April 25, 2006

SUBJECT:  Participation in a Regional Wireless Broadband Network

REPORT IN BRIEF

The City of Sunnyvale is a member of the Wireless Silicon Valley Task Force, established by Joint Venture: Silicon Valley Network in March 2005.  The Task Force hired Intel Solution Services, a consultant department at Intel, to draft a Request for Proposals (RFP) for the development of a regional wireless broadband network.  The Task Force is asking each member agency to contribute $2,500 for the preparation of the RFP.  The City’s contribution to support the preparation of the RFP will enable the City to benefit from the results of the RFP in order to develop our own broadband wireless network or to contract for services with successful proposers, if the City elects to take either action in the future.

On December 7, 2004, Council granted a franchise agreement to MetroFi, Inc. to provide wireless Internet services in the residential areas of Sunnyvale (RTC #04-416).  This is a non-exclusive agreement and does not prevent the City from participating in the Task Force’s RFP process.

In addition, staff presented a report to the City Council on wireless services in the downtown area during its meeting on December 20, 2005 (RTC #05-390).  At that time, Council directed staff to work with MetroFi to provide free wireless services in the downtown area.  Council also directed staff to continue working with the Wireless Silicon Valley Task Force and to present the results to Council when appropriate.

Staff recommends that Council approve the City’s participation in the preparation of the RFP.  Funds are available in the Information Technology Department Information Technology Services Delivery Program to cover the full $2,500 participation fee.

BACKGROUND

At the December 2004 Study Issues Workshop, Council prioritized the study issue to review wireless Internet services in the downtown area (initiated by Councilmembers Hamilton and Lee) and directed staff to identify different options for bringing those services to the downtown area.  Around the same time, the Council granted a non-exclusive franchise agreement to MetroFi, Inc., allowing them to install their equipment on City streetlight poles, with the intent of offering wireless Internet services to residential areas in Sunnyvale.  MetroFi is currently providing free and low cost wireless Internet services to about two-thirds of the residential areas in Sunnyvale.  MetroFi is also working with the City to enter into a lease agreement for use of space on the top level of the Caltrains parking structure as a network operations center, which will enable MetroFi to complete deployment of wireless services in the northern residential areas of the City and in the downtown area.

In February 2005, Joint Venture: Silicon Valley Network invited regional municipal information technology officers and economic development managers to participate in a discussion related to the potential development of a broadband wireless infrastructure.  The first meeting held in March 2005 demonstrated that there was sufficient interest by municipalities in this type of regional broadband wireless infrastructure and the Wireless Silicon Valley Task Force was created.  The Manager, Information Technology Services has been actively participating on the Task Force over the past year.  Based on case studies from other governmental agencies who elected to either enter into a public-private partnership with a vendor or implement a broadband wireless network themselves, the Task Force decided to prepare a Request for Proposals to determine which vendors would be interested in designing, implementing and operating such a regional broadband wireless network for the counties of Santa Clara, San Mateo and Alameda.  As a result, the Task Force contracted with Intel Solutions, a consulting department at Intel, to assist with the preparation of the RFP.

In December 2005, Joint Venture: Silicon Valley Network contacted each agency in the region requesting support in the amount of $2,500 toward the preparation of the RFP (Attachment A).  The estimated cost to prepare the RFP was $45,000.  The San Mateo County Telecommunications Authority (SAMCAT) agreed to contribute $15,000 to the costs and act as issuing authority for the RFP.  As a result, all 17 member agencies are participating in the RFP process.  In addition, surrounding communities such as Los Altos Hills, Los Gatos, Milpitas, Morgan Hill, Santa Clara, Palo Alto, Santa Cruz and San Jose as well as Santa Clara County and the San Mateo County Sheriff have contributed toward the preparation of the RFP and will participate in the process.  Therefore, the Task Force has reached its goal of $45,000 and is continuing with the RFP process.  Any excess contributions to the Task Force will be used to purchase additional consulting services to analyze and evaluate the vendor responses, if those services are needed.

The Task Force is currently reviewing initial drafts of the RFP and expects to hold a media event at the end of April 2006 at which time it will release the RFP and demonstrate potential applications for the regional broadband wireless network.

EXISTING POLICY

Telecommunications Policy, 1996 – Goal D: Promote use of telecommunications technology, where appropriate and within the scope of available resources, to enhance the economic vitality of Sunnyvale.

Telecommunications Policy, 1996 – Goal E: Facilitate the creation of an advanced telecommunications network infrastructure, within given resources, for Sunnyvale citizens, businesses, and industries.

