HomeMy WebLinkAboutItem 06.p
Date: Item No.
FIBER NETWORK BID ACCEPTANCE AND
RESOLUTION AMENDING THE 2017 COMMUNICATIONS FUND BUDGET
Proposed Action
Staff recommends adoption of the following motion: Move to accept the bid and award a contract to AEI
Construction, Inc. (ARVIG) for the build of a fiber optic network to Fire Station 1 and the Heritage Center
and approve a resolution amending the 2017 Communications Fund budget.
Overview
IS staff has received sealed bids for the construction of the fiber segment from City Hall to Fire Station 1
and the Heritage Center. Bids were received from five contractors with the low bid being $27,995 from
AEI Construction, Inc. (ARVIG). The low bid was less than the original estimated construction cost of
$28,900.
Lease termination fees are 50% of monthly lease fee for remainder of lease agreement. This will be a lump
sum for the remaining 25 months of the lease for these two sites (based on an August 1, 2017 completion
date). Notice of termination will be given 30 days prior to site activation. Cost will be offset by reduction
in monthly lease fee to Charter Communications following lease termination.
The City identified the Communications Fund as a funding source available for this phase of the fiber
project. A budget amendment is required to appropriate funds for this project.
Primary Issues to Consider
Issues with existing leased fiber network include:
• Inadequate bandwidth and no ability to manage network for current and future needs
• Cost prohibitive to upgrade bandwidth from current provider
Supporting Information
• Resolution amending the 2017 Communications Fund budget
Financial Impact: $ 46,118.00 Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Ralph Vetter, IS Manager
June 19, 2017
Communications Fund
Total Estimated Project Costs:
Total
Construction Contract (Bid Amt)27,995
Engineering Costs 5,900
Lease Termination Fees 12,223
Total Estimated Project Cost:46,118
Analysis of Primary Issues:
To address network issues, the city would incur a 24% increase in lease costs from the current provider. It
is more cost effective for the city to build this fiber segment. The anticipated ROI on the city investing in
this fiber segment will be 3 yrs.
CITY OF LAKEVILLE
RESOLUTION NO. ________
RESOLUTION AMENDING THE 2017 COMMUNICATIONS FUND BUDGET
WHEREAS, the goals for the City fiber optic network are to improve network
performance between facilities, network servers, connection to other government entities, and
reduce annual costs; and
WHEREAS, Phase I of the fiber optic network project includes the construction of the
fiber segment from City Hall to Fire Station 1 and the Heritage Center; and
WHEREAS, the Communications Fund was identified as a funding source available for
Phase I; and
WHEREAS, the 2017 Communications Fund was adopted on December 6, 2016 and did
not include an appropriation for this project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota as follows:
1. The recitals set forth above are incorporated herein.
2. The 2017 Communications Fund budget is amended in the amount of $46,118 to
fund Phase I of the fiber optic network project.
ADOPTED by the Lakeville City Council this 19th day of June 2017
CITY OF LAKEVILLE
________________________________
Douglas P. Anderson, Mayor
ATTEST:
_____________________________
Charlene Friedges, City Clerk