AGENDA MEMORANDUM
Meeting Date: July 12, 2010
From: Jim Lemberg, Manager – Communications Utility
Subject: Resolution authorizing a Master Service Agreement Level 3 Communications, LLC.
Staff Recommendation:
Staff recommends approval of a resolution authorizing a Master Service Agreement with Level 3 Communications, LLC under which the City may place orders for communications services.
Analysis:
The City currently has agreements with two upstream providers for Internet bandwidth: Florida Lambda Rail and Atlantic.net. Both are relatively expensive, but the bandwidth from Atlantic.net is especially costly. The Communications Utility plans to replace Atlantic.net with Level 3, purchasing six times the bandwidth at approximately the same cost. This move will also enable the Communications Utility to market Internet bandwidth to downstream customers at a much more competitive price than is currently the case. Additionally, Level 3 is considered a “tier 1” provider of backbone Internet access, providing robust points-of-connection and very efficient transport across its worldwide network. This means that end-customers who purchase dedicated Internet bandwidth from the City will experience very fast response times. Level 3 maintains two points-of-presence in Lake County: one just west of Leesburg and one in Clermont. The City already has fiber to the first and can readily extend fiber to the second. This will allow the City to have robust and redundant connections to its primary upstream Internet bandwidth provider. This will mean that the City’s Internet connectivity will rarely experience outages related to upstream issues.
Options:
1. Approve the resolution, or
2. Such alternative action as the Commission may deem appropriate.
Fiscal Impact:
The Master Service Agreement under consideration is not a purchase per se. However this agreement provides the general terms and conditions under which the City will place an order for upstream Internet bandwidth which will allow the City to replace $47,246.52 of current annual cost with $43,916.00 in the first year and with $39,816.00 in subsequent years. In addition to the cost savings, the City will be able to sell the excess Internet bandwidth to downstream customers. As the Communications Utility expands its Internet line of business, the comparative cost savings will increase.
Submission Date and Time: 7/9/2010 11:50 AM____
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Department: ____Communications______ Prepared by: ____Jim Lemberg_________ Attachments: Yes_X___ No ______ Advertised: ____Not Required ___X___ 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. 045-5026-539-3410
Project No. ___________________
WF No. ______________________
Budget ___ $70,000 _______
Available __ $ 7,651 ________ |
RESOLUTION NO._______________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A MASTER SERVICE AGREEMENT BETWEEN THE CITY OF LEESBURG AND LEVEL 3 COMMUNICATIONS, LLC ESTABLISHING THE GENERAL TERMS AND CONDITIONS UNDER WHICH THE CITY OF LEESBURG MAY PURCHASE COMMUNICATIONS SERVICES: AND PROVIDING AN EFFECTIVE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute a Master Service Agreement with LEVEL 3 COMMUNICATIONS, LLC whose address is 1025 ELDORADO BLVD., BROOMFIELD, CO 80021, providing the general terms and conditions under which the City of Leesburg, Florida may purchase communications services.
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 July, 2010
__________________________
Mayor
ATTEST:
__________________________
City Clerk