DISCUSSION

Although the City issued a non-exclusive franchise agreement to MetroFi to provide wireless services in the residential and downtown areas of the community, participation in the Silicon Valley Wireless Task Force RFP process will enable the City to contract for wireless services with the successful proposer(s) to offer a competitive alternative to the services provided by MetroFi, or in the event that MetroFi defaults under its agreement.  In addition, there is the potential use of the regional wireless network for the City to deliver its services to support applications such as those used by the Departments of Public Safety, Community Development (building inspections, economic development) and Public Works (transportation and traffic).

As stated in the December, 23, 2005, letter requesting Sunnyvale’s participation, the purpose of the RFP is to develop a high-speed data network that covers all of Silicon Valley.  The development of a regional network will ensure consistency and enable interoperability between systems used by the neighboring cities and counties of Silicon Valley.  Participation in the RFP process will allow the City of Sunnyvale to contract for services with the successful proposers, but it does not obligate the City to contract with the selected provider(s).  If the City financially supports the RFP process, the City will have the opportunity to continue with the preparation of the RFP and to participate in the RFP process including review and evaluation of the vendor responses.

If the City chooses not to participate in the RFP process, there is no guarantee that successful proposers will provide services to Sunnyvale at the same cost (or no cost) as they will provide to those cities and counties that financially participated.  Participation in the process also ensures that the City will have representation to influence the development of the regional broadband wireless network.

The Task Force is currently developing a business model that addresses how the regional wireless network will be deployed and operated.  The Task Force is proposing to create a Wireless Silicon Valley Broadband Alliance (WSVBA) modeled after experiences with Joint Powers Authority (JPA).  The purpose of the business model is to reach internal agreement among the participating agencies and to clarify the types of wireless services desired by communities.  The centralized organization (WSVBA) would be responsible to provide management and oversight for the operations of the wireless network.  The Task Force is continuing to review the business model that will be deployed, and staff will update Council on this activity at the appropriate times.

FISCAL IMPACT

The total fiscal impact for the City to participate in the preparation of the RFP is $2,500.  Staff has reviewed the year-to-date expenditure pattern of the Program and has determined that the cost can be absorbed within the Information Technology Services Delivery Program FY 2005/2006 operating budget.

The long term effects of participating in the RFP are unknown.  The Wireless Silicon Valley Task Force does not yet know if successful proposers will offer free or fee-based services.  In addition, the specific business model that will be used to manage and operate the regional wireless network, including collection of revenues, is unknown at this time.  If the City feels that the fiscal impact of any vendor proposal or subsequent organization to oversee the regional network’s operation is not worthwhile, there is no obligation to participate further.

CONCLUSION

Continued participation in the Wireless Silicon Valley RFP process serves a positive benefit to the City.  By partnering with the other municipalities in the region on this effort, the City will benefit from the information gathered from the RFP process and will have an opportunity to participate in the development and deployment of a regional wireless network.  Participation in the development of the RFP will also enable Sunnyvale to more directly influence the decisions on issues and services that are addressed through the RFP process.  The City has no obligation to contract for services offered by any of the successful proposers.

There are many issues still to be worked out regarding the actual deployment and implementation of a regional wireless broadband network as well as the operation of such a network on this scale.  The City’s contribution of $2,500 for the preparation of the RFP demonstrates a willingness to continue to actively participate in this regional effort that has the potential to bring even more competitive and affordable wireless services to the community as well as wireless services that may be used to deliver City services.

PUBLIC CONTACT

Public Contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and City Clerk’s Office.

ALTERNATIVES

Alternative #1 – Authorize staff to participate in the Preparation of a Request for Proposals for the Development of a Regional Wireless Broadband Network and contribute $2,500, as requested by the Wireless Silicon Valley Task Force.

Alternative #2 – Direct staff to not participate in the Preparation of a Request for Proposals for the Development of a Regional Wireless Broadband Network, as requested by the Wireless Silicon Valley Task Force.

RECOMMENDATION

Approve Alternative #1, Authorize staff to participate in the Preparation of a Request for Proposals for the Development of a Regional Wireless Broadband Network and contribute $2,500, as requested by the Wireless Silicon Valley Task Force.

Reviewed by:

Shawn Hernandez, Director, Department of Information Technology

Prepared by:     Marilyn Crane, Manager, Information Technology Services

Approved by:

Amy Chan

City Manager

Attachments