City of Shaker Heights

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1 REQUEST FOR PROPOSALS FOR The Development of a Broadband Assessment, Strategy and Business Plan for The, Ohio (May 27, 2015) PROPOSALS DUE by Noon on June 30, 2015

2 PROJECT PURPOSE Request for Proposal The considers a modern digital infrastructure to be a critical component of a competitive city of the future and therefore, the City wishes to ensure that it is well positioned to meet the current and future needs of its businesses, residents and its anchor institutions in terms of access to state of the art high speed ultra-broadband infrastructure. The City seeks to have a clear understanding of the current levels of service available to our residents and businesses and the strategies we should pursue to ensure that as gigabit infrastructures become the expected norm throughout the country, we are not overlooked by the private providers, as so often happens with municipalities with mid to lower-size populations. The, Ohio is therefore soliciting proposals from qualified firms to determine how best to ensure pervasive, affordable gigabit internet access available to both its commercial centers at Van Aken and Warrensville and Chagrin-Lee, and fiber to the homes (FTTH) for both residents and home based businesses. BACKGROUND Shaker Heights is a walkable, cosmopolitan and distinctive suburb just eight miles from downtown Cleveland. It has a national reputation for excellent schools, scenic natural beauty, architecturally exquisite homes, and superior city services. With access to two Rapid transit lines, Shaker Heights is the only inner-ring suburb that offers rail transport to downtown Cleveland s business community, theater district, dining, and professional sports facilities. The highly educated, diverse, and close-knit community comprises 28,448 residents who are deeply engaged in preserving Shaker Heights history and creating its future. Shaker Heights encompasses 6.3 square miles. There are 11,840 households, 7,569 owner occupied homes, and 4,271 renter occupied homes. 64.5% of the population holds bachelor s or higher degrees, 37.9% hold graduate or professional degrees and 60.1% serve in professional/management level professions. The average income is $118,699 and 41.3% of households have income greater than $100,000. The City is home to approximately 300 traditional storefront retailers and offices. The City s largest employer is University Hospital s Management Services Center at 1,000 employees. Our next largest private employers are Equity Engineering, approximately 70 employees, which services offshore oil rigs and Cellular Technology Limited, which analyzes diseased cells and produces the equipment for others to do so. Most current office tenants have two to ten employees and are focused in professional services, ambulatory care, information technology, design and engineering. The City hopes to build the business base in these same industry segments through the Van Aken district development (http://work-liveshakerheights.com/van-aken-district ) which will add 30,000 square feet of office in its first phase. The Chagrin/Lee Corridor is anchored by LaunchHouse, an incubator and shared office space for growing businesses. The goal is to build on LaunchHouse s s success by adding maker and light industrial as well as office tenants to Lee Road, South of Chagrin Boulevard. In addition, enhancing the commercial viability of Lee Road by expanding broadband access to 2

3 knowledge-based businesses that require it, is one of the primary goals of a Shaker non-profit, the Shaker Heights Development Corporation. One of the most significant contributors to the City s business community is home based businesses. This growing segment spans everything from craftsman to attorneys, web designers and yoga studios. This segment could be the largest opportunity for fiber development in the community. One of the key recommendations of the City s 2015 Housing and Neighborhood Plan is to undertake a comprehensive program aimed at revitalizing the southern Moreland neighborhood through a re-branding of the area as a center of innovation and entrepreneurial activity. The goal is to extend and leverage the City s investment in Shaker Launchhouse and the businesses in the Lee-Chagrin area into the adjoining residential neighborhood, creating a vibrant mixed use environment where people can live and work in close proximity. This is a major multi-year undertaking, The City s goals for this initiative are to make Moreland a dynamic place that attracts and retains a diverse group of residents and businesses by modernizing the existing housing, actively marketing the neighborhood, expanding access to high speed fiber, creative re-use of vacant lots, and developing infill housing to diversify housing stock. A key component of this study will be ascertaining how best to ensure that this mixed use neighborhood has the digital infrastructure in place to support these goals. The City is served by the Shaker Heights Public Library system, comprising two library buildings. People are now using libraries as meeting spaces, networking places, and locations for innovation rather than just as book depositories. After 20 years of providing public computer access, the Main Library continues to see usage grow with a 14% increase in just the past two years. If Shaker Library had a gigabit connection to the Internet, it would be able to avoid the dips in service that cause speed to crawl during peak hours as streaming and other demands put stress on the system. It would address the strategic goals of the Library s Technology Plan by assuring the supply of adequate levels of access. Better broadband would help the growing number of job seekers using their Career Transition Center; small businesses that use their data stream for e-commerce; the disadvantaged attempting to obtain or maintain benefits through e-government sources; students trying to improve their reading skills or doing homework assignments; customers accessing their wireless via laptop, tablet and smartphone; and members of the public receiving instruction in their Training Lab, searching electronic databases, downloading e-books and other e-media, or attending public programs with Internet content in their meeting rooms. Shaker Heights City Schools are known for academic excellence and commitment to diversity. More than 80% of graduates attend college, including Ivy League and other highly selective colleges and universities.the Shaker schools currently serve about 5,500 students in eight buildings: five K-4 elementary schools (Boulevard, Fernway, Lomond, Mercer, and Onaway); Woodbury Elementary School (grades 5 and 6); Shaker Heights Middle School (grades 7 and 8); and Shaker Heights High School (grades 9-12). The City is also served by several independent schools: Hathaway Brown School: Hathaway Brown School is Ohio's oldest independent preparatory school for girls in Grades K-12. Founded in 1876, the School celebrated its 125th anniversary in

