LSBGHORZ
                            

AGENDA MEMORANDUM

 

 

Meeting Date:           October 12, 2009

 

From:                          Kevin Cochrane, Communications Manager              

 

Subject:                      Resolution Authorizing Telecommunications Rate Schedule Change

 

 

Staff Recommendation:

Staff recommends authorizing a resolution changing the Telecommunications Rate Schedule, adding additional rates for higher bandwidth internet services, lowering the existing internet charge on two categories of service, and changing the minimum term for fiber optic Data Transport, Leased Fiber, and Internet service from 90 days to one year, and consolidating all previous City Commission approved telecommunications rate schedules into one schedule.

 

Analysis:

The City approved Ordinance No. 02-74 on October 28, 2002, which created a new Chapter 22, Article V, and Division 7 of the Code of Ordinances for the City of Leesburg, entitled “Telecommunications Services.”  This ordinance gave approval for service rates to be charged by the City for various Telecommunications Services.  The rates were consolidated on September 12, 2005 by Resolution 7440. Additional rate changes have been approved for new services and rate increases since Resolution 7440 was approved. This resolution will provide for additional internet service solutions that will be offered by the Communications Utility. The City will lower the current rates for two internet services to better align those rates with the new rates.  The resolution will also change the minimum term of our agreements from 90 days to one year. The 90 day term was established by Resolution 7271, January 10, 2005. The FMPA loan referenced in that resolution has been paid off, and the 90 day term limitation no longer applies.

 

Options:

1.  Authorize a resolution changing the Telecommunications Rate Schedule to add additional  Internet service rates, lower current internet rates on two internet services, change the term of agreements, and consolidate all other Telecommunications Rates, or

2.  Such alternative action as the Commission may deem appropriate.


 

 

Fiscal Impact

This resolution is presented to consolidate all telecommunications rates, to add additional internet bandwidth rates, to lower two existing rates to better align those rates with the new, bandwidth solutions, and to extend the term of agreements to a one year minimum. The drop in rates for two current internet categories [ 3Mbps, and 5Mbps], could result in a maximum loss of revenue of $1,500.00 per month, however we anticipate most customers will add additional bandwidth and maintain the same monthly fees.

 

 

Submission Date and Time:    10/9/2009 11:35 AM____

 

Department:  IT / Communications

Prepared by:  _Kevin Cochrane                     

Attachments:         Yes X   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes X  No

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _______JB_________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. 04500003439020

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

 

 

RESOLUTION NO._______________

 

A resolution of the City Commission of the City of Leesburg, Florida, authorizing the Mayor and City Clerk to add additional rates for internet service to the existing Telecommunications Rate Schedule, to lower existing rates on two internet services, and to change the minimum term of fiber optic agreements from 90 days to one year; AND PROVIDING AN EFFECTIVE DATE.

 

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            Section 1.

 

            THAT,  pursuant to the provisions of Chapter 22, Article V, Division 7 of the Code of Ordinances of the City of Leesburg, the following rates and charges for Telecommunications Services shall apply, unless and until adjusted by subsequent Resolution.

 

Description                                                                                          Monthly Amount

 

·         100 Mbps Ethernet Data Transport Point-to-Point                $400.00; to be adjusted

            Service using Fiber or Wireless Transport                               annually on October 1,

                                                                                                            according to the

                                                                                                            percentage increase or

                                                                                                            decrease in the Gross

                                                                                                            Domestic Product 

                                                                                                            Implicit Price Deflator

                                                                                                            Index.

 

·         Dark Fiber Service (minimum 4 mile charge)                          $102.00 per fiber mile

 

INTERNET SERVICES

 

Dedicated Lines

 

Description                                                                                          Monthly Amount

 

·         256 Kbps dedicated line                                                          $   200.00

·         1.544 Mbps dedicated line                                                      $   500.00

·         3 Mbps dedicated line - Old                                                    $1,300.00

·         3 Mbps dedicated line - Amended                                           $1,000.00

·         5 Mbps dedicated line - Old                                                    $1,700.00

·         3 Mbps dedicated line – Amended                                          $1,400.00

·         10 Mbps dedicated line                                                                       $2,450.00

·         15 Mbps dedicated line                                                                       $2,900.00

·         20 Mbps dedicated line                                                                       $3,400.00

·         25 Mbps dedicated line                                                                       $3,750.00

·         35 Mbps dedicated line                                                                       $4,650.00

·         45 Mbps dedicated line                                                                       $5,490.00

·         1 Mbps Incremental Addition to existing service                    $   200.00 / per Mbps

 

 

 

 

 

Section 2.

 

THAT, this resolution authorizes staff to enter into Data Transport and Internet Service agreements for terms of one year, and provide for automatic renewal of the agreements.

 

Section 3.

 

THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 12th day of October  2009.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk