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HomeMy WebLinkAbout103721 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 ,. 7 RESOLUTION NO. 10,372 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH UNITED TELESYSTEMS, INC., WHETHER DIRECTLY OR AS PART OF A METROPLAN CONTRACT, FOR BROADBAND BUSINESS CASE DEVELOPMENT AND STRATEGIC PLANNING SERVICES; AND FOR OTHER PURPOSES. WHEREAS, the City recognizes the need to explore its options with respect to the rapidly developing field of telecommunications now and into the 21st century; and WHEREAS, in order to facilitate the collection of information relative.to making strategic decisions concerning entry into the telecommunications business, the City desires to hire a consultant to prepare a Broadband Business Case to study the provision of telecommunications and video services in the area; and WHEREAS, to that end the City published a request for proposals from individuals and firms with experience in the assessment, development, construction and management of broadband systems; and . WHEREAS, from the three companies that submitted proposals the City review committee selected United Telesystems, Inc. ( "UTP') as the best overall respondent to the City's request; and WHEREAS, on September 31, 1998 the Metroplan Board of Directors voted unanimously to enter into an agreement with UTI to prepare a broadband telecommunications network plan for the cities of Little Rock, North Little Rock, Jacksonville, Sherwood and Maumelle (the "Metroplan Cities "); and WHEREAS, the City of Little Rock would benefit from an area -wide coordinated Broadband Business Case study as the opportunities to develop a broadband network extend beyond the corporate limits; and WHEREAS, UTI has submitted a proposed agreement in which it its fees are charged at the rate of$125.00 per hour plus associated expenses not to exceed $67,500 for the City of Little Rock. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. The City Manager is hereby authorized to enter into an agreement in substantially the form attached hereto as Attachment "A ", with United Telesystems, Inc., whether directly or as part of a Metroplan contract, for broadband business case development :, S. •a 4 V r I and strategic planning services. 2 3 ADOPTED: October 6, 1998 4 5 ATTEST: 6 , ROBBIE HANCOCK 8 CITY CLERK 9 10, APPR VEDAS TO FORM: 11 - -9. ;.t.c., . � 12 THOMAS M. CARPENT 13 CITY ATTORNEY 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 . 34 35 36 APPROVED: &M & 1 �� 1 FMOR 481, 0 October 5, 1998 Mr. Jim McKenzie Executive Director Metroplan 501 W. Markham Street, Suite B Little Rock, Arkansas 72201 Dear Mr. McKenzie, 0 UTI United Telesyst>ms, Inc. 4 Skidaway Village Square Savannah, Georgia 31411 912 598 -7223, Fax 912 598 -9444 470 United Telesystems, Inc. ( "UTI ") will agree to prepare a broadband telecommunications network (the "Network" or the "Broadband Network ") feasibility study and strategic plan (the "Broadband Business Case ") for Metroplan at the request of the cities of Little Rock, North Little Rock, Jacksonville, Sherwood and Maumelle, Arkansas (the " Metroplan Cities ") as set forth herein. UTI proposes to prepare the Broadband Business Case to allow for the provisioning of various telecommunications and video services in and around the corporate limits of the cities of Little Rock, North Little Rock, Jacksonville, Sherwood and Maumelle (the " Metroplan Service Area "). The UTI Broadband Business Case will provide the framework to allow the Metroplan Cities to develop a comprehensive broadband telecommunications and value added services strategy designed to facilitate the deployment of a Broadband Network to allow for the provisioning of integrated video services, telecommunications services, high -speed data/Intemet access, and utility management (the "Services ") to residential, business and government consumers. The Broadband Business Case will provide information concerning potential opportunities available to the Metroplan Cities associated with providing: ➢ Broadband Video Services (Cable Television) ➢ Local Area Telecommunications Networking ➢ Wide Area Telecommunications Networking /-1 rTAC NMENT ,.Ah M = = M = M =1 M = M M M" • U#$d Telesystems, Inc. 10/05/98 ➢ Competitive Local Exchange Carrier Telephone Service 471 ➢ Fiber Optic Transport ➢ Long Distance Telephone Service ➢ High Speed Broadband Internet Access ➢ Utility Management UTI will provide detailed broadband strategic planning and business case development support services to the Metroplan Cities to allow for the development of opportunities and initiatives associated with the provisioning of the Services along with the evaluation of potential strategic partnering arrangements with other service providers and between the Metroplan Cities. UTI strategic planning and business case development support will incorporate a defined course of action and financial assessment associated with pursuing each opportunity. UTI's main objective in developing the Broadband Business Case for the Metroplan Cities is to create a document which can, upon its completion, allow the Metroplan Cities to immediately move to take informed action toward the pursuit of the opportunities set forth. The financial and technical information, along with a market and service area analysis in the Broadband Business Case, will be designed specifically to enable the Metroplan Cities to provide a value added services "packaged offering" of integrated utility, telecommunications ar.4 video services to residential, business and government customers. The Broadband Business Case will include the following. Also see attached "Sample Table of Contents." I. Generally, the Broadband Business Case will stand as a detailed business plan developed by UTI on behalf of the Metroplan Cities sufficient to: (a) allow qualified decisions to be made by City Council and administration staff, and (b) support a municipal bond offering. More specifically, the Broadband Business Case will include the following. A. Incumbent Service Providers Analysis. Information regarding all Metroplan Service Area telecommunications and broadband service providers including ownership, strategic objectives, rates, service offerings and service areas. B. System Infrastructure Technical Analysis. UTI will evaluate the Page 2. Ad Telesystems, Inc. 10/05/98 IM-4 existing and proposed networks of all telecommunications and broadband service providers in the Metroplan Service Area. Information provided will include: (a) network architectures, (b) system technology, (c) equipment types, (d) network condition, (e) network upgrade plans, and (f) technical and operating capabilities. C. Market Analysis. UTI will evaluate the Metroplan Service Area demographics and , the existing service offerings of incumbent service providers, including services, rates and packaging. D. Telecommunications Opportunity Analysis. UTI will provide the Metroplan Cities with an analysis of telecommunications opportunities in the Metroplan Service Area including those associated with strategic partnering opportunities. E. Infrastructure Deployment. UTI will provide the Metroplan Cities with information associated with facility based opportunities requiring the deployment of a network based upon: (a) equipment availability, (b) capability, (c) flexibility, (d) service offerings, and (e) capital costs. Il. Capital and Operating Budget. As part of the Broadband Business Case, UTI will utilize a 170 page proprietary broadband business case model to develop a detailed capital and operating budget, including projected capital costs, revenues and expenses, associated with the provisioning of the Services set forth herein to residential, business and government consumers. The Broadband Business Case capital and operating budget will include: A. All labor, materials, and equipment capital costs associated with the deployment of the Network based upon the level of service to be provided predicated upon current technology and a competitive assessment of service offerings and technical capabilities of incumbent service providers in the Metroplan Service Area. It is anticipated that the level of service to be provided will include approximately 75 analog cable television channels, digital video and music services, high -speed data and Internet access, and telephony. B. Revenue projections based upon recommended service offerings and proposed rates. Page 3. •M • M M III • UO Telesystems, Inc. 10/05/98 C. An operating budget including all marketing expenses, technical expenses, general and administrative expenses, and service related recurring costs. D. UTI will provide each Metroplan City with two sets of financial projections. The first set of projections will assume the construction and operation of the Network without any strategic partnering arrangement between municipalities. The second set will assume joint capitalization and operation of the Network by all five (5) participating Metroplan member Cities. The Broadband Business Case will include a preliminary Network plan which will include: A. Definition of the proposed service area. B. Identification of all government, educational, business, commercial and industrial facilities to be served by broadband facilities or an SONET /ATM ring. C. Identification of all residential service areas to be served by the broadband network. D. Required capabilities of broadband and SONET /ATM electronics. E. Budgetary cost estimates of all required labor, materials and electronics based upon recent bids received for