Agenda Item
City Council
Item #: 3.29. 4/12/2022 File #: 22-0172
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director
1. SUBJECT
Authorize purchase of leased fiber services from Crown Castle Fiber LLC.
2. SUMMARY
Leased fiber services will provide network connectivity for Fire Station 2, Fire Station 8, and Hart Park.
3. RECOMMENDED ACTION
1. Approve the purchase of leased fiber services from Crown Castle Fiber LLC for $150,000 for one-time costs and a $2,400 monthly recurring cost over a five-year term.
2. Authorize the City Manager to sign the service order.
4. FISCAL IMPACT
The total expenditure of this service order is $294,000 and will be funded through:
Capital Project (500), Fiber Optic Cable Installation (30071) $150,000 Information Systems (780) 144,000
Total: $294,000
Although the 60-month service order for monthly recurring costs is $144,000, outgoing services from AT&T and Spectrum will mostly offset these leased fiber costs. The net estimated annual operating cost increase impact is under $10,000.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
6. DISCUSSION AND BACKGROUND
Fire station 8, Fire Station 2, and Hart Park are in areas difficult to reach through City-owned fiber.
There is a scarcity of third-party servicing choices for these locations. AT&T and Spectrum provide some level of servicing to some of these areas but do not offer the desired dedicated high-speed fiber services. Enablement of fiber services to Fire Station 2 will allow for a point-to-point wireless link from Fire Station 2 to the Grijalva Sports Center and from Grijalva Sports Center to Handy Park.
The Handy Park point-to-point link is in place today. The point-to-point link from Fire Station 2 to the Grijalva Sports Center is budgeted and will be separately presented to City Council. Therefore, City of Orange Printed on 4/6/2022Page 1 of 2
powered by Legistar™
Item #: 3.29. 4/12/2022 File #: 22-0172
Grijalva Sports Center is budgeted and will be separately presented to City Council. Therefore, approval of this service order will also enable improved communications for Grijalva Sports Center and Handy Park.
Additionally, service will be added at Hart Park where no connectivity exists today. Hart Park is home to a surveillance system that is currently operated as a stand-alone system. This connection will allow for the Community Services and Police Departments to access these cameras remotely. This also allows for the opportunity to install public Wi-Fi at Hart Park, which would be beneficial to park patrons, particularly during Concerts in the Park.
The initial one-time cost to install the fiber at the three sites is $50,000 per site, for a total of $150,000. The monthly cost for the service at each site is $800 per month, for a total of $28,800 per year over a five-year term. Current leased services from AT&T for Fire Station 8, Grijalva Sports Center, and a head-end connection to the Civic Center will be discontinued. Spectrum services for Fire Station 2 will also be discontinued. Therefore, the net operating cost increase difference of the added services less the discontinued services is under $10,000 per year. Although this is in an increase, it is noteworthy to highlight the fiber services from Crown Castle will provide dedicated private network communications from Civic Center’sdatacenter to each of these locations. The fiber service from Crown Castle will perform at 1 gigabit per second compared to the outgoing service which is 20 megabits per second.
Staff explored installing City-owned fiber to these locations. Station 8 and Hart Park are not close enough to existing City-owned fiber to make such a project practical to connect a single location.
Staff had been in the early planning stages of extending fiber down Wanda Road from Katella Avenue, a distance of about half a mile. The cost to install fiber on this segment would be approximately $300,000. This would have allowed us to connect Fire Station 2 directly to fiber and connect Grijalva and Handy parks via point-to-point wireless. Staff analyzed the two options and found that the Crown Castle approach is a better approach from both a timing and cost perspective.
We would be at least 12 to 18 months away from installing fiber to Station 2 if we built it ourselves, since the fiber on Katella Avenue still needs to be installed, whereas Crown Castle will be able to complete installation in about six months. Additionally, since Crown Castle owns the fiber, they would be responsible for any repairs as a result of a cut line or other failure. Finally, at an installation cost of $50,000 and annual service payments of $9,600 for five years, then adjusting for inflation thereafter, the break-even point for installing our own fiber would be approximately 20 years, which is approximately the useful life of a strand of fiber. Since the City would be utilizing Crown Castle services at other sites irrespective of our approach at Fire Station 2, staff recommends installing their services at all three locations.
This service order is provided via General Services Administration (GSA) cooperative agreement Multiple Award Schedule (MAS) contract, number GS-35F-465DA.
7. ATTACHMENTS
· Crown Castle Fiber LLC service order
City of Orange Printed on 4/6/2022Page 2 of 2
powered by Legistar™