TITLE
Recommendation to authorize City Manager to execute an agreement with Ecco Wireless USA, Inc., a California corporation, to develop and furnish wireless internet network services for customers of and visitors to the Long Beach marinas, on a subscription basis, for a term of five-years, at no cost to the City of Long Beach. (Districts 2,3)
DISCUSSION
As smart phones, tablets, video game consoles, televisions, and computers are equipped with wireless Internet (WiFi) capabilities, the demand for the availability of this service at California marinas continues to increase. Several marinas along the coast provide hot spots for their customers at no cost or through a service provider on a subscription basis. WiFi capabilities are quickly becoming a standard service provided by marina operators. In an effort to remain competitive, the Department of Parks, Recreation and Marine (PRM) issued a Request for Proposal (RFP) through the Purchasing Division. The purpose of the RFP was to locate a wireless Internet provider experienced in a marina environment that would provide equipment and installation at no cost to the City of Long Beach (City). Proposals were received from Ecco Wireless USA, Inc. (Ecco); TeleExpress Business Systems, Inc.; and X-Act Technology Solutions.
After reviewing the proposals, PRM and Technology Services Department staff determined that Ecco best demonstrated the knowledge and experience necessary to provide this service in a marina environment. Ecco has ten years of experience providing WiFi services in hotels, apartments, timeshares, resorts, and marinas across California, Nevada, and South Carolina.
The Marine Advisory Commission is supportive of making this service available on a subscription basis and the following reflects the major provisions of the proposed agreement:
· Scope: Develop and furnish wireless Internet network services for customers of and visitors to the Long Beach marinas, on a subscription basis, at no cost to the City. Include all hardware, equipment, installation, and cabling and maintenance required to provide the service at Alamitos Bay Marina, Shoreline Marina, Rainbow Harbor, and Rainbow Marina.
· Term: Five years, upon installation of the equipment, which shall be no later than 120 days after execution of the agreement.
· Rent Payable to the City: Ecco shall pay no rent for the first three years of the agreement; however, in year four, Ecco shall pay $50 per month; and in year five, Ecco shall pay $75 per month.
· Service Options Paid by Subscribers: Subscribers shall have the following options, which are competitively priced.
Short Term Long Term
$ 9.95 - 1 day $ 79.95 - 3 months
$24.95 - 3 days $120.00 - 6 months
$39.95 - 7 days $180.00 - 12 months
· Statutes: Ecco shall comply with all laws, statutes, ordinances, uniform codes, and regulations governing the installation and provision of wireless systems.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on November 19, 2012, and Budget Management Officer Victoria Bell on November 20, 2012.
TIMING CONSIDERATIONS
City Council action is requested on December 11, 2012, in order to allow Ecco Wireless USA, Inc., ample time to complete network construction and provide service by spring 2013.
FISCAL IMPACT
There is no immediate fiscal impact to the City as a result of this agreement. However, in year four and year five, Ecco shall pay a monthly fee resulting in new revenue in the amount of $1,500, which will accrue to the Marina Fund (TF 403) in the Department of Parks, Recreation and Marine (PR). There is no impact to jobs associated with the recommended action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER