AGENDA MEMORANDUM

Meeting Date:           October 11, 2010

From:                          Jim Lemberg, Manager – Communications Utility

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

Staff Recommendation:

Staff recommends approval of a resolution authorizing a Customer Order with Level 3 Communications, LLC for an additional 200 Megabits per second of upstream Internet bandwidth.

Analysis:

The Communications Utility will soon notify its existing Internet customers of significantly reduced prices.  Each customer will be given the option of: 1) changing bandwidth consumption and possibly changing their monthly recurring charge; or, 2) keeping the same bandwidth level and reducing their monthly recurring charge.  In recent years, the Utility’s Internet customers were given a similar choice and most chose increased bandwidth.  Staff anticipates most of the existing customers to make the same choice:  increased bandwidth.  If that occurs, the Utility will require most of its existing bandwidth to fulfill those requirements.

Staff has two wholesale Internet bandwidth customers in the pipeline very near to contract signature, each of whom is asking for 100 Megabits per second of bandwidth.

Options:

1.  Approve the resolution, or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

      Incremental monthly revenue from two contemplated wholesale customers..........    $4,400

      Incremental monthly cost for additional Internet bandwidth.................................. < $2,731 >

      Net increased monthly cashflow.............................................................................    $1,669

Submission Date and Time:    10/8/2010 5:19 PM____

Department: ______________________ Prepared by:  ______________________                       Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                           Submitted by: City Manager ___________________

Account No. _________________ 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 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 an agreement  with LEVEL 3 COMMUNICATIONS, LLC,  whose address is 1025 ELDORADO BLVD., BROOMFIELD, CO  80021 for an additional 200 Mbps of upstream Internet bandwidth.

 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 _11^th ____ day of _October________ 2010.

                                                                            __________________________________

                                                                             Mayor

ATTEST:

______________________________________

City Clerk