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ASHLAND
Internet Service Agreement
This is an Internet Service Agreement ("Agreement's between the City of Ashland, hereinafter
referred to as "City," and Hunter Communications, Inc., hereinafter referred to as "Provider",
together referred to as the "Parties".
1. Services. City will purchase and Provider will provide to City:
1.1. Data Services. Data Services access by City to Provider's telecommunications
system to receive Internet bandwidth at the point of delivery located at 90 N. Mountain Avenue,
Ashland, Oregon. The point of delivery is the location where the Provider's system and City's
system are connected and the Data Services are provided. At a minimum, the provided Data
Services will meet all the service requirements, performance standards and performance criteria
of section 4.
1.2. Installation Services. Installation services consist of coordinating with City the
necessary engineering, site survey, system configuration and other services necessary to deliver
Data Services to the City. These services must be provided up to the date that the service
testing is completed based on Provider's customary testing procedures and the service is
accepted by the City ("the service acceptance date"). In addition, Provider must provide the
equipment (collectively referred to as "Provider facilities' necessary to connect City's facilities
to the Provider's network.
2. Term. This Agreement will be effective on November 1, 2015 and will continue for two (2)
years from the service acceptance date unless as otherwise provided in this Agreement.
2.1 City has the option at the time of the final financial review, as provided under
Section 3.5 below, to renegotiate this Agreement, renegotiate pricing and renew for an
additional twelve (12) month term. To renew the Agreement for an additional twelve (12)
month term, both parties must agree to the extension in writing. This Agreement may be
renewed for a maximum of three (3) additional twelve (12) month terms.
3. Charges. City agrees to pay for Provider's services in accordance with the Fee Schedule
attached as Exhibit A and incorporated herein by this reference.
3.1. Data Services Rates. From the service start-up date, City must pay the rates
specified in Exhibit A, except as otherwise allowed in other provisions of this Agreement. If data
service does not begin on the first day of a billing cycle, then payments for the first month will
be prorated on a daily basis. All accounts will be invoiced on the fifteenth day of each month,
and all sums must be paid within thirty days after the date of the monthly billing for services
(the "due date"). Provider will include detailed usage and pricing on each invoice submitted to
the City for payment.
3.2. Installation Services Charge. Upon service acceptance by the City, the prorated
data service charges of subsection 3.1 will apply. The City maintains the right to refuse
installation and service if, in the City's discretion, the service will not meet all the service
requirements, performance standards and performance criteria of section 4.
3.3. Late Payment. Payments received more than ten days after the due date are
2015/10/29 Internet Service Agreement, Page I of 7
subject to a charge of 1% per month on the unpaid balance at the discretion of Provider.
3.4. Taxes, Fees, Government Charges. City agrees to pay any applicable taxes,
franchise fees or other governmental charges imposed upon Provider by a governing body with
jurisdictional authority over the Data Services provided to the City or for use of public right of
ways and easements within the City.
3.5. Financial Reviews. This Agreement is subject to quarterly financial reviews, the
first of which will occur three months from the date executed by Provider. The final financial
review will be completed prior to any extension of this Agreement. As part of any financial
review, Provider will provide to City all applicable information necessary for review, including
but not limited to:
• City's Bandwidth Consumption
• Service rates
• Provider bandwidth costs, and
• Provider support costs
• Summary of achievements in meeting/not meeting service requirements,
performance standards and performance criteria contained in section 4.
4. Service Requirements and Performance Standards.
4.1. Minimum Requirements. Provider agrees to provide Data Services to City that
meet the following minimum requirements:
(a) Two Physically and topologically redundant and diverse connections to the Internet,
(b) The point of delivery for the Internet connections is located at 90 N. Mountain
Avenue, Ashland, Oregon,
(c) Minimum link speed of ten (10) gigabits per second for each connection to the
Internet,
(d) Packet delay may not to exceed twelve (12) milliseconds one-way at ten (10) gigabits
per second per connection to Provider's upstream network interfaces,
(e) BGP4 routing management of AFN's Autonomous System Number
4.2. Performance Standards. Provider agrees to provide data services that meet the
following standards:
(a) Within any 365-day period, Internet bandwidth must be fully operational 99.99% of
the time it is scheduled to be so, and
(b) Provider must provide an acceptable process for City to enter, process and monitor
work orders/trouble tickets from the City to the Provider,
(c) Provider will follow the Outage Notification and Resolution Protocol in section 6.
