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.
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.
1. Approve the resolution, or
2. Such alternative action as the Commission may deem appropriate
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.
Department: ___Communications ______
Prepared by: __Jim Lemberg __________
Attachments: Yes_X__ No _____
Advertised: ____Not Required ___X___
Attorney Review : Yes_X_ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. __045-5026-539.31-10_
Project No. ___________________
WF No. ______________________
Budget ___$70,000.00_____ _____
Available ___$7,650.92__ _______
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.
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