4 Laurel School: Laurel School, founded in 1896, is a nationally recognized, independent, college preparatory day school for girls k-12, with a coeducational early childhood program. The school has two campuses - the main 11-acre campus in Shaker Heights and a 140-acre campus approximately 10 miles to the east which features extensive athletic facilities and offers unlimited opportunities for leadership and outdoor education programs. St. Dominic School:St. Dominic School is a co-educational Catholic school for students in prekindergarten through eighth grade. University School: University School enrolls boys from kindergarten through high school and prepares all of its graduates for college. The has a 100-year tradition of being at the forefront of change; we are known as early adopters of innovative ideas. With the transition to a knowledge-based economy, it is more important than ever to be a leader in securing equal access to affordable, high speed Internet for our City. In the 21st century, we consider this an essential service for our residents and business owners who have come to expect exceptional City services. We believe that it will attract a new generation of residents and ignite bold economic development initiatives that are now underway. EXISTING NETWORKS Private Firms The City is currently served by three (3) cable companies: Wide Open West (WOW), Time Warner Cable (TWC) and AT&T UVerse. Fibertech, a provider of fiber-optic based network services also has some fiber optic infrastructure in the City (see map below). 4

5 City Broadband Access The City s facilities are connected by an institutional network provided and maintained by a local cable company under the original franchise agreement. (Provided by Adelphia, now maintained by Time Warner Cable) The only City-owned fiber in service is a cable connecting City Hall to the Police Department. It is an 18 Strand fiber. The I-Net for the City s facilities is as follows: A LOC DISTANCE NAME Z LOC NAME FIBERS FEET 3400 Lee Road City Hall Chagrin Boulevard Service Center Lee Road City Hall 3450 Lee Road Community Building Lee Road City Hall Farnsleigh Thornton Park Lee Road City Hall 2801 Warrensville Center Road Fire Station # Lee Road City Hall 1700 Chagrin Boulevard New Fire Station Shaker Heights Public Library System The Library s network is owned and maintained by Time Warner Cable, linking the Main Library at Van Aken Boulevard to the Bertram Woods Branch Library at Fayette Road, over a distance of approximately 18,000 feet. Current internet service is at 50 Mbps and expects to be upgraded to 100 Mbps by sometime in June. The service is provided by the Ohio Public Library Information Network (OPLIN) through the Cleveland Public Library via AT&T. The library participates in the Federal Communication Commission's Universal Service Discount (E-rate) Program for affordable access to advanced telecommunication services. Shaker Heights City Schools The Shaker Heights City Schools fiber optic network is owned and maintained by Time Warner Cable. Current connections between buildings are 1Gbps. I-Net for the schools is shown in the table below. Each building fiber connection is terminated at City Hall and then routed to Shaker Heights High School (15911 Aldersyde). The network hardware located at City Hall is school owned and maintained and is physically separate from the City s network. School-owned fiber is used to connect 3654 Lee Rd Schools Service Center to the Transportation Garage located at 3680 Lee Road. Internet is provided to the district through an Information Technology Center (ITC), North Coast Council. Current Internet is 150Mbps with an increase to 500Mbps planned for July Additional Internet access is provided at the Stephanie Tubbs Jones Community Center (3450 Lee Rd.) to support the Innovative Center for Personalized Learning. This is a 50Mbps down and 5Mbps up Time Warner Business Class wideband connection. 5

