06-26-2017 BPU RPT 05 - Laserfiche WebLink

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W A T E R E N E R C Y I WI& 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: JUNE 26, 2017 ITEM NO: 5 SUBJECT: PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH STEPHEN BLUM DBA TELLUS VENTURE ASSOCIATES OF PACIFICA, CALIFORNIA, FOR THE IMPLEMENTATION OF MAGELLAN'S FIBER BUSINESS MODEL REPORT RECOMMENDATIONS FOR $175,000 FOR SERVICES THROUGH MARCH 31, 2018 ISSUE: Approval of a Professional Consultant Services Agreement with Stephen Blum dba Tellus Venture Associates for $175,000 for professional services to implement recommendations for phases 1 and 2 of Magellan's Fiber Business Model report. RECOMMENDATION: That the Board of Public Utilities approve a Professional Consultant Services Agreement with Stephen Blum dba Tellus Venture Associates of Pacifica, California, for $175,000 for implementation of phases 1 and 2 of Magellan's Fiber Business Model. 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 electronics and "light" the fiber for communication use. In March 2014, staff issued a Request for Proposals for preparation of a long range business model and roadmap for development and expansion of RPU's dark fiber lease program. In July 2014, the Board approved a Professional Services Agreement with national consulting firm Magellan Advisors (Magellan) to develop the fiber business plan. Magellan's scope of work included assessment of RPU's current practices around dark fiber leasing and opportunities for enhancement of the program supported by a business community survey, interviews with community anchor stakeholders, and review of peer agency fiber offerings. Magellan also assessed RPU's current fiber offerings, infrastructure, costs of construction, and opportunities for efficiency in how we deploy fiber infrastructure. A high level overview of RPU owned and operated fiber routes within the City are shown the graphic below.