4.3 Provider Performance Criteria.
4.3.1 Bandwidth Availability. Within any thirty-day period, Internet bandwidth must
be fully operational 99.99% of the time it is scheduled to be so. If the bandwidth is not fully
functional or inaccessible more than 0.01% in any thirty-day period, the Provider will pay the
City 5% of the price of the Data Service for each 0.01% the Data Service is non-functional to a
maximum of 50% of the monthly charge for the Data Service. Scheduled outage periods for
maintenance will not be counted against this performance level, nor will a Data Service that is
nonfunctional or inaccessible due to a general failure of public telecommunications or other
force majeure. The Provider will notify the City at least seventy-two hours prior to any
scheduled outage period.
4.3.2 Provider Availability. Provider must have expert staff available and accessible
via the designated toll-free numbers 99% of the time. In no event will expert staff be
unavailable to contact for a period exceeding fifteen minutes. Provider must also have staff
capable of responding to 90 N. Mountain, Ashland, Oregon, within thirty minutes. If the
2015/10/29 Internet Service Agreement, Page 2 of 7
Provider staff are unavailable or inaccessible more than 1% in any 30-day period, the Provider
will pay the City 5% of the price of the Data Service for each 1% the Provider staff are
unavailable or inaccessible to a maximum of 50% of the monthly charge for the Data Service.
The Provider will provide measured results of the occurrence of periods in which no staff were
available. Unavailability due to a general failure of public telecommunications or other force
majeure will not be counted against this performance level.
4.3.3 Redundancy. Internet bandwidth must have a minimum of two physically and
topologically redundant and diverse connections to the Internet. The Data Service must provide
no less than ten (10) gigabits per second speed 99.99% of the time. If the bandwidth is not
fully functional or inaccessible more than 0.01% in any thirty-day period, the Provider will pay
the City 5% of the price of the Data Service for each 0.01% the Data Service is non-functional
to a maximum of 50% the monthly charge for the Data Service. A solution determined
nonfunctional or inaccessible due a general failure of public telecommunications or other force
majeure will not be counted against this performance level.
4.3.4 Response Time. Internet bandwidth must maintain packet delay not to exceed
twelve (12) milliseconds one-way at ten (10) gigabits per second. If the packet delay exceeds
twelve milliseconds more than 0.1% in any thirty-day period, the Provider will pay the City 5%
of the price of the Data Service for each 0.1% the Data Service is non-functional to a maximum
of 50% of the monthly charge for the Data Service. If the Data Service becomes nonfunctional
or inaccessible as a result of a general failure of public telecommunications or other force
majeure, the time the Data Service is not functioning or inaccessible will not be counted against
this performance level.
4.3.5 Provider Response. Provider will provide correct, reliable information for
problem resolution in a timely fashion, as well as answer reasonable questions City may have
regarding any aspect of Provider's operations, services and equipment or any problems caused
by a solution failing to operate in accordance with the Agreement. The City must notify
Provider when more than 5% of its calls for assistance remain unresolved for more than two
days and explain the specific unresolved complaint, and determine if a violation has occurred for
which liquidated damages would be payable. If after reasonably determining that a violation
has occurred, the Provider fails to satisfactorily resolve the violation, or reasonably assist with
diagnosing the source of the violation, and to the extent compensation for such damages is not
provided for elsewhere in the Agreement, the Provider will pay the City an additional $250 per
day for each full percentage point over 5%. Provider is not liable for failure to remedy a
problem not within its control, unless the Provider has not provided reasonable assistance in
diagnosing other localized problems or provides an incorrect diagnosis due to negligence on the
part of the Provider.
4.3.6 Storage of Data. Specific customer data from the City's services must not be
saved or utilized by the Provider for any purpose or reason. If data is saved, shared, or used in
violation of this requirement, the Provider must pay the City $100,000. Provider will not be
liable to City for provider's use of metadata in the administration of the network and bandwidth,
or for specific data that is required by law, the direct order of a court of law or law
enforcement.
4.3.7 Work Order ComRietion. The Provider must have a specific process in place to
process/execute work orders and trouble tickets. This process must account for thorough
analysis, design, test, and implementation of any changes affecting the Data Service. The
Provider must pay the City an additional $250 for each full or partial day of delay beyond the
fifteenth day of the scheduled change or update.
