TITLE
Recommendation to authorize City Manager to execute an agreement and all related documents with Time Warner Cable to provide high-speed data communications services for the Long Beach Public Library in an amount not to exceed $50,000 in total expenditures annually for three years. (Citywide)
DISCUSSION
The Long Beach Public Library (LBPL) desires to provide a next generation intelligent high-speed data network system between its Main Library and its branch libraries. The intent is to enhance the patron and staff computing experience at all sites and to increase bandwidth to support future needs and activities.
To this end, the LBPL plans to seek funding for this initiative through the Schools and Libraries Division (SLD) of the Universal Service Fund, commonly known as "E-Rate," starting with the upcoming program funding year (July 1, 2012 - June 30, 2013). E-Rate is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC), and provides discounts to assist schools and libraries in the United States obtain affordable telecommunications and Internet access. The E-Rate discount is based on the Free/Reduced Lunch eligibility of the surrounding school district. Approximately 69 percent of Long Beach Unified School District students are eligible for Free/Reduced Lunch under the National School Lunch Program. This translates to an E-Rate discount of up to 80 percent based on the SLD Discount matrix.
Per E-Rate program requirements, a Request for Proposals (RFP) for E-Rate-eligible products and services was issued in October 2011 to secure the most favorable pricing. The RFP was advertised on the City website, notifying 1,107 potential businesses. Of those, 68 downloaded the RFP via the electronic bid system. The RFP document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasinq>. An RFP announcement was also included in the Purchasing Division's weekly update on Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. In response, six proposals were received. Of these proposals, none were Minority-owned Business Enterprises (MBEs), Woman-owned Business Enterprises (WBEs), Small Business Enterprises (SBEs), or Long Beach Businesses (Local).
Staff from the Technology Services and Library Services Departments evaluated the six responses and recommend Time Warner Cable (TWC) as the most cost-effective provider of the desired products and services. Applying the E-Rate discount, the estimated cost for TWC's data network services for the Library would total $50,000 annually, saving approximately $95,000 per year. Moreover, the TWC solution would more than double the Library's current bandwidth capacity. Currently, the Library's data network reaches maximum capacity for extended periods during business hours.
It should be noted that the City would only enter into an agreement with TWC if we receive the E-Rate discount.
This matter was reviewed by Deputy City Attorney Gary Anderson on January 18, 2012 and by Budget Management Officer Victoria Bell on January 24, 2012.
TIMING CONSIDERATIONS
City Council action is requested on February 14, 2012 to ensure the E-Rate Program Funding application deadline of March 20, 2012 is met. The USAC will begin notifying E-Rate eligible schools and libraries beginning in July 2012.
FISCAL IMPACT
Currently, the Library expends approximately $145,000 annually for data communications services. The estimated annual cost for TWC's data network services would total $50,000, resulting in savings of $95,000 per year, or $285,000 over the three-year agreement term. There are no installation, non-recurring or one-time charges from TWC.
Sufficient funds are budgeted in the General Fund (GP) in the Library Services Department (LS) to support this activity. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CURTIS TANI
DIRECTOR OF TECHNOLOGY SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER