiber Optic Feasibility Study and defines each participating member's contribution to the
study ("Project Agreement"); and
WHEREAS, the ERC passes through certain Consortium member cities, and a potential
development of fiber optic infrastructure in the ERC could benefit the Project Agreement
members. As such, the participants in the Project Agreement intend to each contribute funds
toward the completion of the study; and
WHEREAS, the City of Kirkland, acting as the lead agency in the Project Agreement has
agreed to collect and aggregate payments from project participants towards the payment of
project funds. The Project Agreement memorializes the financial commitments of the
participants, and when executed, will allow the City of Kirkland to execute the final professional
services agreement anticipated in the Project Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
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RESOLUTION NO. 4350
SECTION I. The Mayor and City Clerk are hereby authorized to enter into an interlocal
agreement with the Project Agreement members entitled Consortium Project Agreement 73,
attached hereto as Exhibit "A" and incorporated by this reference.
PASSED BY THE CITY COUNCIL this 13th day of August
Jason 4. Seth, sty Clerk
APPROVED BY THE MAYOR this 13th day of August
Approved as to form:
Shane Moloney, City Attorney
RES:1778:7/18/18:scr
3
Denis Law, Mayor
2018.
2018.
RESOLUTION N0. 4350
EXHIBIT "A"
CONSORTIUM PROJECT AGREEMENT 73
RESOLUTION NO. 4350
Consortium Protect Agreement 73
City of Kirkland
123 5t" Ave
Kirkland, WA 98033
City of Bellevue
450 110t" Ave NE
Bellevue, WA 98004
King County IT
CNK-IT-600
401 Fifth Avenue, Suite 700
Seattle, WA 98104
Lake Washington
City of Redmond
City of Renton
School District
15670 NE 85t" St
1055 S Grady Way
P.O. Box 97039
Redmond, WA 98052
Renton, WA 98057
Redmond, WA 98073
Renton School District
Bellevue School
Community Connectivity
300 SW 7t" St
District 405
Consortium
Renton, WA 98057
12111 NE 1st St
%Bellevue Information Technology
Bellevue, WA 98005
450 110t" Ave NE
Bellevue, WA 98004
Provides for named C3 members' participation in the Eastside Rail
Corridor (ERC) Fiber Optic Feasibility Study and defines each
participating member's contribution to the study.
C3 Project Agreement 73
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RESOLUTION NO. 4350
Table of Contents
Consortium Project Agreement 73........................................................................................... 1
King County IT CNK-IT-600 401 Fifth Avenue, Suite 700 Seattle, WA 98104......................................1
Tableof Contents............................................................................................................................. 2
1. Project Description........................................................................................................... 4
A. Project Number.......................................................................................................................
4
B. Project Name...........................................................................................................................4
C. Project Description..................................................................................................................
4
D. Lead Agency/ Project Manager................................................................................................
5
E. Participating Agencies.............................................................................................................
5
F. Agreement Term.....................................................................................................................
5
H. Description of Project.......................................................................................................
5
Scopeof Work.................................................................................................................................
5
A. Responsibilities of Lead Agency and Project Manager..............................................................
6
B. Responsibilities of Project Participants....................................................................................
6
C. Payment by Project Participants..............................................................................................7
111. Apportionment of and Limitation on Liability...............................................................
7
I. Liability.......................................................................................................................................................7
II. Worker Insurance......................................................................................................................................8
III. General Liability Insurance......................................................................................................................8
IV. Disclaimer, Third Party Components, and Exclusion of Damages ..................................
9
V. Project Schedule.............................................................................................................
11
VI. Miscellaneous............................................................................................................
11
A. Modifications or Amendments..............................................................................................
11
B. Counterparts.........................................................................................................................
12
C. Authority...............................................................................................................................12
VII. Approvals...................................................................................................................13
Cityof Kirkland..............................................................................................................................
13
Cityof Bellevue..............................................................................................................................
13
Community Connectivity Consortium.............................................................................................
13
Project Agreement 73 Approvals (continued): ..................................................................................................
14
Bellevue School District 405...........................................................................................................
14
KingCounty...................................................................................................................................
14
Cityof Redmond............................................................................................................................14
C3 Project Agreement 73
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RESOLUTION NO. 4350
Project Agreement 73 Approvals (continued): .................................................................................................. 15
Cityof Renton................................................................................................................................ 15
RentonSchool District................................................................................................................... 15
Lake Washington School District.................................................................................................... 15
Addendum 1— Statement of WorkKTO................................................................................ 16
Overview............................................................................................................................................................17
ProjectTasks......................................................................................................................................................17
ProjectCommunications....................................................................................................................................21
Deliverables........................................................................................................................................................21
C3 Project Agreement 73
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RESOLUTION NO. 4350
I. Project Description
A. Project Number
73
B. Project Name
C3 participation in ERC Fiber Optic Feasibility Study
C. Project Description
Following an RFP and negotiations, the City of Kirkland contemplates
engaging Columbia Telecommunications Corporation (CTC) to perform a
feasibility study to access the viability of building a high -capacity fiber optic
infrastructure that runs the length of the Eastside Rail Corridor (ERC).
The City of Kirkland, acting as the Lead Agency in this Project Agreement
has agreed to collect and aggregate payments from project participants
towards the payment of project funds to CTC. This Project Agreement
memorializes the financial commitments of the participants, and when
executed, will allow the City of Kirkland to execute the final Professional
Services Agreement with CTC.
The ERC passes through several C3 member cities, and a potential
development of fiber optic infrastructure in the ERC could benefit these C3
members. As such, the participants in this project agreement agree to
contribute funds toward the completion of the feasibility study.
Some segments of the C3 Fiber Optic System currently traverse fiber
routes whose traffic is restricted by agreements to non-commercial, public,
education and governmental agency use only. Utilization of potential
alternate fiber optic routes identified in the ERC could allow C3 members
to increase their scope of usage.
The work to complete this study is fully defined in the Scope of Work
(SOW) negotiated between the city of Kirkland and CTC.
Participating Agencies benefit from this study in the following ways:
• Receive a copy of final deliverables
• Better informed on options to achieve a major north -south fiber
infrastructure route that is unrestricted, a major C3 goal
• Ability to shape business and infrastructure strategies that can
enhance each participating agency's mission and contribute to the
broader region's resiliency
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RESOLUTION NO. 4350
D. Lead Agency/ Project Manager
City of Kirkland/King County
E. Participating Agencies
City of Kirkland
City of Bellevue
Bellevue School District 405
City of Redmond
City of Renton
King County
Lake Washington School District
Renton School District
F. Agreement Term
This agreement will commence on the date of acceptance by all parties
named in Section VI I — Approvals and will terminate 60 days following
delivery and acceptance of the final CTC Feasibility Study by the city of
Kirkland.
II. Description of Project
Scope of Work
The Scope of Work (SOW) for this project is fully set out in the agreement
between the City of Kirkland and Columbia Telecommunications
Corporation (CTC) which is incorporated in this document as Addendum
1.
The SOW included in this document is a DRAFT SOW. Signatories to
this Project Agreement agree that the Lead Agency and Project
Manager have authority to approve the final SOW and make
adjustments as needed throughout the life of that contract as long
as the changes do not result in substantial material changes to this
Project Agreement.
CTC will deliver a feasibility study that focuses on the opportunities and
long-term vision of the study participants' utilization of the ERC as well as
the expected development costs and timelines to utilize the ERC as a
fiber optic infrastructure corridor.
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RESOLUTION NO. 4350
The study will deliver the following items:
1. A conceptual technical plan
2. A fiber engineering and cost estimate
3. A high-level business model
A. Responsibilities of Lead Agency and Project Manager
1. The Lead Agency is responsible to coordinate the payments
towards the project from each participant.
2. The Lead Agency is the responsible party for all matters relating to
the contract with CTC.
3. The Project Manager will assist the Lead Agency by working with
CTC to coordinate the project schedule. CTC will be responsible for
submitting changes to the project schedule to the Lead Agency.
4. The Lead Agency will approve changes to the project scope in its
contract with CTC where the Lead Agency determines that these
changes are beneficial to the outcome of the project.
5. The Lead Agency may make reasonable changes to the project's
scope and deliverables, as recommended by CTC, without
amendment to this Project Agreement so long as these changes do
not incur an increase to the project cost or financial commitment of
a Project participant. .
6. The Project Manager will assist the Lead Agency by working with
CTC to coordinate stakeholder meetings and presentations.
7. The Project Manager will assist the Lead Agency by coordinating all
ERC document requests between CTC and Project Participants.
8. The Project Manager's overall function is to assist the Lead Agency
in its administration of the Lead Agency's contract with CTS.
However, it is understood that the Project Manager is not an
employee of the Lead Agency and shall remain under the
supervisory authority of King County Information Technology,
Regional Services, I -Net Business Manager.
B. Responsibilities of Project Participants
Project participants will contribute towards the completion of the study in the
following manners:
1. Participate in stakeholder interviews with CTC to contribute their
insights, needs and concerns
2. Provide (where permitted and applicable) any relevant maps,
studies, documents or data to CTC for review as part of their work.
3. As needed, participate in conference calls or meetings with CTC
and other participants to provide feedback and insights to CTC as
part of their study.
4. Participate in the study's final review process
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RESOLUTION NO. 4350
C. Payment by Project Participants
The project participants agree to contribute the amounts shown in the table below
toward to overall cost of the ERC Feasibility Study.
C3 agrees to allocate up to $10,000 as contingency funds for this project
to be applied in the event that change orders or contract costs exceed
$99,000. Release and payment of C3 contingency funds must be agreed
to in writing as an addendum to this agreement by the City of Kirkland,
King County, and C3. Payment of contingency funds must also be
reported to the C3 Board of Directors at the next regularly scheduled C3
Board Meeting.
The participants agree to make their agreed payments within 30 days of
invoice receipt from the City of Kirkland.
All payment obligations associated with this Project Agreement 73 shall be
complete prior to December 31st, 2018
Project Participant
Contribution
City of Kirkland *
$18,000
Lake Washington School District
$10,000
King County
$25,000
City of Bellevue
$10,000
Bellevue School District
$10,000
City of Redmond
$10,000
City of Renton
$10,000
Renton Schools
$6,000
C3 Consortium (Contingency Funds
UP TO $10,000
Total(including Contingency Funds
$109,000
* The City of Kirkland's contribution of $18,000 includes a $10,000 contribution towards
the project from the Pacific NW GigaPop (PNWGP). The partnership between PNWGP
and the City of Kirkland is solely between the PNWGP and the City of Kirkland and is
noted here to clearly define the overall contribution of the City of Kirkland.
III. Apportionment of and Limitation on Liability
I. Liability
1. Except as otherwise provided in this Agreement, each party shall defend,
indemnify, and hold harmless the other parties, including their officers, officials,
employees, agents, and regents, from and against any claim alleging harm,
damage, injury, or loss to any person or property to the extent such claim arises
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RESOLUTION NO. 4350
out of or results from its own, or its employees' or agents' negligent acts or
omissions, whether during construction or after completion of the project.
2. If a party uses contractors or subcontractors for work pursuant to this
Agreement, then either (a) the party agrees that its obligations in Section I above
will include responsibility for claims arising from the performance of such
contractors and subcontractors, or (b) the party will include in its contract with any
such contractor or subcontractor a provision requiring the contractor or
subcontractor to defend, indemnify, and hold harmless the other parties, including
their officials, employees, and agents from and against any claim arising from the
contractor's or subcontractor's performance.
3. The indemnity in Section I above is specifically and expressly intended to
constitute a waiver of each party's immunity under the Washington Industrial
Insurance Act, RCW Title 51, (a) only between and with regard to the parties, (b)
only for work done by a party, and (c) only to the extent necessary to provide the
indemnified party or parties with a full and complete indemnity of claims made by
the indemnitor's employees. The parties acknowledge that these provisions were
specifically negotiated and agreed upon by them.
4. Kirkland's liability shall be limited to providing the service(s) described in this
Project Agreement. Kirkland shall not be liable to any third party having a
contractual relationship with CTC.
II. Worker Insurance
Each party to this Agreement shall ensure that it and all persons performing work
on its behalf, including without limitation project suppliers and subcontractors,
maintain in effect at all times during the Work, coverage or insurance in
accordance with the applicable laws relating to worker's compensation and
employer's liability insurance (including, but not limited to, the Washington
Industrial Insurance Act and the laws of the state in which any such person was
hired), regardless of whether such coverage or insurance is mandatory or merely
elective under the law. Each party shall furnish such assurance and evidence of
such coverage or insurance (such as copies of insurance policies and Certificates
of Compliance issued by the Washington State Department of Labor and
Industries) as Participating Agencies may request.
III. General Liability Insurance.
Each party to this Agreement shall maintain in full force and effect throughout the
term of this Agreement, a minimum of Two Million Dollars ($2,000,000) liability
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RESOLUTION NO. 4350
insurance for property damage and bodily injury, and shall cause its agents,
contractors, and subcontractors to maintain the same with regard to work under
this Agreement. In satisfying the insurance requirements set forth in this section,
a party may self -insure against such risks in such amounts as are reasonable for
a municipality or agency of its size or shall obtain a coverage agreement through
a Risk Pool authorized by Chapter 48.62 RCW which shall provide liability
coverage to the party for the liabilities contractually assumed by the party in this
Agreement. At the time of execution of this Agreement, and prior to
commencement of performance of any of the Work, each party shall furnish, upon
request, a Certificates of Insurance as evidence that policies providing insurance
(or self-insurance) with such provisions, coverages and limits are in full force and
effect.
Lead Agency will insure that CTC includes King County as an additional insured
party on their Certificate of Insurance as evidence that policies providing
insurance (or self-insurance) with such provisions, coverages and limits are in
full force and effect.
IV. Disclaimer, Third Party Components, and Exclusion of
Damages
A. DISCLAIMER.
ALL SERVICES AND ACTIVITIES PROVIDED BY A PARTY UNDER THIS
AGREEMENT, , AND NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT, ARE PROVIDED "AS IS". THE PARTIES ACCEPT SUCH
ACTIVITIES, SERVICES AND THE SERVICE EQUIPMENT "AS IS," WITH NO
REPRESENTATIONS OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING WITHOUT LIMITATION IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON -
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OR ANY IMPLIED
WARRANTY ARISING FROM STATUTE, COURSE OF DEALING, COURSE OF
PERFORMANCE, OR USAGE OF TRADE. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, NO PARTY HAS ANY OBLIGATION TO
INDEMNIFY OR DEFEND ANY OTHER PARTY AGAINST CLAIMS RELATED TO
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS
B. EXCLUSION OF DAMAGES.
TO THE EXTENT ALLOWED BY LAW, AND NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IN NO EVENT WILL ANY PARTY BE
LIABLE TO ANY OTHER PARTY OR TO ANY THIRD PARTY FOR ANY LOST
PROFITS (WHETHER DIRECT OR INDIRECT) OR LOSS OF DATA, COVER,
SUBSTITUTE GOODS OR SERVICES, OR FOR INCIDENTAL,
CONSEQUENTIAL, PUNITIVE, SPECIAL, OR EXEMPLARY DAMAGES
(INCLUDING DAMAGE TO BUSINESS, REPUTATION, OR GOODWILL), OR
INDIRECT DAMAGES OF ANY TYPE HOWEVER CAUSED, WHETHER BY
BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY OTHER
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RESOLUTION NO. 4350
LEGAL OR EQUITABLE CAUSE OF ACTION, EVEN IF THE PARTY HAS BEEN
ADVISED OF SUCH DAMAGES IN ADVANCE OR IF SUCH DAMAGES WERE
FORESEEABLE.
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RESOLUTION NO. 4350
V. Project Schedule
The Project Schedule shown below represents a draft project schedule,
assuming that the project begins on September 4, 2018. As noted in the SOW,
many of the project tasks listed below will be performed in parallel.
The Project Schedule included in this document is a DRAFT Project
Schedule. Signatories to this Project Agreement agree that the Lead
Agency and Project Manager have authority to approve the final
Project Schedule and make adjustments as needed throughout the
life of that contract as long as the changes do not result in
substantial material changes to this Project Agreement.
Task
Begin
End
Project Kick-off Meeting
9/4/18
9/7/18
Conceptual Technical Plan
9/7/18
Stakeholder Outreach
9/7/18
Engagement with permitting authorities and
other agencies and governments
Fiber Engineering and Cost Estimate
Survey and document fiber routes
Cost estimates
Develop scope and responsibilities for portions
of the route
Development of a High -Level Business Model
Business case analysis
Benchmark pricing
Data collection with potential customers
Study Delivery
Study Draft Review Process
Final Study Acceptance
Project Completion
12/31 /18
VI. Miscellaneous
A. Modifications or Amendments
No modification to or amendment of the provisions of this Agreement shall be
effective unless in writing and signed by authorized representatives of the parties
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RESOLUTION NO. 4350
to this Agreement. The parties expressly reserve the right to modify this
Agreement, from time to time, by mutual agreement as called for in the Project
Agreement Template Policy.