5. Provider Facilities and Equipment. Provider must, at its expense, undertake all
2015/10/29 Internet Service Agreement, Page 3 of 7
necessary preparations to install and maintain its equipment upon City's premises or in other
locations that are required for Provider to deliver Data Services, except for any costs agreed
upon by City pursuant to subsection 7.1. Any Provider facilities and/or equipment installed on
City's premises must be, and remain, the property of Provider and may be repaired or replaced,
in coordination with the City at any time and must be removed at the termination of service.
The City will not charge rent to Provider for placing or maintaining mutually agreed facilities
and/or equipment upon City's premises for the exclusive purpose of providing Data Service to
City under the terms and conditions of this Agreement. Provider shall be entitled, at any time
coordinated with the City, to affix to Provider facilities or equipment a label indicating the
interest of Provider.
5.1. Removal. City will use reasonable efforts to ensure that Provider facilities and/or
equipment are not removed or caused to be removed by any person, other than Provider or
without Provider's prior written consent.
5.2. Proper Environment. City will use reasonable efforts to keep the location of
Provider's facilities and/or equipment in the proper environment as specified by Provider and
agreed to by the City.
6. Outage Notification and Resolution Protocol.
6.1. Degradation of Service Requirements and Performance Standards. Provider
must notify City within 15 minutes of when Provider knows or should have known about any
degradation of its Data Services. Failure to resolve the degradation in accordance within the
time periods in subsection 9.3 will result in liquidated damages, and such continued failure may
result in termination pursuant to section 9.
6.1.1 Degradation occurs when Provider is providing Data Services, but those services
fail to meet the service requirements, performance standards and performance criteria in
section 4.
6.2. Outage. Provider must notify City within 15 minutes if Provider is unable to provide
data services due to an outage that is not due to a force majeure. Provider must restore data
services within eight (8) hours. Failure to restore data services in accordance with this section
and Section 10 will result in liquidated damages, and may result in termination pursuant to
section 9.
6.3. Emergency. Provider must notify City immediately if Provider is unable to provide
data services due to a force majeure or other unplanned inability to fully provide data services.
7. Rights and Obligations of City.
7.1. Installation. City will provide necessary consent for the installation and use of its
property by Provider's facilities and/or equipment, including consent to necessary alterations of
City buildings. City will provide a suitable and safe working environment for Provider's
personnel in City facilities, including an environment safe from environmental hazards. City
agrees to make other accommodations that are mutually agreed upon prior to execution of this
contract.
7.2. Premises Access. City will provide Provider, or other persons authorized by
Provider, with reasonable coordinated access (on both a routine and emergency basis) for the
performance of all services.
(a) At City's request, Provider will carry out work to install Provider's facilities and
equipment outside Provider's regular working hours, in which event City agrees to pay the
difference between the overtime rate and the standard rate and any other appropriate charges
agreed between the parties.
7.3. City's Connection to Data Services.
2015/10/29 Internet Service Agreement, Page 4 of 7
(a) City will cooperate to configure its equipment to connect with Provider's network
including the use of industry standard equipment that has compatible standards with the service
specifications required by Provider.
(b) Provider may from time to time issue technical instructions on the use of the network
to ensure the proper functioning of the services or the protection of the network from damage
or deterioration. City will take reasonable steps to ensure such instructions are followed.
(c) The City may terminate the contract according to Section 9.1 if the City cannot
reasonably configure its equipment or accommodate Provider's technical instructions,
7.5. Provider Equipment Movement. City will obtain written approval from Provider
prior to moving any of Provider's equipment. Any costs resulting from an outage caused by the
City moving equipment without written authorization, will be borne by the City.
8. Provider's Acceptable Use Policy for Provider IP Products and Services. Provider's
use policy, if any, is attached as Exhibit B and is incorporated herein by this reference.
9. Termination.
9.1 For Cause. Either party may terminate this Agreement for cause, provided written notice
is given to the other party specifying the cause for termination and requesting correction within
ten days for failure to pay a sum due, or within thirty days for any other cause, and such cause
is not corrected within the applicable period. The term "cause" means a material breach of the
terms of this Agreement and includes failing to pay any amount when due, failing to meet any
other obligation herein when due, the filing of a petition in bankruptcy by or against either
party, City's inability to meet obligations when due, or Provider incurs a penalty of 20% or more
for non-compliance under subparagraphs 4.3.1 through 4.3.7 more than twice in any ninety-day
period.
9.2 Without Cause. Either party may terminate this Agreement without cause, provided
written notice is given to the other party at least 120 days prior to the proposed termination
date or sooner if mutually agreed between the Parties.
10. Default/Estoppel/Damages.
10.1 Estoppel. A Parry will be conclusively deemed to have fulfilled its obligations,
unless it receives a deficiency report from the complaining Party ("Complainant") by the
fifteenth (15th) day of the month following the month of the alleged deficiency and the
Complainant identifies the specific deficiency in the deficient Party ("Respondent's fulfillment of
its obligations in that report. Deficiencies must be described in terms of how they have affected
operations and/or a specific performance requirement of the Respondent.
10.1.1 In the event the Provider identifies a situation that is impairing Provider's ability
to perform for any reason, the Provider's deficiency report must contain suggested remedies for
the situation. These suggestions should be in sufficient detail so that the City can make a
prompt decision as to the best method of dealing with the problem and allow the Provider's
service in an unimpeded fashion.
10.2 Operation Standards of Performance/ Liquidated Damages. The Parties
agree that damages from breach of this Agreement are difficult to prove or estimate, and the
amount of liquidated damages specified herein represents a reasonable estimation of damages
that will be suffered by the City due to late performance, including costs of additional inspection
and oversight and lost opportunity for additional efficiencies that would have attended on-time
completion of performance.
10.2.1 If after completing the process in 10.1 above, the City is found at fault, the City
shall, without limitation, provide information, work input, or approvals necessary for the
2015/10/29 Internet Service Agreement, Page 5 of 7
Provider to proceed.
10.2.2 If after completing the process in 10.1 above, Provider's performance is found
unsatisfactory at providing operations and support of Internet bandwidth, Provider shall be
responsible for the direct payment to the City for any liquidated damages as provided in this
Agreement. The maximum liability of the Provider for liquidated damages and other damages
provided for in this Agreement, shall not exceed the total value (three-month average monthly
cost of service times duration of contract) of the Agreement.
10.3 Provider Deficiency Damage Schedules. Subject to 10.2, Provider shall pay the
City the following amounts in connection with the following deficiencies:
10.3.1 When unsatisfactory performance by Provider affects one or more of the
following criteria under subparagraphs 4.3.1 through 4.3.7 and where one of the deficiencies is
clearly the cause of the other(s), Provider shall be liable to pay only the amount of the damage
for the deficiency resulting in the greatest amount of damages.
10.3.2 With the occurrence of noncompliance under subparagraphs 4.3.1 through
4.3.7, such damages shall accrue from the date that deficiency occurred and will continue
through its resolution. In any single billing period the credit received by the City for Provider
noncompliance under subparagraphs 4.3.1 through 4.3.7 will not exceed 50% of the billing
period charge for the Data Service.
11. Miscellaneous Provisions.
11.1 Indemnification. Provider shall indemnify, hold harmless and defend City and
its representatives, officers, directors and employees from any loss or claim made by third
parties including legal fees and costs of defending actions or suits, to the extent that it results
from the negligence or misconduct of Provider or Provider's employees or subcontractors in
performing the work called for in this contract. If the loss or claim is caused by the joint
concurrent negligence or other fault of City and Provider, the loss or claim shall be borne by
each in proportion to the degree of negligence or other fault attributable to each. Provider's
and City's obligations under this paragraph shall survive the termination of this contract.
11.2 Non-waiver. Waiver by either party of strict performance of any provision of this
Agreement shall not waive or prejudice the party's right to require strict performance of the
same provision or any other provision in the future. No waiver, consent, modification, or
change of the terms of this Agreement shall bind either party unless in writing and signed by all
parties. Such waiver, consent, modification, or change shall be effective only in the specific
instance and for the specific purpose given.
11.3 Litigation and Attorneys' Fees. In the event that liquidated damages are not
specified for the default that occurs, the City may elect to pursue an action in a court of
competent jurisdiction. If any litigation is commenced between the parties to this Agreement
concerning this Agreement, or the rights and duties of either party, the prevailing party in that
litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to
a reasonable sum for that party's attorneys' fees, including attorneys' fees on appeal. The
amount of the fees shall be determined by the court in that litigation or in a separate action
brought for that purpose.
11.4 Contract Administration. This Agreement will be administered by the City
Information Technology Department through its Director and by Provider through the
representative listed in subsection 11.5. Either party may change its representative by providing
the other party written notice of the new representative's name and address.
11.5 Notices. Except as otherwise expressly provided by law, any and all notices or
other communications required or permitted by this Agreement or by law to be served on or
given to a party of this Agreement shall be in writing and shall be deemed duly served and
2015/10/29 Internet Service Agreement, Page 6 of 7
given when personally delivered to the party, any managing employee of the party, or, in lieu of
personal service, when deposited in the United States mail, first class postage prepaid,
addressed to the appropriate party as follows:
CITY PROVIDER
City of Ashland Hunter Communications, Inc.
Attn: Director of IT and Electric Utility Attn: Director of Business Development
90 N. Mountain Ave. 801 Enterprise Drive
Ashland, OR 97520 Central Point, OR 97502
11.6 Amendments and Assignment. No amendment to this Agreement or
assignment of this Agreement will be effective unless it is in writing and signed by both parties.
11.7 Force Majeure. Neither party shall be deemed in violation of this Agreement if it
is prevented from performing any of the obligations under this Agreement by reason of severe
weather and storms; earthquakes or other natural occurrences; strikes or other labor unrest;
power failures; nuclear or other civil or military emergencies; acts of legislative; judicial;
executive or administrative authorities; or any other circumstances which are not within its
reasonable control.
11.8 Governing Law. This Agreement, and all matters relating to this Agreement,
shall be governed by the laws of the State of Oregon in force at the time any need for
interpretation of this Agreement or any decision or holding concerning this Agreement arises.
11.9 Severability. If any provision of this Agreement is held by a court, governmental
agency, or regulatory body of competent jurisdiction to be either invalid, void, or
unenforceable, the remaining provisions of this Agreement shall remain in full force and effect
unimpaired by the holding. The invalidity of a section, subsection, paragraph, or clause shall
not affect the validity of the remaining sections, subsections, paragraphs and clauses as long
as the parties can legally, commercially and practicably continue without the invalid provision.
11.10 Entire Agreement. THIS AGREEMENT AND ANY ATTACHMENTS CONSTITUTE
THE ENTIRE AND SOLE AGREEMENT BETWEEN THE CITY AND PROVIDER. ANY AGREEMENTS
OR REPRESENTATIONS RESPECTING INTERNET SERVICE OR ANY RELATED MATTERS
DISCUSSED IN THIS AGREEMENT NOT EXPRESSLY SET FORTH OR INCORPORATED INTO
THIS AGREEMENT ARE NULL AND VOID.
INTENDING TO BE BOUND, the parties have executed this Agreement as of the date written
below.
City of Ashland,
Date: ~0 3a f5
City Administrato , Dave Kanner
Provider:
Date: 1612- 9 Z ° 1v`
AP (COVED AS FORM
2015/10/29 Internet Service Agreement, Page 7 of 7 AShta WAttorriey
Date- (0 - 30-- its
Exhibit A
Internet Service Agreement Fee Schedule
This is Exhibit A to the attached Internet Service Agreement and shall be effective the same date as the
attached Internet Service Agreement. This Exhibit documents the pricing for the Data Services described in
the attached Internet Service Agreement.
Fee Schedule
1. Fees. Provider agrees to provide Internet connection services as specified in the attached Internet
Service Agreement for which City agrees to provide consideration of thirteen thousand eight-hundred
dollars ($13,800.00) per month per the terms and conditions contained in the attached Internet
Service Agreement.
City of Ashland Hunter Communications
By: Dave Kanner By: Z&
Title: City Administrator Title:` ~ w
y Mkckerrk- jceo
Signature Signature
Dated t 3^ Dated ~O/29/ZOf$
AP R VED FORM
Ashland City Attom`ey
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Page 1 / 1
CITY OF
ASHLAND DATE PO NUMBER
20 E MAIN ST. 11/6/2015 13222
ASHLAND, OR 97520
(541) 488-5300
VENDOR: 000082 SHIP To: Ashland Fiber Network
HUNTER COMMUNICATIONS, INC. (541) 488-5354
801 ENTERPRISE DR 90 N. MOUNTAIN
CENTRAL POINT, OR 97502 ASHLAND, OR 97520
FOB Point: Ashland, Oreqon Req. No.:
Terms: Net 15 days Dept.:
Req. Del. Date: Contact: Michael Ainsworth
Special Inst: Confirming? No
Quantity Unit Description Unit Price Ext. Price
20.00 MO Internet Bandwidth Services 13,800.00000 276,000.00
Usaqe up to 10,000 Mbps (10 G)
PO issued for balance of biennial budget
Contract approved by Council 10/20/15
Internet Service Aqreement
Beqinninq date: November 1, 2015
Expiration date: October 31, 2017
Aqreement may be renewed for up to
three (3) additional twelve (12) month
terms for a maximum term of five (5)
vears.
