AGENDA MEMORANDUM

 

 

Meeting Date:           July 12, 2010

 

From:                          Jim Lemberg, Manager – Communications Utility

 

Subject:                      Resolution authorizing a Customer Order with Level 3 Communications LLC for upstream Internet bandwidth.

 

 

Staff Recommendation:

Staff recommends approval of a resolution authorizing a Customer Order with Level 3 Communications, LLC for upstream Internet bandwidth at an initial rate of 100 Megabits per second.

 

 

Analysis:

The Communications Utility currently provides a total of 28 Megabits per second of dedicated Internet bandwidth to the City and others.  Significant opportunity exists to provide very large amounts of bandwidth to various parties such as the County (including the County library system), the Lake County Schools, The Villages, other municipalities throughout Lake County, several sizable commercial communications companies, and other entities.  In order to effectively compete for those opportunities, however, the City must restructure its upstream Internet bandwidth costs.  Eliminating the more expensive of its two current upstream providers and introducing a significantly less costly provider will position the City to expand its Internet Service Provider line of business.

 

 

Options:

1.  Approve the resolution, or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

      PROVIDER                          Mbps                        CURRENT                 PROPOSED

 

      Florida Lambda Rail                  15                            $14,300                         $14,300

      Atlantic.net                               18                            $47,247                                  0

      Level 3                                   100                           ______0                         $39,816

      Total                                                                        $61,547                         $54,116

 

      First year non-recurring charge                                          $0                          $4,100

 

This is an order with a two-year term, a $4,100.00 non-recurring fee and a $3,318.00 monthly recurring fee.  The City currently pays its two upstream Internet bandwidth providers an annual total of $61,546.52 for a total of 33 Megabits per second.  Other services cost an additional $802.56 each year, for a total budget line item cost of $62,349.08 against a budgeted amount of $70,000.  $7,650.92 will be available during the current budget year, allowing the Utility to bring Level 3 on-board during September at a cost of $7,418.00 to the current fiscal year’s budget, overlapping with our current provider structure and giving us time to ensure a smooth transition between providers.  Making this change will result in a 12-month cost of $58,216 for 100 Megabits per second of bandwidth.  That cost will drop to $54,116 in subsequent 12-month periods.  As costs drop in the Utility’s Internet Service Provider line of business, revenues will likely increase because the Utility will be positioned to offer more competitive pricing.

 

 

Submission Date and Time:    7/9/2010 11:50 AM7/6/2010 1:39 PM7/2/2010 3:09 PM7/2/2010 8:37 AM____

 

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. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. __045-5026-539.31-10_

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ___$70,000.00_____ _____

 

Available ___$7,650.92__   _______


 

 

RESOLUTION NO._______________

 

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CUSTOMER ORDER FOR INTERNET BANDWIDTH WITH LEVEL 3 COMMUNICATIONS, LLC.; AND PROVIDING AN EFFECTIVE DATE.

 

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 two-year Customer Order with LEVEL 3 COMMUNICATIONS, LLC, whose address is 1025 ELDORADO BLVD., BROOMFIELD, CO  80021, for Internet access at a committed data rate of 100 Megabits per second.

 

             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