6 A LOC NAME Z LOC NAME FIBER PAIRS DISTANCE FT Aldersyde High School Wimbledon Rd Mercer Elem Aldersyde High School Shaker Blvd. Shaker Middle School Aldersyde High School S. Woodland Rd. Woodbury Elem Aldersyde High School Parkland Dr. Admin. Bldg Aldersyde High School 3115 Woodbury Rd. Onaway Elem Aldersyde High School Drexmore Rd. Blvd. Elem Aldersyde High School Fernway Rd. Fernway Elem Aldersyde High School Lomond Blvd. Lomond Elem Aldersyde High School 3619 Lee Rd. DLMO/Media Ctr Aldersyde High School 3680 Lee Rd. Transportation Garage Aldersyde High School Aldersyde High School 1 OneCommunity Network OneCommunity, a Cleveland based non-profit which provides Northeast Ohio hospitals, schools, government, public safety departments and businesses with high-speed internet and data center services, has deployed approximately $75 million since 2010 developing their network. The network was substantially completed in September 2013, and consists of 23 backbone segments across Northeast Ohio that stretch from Port Clinton to Ashtabula to Youngstown to Mansfield, and encompasses other major cities in northern Ohio including Cleveland, Akron, and Canton. The current fiber footprint also includes 620 lateral segments connecting end-user locations, links to 14 data centers and 55 cell towers in the region. Regionally, OneCommunity serves over 185 businesses, public institutions and carrier customers, ranging from mid-sized companies to Fortune 500 enterprises with speeds from 10Mb to 10Gb. Within Shaker Heights, the OneCommunity network is located on Chagrin Boulevard running east from Cleveland, turns south on Lee Road where it connects with LaunchHouse, a startup incubator, and also runs east as far as Lynnfield Road. The OneCommunity connection to LaunchHouse connects to two entrepreneurial houses in the adjacent neighborhood. In addition they have fiber running from Warrensville Center Road north to Farnsleigh Road, where it then proceeds east towards Beachwood (see diagrams below). It connects the University Hospital s Management Services Center on Warrensville Center Road to the rest of the OneCommunity fiber network. There is also 6

7 fiber access to the main office building at Warrensville, Tower East, through OneCommunity s for profit arm, Everstream. SCOPE OF SERVICES A Broadband Assessment, Strategy and Business Plan is the product that will be produced through this project and will include the following: 7

8 Mapping and Needs Assessment Request for Proposal 1. Conduct a needs assessment to gather information on the current data communication needs and usage in the community. 2. Perform a gap analysis of existing data communications services in relation to demand and high-speed broadband availability. 3. Identify trends in use of broadband by existing and potential customers as well as any other pertinent trends. 4. Examine take rates, develop projections of potential broadband service, and examine how the community s efforts relate to on-going and future regional data communication efforts. 5. Map current public and private telecommunications and broadband infrastructure from available data. 6. Identify and map potential anchor tenants, public safety, school, government, and business locations of need. Business and Financial Modeling While the City does not presume that a community gigabit fiber network needs to be built by the City itself, we wish to ensure that we understand the business case for such an option. Provide the City with a ten year financial pro forma (including a profit and loss statement, balance sheet, and income statements) for the provision of a community gigabit fiber network. This pro forma will provide officials with a highly detailed projection of revenue, expenses, debt costs, take rate projections, capital expenses, and build out plans. The analysis should provide detailed schedules that show: Operating income and cash flow Net present value analysis Projected revenues and benefits Uses and sources of funds Operational expenses Depreciation schedule Debt service analysis Key Assumptions Governance and Ownership Strategy Recommend the strategies that the City could take to move us from our current condition to one where our businesses and residents are served by a state of the art digital infrastructure needed to be competitive into the future. This should include the governance and ownership strategies that provide the appropriate incentives for private sector participation while ensuring that the City s interests and needs are wellrepresented for the development of such a network and that provides significant City input and decision making ability over the long term. Identify any potential policy and legal barriers that would need to be addressed linked to these various strategies. 8