i
SUBTOTAL 276 000.00
BILL TO: Account Payable TAX 0.00
20 EAST MAIN ST FREIGHT 0.00
541-552-2010 TOTAL 276,000.00
ASHLAND, OR 97520
Account Number Project Number Amount Account IJumber Project Number Amount
E 691.02.47.00.60140 276,000.00
VENDOR COPY
Authorized Signature
FORM #3
CITY OF
r
~ 4.
..I
_~ILAND
REQUISITION Oct. 30, 2015
Required date for delivery: Nov. 1, 2015
Vendor Name Htlntpr Cnmmuniratinnc
Address, City, State, Zip 801 FntarnritP nrivP qi&P 1(11
Contact Name & Telephone Number
Fax Number Central Point. OR 97502
Sam A .kl .v 541-772-9282
SOURCING METHOD
❑ Exempt from Competitive Bidding ❑ Emergency
❑ Reason for exemption: ❑ Invitation to Bid (Copies on file) ❑ Form #13, Written findings and Authorization
❑ AMC 2.50 Date approved by Council: ❑ Written quote or proposal attached
❑ Written quote or proposal attached _(Attach co of council communication If council approval required, attach co of CC
❑ Small Procurement Cooperative Procurement
Less than $5,000 9? Request for Proposal (Copies on file)
Date d b Council 10/20/15 El State of Oregon
E] Direct Award ~provey Contract #
El Verbal/Written quote(s) or proposal(s) (Attach copy of council communication) ❑ State of Washington
Intermediate Procurement ❑ Sole Source Contract #
GOODS & SERVICES ❑ Applicable Form (#5,6, 7 or 8) ❑ Other government agency contract
$5,000 to $100,000 ❑ Written quote or proposal attached Agency
❑ (3) Written quotes and solicitation attached ❑ Form #4, Personal Services $5K to $75K Contract #
PERSONAL SERVICES ❑ Special Procurement Intergovernmental Agreement
$5,000 to $75,000 ❑ Form #9, Request for Approval ❑ Agency
❑ Less than $35,000, by direct appointment ❑ Written quote or proposal attached Date original contract approved by Council:
❑ (3) Written proposals/written solicitation Date approved by Council: (Date)
❑ Form #4, Personal Services $5K to $75K Valid until: Date - (Attach copy of council communication)
Description of SERVICES Total Cost
Item # Quantity Unit Description of MATERIALS Unit Price Total Cost
20 months 10G Internet bandwidth., services usage of up to 10,000 Mbps (10 G) 13,800 262,2000
November 1, 2015 thru June 30, 2017 (BN 2015/2017)
(Unsigned) contract for services approved by Council on 10/20/15
❑ Per attached quote/proposal
TOTAL COST
$262,200
Project Number Account Number 691.02.47'.00.601400
Account Number Account Number
*Expenditure must be charged to the appropriate account numbers for the financials to accurately reflect the actual expenditures.
IT Director in collaboration with department to approve all hardware and software purchases: 1IJ _I -;1
IT Director' Date , Support -Yes Mo
By signing this requisition form, I certify that the City's public contracting requirements have been satisfied. ;
Employee: Department Head: ~/-(Equal-to or greater than $5,000)
Department Manager/Supervisor: City Administrator:`- - =
(Equal to or greater than $25,000)
Funds appropriated for current fiscal year SECINQ~,..,i
Finance Director- (Equal to qqreater than $5,000) Date
Comments:
Form #3 - Requisition
CITY OF
ASHLAND
Council Communication
October 20, 2015 Business Meeting
Approval of a public contract exceeding $100,000 for Internet Bandwidth
FROM
Mark Holden, director of IT and electric utility, mark.holden(c)ashland.or.us
SUMMARY
This is a request to approve awarding a contract for internet bandwidth for a term of two years with the
option to renew the contract on an annual basis for up to three additional years for a maximum term of
five years. The total contract value exceeds one-hundred thousand dollars and therefore requires
Council approval per AMC 2.50 070(A)(1).
