11-14-2016 BPU RPT 08 - Laserfiche WebLink

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J � P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: NOVEMBER 14, 2016 ITEM NO: 8 SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH STEPHEN BLUM dba TELLUS VENTURE ASSOCIATES, A SOLE PROPRIETORSHIP, OF MARINA, CALIFORNIA, FOR THE IMPLEMENTATION OF MAGELLAN'S FIBER BUSINESS MODEL REPORT RECOMMENDATIONS — IN THE AMOUNT OF $92,000 ISSUE: Approval of a Professional Services Agreement with Stephen Blum dba Tellus Venture Associates, a sole proprietorship, for $92,000 for professional services to implement recommendations for phases 1 and 2 of Magellan's Fiber Business Model report. RECOMMENDATIONS: That the Board of Public Utilities: Approve a Professional Services Agreement with Stephen Blum dba Tellus Venture Associates, a sole proprietorship, of Marina, California, for $92,000 to implement phases 1 and 2 of Magellan's Fiber Business Model; and 2. Authorize the City Manager, or his designee, to execute the necessary documents. BACKGROUND: Riverside Public Utilities (RPU) operates an advanced broadband fiber -optic cable based network to communicate between its substations and control centers for the operation of our electric grid. Fiber optic cable is normally installed in bundles of 96, 192, 288 or 576 fibers. A typical communication path requires 2 fibers. As a result, 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 electrons and "light" the fiber for communication use. On April 7, 2014, Staff issued a Request for Proposals (RFP) to consulting firms with experience in the preparation of RPU's Utility Fiber Business Model Development and Magellan Advisors was selected for its experience and expertise in fiber business model planning and development. In July 2014, staff engaged the national consulting firm Magellan Advisors (Magellan) to develop a fiber business plan and roadmap for enhanced broadband communications in Riverside. In November 2015, the Board approved Phase 1 of Magellan's draft report which outlined a three - phased plan for enhancement of RPU's business practices and expansion of our dark fiber offering. During the competitive proposal evaluation, Stephen Blum dba Tellus Venture Associates, a sole proprietorship, was identified by the screening and selection committee as the most qualified firm to implement the Utility Fiber Business Model. Tellus Venture Associates was then solicited by Staff to provide a proposal to provide an extension of staff necessary to implement the Board approved Fiber Business Model.