similar networks under construction. F. A broadband and SONET /ATM network deployment plan. IV. The Broadband Business Case will include an assessment and evaluation of the capital and operational impact associated with the interconnection and joint operation of the proposed Network among the Metroplan Cities. V. The Broadband Business Case will incorporate an evaluation of the potential opportunities available to the Metroplan Cities associated with pursuing strategic partnering arrangements with private concerns. VI. The Broadband Business Case will include industry information and initiatives as well as information concerning similar initiatives and strategic plans currently being implemented. VII. The Broadband Business Case and associated budget will satisfy Page 4. 473 -M - M M M M M M M M M M M M M 0 UjW Telesystems, Inc. 10/05/98 requirements of municipal bond investment bankers, financial advisors, bond counsel, lenders and bond purchasers. VIII. Should the Broadband Business Case and budget be approved, the Metroplan Cities will be positioned to begin the Plan Implementing Phase, and can move immediately to: A. Pursue Recommended financing Options B. Begin Engineering and Designing the Network C. Begin the Vendor Selection Process UTI will provide strategic planning support and develop the Broadband Business Case for Little Rock, North Little Rock, Jacksonville, Sherwood, and Maumelle through Metroplan at a rate of $125.00 per hour plus associated expenses, not to exceed: (a) $67,500.00 for Little Rock; (b) $25,000.00 for North Little Rock; (c) $14,000.00 for Jacksonville; (d) $10,500.00 for Sherwood; and (e) $6,500.00 for Maumelle. UTI will provide Metroplan with monthly statements reflecting costs attributable to the preparation of the Broadband Business Case by respective municipality. Appropriate interim work products will be delivered with monthly statements. Metroplan will withhold the final payment due to UTI until acceptance of the final draft of the Broadband Business Case. It is anticipated that the Broadband Plan can be completed and presented to the Cities and Metroplan on or before 90 days from the date of inception. This arrangement: (a) is only authorized upon UTI receiving written authorization from Metroplan and approval from each participating Metroplan City; and (b) does not reflect a binding agreement between the parties other than as it may apply to services rendered by UTI to, on behalf of and at the direction of Metroplan and/or the Metroplan Cities and associated compensation due from these entities to UTI, and only upon UTI receiving said written authorization. Metroplan and the Metroplan Cities shall retain the right to terminate its or their relationship with UTI at any time without cause and/or prior notice. This agreement shall be interpreted under the laws of the State of Arkansas. UTI looks forward to working with Metroplan to assist in the prudent pursuit of this initiative, which seeks to improve the overall capability of the local infrastructures in the Metroplan Cities. If this letter of engagement is acceptable, please acknowledge such by signing where noted below and mailing to the address listed above. Page 5. 474 Should you have any questions or comments, please contact me at your convenience 475 at 912 598 -7223. Sincerely, U1 J. President 1c. Metroplan By: _ Its: _ Date: Page 6. • U•d Telesystems, Inc. 10/05/98 Should you have any questions or comments, please contact me at your convenience 475 at 912 598 -7223. Sincerely, U1 J. President 1c. Metroplan By: _ Its: _ Date: Page 6. • i d Telesystems, Inc. 10/05/98 Following, is a sample of a UTI Broadband Business Case table of contents: 476 SAMPLE TABLE OF CONTENTS HEADINGS 1 TAB - Executive Summary and Business Plan Outline 2 TAB - Operations, Financial and Capitalization Overview 3 TAB - Legal and Regulatory Review 4 TAB - Broadband Network Overview 5 TAB - SONEVATM Network Overview 6 TAB - Utility Automation System Overview 7 TAB - Proposed Services and Rates 8 TAB - Business and Residential Service Area Analysis 9 TAB - City Financial Projections Years 1 — 5 10 TAB - City Financial Projections Months 1 — 12 11 TAB - City Financial Projections Months 13 — 24 12 TAB - Metroplan Financial Projections Years 1 — 5 13 TAB - Metroplan Financial Projections Months 1 — 12 . 14 TAB - Metroplan Financial Projections Months 13 — 24 15 TAB - Network Equipment Costs 16 TAB - SONEVATM Financial Projections 17 TAB Potential Network Connectivity Points 18 TAB - Cable Television Service Provider Overview 19 TAB - Existing Franchise Agreements 20 TAB - Local Exchange Carrier Service Provider Overview 21 TAB - Competitive Local Exchange Carriers 22 TAB - Strategic Partnering Opportunities 23 TAB - Conclusion and Recommendations Page 7.