TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, including any necessary amendments, with CTC Technology and Energy, of Kensington, MD, for purchasing, furnishing, and delivering high-speed data communications services for the Library Services Department, in a total annual amount not to exceed $200,000, for a period of three years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with CTC Technology and Energy for purchasing, furnishing, and delivering high-speed data communications services for the Long Beach Public Library (Library).
The Library offers public internet and Wi-Fi at all twelve (12) libraries using the California Research and Education Network (CalREN) available through the Corporation for Education Network Initiatives in California (CENIC) in partnership with the California State Library. This partnership is called the California Library Connect Initiative and is led by the California State Library. On June 23, 2020, the City Council authorized the City of Long Beach (City) to enter into a contract with Califa Group, a State non-profit responsible for administering CENIC’s high-speed broadband. In July 2022 the California Library Connect Initiative transitioned from Califa Group to CTC Technology and Energy (CTC) and CTC is now responsible for administering CENIC's high- speed broadband to all California libraries. This change requires a new contract to be executed between the City and CTC.
Contracting with CTC will continue to allow the Library to utilize a high-speed data network system at library locations at a highly discounted rate. The Library receives funding for this initiative through the Schools and Libraries Division (SLD) of the Universal Service Fund, commonly known as the “E-rate.” 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 throughout the United States in obtaining affordable telecommunications and internet access. The E-rate discount is based on the Free/Reduced Lunch eligibility of the surrounding school district. Approximately 70 percent of the 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.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
Staff from the Department of Technology and Innovation (TID) and the Library concur that CENIC’s high-speed data network administered by CTC is the most cost-effective provider and offers the best value for the products and desired services. TID will manage the service payments for the Main and branch libraries. The cost for CTC’s data network services for the Library will not exceed $200,000 annually, and is offset by an annual E-rate discount reimbursement of approximately $160,000, for an estimated net annual cost of $40,000.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on August 19, 2022, Purchasing Agent Michelle Wilson on August 26, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on September 2, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on October 4, 2022, to ensure a contract is in place expeditiously and to maintain adequate project management support.
FISCAL IMPACT
The estimated annual contract costs, including subsequent amendments, will not exceed $200,000 annually. Approximately 80 percent, or $160,000 of this expense, will be reimbursed to the City from CTC, resulting in an estimated annual net cost of $40,000. Sufficient funds are budgeted in the General Services Fund Group in the Technology and Innovation Department and is recovered from the Library through the annual TID Memorandum of Understanding (MOU). This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
CATHY DE LEON
DIRECTOR OF LIBRARY SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER