HomeMy WebLinkAbout2019-06-25 - AGENDA REPORTS - MASTER LICENSE AGMT WITH CROWN CASTLE (2)Agenda Item: 11
DATE: June 25, 2019
SUBJECT: MASTER LICENSE AGREEMENT WITH CROWN CASTLE
DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
Award a three-year contract to Crown Castle Fiber LLC, in the amount of $207,000 plus a
five percent contingency in the amount of $10,350, for a total contract amount not to exceed
$217,350 for the City to lease two dark fiber strands from the City of Santa Clarita to
Downtown Los Angeles.
2. Authorize the City Manager or designee to execute all contracts and associated documents,
including up to three additional one-year renewal options beginning in year four, not to
exceed $80,000 per annum, for continued lease of dark fiber strands, subject to City Attorney
approval.
BACKGROUND
The City of Santa Clarita (City), much like other businesses and organizations within it, has a
growing need for a faster and more cost-effective Internet connection. As the City continues to
move towards Internet -based applications to provide improved and more efficient service options
for its current, and growing, population, the need for faster and more diverse options for Internet
services becomes of greater significance.
The City's primary Internet circuit is a 100 Mbps leased fiber service. The cost to upgrade to a 1
Gbps, or higher, Internet connection in Santa Clarita, even where it is offered, is a poor value
when compared to other cities and communities located closer to major metropolitan areas, such
as Downtown Los Angeles (DTLA). A major reason for this disparity is minimal choice in
Internet Service Providers.
Therefore, in an effort to maximize the value to cost proposition for high-speed bandwidth, the
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City's best option is to lease two dark fiber strands from Crown Castle Fiber LLC (Crown
Castle) that would extend the City's reach into DTLA; whereby, it would have access to
hundreds of Internet Service Providers. A connection to DTLA would result in a more
competitive market for the growing need of a high-speed Internet circuit of 1 Gbps or higher at
more cost-effective rates than would otherwise be available.
Staff analysis for this agreement indicates a marginal increase of $15,000 to $20,000 per year in
overall ongoing expenditures for Internet service; however, in exchange the City would receive a
ten times faster Internet connection (i.e. 100 Mbps to 1 Gbps). The increase in expenditures are
largely attributable to required rackspace, electricity, and cross -connects for city -owned
equipment, which would be located in DTLA, and needed to facilitate the connection.
Additionally, staff estimates that there will be a one-time expense of approximately $80,000 for
dark fiber equipment necessary to support this lease agreement, which will be presented for the
Council's consideration at a later date.
Furthermore, by enabling the City with a dark fiber network that would extend to DTLA, the
City would be streamlining efforts to explore ways to promote and ensure high-speed Internet
access to local business parks, a key goal of the City's five-year strategic plan, Santa Clarita
2020.
ALTERNATIVE ACTION
1. Do not approve contract with Crown Castle Fiber LLC
2. Other action as determined by the City Council.
FISCAL IMPACT
Adequate funds are available in Technology Services expenditure account 12200-5131.003 to
facilitate the recommended actions.
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