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HomeMy WebLinkAboutSpecial 2004-12-13 Item 2B - Presentation - Deployment of Fiber Network for High Speed Connectivity COUNCIL AGENDA SYNOPSIS Initial ITEMNO. o Z, s Meeting Date 1 Prepared by 1 Mayor's review 1 Council review W1 0 12/13/04 I FI rsos I I I ITEM INFORMATION CAS NUMBER: 04-003 I ORIGINAL AGENDA DATE: DECEMBER 13, 2004 Ref 1/20/04) AGENDA ITEM TITLE Special Presentation Connectivity Project CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date 12/13/ 04 SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal PAR Police PWI SPONSOR'S Asset Analytics will brief the Council on the proposed deployment of theTukwila Fiber SUMMARY Network (TFN). TFN will provide all Tukwila residents and businesses with access to extremely high -speed connectivity. The objective of the presentation is to provide an update of the connectivity project including revenue opportunities, use of City crews, efficiencies, list of vendors and financial resources and strategies. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: RECOMMENDATIONS: SPONSOR /ADMIN. COMMITTEE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE I RECORD OF COUNCIL ACTION 12/13/04 MTG. DATE I ATTACHMENTS 12/13/04 1 Information Memo from Asset Analytics dated December 1, 2004 (Contract No. 04- 090)Exhibit A, issued October 1, 2004 with Asset Analytics AA( A-w:t A~, (N;. INFORMATION MEMO From: Mayor Mullet Asset Analytics, Inc. December I, 2004 To: Date: Subject: Connectivity Progress Report to Council ISSUE Provide Council with progress report regarding Tukwila Fiber Network (TFN). BACKGROUND The City has contracted with Asset Analytics to achieve the City's goal of deploying a metropolitan area network and providing gigabit Ethernet connectivity to Tukwila citizens and businesses. The City has requested Asset Analytics to analyze the affect of deploying fiber in the Central Business District first to gain initial customers and to reduce costs in lieu of deploying the network throughout the City. There are a number of tasks specific to the completion of this assignment, they include: . Delivery Of A Business Model For The Central Business District . Determine Source Of Revenue To Help Pay For The Network . Consider The Use Of The City's Crews For The Deployment . Determine If There Are Ally Efficiencies To Be Gained From The Traffic Project . Finalize List Of Vendors For System Components . Determine Financing Options And Strategies . Provide an Interim Report to Council DISCUSSION The following is an update with respect to each of the tasks assigned to Asset Allalytics. CBD Business Model First, the Central Business District had to be carved out as a singular deployment event, along with a connection trom the CBD to the Sabey Data Center. While there is an assumption that the network will stage trom Sabey's Data Center, it does not have to and indeed could be deployed trom one of the City's buildings in the CBD. The advantage with Sabey is that it is a sophisticated network center, with physical security and redundant backup systems in the event of any kind of failure. Businesses using the Tukwila Fiber Network, will want systems such as Sabey's to ensure their connections are of the highest quality. Next a Bill of Materials (BOM) was developed to reflect the CBD carve out trom the design previously completed for the network. The vendors for each of the components have been contacted and we are collecting price information trom them. Additionally we are considering a wireless solution to the customer trom the fiber located in the street. This may be a less expensive way to deliver data to business customers rather than through the delivery of fiber ftom end to end. This is primarily due to the last connection point costs in the CBD. Trenching, drilling, and micro-channel cuts are needed for a full fiber deployment and may require owner permission. Wireless requires some inftastructure but may ultimately cost less. Wireless capabilities however, are not up to those of fiber in terms of data transmission rates, clarity of signal and security. Additionally, wireless may be considered for some deployments as simply a stop-gap measure trom a cost standpoint. Theoretically, if wireless is used and the customer requires a fiber connection, the City could deliver it as an upgrade. To be resolved is whether there would be prohibitive signal interference 16004 Tualatin-Sherwood Rd, Suite 505, Sherwood, OR 97140 AAt A4#I. A~t '-N;. with the wireless deployment. Some have expressed concern that both Boeing and the Homeland Security Building may cause substantial interference. Revenue Opportunities With respect to revenue generation, we have assembled a list of potential content provider resources and are working through the companies on the list to determine their qualifications, what interest - if any - they would have in delivering content over the City's infrastructure and whether they would be willing to pay the City for the right to do so. Use ofCitv's Crews Three members of the Public Works department have been trained to do fiber related activities such as fusion splicing, fiber testing and tennination. In an initial meeting with Public Works, those attending the meeting did not think they any availaqle resources to be utilized in the TFN project. There was additional discussion regarding the logistics of how (or if) to structure the "on calI" fiber maintenance from the City or whether to out-source it. This may be an issue to discuss with respect to the union