B. Counterparts
This Agreement may be executed in counterparts, each of which so executed will
be deemed to be an original and such counterpart together will constitute on and
the same agreement.
C. Authority
Each party hereby represents and warrants to the other parties that it has the
right, powers, and authority to enter into this Agreement and to fully perform all of
its obligations hereunder.
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RESOLUTION NO. 4350
VII. Approvals
IN WITNESS WHEREOF, the parties hereto have executed this Project
Agreement on the respective dates indicated below.
City of Kirkland
Signature Date
Name (Printed)
Title (Printed)
City of Bellevue
Signature Date
Name (Printed)
Title (Printed)
Community Connectivity Consortium
Signature Date
Name (Printed)
Title (Printed)
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RESOLUTION NO. 4350
Project Agreement 73 Approvals (continued):
Bellevue School District 405
Signature
Name (Printed)
Title (Printed)
King County
Signature
Name (Printed)
Title (Printed)
City of Redmond
Signature
Name (Printed)
Title (Printed)
Date
Date
Date
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RESOLUTION NO. 4350
Project Agreement 73 Approvals (continued):
City of Renton
Signature
Name (Printed)
Title (Printed)
Renton School District
Signature
Name (Printed)
Title (Printed)
Lake Washington School Districl
Signature
Name (Printed)
Title (Printed)
Date
Date
Date
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RESOLUTION NO. 4350
Addendum 1 — Statement of Work (CTC)
July 6, 2018
Ms. Brenda Cooper
Chief Information Officer
Information Technology Department
City of Kirkland
123 5th Ave.
Kirkland, WA 98033
Subject: Revised expanded scope of work for Eastside Rail Corridor Feasibility Study
Dear Brenda:
As you requested, I've revised our scope of work to reflect your comments and those of
your colleagues. Please do not hesitate to contact me if you would like to talk further. We
look forward to working with you and your colleagues on this important initiative.
Best regards,
10AW— S.
Joanne S. Hovis I President
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RESOLUTION NO. 4350
Overview
The project stakeholders (collectively referred to here as "the ERC Partners') seek to
assess the viability of building a high -capacity fiber optic infrastructure that runs the
entire length of the Eastside Rail Corridor (ERC) to the northern border of King County,
including the Redmond spur.' This statement of work outlines the tasks that CTC
Technology & Energy (CTC) proposes to undertake on the ERC Partners' behalf to
comprehensively examine the project requirements and opportunities, and to identify a
fiber implementation plan and business model and sources of funding. CTC proposes to
develop a technical and business analysis, conceptual designs and cost estimates, and
a business model to help guide the project future steps.
The goal of this effort is to enable the ERC Partners to capitalize on the construction
within the ERC right-of-way and to bring a valuable resource to the ERC owners. CTC
will provide the strategic analysis, recommendations, and constraints the ERC Partners
need to understand whether such an initiative is realistic and feasible in terms of both
technical and financial requirements.
The ERC Partners' consideration of this project is forward thinking. The development of
the ERC project presents a unique, time -sensitive opportunity to share costs on a
significant fiber backbone in a region where a lack of adequate fiber access may have a
negative impact on local businesses and economic development.
The feasibility study will not include examination or assessment of property rights or
property interests along the ERC. CTC's will use our extensive knowledge of the
experiences, best practices, and results of similar initiatives in other communities
nationwide for this study.
Project Tasks
Following a project kick-off meeting to introduce stakeholders (including representatives
of any stakeholders that the ERC Partners' project team chooses) and to establish the
project's goals and schedule, our engineer and business planner will review any
relevant maps, studies, documents, or data that these stakeholders can share with us.
Our review will focus on understanding the opportunities and long-term vision, as well
as the expected development timeline and processes.
Based on this initial information gathering, we will proceed with the primary project
tasks —a series of interrelated steps that will be conducted in parallel, but that we list
separately here for ease of review.
