Submitted By
Alvin Nepomuceno, Director of Information Technology
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving an Independent Contractor Agreement with Western Utility LLC for the Construction of the Fiber Infrastructure in an Amount not to exceed $2,870,275.00 and Authorizing its Execution as Reviewed at the November 4, 2019 Village Board Meeting
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Overview
Overview
On November 4, 2019 the Village approved an Intergovernmental Agreement with D97 for this project. The project is also contained in the FY20 Capital Improvement Program.
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Recommendation
Recommendation
Approve the Resolution
Fiscal Impact
In the FY2020 budget, funding for this project is $1,394,490 under the Capital Improvement Equipment Replacement Fund (account 3029.41300.884.540690), $850,667 under the Water/Sewer fund (account 5040.43730.776.570707) and $850,667 under Parking’s operating funds (accounts 5060.43770.783.570707, 5060.73770.784.5707 and 5060.73770.788.5707).
Background
The existing Village underground fiber optic cabling system transmits voice, video and data to all interconnecting village properties. It was installed in multiple stages over 20 year ago, segmented with different types of fiber optic cable running short distances and currently the equipment that is no longer supported. Additionally, the original fiber has reached a limited capacity with no backup services. The system is no longer sufficient to support the increase in daily needs for Village services and the increased demand for public safety operational requirements of the organization, such as in-car video, etc.
The Village first discussed the need for this capital improvement during the September 2016 Finance Committee meetings with the Village Board. Given the great expense of the project, the Board was looking for possible ways to save costs and directed IT to further investigate alternative solutions, including a joint project with other taxing bodies. District 97 (D97) was looking for similar solutions for their facilities and partnered with the Village via an Intergovernmental Agreement (IGA). The citizen commission, the Civic Information Systems Commission (CISC), also was involved in the review and discussed the need for such a project to maintain the Village’s complex communication system.
The Village and D97 IGA provided for a needs assessment to identify long-term solutions and develop a formal Request for Proposal (RFP) document. The needs assessment determined that a long-term sustainable solution would be construction of a self-provisioned, or owned, fiber optic system. The construction of the system, serving both the Village and D97, is a more cost-effective solution than individual systems.
Staff received several proposals in November 2018 and then in February 2019 we allowe vendors to provide revised quotes with the option of using of alleys.
The lowest qualified proposal with 288 strands for each agency is from Western Utility, LLC., for the amount $2,655,081 which includes 3.15% increase for current pricing since February 2019 submittal. We have also allocated a 7.5% contingency cost for a total amount not to exceed $2,870,275.00. The CISC also reviewed some of the details of the lowest bidder.
Alternatives
The Village Board could seek additional information.
Previous Board Action
The Village Board approved an IGA with D97 via Resolution No. 19-329 on November 4, 2019 for D97 to share the use of a Village fiber optic cabling system.
Citizen Advisory Commission Action
The Citizen Information Systems Commission regularly receives updates and supports this project.
Anticipated Future Actions/Commitments
Upgrade of networking equipment, inspection and maintenance.
Intergovernmental Cooperation Opportunities
This project helps to building a technology infrastructure in partnership with D97 and provides opportunities towards planning of Oak Park SMART City.