CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the applicable provisions of the Naperville Procurement Code and Award Procurement 17-104, Citywide Telecommunications Strategic Business Plan, to Magellan Advisors for an amount not to exceed $89,000.
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DEPARTMENT: Information Technology
SUBMITTED BY: Jeff Anderson, IT Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Technological advances in the communication industry continue to provide greater information to individuals and businesses. Quick and easy access to the Internet has become a necessity. Fast access to data can provide a competitive advantage to our Naperville businesses as they compete with others to make timely business decisions based on good information.
Staff has recently observed this demand through requests from private companies to install fiber optic lines in our public right-of-way to provide high-speed access for some City businesses. Traditionally the City only allowed franchised utilities access in our right of ways. The Telecommunications Act of the 1990’s changed that and the City saw two private fiber companies install their facilities in the City; with one linking businesses along the tollway and the other providing connectivity between school buildings throughout the City. Today we are seeing a new industry develop.
In the last several months, three unrelated private companies have approached the City requesting approval to install their private fiber in our right of ways to provide high-speed Internet access to our businesses. These companies don’t provide the Internet service, they simply provide the conveyance to the Internet. An issue is that there are several of these companies, and based on what we are seeing we believe that number will continue to grow. Instead of having one or two fiber lines along City right-of-ways, we could end up with a dozen or more, congesting City right of ways and making maintenance of City utilities and roadways very expensive.
In addition to underground request in right-of-ways, the City is receiving requests to attach to above ground infrastructure like street lights to create small cell sites. Enhancement of cellular carrier’s networks can be accommodated through this along with creating small wi-fi locations. Staff believes that coordinating efforts with cellular carriers will not only create a more aesthetically pleasing result, but can also provide a wider array of services to citizens.
DISCUSSION:
Staff has researched progress and initiatives of technology-driven cities. Many cities have leveraged these types of requests to build a municipal network as part of the construction of the private networks. Others have identified unique municipal assets to provide quick and easy data to their residents and businesses. Many cities use their access to data as an economic development driver, attracting businesses based on their easy access to the information highway as opposed to easy access to the transportation highway. Most of these cities also identified public and private methods for providing robust wi-fi coverage to larger areas.
There are many different types of requests coming and a wide range of benefits the City could realize. By its nature, this is also a very quickly changing industry. We need professional assistance from an industry expert that can identify our assets, the requests the City is getting today, and those we anticipate getting in the future, to help develop a master plan that benefits all stakeholders.
Staff at leading municipalities mentioned one consultant often: Magellan Advisors. Magellan has a nationwide view of what is happening in this industry, can assess the City’s strengths, and provide recommendations on the best way to proceed.
The private companies that are requesting access in our right-of-ways and infrastructure have recognized that some cities are taking this proactive approach, so they are trying to fight this before it becomes too well known. These companies are currently lobbying in Springfield to get legislation passed that will limit what cities can and cannot request. Time is of the essence, and we should not miss this opportunity. We therefore have the recommendation below based on the time that we need to work on our master plan as opposed to procuring a consultant.
Waiver of Section 1-9B-4 (Methods of Source Selection) of the Naperville Code is required because the process that was conducted is not one of the enumerated methods under the Code. Given the factors discussed above, time is of the essence and staff is concerned that a formal procurement process, which can take three to six months, will negatively impact the City’s ability to react to the changing marketplace. Based upon references from other communities, staff is confident that Magellan Advisors will be able to provide the City with the high quality business plan it needs to be able to proactively address the changes in the telecommunications industry.
The final deliverable will provide the City with a framework from which to move forward. As such, it is anticipated that additional projects will result from this study. It is staff’s intention to conduct bids and/or requests for proposal for all associated future work.
FISCAL IMPACT:
CIP #: N/A
The telecommunication strategic business plan will be expensed to the Support Services accounts in the General Fund and the Electric Utility Fund fund listed below; $0 were budgeted for these consultant services in CY2017 and the expense will be split equally amongst the two funds. Savings associated with the MIP transfer will be used to fund this expense within the General Fund.
|
Account Number |
Fund Description |
Total Budget Amount |
|
010-1610-581.30-29 |
General Fund |
$597,679 |
|
410-1610-581.30-29 |
Electric Utility Fund |
$0 |