1. A budget amendment not to exceed $50,000 to finance Geneva s share of the feasibility study.
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- Magdalene Perkins
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1 City of Geneva Information Systems Memo To: Mayor Burns and Members of the City Council From: Peter I. Collins, Information Systems Supervisor CC: Philip J. Page, City Administrator Date: 1/10/2002 Re: Tri-City Broadband RFP In assessing the potential for an expanded TriCity Broadband Network to serve businesses and residents, the TriCity Broadband Group has prepared a RFP (see following) to explore both the interest and viability of a joint broadband system to offer cable television, high speed internet, and telephony services. Each city would be responsible for one third of the cost of the study (estimated at no more than $50,000 per city.) Upon receipt of proposals, the TriCity Broadband Group would then make recommendations for selection of consultants. Final selection of the best consultant would fall to a nine-member group made up of three aldermen from each community. Each mayor would appoint the three aldermen to serve in this oversight group. With this in mind, I ask the following two motions be acted upon: 1. A budget amendment not to exceed $50,000 to finance Geneva s share of the feasibility study. 2. Selection of three Aldermen by Mayor Kevin Burns to serve on the TriCity RFP selection board. Peter Collins pc 1
2 Request for Proposal to conduct a Telecommunications Feasibilty Study For the Cities of Batavia, Geneva, and St. Charles, IL Date of Issue: January 22, 2002 Due Date: March 1,
3 I. Introduction and Background The cities of Batavia, Geneva and St. Charles have been meeting for the past 12 months to evaluate the opportunities and problems of implementing a cooperative broadband network that provides internet, telephone and cable service to the three cities. Each city owns its own electric utility. Batavia and St. Charles have fiber installed to service various city departments as well as the local school districts. Geneva is in the process of building a similar system. The combined 2000 populations of the three cities are 71,277 (Batavia 23,866, Geneva 19,515, and St. Charles 27,896). It is anticipated that all three communities will continue to grow at a fairly steady pace for at least the next 10 years. While each community has its own unique identity, they are all known for their historic downtown areas and high level of services. People who live in these communities have a great deal of pride of place and have enjoyed the benefits of steadily increasing property values. Currently, the three communities are served by AT&T Broadband for cable, Ameritech, McLoud, and AT&T for phone service and various internet providers. High speed internet service such as DSL is limited. There are no short-term plans by any of the existing companies to improve this situation. The three communities conducted a survey of the residential community and found that there was a high degree of dissatisfaction with existing providers. The response rate to the survey was extremely high (46%), which also indicated a strong interest in broadband. A final selfevaluation step by the three communities is to visit other communities with installed broadband systems during the months of January, February and March. II. Objectives Provide a cost effective alternative to existing cable, telephone and internet services. Provide a platform for expanded technological services such as time of use metering, alarm services, climate control monitoring. Improve customer service response time and problem handling. Establish a regional economic development tool. Retain and attract technology-related businesses. Protect and enhance home equity by providing a technological infrastructure competitive with any other community in the US. Offer a technological infrastructure that will enhance educational quality. Provide high-speed data services to the medical community. III. Scope of Services The objective of this proposal is to select a qualified consultant to perform a Feasibility Study that will evaluate technology and business model alternatives to utilize and expand upon existing 2
4 fiber infrastructure to offer expanded telecommunications services to customers in the Tri-Cities. The study must include the following deliverables: A. Executive Summary Summarize the findings of each of the following reports into one cohesive policy document that includes recommendations on each phase of the process. B. Broadband Infrastructure Report Assess and recommend the type or types of broadband infrastructure to be constructed. Provide an architecture evaluation that includes reviewing existing services and infrastructure and potential future services and infrastructure. The analysis will include a review of a minimum of four technologies capable of supporting open access architecture. Fiber to the Home (FTTH), Fiber to the Curb (FTTC), Hybrid Fiber Coax (HFC), as well as Fiber/Wireless Hybrid options should be included in this review. The pros, cons, and costs of each technology model should be fully discussed, as well as the ease of integration with existing technology in the Tri-Cities. The report should also make recommendations on the technology architectures that would be preferred for differing levels of service. C. Open Access Report Describe how interested carriers might access the proposed network. Develop a survey of carriers to determine interest in dark fiber or bandwidth lease options and summarize the findings. Discuss the types of potential relationships any Tri-City Broadband Enterprise might engage in with outside carriers and the advantages and disadvantages of the different models. D. Economic Analysis Report For each technology option considered for the evaluation, complete an economic feasibility assessment of providing needed communications services over a municipally owned broadband network (using specific technology models). The economic assessment should include at minimum cash flow over a ten year period, present value analysis, capital cost projections, estimated working capital, market penetration analysis, staffing and operating costs, and risk assessments. Proposer shall explain methodology used to produce the economic analysis. E. Market Analysis Report Analyze current industry-wide trends and discuss factors that would support or detract from the potential success of the various technology and business models presented. Obtain reliable consumer information from existing data and additional research within our market area regarding communications needs, the factors that determine the acceptance of telecommunications offerings, willingness to pay, spending limits, etc. Supply a business analysis describing the benefits to the subscriber community (their potential cost savings and use as an economic development tool), and a financial risk analysis, including possible action by competitors. Support the estimation of the size of the local and regional market and identify the opportunities through the following: A review of residential interest; 3
