City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 16, 2024 FROM: LIBRARY DEPARTMENT WARDS: ALL SUBJECT: AUTHORIZE AN INCREASE OF PURCHASE ORDER NO. 231811 WITH COLUMBIA TELECOMMUNICATIONS CORPORATION DBA CTC TECHNOLOGY AND ENERGY FOR THE PROVISION, INSTALLATION AND MAINTENANCE OF ADVANCED NETWORK (DATA) SERVICES AS PART OF THE CORPORATION FOR EDUCATION NETWORK INITIATIVES IN CALIFORNIA’S (CENIC) PROJECT IN THE AMOUNT OF $43,484.81 FOR A TOTAL PURCHASE ORDER AMOUNT OF $105,834 TO PAY FOR PRIOR FISCAL YEAR 2022/23 INVOICES AND AUTHORIZE A NEW PURCHASE ORDER FOR FISCAL YEAR 2023/24 IN THE AMOUNT OF $146,016 ISSUES:
Authorize an increase of purchase order number 231811 with Columbia Telecommunications Corporation dba CTC Technology and Energy of Kensington, Maryland, for the provision, installation and maintenance of advanced network (Data) services as part of the Corporation for Education Network Initiatives in California’s (CENIC) project, in the amount of $43,484.81 for a total purchase order amount of $105,834 for to pay for prior Fiscal Year (FY) 2022/23 invoices and authorize a new purchase order for FY 2023/24 in the amount of $146,016.
RECOMMENDATIONS:
That the City Council:
Authorize an increase of purchase order number 231811 with Columbia Telecommunications Corporation dba CTC Technology and Energy of Kensington, Maryland, for the provision, installation, and maintenance of advanced network (Data) services as part of the Corporation for Education Network Initiatives in California’s (CENIC) project, in the amount of $43,484.81 for a total purchase order amount of $105,834 for FY 2022/23; and Authorize a new purchase order for FY 2023/24 in the amount of $146,016.
BACKGROUND:
Public libraries across the state of California are being connected to the CENIC’s California Research and Education Network (CalREN), a high-capacity 3,800-mile fiber optic network cable(s) that is part of the High-Speed Broadband in California Libraries Project. The Califa Group (Califa), a non-profit library consortium, was appointed by the California State Library to manage the roll-out process with the Corporation for Education Network Initiatives in California’s (CENIC). Created by the University of California, CENIC’s other members include the state university system, California’s community colleges and public schools.
A 2014 State Library needs assessment on high-speed broadband, found that 70 percent of California’s public libraries have connectivity that is more limited than the typical American home, with speeds of “slow” or “very slow.” The City of Riverside has a 1 Gigabit shared internet pipe city wide. With the addition of CENIC, Riverside Public Library will have a 10 Gigabit connection at the Main Library and 1 Gigabit at branch libraries.
In the 2014 and 2015 Legislative Platform, the Riverside City Council supported efforts to modernize the California Library Services Act to be able to accommodate any future arrangement for broadband infrastructure and support of public libraries to a statewide high-bandwidth, high-capacity Internet network sponsored by CENIC.
On December 6, 2016, the City Council accepted $90,000 in grant funding assistance from the California State Library in the amount of $30,000 for the California Library broadband project from February 22, 2016, through June 30, 2017, and $60,000 for September 15, 2016, through June 30, 2017.
On April 13, 2018, the circuits provided by Califa to connect the City’s library branches to AT&T’s high-speed Internet, went live. The agreement with Califa, originally entered into in 2016 while the framework for the CENIC project was being completed, was ratified by the City Council, as costs exceeded $50,000. Costs were $165,000, which were offset by a 90% credit ($148,500) applied once a year; the net annual cost to the City was approximately $16,500, in the Library Fiscal Years 2018-2020 Budget.
DISCUSSION:
The California State Library amended and replaced the aggregator of the original agreement dated July 25, 2018, from Califa to Columbia Telecommunications Corporation dba CTC Technology and Energy (CTC) through a novation agreement approved by the City Council on September 20, 2022, for a contract term ending upon 60 days’ notice. Pursuant to the terms of the novation agreement and original Califa agreement, the City would pay the market price for services monthly, with an annual credit provided to the City in an amount equal to approximately 90% of the actual costs. The initial estimated annual cost of the novation agreement was $57,349.56 per year for FY 2022/23. Staff have determined that the estimated costs increased due to the undiscounted costs are listed separately in CTC billing details (Attached) and may fluctuate annually and the monthly recurring service fee, non-recurring charge, taxes, and surcharges billed by AT&T for each circuit were not considered in the council report presented on September 20, 2022. Staff is seeking authority to increase purchase order to total $105,834 which includes $4,998.97 that was issued via change order number one under change order authority per Resolution 23914 Section 1104(a) and pay the outstanding invoices totaling $43,484.81 from CTC for their services in the Cenic project and per the terms of the agreement.
