01-22-2016 BPU RPT 03 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 3 File ID — 16 -0189 — C SUBJECT: FIBER USE LICENSE AGREEMENT WITH COUNTY OF RIVERSIDE — WORK ORDER NO. 1423746 FOR $325,000 ISSUES: The issues for Board of Public Utilities consideration are: 1) Approve Work Order No. 1423746 to build a fiber optic cable network to connect three County of Riverside Facilities; and 2) Approve the Fiber Use License Agreement with the County of Riverside. RECOMMENDATIONS: That the Board of Public Utilities: Approve Work Order No. 1423746 for $325,000; 2. Recommend that the City Council approve the Fiber Use License Agreement with the County of Riverside; and 3. Recommend that the City Council authorize the City Manager or his designee to execute the Agreement. BACKGROUND: Riverside Public Utilities (RPU) owns and maintains an extensive network of fiber optic lines and equipment that provides voice, data, electric system protection, and control services to RPU facilities. RPU has many locations and paths throughout the City where it owns excess fiber. This excess fiber is not connected to electronic switches at either end, rendering it "dark ". Currently, RPU leases some of these excess fibers to third parties who install the electronics and "light" the fiber for communication use. The County of Riverside (County) requested to license a portion of RPU's fiber optic network to provide communication services to three key data facilities. To satisfy this request, RPU concluded the engineering and identified the fiber optic network routes to connect the County's facilities. The total project cost to complete the system addition and the network extension to the County facilities is $325,000. Pursuant to the proposed agreement, the County will make an initial one -time payment in the amount of $302,246 to reimburse the capital cost to extend the fiber optic network and install the access points. In addition, the County will pay RPU an annual lease rate of $14,280 for the three year term. The Fiber Business Plan to be considered by the Board and City Council includes recommendations for standardized rates for fiber service. The three year term of this Agreement will facilitate transition to any new rate plan in the future. The Fiber Business Plan also contemplates future buildout of the City's fiber network in the Hunter Park area. This construction of fiber facilities at the County's expense supports that goal. RPU previously entered into similar Fiber Use License Agreements with other private and public entities such as Charter Communications, AT &T Internet Services, MetroFi, UCR, and others. The proposed Fiber Use License Agreement (Agreement), to license 27.70 miles of fiber optic network, was submitted