5 A review of business interest; A review of State, local government, and school interest; A review of existing studies and research so that they may be referenced to the fullest extent to maximize the value of the analysis and to minimize the analytical cost; and Identification of any other revenue generating or cost-cutting potential services. F. Regulatory Analysis The study should identify pertinent state and federal legislation that would impact the project and outline steps for gaining compliance with all regulation. G. Funding Opportunities The study should identify Federal, State, and other public funding that is available for non-profit community investments in telecommunications, education and public safety, including, but not limited to the following: Federal/State grants; Strategic partnering, public/private; and Other capital sources. H. Conclusions/Recommendations Provide conclusions and recommendations that will guide the Cities of Batavia, Geneva, and St. Charles in making the proper decision concerning the creation and implementation of a municipally owned broadband telecommunications network. IV. Proposal Requirements A. Itemized Fee Proposal Include hours and rate for each project team member B. Corporate Overview and Description of Firm C. Project Team and Qualifications Including subcontractors. D. Similar Project Experiences with References Including relevant Feasibility Studies E. Time Frame In weeks to complete each item listed in the Scope of Services F. Methodology Describe the methodology or approach your firm will use to develop each item listed in the Scope of Services. 4
6 G. Sample Contract H. Format Five (5) hard copies and 1 electronic copy (Microsoft Word Format) should be submitted to each of the three Cities for consideration. V. Qualifications The Tri-Cities Broadband Group will accept responses from firms knowledgeable in providing the services desired. Proposers should provide the following information as evidence of qualifications: 1. Provide a corporate overview and description of your firm. 2. The specific consulting personnel to be assigned to this project must have had first-hand experience within the last five years in providing consulting services with respect to the elements described in the scope of work. Provide a description of such experience. A copy of any study similar to the scope of services proposed herein may be provided. A. List the personnel from your firm and any subcontractors that your firm plans to utilize on this project. B. Include resumes of the consulting personnel employed by your firm to be responsible for this project. C. Include resumes of any subcontractors to be hired by your firm for this project. 3. Indicate the hours to be spent by each of the personnel and/or subcontractors listed on the elements of this project and the hourly rate to be charged. 4. Provide a list of five (5) references, including the name, address, and phone number for a contact person from each reference. VI. Limit of Liability The Tri-Cities Broadband Group assumes no responsibility or liability for any costs incurred by the proposer in responding to this RFP or any future requests for interviews, presentations, additional data, etc., prior to the awarding of a contract. VII. Potential Public Disclosure of Proposal Information Information provided within this proposal may be subject to release based upon requests filed under the Illinois Freedom of Information Act. All proposers should be aware that the RFP and 5
7 the responses thereto may be available for inspection. The proposers are requested, however, to identify specifically and clearly any information contained within their proposals which they consider to be either a Trade Secret or Confidential and/or Proprietary. Trade Secret, Confidential or Proprietary information may be exempt from release under the Illinois Freedom of Information Act. All proposals received in response to this RFP will become the property of the Tri-Cities Broadband Group and will not be returned. In the event of an award, all documentation produced as a part of the award and contract will become the exclusive property of the Tri-Cities Broadband Group. The Tri-Cities Broadband Group assumes no liability for asserting legal arguments on behalf of the proposer. The proposers are advised to consult with their legal counsel concerning disclosure issues resulting from this response process and to take precautions to safeguard Trade Secrets and other proprietary information. Bid-Rigging and Bid Rotating Prohibited: The proposer shall certify in the qualifications section of its proposal that it has not been found in violation of Illinois State Statutes concerning bid-rigging or bid rotation as stated in 733 ILCS 5/33 (E)(3-4). VIII. Selection Process A. Selection Factors The final decision will be based on price, experience and perceived ability of the proposer to perform the Scope of Services as stated in this Request for Proposal in the most timely and efficient manner, and the proposal which will overall best meet the needs of the Tri-Cities as determined from the responses to this Request for Proposal and subsequent investigation. B. Initial Ranking and Interview The selection committee made up of elected officials and staff from all three cities shall determine from the response to this Request for Proposal the Proposers most susceptible of being selected for award. The selection committee will then interview the top proposers in person to further determine qualifications, and to assure full understanding of and conformance to the solicitation requirements, and the proposal submitted. C. Committee Recommendation and Second Interview The selection committee will recommend one Proposer to the City Councils of Batavia, Geneva, and St. Charles to be hired. The recommended Proposer shall appear before a joint meeting of the three City Councils for further review of their qualifications and the proposal submitted. 6
8 D. Selection The award of an agreement is subject to approval of all three City Councils. IX. Additional Considerations Proposers must be authorized to transact business in the State of Illinois. All applicable laws and regulations of the State of Illinois and ordinances and regulations of the Cities of Batavia, Geneva, and St. Charles will apply to any resulting agreement. X. Proposal Return Five (5) hard copies of your proposal should be sent to each of the following addresses: City of Batavia City Administrator s Office 100 N. Island Ave. Batavia, IL City of Geneva Information Systems Department 22 South First St. Geneva, IL City of St. Charles City Administrator s Office 2 E. Main St. St.Charles, IL One electronic copy in Microsoft word format should be ed to each of the following addresses: rrecklaus@cityofbatavia.net pcollins@geneva.il.us lmaholland@ci.st_charles.il.us 7
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