9 Funding and Financing Analysis 1. Review potential financing structures, and related governance and collateral models, available to the City, which may include network ownership vehicles such as joint powers agencies, public/private partnerships, economic development corporations, and others. 2. Identify legal strategies related to potential project risks. 3. Provide an analysis of a variety of funding options including, but not limited to, public/private partnerships, federal/state/private grants, general obligations bonds, revenue bonds and others where appropriate. The analysis will discuss the advantages and disadvantages of each financing option and the potential effects of different financing strategies on the business case. Public/Private Partnership Development 1. Assist the City with the development of public and private partnerships needed for successful implementation of these strategies. 2. Identify key anchor tenants for network services, identify private sector service providers and broadband infrastructure owners. 3. Determine key factors needed to create a critical mass of network customers, service providers, and asset owners. Infrastructure Recommendations 1. Provide the City with recommendations on the kind and type of telecom and broadband infrastructure needed to support and attract service providers and to support City government and public safety needs and requirements. 2. Identify key technical requirements needed to support open network operations. 3. Provide recommendations on operations and management of any infrastructure (e.g. telecom conduit, dark fiber, etc.) owned by the City. PROPOSAL CONTENTS 1. Statement of Qualifications All respondents must submit a written Statement of Qualifications to include information about the respondent directly related to each of the Selection Criteria. All information should be submitted succinctly. Please provide a brief description of projects performed of similar type and size. 2. References Provide names, addresses, telephone numbers, and addresses of clients for whom the Consultant has performed projects of a similar type and size within the last 5 years, 9

10 with a brief description of the project you carried out for them and the timeframe. 3. Proposal Respondents must provide an explanation of how they propose to accomplish the project outcome within the stated timeframe. It is Shaker Heights s goal to have the assessment and business plan completed by October 30, Budget The proposal must include estimated costs broken down for each item listed within the Scope of Services above. TIMEFRAME Pre-registration: June 3, 2015 Proposals Due: Noon EST on June 30, 2015 City Council contract approval anticipated by July 20, Contract Finalized no later than: July 30, 2015 Selected firm begins work: August 1, 2015 Project completion date: October 30, SELECTION CRITERIA The respondents will be evaluated on the following criteria: Recent public sector experience with local government broadband initiatives. Staff expertise and overall experience of the proposed team. Demonstrated experience developing financial and business models for broadband initiatives. Experience with the management and oversight of construction and operation of community broadband initiatives. Pricing. PROPOSAL ACCEPTANCES The City reserves the right to accept a proposal in whole or in part, to reject any and all proposals, and to negotiate separately, as necessary, to serve the best interests of the City of Shaker Heights. Teams whose proposals are not accepted will be notified in writing. Notification of the final award will be made by the Director of Neighborhood Revitalization. The City is not liable for any costs by any responding team prior to execution of a contract. EQUAL OPPORTUNITY The is an Equal Opportunity Employer and prohibits, in accordance with the law, discrimination on the basis of race, color, religion, sex, national origin, sexual orientation, age or handicap. In addition, no contractor, subcontractor, nor any person on 10

11 his/her behalf shall discriminate against or intimidate any employee hired for the performance of work under a contract for the on account of race, color, religion, sex, national origin, sexual orientation, age or handicap. INTERVIEWS The City may elect to conduct interviews with the top scoring teams during the selection process. Teams will be notified and given an interview opportunity, if the City deems this step necessary. AWARD The City shall, in its sole discretion, determine whether and to which firm to award a contract based on the Proposals submitted. The firm awarded a contract shall enter into a written contract prepared by the City. PRE-REGISTRATION Pre-registration is strongly recommended as only firms that pre-register will receive automatic updates on the RFP and answers to any questions posed by others. To pre-register, c.c. to with your contact information by June 3, SUBMITTAL Electronic proposals shall be submitted by to in any combination of the following formats: Word, Excel and PDF formats are acceptable. The proposal, along with the attached required forms (Non-Collusion Affidavit, Certificate of Compliance and Affidavit in Compliance) must be received by 12:00 noon EST on June 30, Proposals received after the deadline will not be considered. All project information must be received in order for the to evaluate a proposal. All proposals and plans submitted will become the property of the City of Shaker Heights. CONTACT INFO Questions regarding this Request for Proposal shall be directed to c.c. to 11

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