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CC - (1) Approval an Agreement with Lumen for the Purchase of Ciena’s Cloud Hosted Networking Services to Support the Municipal Fiber Network (Culver Connect) in an Amount Not-To-Exceed $93,000; and (2) Approval of a Related Agreement with MOX Networks for the Purchase of Equipment and Professional Services in an Amount Not-to-Exceed $150,000.
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Meeting Date: February 1, 2021
Contact Person/Dept: Michele Williams/Information Technology
Jesse Mays/City Manager’s Office
Phone Number: 310-253-5959
310-253-6009
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/28/2021); Steve Montague, Ciena Solutions Consultant (01/27/2021); Jason Misicka, MOX Networks VP of Sales (01/27/2021)
Department Approval: John M. Nachbar (01/22/2021)
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RECOMMENDATION
Staff recommends the City Council (1) approve of an agreement with Lumen for the purchase of Ciena’s Cloud Hosted Networking Services to support the Municipal Fiber Network (Culver Connect) in an amount not-to-exceed $93,000; and (2) approve an agreement with MOX Networks for the purchase of equipment and professional services in an amount not-to-exceed $150,000.
BACKGROUND
On November 9, 2015, the City Council took several actions related to the design, development, operation, and maintenance of the City’s Municipal Fiber Network (Network). Specifically, the City Council authorized the City to build on and expand an existing fiber network of the City by installing fiber network infrastructure and ancillary facilities in Culver City in order to, among other purposes, encourage the growth of broadband services and facilitate economic and technological development in Culver City. This Network is officially being marketed and branded as “Culver Connect”.
DISCUSSION
Network Management Software
Culver Connect consists of four primary components: (1) the redundant fiber backbone of three interconnected geographical rings of fiber optic cable (dark fiber strands) within Culver City which may be available for use by other parties in furtherance of the purposes of the Network, (2) fiber laterals that connect the backbone to service locations as approved by the City, (3) local interconnection sites within Culver City (Network Hubs), and (4) fiber connection to telecommunication hubs located outside of Culver City (One Wilshire and Equinix/El Segundo). The network and telecommunication hubs also house networking devices that facilitate operation and revenue generating services.
The physical network electronics/devices are City-owned assets. However, the software management tools used to configure and monitor the network environment are not owned by the City. The City’s current network operator is MOX Networks (MOX). A component of the operation/maintenance contract includes use of their software management tools. As the City moves toward transitioning the operation and maintenance of the network to another provider, staff recommends that the City enter into an agreement with Ciena Corporation to obtain the required software tools in a managed hosted environment. This is one step toward the City having more direct control over City assets.
Ciena is the manufacturer of the networking components installed to support Culver Connect. Ciena is an industry recognized provider of telecommunications networking equipment and software services. While Ciena will be the provider of the software and cloud hosted environment, they do not sell their products direct. The City must obtain this service through one of their authorized resellers. Staff worked with Ciena to obtain quotes from their resellers for the services required by the City. Below are the results of the quotes that were received for a three-year agreement:
Based on the above quotes, staff recommends entering into a three-year agreement with Lumen to obtain Ciena’s Managed Control Plan software and cloud hosted services.
Network Hub Enhancements
There are three Network hubs located within the City (Cardiff, Bristol, Jefferson). Two of the locations are owned by the City (Cardiff and Bristol). One location is owned by Nantworks/MOX Networks (Jefferson). While the City does not own this facility, there is a long-term colocation agreement in place.
On April 23, 2018 City Council approved the revenue generating services that would be provided by Culver Connect. Among others, the list included colocation services. This service involves providing the user with physical space and power for any fiber related equipment that would be housed in one of the Network Hubs. The customer would pay market rates for the use of the space and the power. While colocation is an approved service, this is not readily available as the Cardiff Network hub requires enhancements related to backup power and environmentals (cooling) that are equivalent to colocation industry standards. Until now, staff has not recommended making these enhancements because there wasn’t a viable customer requesting colocation services.
Staff now recommends making enhancements specifically at the Cardiff Hub given the potential ability to generate revenue via colocation services at this location. The Bristol Network Hub has already been equipped with many of the environmental specifications as it currently contains network electronics for the operation of Culver Connect. However, staff also recommends reviewing and making appropriate enhancements to ensure compliance with colocation industry standards at both of the city facilities.
In previously working with MOX Networks (MOX) to construct the network and design/configure the Network hubs, they have demonstrated expertise in the telecommunications field. MOX also has access to distribution channels that supply fiber and telecommunications construction materials at very competitive pricing. When materials were being procured for the Bristol Network hub, MOX provided an estimate for the Bill of Materials. Staff conducted an informal bid to compare the costs provided by MOX. Staff confirmed that the pricing for materials from MOX was at very competitive pricing. Pending City Council approval for this agreement, staff will continue to confirm competitive pricing through informal price quotes where appropriate.
Pursuant to CCMC Section 3.07.065.A, professional services are exempt from formal competitive bid procedures, provided the contract is based upon competitive quotations, whenever practical, as determined by the City Manager. Based on the foregoing, the City Manager has determined competitive quotes are impractical in this case, as it would likely result in higher materials costs and a delay to the Network hub enhancements.
Staff recommends the City Council approve an agreement with MOX for the purchase of related equipment and professional services in an amount not-to-exceed $150,000.
FISCAL ANALYSIS
Authorization to purchase Ciena’s Cloud Hosted Networking Services for a three-year term through the authorized reseller, Lumen would result in an expenditure of $93,000.
Approval of a contract with MOX Networks to purchase equipment and professional services related to telecommunications colocation enhancements at the City’s Network Hubs would result in an expenditure not-to-exceed $150,000.
There is sufficient funding for the above expenditures in the Municipal Fiber Network Fund (205), Account 20580000.619800.PT004.
The City would potentially receive revenue from colocation service agreements as a result of completing the Network hub enhancements. The exact amount of revenue cannot be provided until contracts for services are executed. However, staff will provide updates to the City Council regarding revenue projections for the Municipal Fiber Fund during the budget process.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve an agreement with Lumen for the purchase of Ciena’s Cloud Hosted Networking Services to support the Municipal Fiber Network (Culver Connect) in an amount not-to-exceed $93,000; and
2. Approve an Agreement with MOX Networks for the purchase of equipment and professional services in an amount not-to-exceed $150,000; and
4. Authorize the City Attorney to review/prepare the necessary documents; and
5. Authorize the City Manager to execute such documents on behalf of the City.