TO:
FROM:
DATE:
Item No. 5.
HONORABLE M AYOR AND MEMBERS OF THE CITY COUNCIL
OFFICE OF THE CITY MANAGER
BY: BEN DICKOW, EXECUTIVE DIRECTOR OF THE CMSC/LIBRARY
DIRECTOR
OCTOBER 14, 2025
SUBJECT: APPROVAL OF AGREEMENT BETWEEN THE CITY OF DOWNEY AND
GIGAKOM TO PURCHASE EQUIPMENT THROUGH THE E-RATE
PROGRAM TO FACILITE TECHNOLOGY UPGRADES AT THE DOWNEY
CITY LIBRARY
EXECUTIVE SUMMARY
The City Council will consider approving an agreement between the City of Downey and GigaKOM to purchase equipment in order to upgrade internet technology at the Downey City Library. The equipment will allow the Library to upgrade its existing bandwidth of 10gbs (giga-bits per second) public internet and Wi-Fi to 100gbs in the near future. The project is part of the federal E-Rate program, which pays for 85% of the project.
RECOMMENDATION
That the City Council:
1.Approve the Agreement with GigaKOM for internet technology equipment for a total amount of $203,916; and,
2.Authorize the City Manager to execute all amendments to the Agreement.
BACKGROUND
In 2015, the Downey City Library became eligible to participate in the federal E-Rate program, allowing the Library to substantially offset costs to cover its internet service, network hardware infrastructure, and establish Wi-Fi access at several City parks and facilities. As a participant in the E-Rate program, the Downey City Library is designated with a set amount of funds to be used for eligible expenses over a five (5) year period. Five years after the first round of funding, the Library’s participation in E-Rate was renewed in 2020 for another 5 years, that included a renewed amount of funds to draw from. These designated amount of funds have traditionally reimbursed 80% of project costs including equipment, however, recently the reimbursement rate was increased to 85%.
Each year, the Downey City Library works with the City's IT Division and a specialized E- Rate consultant to develop a list of internet infrastructure priorities and equipment upgrades that both meet the needs of the Library and that will be eligible for the E-Rate reimbursement program. Designated E-Rate vendors are invited to submit plans for equipment purchases and service, which are evaluated by City staff. Plans chosen by staff are then submitted for final approval by the E-Rate program and the reimbursement funds are allocated from the City's total E-Rate funding allocation.
ANALYSIS
Working with the City's IT Division, this year, Library staff has prioritized setting the Library up for a future major increase in internet bandwidth to keep up with continually growing demands by the public, that include increased use of the network by an increasing amount of Library visitors as well as more video integration as part of online content. To do this, an equipment upgrade, including higher capacity switches, cables and mounts, is needed.
Fortunately, most of the equipment upgrades are eligible for the federal E-Rate program, significantly decreasing the cost for the City. Following the established E-Rate process, that includes an equipment eligibility review by an outside consultant, the company GigaKOM was selected via a staff review process as it was found to be able to offer the required equipment within the budget allocation approved by the E-Rate program.
The total cost of the project is $203,916. The Federal E-Rate program will cover 85%, which equates to $172,741. The remaining cost of the project, $30,588, will be funded by the City as previously approved in the City's Adopted Fiscal Year (FY) 2025-2026 Budget.
Further, 2025 is the final year of the City's current round of E-Rate funding from the 2020 cycle. The City has $217,170 left in its allocation that must be used before the current 5-year cycle expires or the City loses access to those funds. The equipment to be purchased through GigaKOM will expend the remaining E-Rate funds and set the Library up for renewing its participation in the program in 2026.
CITY COUNCIL PRIORITIES
Quality of Life, Safety, & Infrastructure
Public Engagement
Fiscal Responsibility
FISCAL IMPACT
Approval of the recommended action will result in an expense in the amount of $30,587 to the Downey City Library's Fiscal Year 2025-2026 General Fund expense Account No.10-4-4390-0975. This cost has been accounted for in the FY 2025-2026 Library budget.
ATTACHMENTS
2025 09 23 - GigaKOM (Maintenance CONTRACT) 2025 - Aruba.cleaned (003).pdf