Staff anticipates that future annual costs for FY 2023/24 will be approximately $146,016, which are offset by an estimated 90% credit applied once a year. This amount is based on the current budget allowance.
The cumulative reimbursements the City has received thus far from Califa for this project is estimated in the total amount of $653,229. The table below shows the actual and estimated costs to the City by fiscal year.
CENIC PROJECT
FISCAL YEAR
CITY EXPENDITURE
CALIFA REIMBURSEMENT TO THE CITY
ACTUAL COSTS
TO THE CITY
2018/19
$140,051
$ 29,496
$110,555
2019/20
$151,857
$127,482
$ 24,375
2020/21
$147,676
$136,384
$ 11,292
2021/22
$148,537
$133,203
$ 15,334
2022/23
$105,834
$95,250
$10,584
2023/24
$146,016
$131,414
$14,601
Total Project
$839,971
$653,229
$186,741
The Riverside Public Library has worked closely with project partners to secure, install and test necessary technological equipment to provide the Riverside Libraries with enhanced Internet connectivity through CENIC.
Project Partners
Contribution
CENIC
Provides network designs, procures circuits, arranges for state and federal discounts, purchases and installs hardware, and maintains and monitors network connectivity to CalREN, the high-capacity network they operate.
Innovation & Technology Department
Assists with acquiring, installing, and maintaining necessary equipment related to the CENIC project.
California State Library
Sets direction for the project and provides oversight.
CTC Technology and Energy
Acts as the Statewide Broadband Access Administrator for the California State Library Broadband Services Project. Develops contracts with participating libraries for data circuits and use of the CalREN network and coordinates the consolidated hardware purchase to take advantage of consortium pricing for network equipment.
The Library is increasingly relying on digital services for our residents. At the same time, the City’s bandwidth needs to continue to support internal and external communication needs as well as a growing number of cloud services. CENIC provides dedicated high-speed service to the library patrons approaching 10 Gigabits per second and will reduce the network bandwidth and performance impact on the City’s network and security hardware that’s currently rated for 1 Gigabit per second supporting more than 7,000 connected systems.
Per Purchasing Resolution 23914, Section 1104(c) states, “Modifications to a Purchase Order shall be made only by Change Order…Change Orders which cumulatively exceed the following will require Awarding Entity Approval: c) 10% of the original contract price for Contracts and or Purchase Orders Previously approved by the Awarding Entity and the total Change Order amount will not exceed $150,000.” The Purchasing Manager concurs that this purchase complies with Purchasing Resolution No. 23914, Section 1104(c).
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 1 Arts, Culture & Recreation and Goal 1.1 - Strengthen Riverside’s portfolio of arts, culture, recreation, senior and lifelong learning programs and amenities through expanded community partnerships, shared use opportunities and fund development.
The item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust - This item aligns with Community Trust by minimizing the expenditure of City funds through partnerships with California State Library, CENIC, Califa and CTC Technology and Energy.
Equity - This item aligns with Equity by facilitating equitable distribution of internet services to every member of the community.
Fiscal Responsibility - This item aligns with Fiscal Responsibility as it provides discounts up to 90% for high-speed internet services.
Innovation - This item aligns with Innovation by continuing partnership with the California State Library.
Sustainability & Resiliency - This item aligns with Sustainability & Resiliency by providing reliable digital services.
FISCAL IMPACT:
The total fiscal impact of this action is $189,500.81. This includes amending the prior year purchase order to pay for invoices from FY 2022/23 in the amount of $43,484.81 and creating a new purchase order for FY 2023/24 in the amount of $146,016. Funding for the amendment and new purchase order are budgeted and available in the FY 2023/24 budget in the General Fund, Library-Administration, Internet Service Provider expenditure account number 5130000-421215.
Prepared by: Angela Henson, Senior Management Analyst
Approved by: Erin Christmas, Library Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra Norton, City Attorney
Attachment:
Novation Agreement
Council Report September 20, 2022
Council Minutes September 20, 2022
Outstanding Invoices
Columbia Telecommunications Corp dba CTC Technology & Energy ● Page 4