1 See, for example: "Creating Connections: Recommendations on the Eastside Rail Corridor
from the Regional Advisory Council," October 2013. See also: "Eastside Rail Corridor from the
Regional Advisory Council," http://www.kingcounty.gov/operations/erc-advisory-council.aspx
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RESOLUTION NO. 4350
Task 1: Conceptual Technical Plan
In this task, we will identify the required infrastructure and other technical considerations
for providing services along the corridor and to adjacent areas. We will develop a high-
level design and cost estimate for deploying a future -proof middle -mile fiber network
that not only has sufficient capacity to meet the ERC Partners' technical requirements
for fiber -based broadband connectivity in this area, but also features excess fiber
capacity that will enable future use and the corresponding long-term revenue that such
future uses might provide.
Stakeholder Outreach
As a prerequisite to developing the fiber conceptual design and cost estimate, we will
have on -site discussions with project stakeholders to establish a clear definition of the
broadband connectivity requirements that the project will address, and to identify
geographic and other considerations (e.g., underground construction) that will guide the
network design.
Drawing on our experience supporting numerous broadband network developments for
many cities, counties, states, and non-profit entities, we will also seek to meet with
representatives of other potential stakeholders and partners that might in the future
want to partner on construction or become a fiber lessee.
We will also engage with representatives of permitting authorities and other agencies
government regarding the issues of planning fiber infrastructure deployment during
other capital projects as a way to minimize costs. (We have in the past worked with
ERC team members to develop long-term planning strategies for installing conduit for
telecommunications.) We will address important factors such as:
• Developing ongoing relations and agreement with telecommunications providers
• Installing shared access points
• Creating shared equipment hubs
• Ensuring proper maintenance support
This task will create the foundation for the following tasks and the recommendations we
present in our final deliverable. Throughout this task we will be in regular contact with
ERC Partners' staff.
Fiber Engineering and Cost Estimate
We will develop a fiber plan (i.e., a map illustrating the potential placement of fiber
throughout the corridor and adjacent target areas), a conceptual design, and a
budgetary cost estimate for the fiber construction. We will identify candidate locations
for last -mile service interconnection, recommend splice points, and determine whether
there would need to be a peering point for service providers and municipal customers.
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RESOLUTION NO. 4350
The primary focus of our conceptual design will be to develop a cost estimate for
building fiber in the ERC to meet the needs of potential current and future users, with
specific attention paid to optimizing economic development and supporting competitive
services.
We will develop a high-level design that is optimized to support the needs of the ERC
Partners and other potential stakeholders, as well as to enable the ERC Partners
access to fiber for future uses. The design will thus include excess fiber in the backbone
to enable the ERC Partners to explore options for future expansion and service
provisions.
To survey candidate fiber routes and develop cost estimates, CTC engineers will perform both
filed surveys and a desk survey of candidate fiber routing using ERC Partners -provided maps,
Google Earth, and other data sources.
We will include in our engineering analysis existing infrastructure (including rights -of -way
access and locations for network hubs and other necessary infrastructure) that we believe the
ERC Partners can use to support the backbone deployment.
Among the issues we will address are the regulatory and permitting costs required to
start construction, and a high-level assessment of how long construction might take.
We will provide estimates in the form of a cost range, with the lower -end estimates
representing most likely costs, and the higher -end representing budgetary estimates
with suitable contingencies included. Budgetary estimates will include any studies or
permits that are likely to be necessary.
Our planning will also seek to ensure that the ERC Partners understand the scope of
what it will need to build so that the infrastructure is future -proof and does not require
retrofitting to move to new technologies. This will include addressing questions such as
how the responsibility for specific portions of the construction might be divided among
the ERC Partners, other public and non-profit stakeholders, and others that may share
an interest in the initiative.
To be clear, we will not be providing a blueprint -level network design. Rather, we will be
providing a conceptual design and system -level overview of the potential
infrastructure —which in turn will become a roadmap for future decisions, including
detailed engineering and contracting for the fiber build -out along the ERC.
Task 2: High -Level Business Model
In collaboration with the ERC Partners, we will conduct meetings with potential private
partners. For those potential partners that are local, the meetings would ideally be face
to face; we would generally reserve telephone discussions for companies in other parts
of the country that we have worked with on behalf of other municipal or county clients.