The contract results in both an increase in internet bandwidth and a reduction in internet bandwidth
costs.
BACKGROUND AND POLICY IMPLICATIONS:
Demand for Internet: The demand for Ashland Fiber Network's (AFN) internet bandwidth continues to
grow. Demand for internet is driven by rapidly expanding internet based video services (e.g. Netflix,
Hulu, YouTube, Facebook, video conferencing, etc.), the need for customers to connect and share
information (personal/gaming, businesses, medical facilities, etc.), and the internet of things (e.g.
mobile technology, smart homes, etc.). In order to continue to meet the demand and successfully
compete against the large national incumbent for customers, AFN needs to increase its internet
bandwidth.
Cost Reduction: AFN has adopted a carrier approach to obtaining internet connectivity. The carrier
approach allows AFN to participate in higher capacity connections and more aggressive wholesale
costs. A reduction in costs facilitates AFN's financial success.
Approval of the contract for internet bandwidth provides both the needed capacity and cost savings.
The sourcing method used to acquire these services is a formal Competitive Sealed Proposal (Request
for Proposal).
Section 2.50.080 Formal Processes - Competitive Sealed Bidding and Proposals
Except as otherwise expressly provided herein, in addition to the requirements of the Model Rules and
the Oregon Public Contracting Code:
C. The Local Contract Review Board shall approve the award of all contracts for which the
Ashland Municipal Code or the Oregon Public Contracting Code require formal competitive
solicitations or formal competitive bids.
Page l of 3
~r,
CITY OF
ASHLAND
Section 2.50.070 Public Contracting Officer Authority
A. Except as otherwise provided by this code, the Public Contracting Officer shall have authority to:
1. Purchase and contract for all materials, supplies, equipment, services and public improvements
for which funds have been appropriated by the City Council and the contract price does
not exceed $100,000;
COUNCIL GOALS SUPPORTED:
17. Market and further develop the Ashland Fiber Network.
17.1 Complete and implement the AFN business plan.
FISCAL IMPLICATIONS:
The total value of the contract (if renewed for the full five-year term) is $828,000. Funding for BN
2015-2017 is in the current, approved budget. Funding for the renewals will be reviewed and approved
as part of the biennial budget process. The contract can be canceled on any of the renewal anniversary
dates (end of years two, three and four).
The Ashland Fiber Network adopted BN 2015-2017 budget for internet bandwidth is $558,000. The
proposed contract will reduce internet bandwidth costs in BN 2015-2017 to $354,046 a reduction of
$203,954.
The current internet connection operates at 2.5 gigabits per second (Gbps; one Gbps = 1,000 megabits
per second). The proposed contract provides a 10 Gbps connection to the internet, a fourfold increase
in capacity. This connection is projected by staff to be sufficient bandwidth capacity to support new
applications and customer usage over the term of the proposed contract.
As of result of the recommended contract both the City's cost of bandwidth will decrease ($203,954 in
BN 2015-2017) and the City will receive an approximately fourfold increase in bandwidth capacity
(2.5 Gbps to 10 Gbps).
EVALUATION PROCESS:
The city mailed the Request for Proposal (RFP) to sixteen prospective proposers. Four proposals were
received in response to the RFP by the deadline. The proposals were scored by a three-member
evaluation committee in accordance with the evaluation process and criteria established within the
RFP. Scoring allowed for one hundred possible points. Evaluator's scores were very consistent and
final rankings of the proposals were unanimous. Upon the completion of the evaluation process, Hunter
Communications was declared the highest ranked proposer.
Proposer Century Cogent Hunter Spectrum
Link Communications Communications Business
Evaluator 1 88 71 90 75
Evaluator 2 89 73 96 79
Evaluator 3 88 75 93 79
Total 265 219 279 233
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CITY OF
ASHLAND
STAFF RECOMMENDATION AND REQUESTED ACTION:
Staff recommends the contract for internet bandwidth be awarded to the highest ranked proposer,
Hunter Communications.
SUGGESTED MOTION:
I move approval of a contract between Hunter Communications, Inc. and the City of Ashland for internet
bandwidth in the amount of one hundred sixty-five thousand six hundred dollars ($165,600) per year for a
maximum of five years. //1
ATTACHMENTS: ~2~E~~uv<~tit
RFP - Internet Bandwidth Evaluation Summary
Page 3 of 3
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