Title
Staff Report for a City of San Leandro City Council Resolution to Amend the Consulting Services Agreement with Magellan Advisors for the Fiber Optics Master Plan to Add $6,118.27 to the Original Agreement Amount of $60,000 for a New Total Amount of $66,118.27
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution that authorizes the City Manager to amend the agreement with Magellan Advisors for development of the fiber optics master plan. The total value of the contract was not to exceed $60,000. However, additional work caused the final amount to be $66,118.27; $6,118.27 over the contractual limit.
BACKGROUND
On July 17, 2017 the City Council approved a consulting services agreement with Magellan Advisors to develop a Fiber Optic Master Plan. The original proposal was for an amount not to exceed $60,000. However, additional work caused the final amount to be $6,118.27 more than the contractual limit
Analysis
In September 2018, the City Council unanimously adopted the City’s Fiber Optic Master Plan & Smart City Strategy. The final report culminated research conducted over a period of one year to address the City’s future planning for fiber-optics installations. The report evaluated fiber optics through the prism of current and potential use-cases, such as: broadband, integrated parking systems, connected traffic signals, street lights, public Wi-Fi, and digital inclusion.
While the Plan was being developed, the City was in the midst of negotiation with cellular providers for potential small cell deployments. Staff requested advice on these negotiations from Magellan, who reviewed the City’s draft Master License Agreement template and provided feedback on certain terms related to fiber optics and proposed fees. As this policy guidance was unforeseen at the outset of the project, the additional consulting hours were not budgeted in the not to exceed amount of $60,000. Additional travel caused the final invoice to exceed the contractual limit by $6,118.27. These additional charges are accounted for in the final project invoice attached to the associated Resolution file for this Staff Report.
Previous City Council Actions
• Reso 2017-101 - On July 17, 2017, the City Council approved a Consultant Services Agreement with Magellan Advisors for a Fiber Optic Master Plan (not to exceed $60,000.00).
Legal Analysis
• The City Attorney’s office reviewed and approved the Amendment to the Consulting Services Agreement.
Fiscal Impacts
• The total one-time cost of this amendment is $6,118.27.
Budget Authority
• The Finance Director determined there are sufficient funds in the FY 2018-2019 IT operating budget, Account 688-13-121-7410 for $6,118.27.
PREPARED BY: Tony Batalla, Information Technology Manager, City Manager’s Office