The goal of this effort will be to determine whether there is a potential strategy to offset
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RESOLUTION NO. 4350
the ERC Partners' risk by sharing costs or enabling private sector deployment —or by
some other mechanism that achieves the public sector goals of this initiative (i.e.,
meeting public sector communications needs, enabling use of excess fiber for last -mile
deployment, and increasing the attractiveness and viability of the ERC) while mitigating
public sector risk.
We will then develop a business case analysis and high-level business model that
provides recommendations and guidance on the likely roles of the ERC Partners and
other stakeholders' in project funding, ownership, and operation of the network
infrastructure defined in the previous tasks .2
Our business planning will also include benchmarking pricing based on dark fiber
pricing we see in comparable markets elsewhere. We will develop a financial model to
determine the viability of the effort as a breakeven enterprise. In other words, we will
seek to determine whether the revenues from dark fiber leases would potentially cover
the ERC Partners' costs, and whether it would be possible to make this effort work
financially by offsetting costs through public — private partnerships of various sorts. The
proposed business model will reflect our understanding of the ERC Partners' position —
driven by a mission to enhance community economic growth and job creation, but
interested in identifying private sector motivation to develop this infrastructure. To the
extent that we identify a public sector role, we will focus on also identifying a cost
recovery model (whether short- or long-term) over time.
We will also attempt to collect data through interviews with potential fiber customers,
property developers, and the commercial real estate community along the corridor; we
will gauge their interest in gaining access to new competitive service providers on a
wholesale or retail basis and to gain insight into related issues of importance to these
sectors. (We would request the ERC Partners' help in making those connections, and
would undertake one or two group meetings with these stakeholders if possible.)
Throughout this task, we will be focused on developing the cost and revenue inputs for
our high-level financial analysis. Customer insights gathered in this stage can also be
further leveraged at a later time for marketing purposes.
Drawing together all of the research, analysis, and recommendations developed in the
previous steps, we will then prepare a high-level financial model that describes, based
on a range of clearly identified assumptions, the potential revenue (if any) that the ERC
Partners or a partner might see over the course of its fiber construction and operations.
We will pay particular attention to evaluating the ERC Partners' risk over time, and to
2 CTC is not qualified to provide legal advice. We recommend that the ERC Partners and other
project stakeholders seek qualified legal counsel on any issues related to local or state laws or
regulations as they relate to network planning.
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RESOLUTION NO. 4350
answering the overarching question of whether there is a reasonable potential for cost
recovery.
To complement the financial and business model analysis, we will also develop a high-
level strategic analysis of how this infrastructure, if it were deployed, would address
many of the digital and broadband equity concerns of the public sector partners. To this
end, we will review their digital inclusion and equity plans; conduct up to six calls with
the stakeholders; and seek to build into the pricing plan and business recommendations
strategies that would hopefully help to move the needle on digital equity matters.
Project Communications
As we discussed extensively on the phone, we commit to scheduling biweekly check -in
calls with your project team to provide timely feedback and insight into what we find
during our engineering process. We will also establish a file -sharing mechanism (e.g.,
SharePoint, Dropbox, FTP) for the ongoing, two-way transfer of data and maps.
One of the goals of these ongoing communications will be to enable your project team
to track emerging risks and challenges as we identify them —and to ensure that the final
report does not include any surprises in terms of potential construction risk. While it is
impossible to predict whether we will uncover any significant issues (such as significant
environmental concerns) that might make the project financially infeasible, flagging any
such issues early on will create the opportunity for an off -ramp for the project. That is,
you will not have to proceed with subsequent stages of planning if we identify an issue
that you determine might be a showstopper.
Deliverables
Our final deliverable will be a technical and business strategy with a conceptual network
design, construction cost estimates, and fiber plan (map). We will identify strategic
points of presence and describe potential business models (including a list of plausible
partners). Our written report will include a clear and concise narrative supported by
charts, tables, graphics, and maps, as appropriate. We will attribute and provide
sourcing for our research.
We will provide the ERC Partners' identified reviewers with an electronic draft of our
report for initial review. We will incorporate feedback and edits from reviewers within
one week of receipt, and will deliver an electronic version of the final report. We will also
present our strategic plan and recommendations via teleconference and in person at up
to five meetings, to be scheduled following acceptance of the report.
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