To approve an increase to the current awarded contract amount of $1,525,420 by $54,701, for a total contract amount of $1,580,121, for OSP Fiber Cabling Network Phase III, Project No. 7159, from Gardner Telecommunications, LLC for the Technology Services Department; and authorizing the City Manager to execute all necessary documents.  (Contract No. 2019-0553-B; Change Order No. 4) Approved

On February 10, 2020, City Council approved the proposal in the amount of $1,525,420 for OSP Fiber Cabling Network Phase III, Project No. 7159 for the Technology Services Department to Gardner Telecommunications, LLC.

Beginning in March 2018, City Council approved contracts for the construction of the city’s private fiber network.  This included the design and engineering of the full fiber network, followed by the construction and installation of the fiber in three separate phases.

In 2018, the City began the NextGen Fiber Project, a three-phase initiative that will interconnect City facilities, traffic intersections, water towers, and lift stations which will:

• reduce costs associated with leasing circuits and LTE services and increase redundancy with ring topologies to buildings;
• increase services providing higher speeds; and,
• provide for future growth with only the change of optical transceivers at locations to increase capacity.

Phase I consists of approximately 35 miles of fiber and Phase II consists of  approximately 28 miles of fiber.  Currently under construction, the third and final phase includes approximately 17 miles of fiber with installation either underground or aerial, depending on the route.  The contract for OSP Fiber Cabling Network Phase III, Project No. 7159 was entered into with Gardner Telecommunications, LLC on February 25, 2020 in the amount of $1,525,420.  This final phase will provide fiber connectivity to City of Plano facilities and traffic intersections.  Completion of the entire project is anticipated for the end of April.

Technology Services recommends the City Council approve Change Order No. 4 in the amount of $54,701. This is necessary because a section of fiber planned for aerial installation now must be installed underground because the utility poles are not longer available.   This is the 4th change order for this project and is required for council consideration because the total amount of the change is over the $50,000 threshold required for Council approval.

As listed below, the previous three change orders were executed administratively because they were cumulatively below the $50,000 threshold.

• Change Order No. 1 - executed on 9/02/2020 at a cost of $21,789 utilizing contract contingency funds to install NEMA enclosures and patch panels so fiber could be run to additional sites.
• Change Order No. 2 - executed on 10/08/2020 at a cost of $13,242 utilizing contract contingency funds to add High Point Tennis Center facility to the project.
• Change Order No. 3 - executed on 12/16/2020 at a cost of $5,300 utilizing contract contingency funds to provide flaggers at railroad crossings.

If this change order is not approved, Technology Services will not be able to provide fiber connectivity to some City of Plano facilities and intersections.

Funding for this item is available in the 2020-21 TIF 2-East Side budget.  TIF funds can be used for public improvements for anything that the city owns or a utility and our fiber qualifies as both.  Since the project is located downtown it falls within TIRZ zone #2. 

On Feb. 10, 2021, the TIRZ #2 Board voted to recommend the approval of expenditure. Change Order No. 4, in the total estimated amount of $54,701, will leave a balance of $4,039,235 for future expenditures.

Approval of this item supports the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.