as well. Regardless, the consensus from the City personnel present was that there was no capacity for additional work with respect to these three. Training another may be a possibility. Outsourcing the construction and maintenance of the fiber can be done as well. If the TFN network requires roughly 4,000 splices, it will cost the City about $120,000. Gaining Efficiencies The City has two traffic signal projects to be completed. One, in conjunction with surrounding municipalities, is substantially completed. The other is about a year off. It was agreed that using the same conduit could be a savings as well as using the same fiber bundle. The Traffic Signal project would always have its own fiber as would the TFN. Some electronics could be common, but will ultimately depend upon the vendor selected for the TFN project and ensuing interoperability (working together). The next step is to overlay the CBD TFN design over the traffic design to see what physical efficiencies can be gained. In the first project the fiber is mostly down, so there is no gain there. In the second, there could be common bundles of fiber used and therefore pulled at the same time. List of Vendors for Svstem As mentioned above, the Central Business District was separated as a project from the City as a unique deployment. Then the component parts were identified and a list of vendors for the network was created. Some of the vendors will only be contacted in the event the City goes to bid, others have been contacted to get illustrative pricing for the business model. Financial Resources and Strategies Previously, the City has considered borrowing short-tenn funds at still fairly low rates to construct the network and then bond afterward for long tenn amortization. We are investigating other sources that may be available to the City. This will be the last issue to be resolved. First the cost of the network must be worked out (including options), the general viability assessed and then payment strategies can be addressed. RECOMMENDATION Continue work fmalize business model and revenue opportunities for Council and report after the first. 16004 Tualatin-Sherwood Rd, Suite 505, Sherwood, OR 97140 EXHIBIT A TO CGn~ Ji~J- oLj-OQO Statement of Work Work described in this Exhibit shall not commence without a written "Notice to Proceed" provided by the City. Contractor shall submit to the City a written schedule that outlines when the following tasks will be completed. Schedule shall be submitted to the City, ATTN: Public Works Director, not later than l5 days after receipt of "Notice to Proceed" . 1. TASK A: SUBMIT A BUSINESS MODEL Contractor shall re-evaluate the dlost recent business model associated with the proposed deployment of the Tukwila Fiber Network t 1 J:' .N"). Update and submit a fonnal written business model that considers the fiber deployment costs of only the Commercial Business District (CBD) and as an option, a connection from the CBD to the Sabey Data Center (CBD). The new business model shall include assumptions used in developing the model such as take rates, network architecture selection, service providers, operations and maintenance, bill of materials and other pertinent data. 2. TASK B: DETERMINE REVENUE SOURCES Asset Analytics shall explore and detennine from content providers, revenue opportunities to defray or recapture deployment costs. Provide a written report to the City, summarizing by content provider,'the services and the amount of revenue that the City can expect to receive. 3. TASK C: USE OF CITY'S STREET CREWS In collaboration with City Staff, Contractor shall factor use of Public Works Department Street Crews that have recently been trained and certified to work on fiber optic projects. Contractor shall summarize in written fonn, the advantages and disadvantages of using trained City Crews and assess whether or not use of trained City Crew~ would lower fiber deployment costs. 4. TASK D: EVALUATE POTENTIAL EFFICIENCIES WITH CITY TRAFFIC SIGNAL PROJECTS. In collaboration with City Staff, Contractor shall explore possible efficiencies that could be achieved with respect to the TFN Project and the City's traffic signal program (Green River Signal Project and the CBD Signal Interconnect Project). Provide a written report that outlines how TIN would interface with the two projects, and the savings that could be obtained. 5. TASK E: FINALIZE LIST OF VENDORS FOR SYSTEM COMPONENTS Contractor shall coordinate and develop a list of vendors that would provide equipment, and service. Contractor shall provide to the City a list summarizing the names of vendors and the equipment/services that they could provide. 6. TASK F: DETERMINE FINANCINGIFUNDING STRATEGY In close coordination with City's Finance Director, determine the optimal short and long- term financing/funding resources. Coordinate with commercial entities (QWEST, Verizon, COMCAST, Dynamic City, and other companies that may become potential funding partners. Provide a written summary of companies contacted and an assessment of their interest in becoming partners to the Project. 7. TASK G: MID-POINT REPORT On or before November 15,2004, Contractor shall brief and submit report to the City Council on progress related to TASKS A-F. 8. TASK H: OTHER TASKS DEEMED NECESSARY BY CITY At the direction of the City, Contractor shall perform tasks related to this Statement of Work. These tasks include but not limited to meetings with City Staff, attendance at Utilities Committee Meetings, Connectivity Committee Meetings, and Council Meetings.