AUTHORIZATION TO ENTER INTO AMENDMENT NO. 1 TO THE COMMUNICATIONS FACILITIES LICENSE AGREEMENT WITH COX COMMUNICATIONS ARIZONA, LLC, FOR COMMUNICATION SERVICES AT THE GLENDALE MUNICIPAL AIRPORT
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for the City Council to authorize the City Manager to enter into Amendment No. 1 to the Communications Facilities License Agreement with Cox Communications Arizona, LLC (Cox) for a capital contribution of $60,000 for the installation of fiber cable at the Glendale Municipal Airport (Airport).
Background
The Airport does not have wired internet access. As a result, the Airport staff and tenants rely on internet access through a satellite service provider, which is expensive and data restrictive when compared to wired internet access. The lack of reliable and cost effective internet access at the airport is a major complaint of our existing and potential tenants. City employees also experience inconsistent network access and find the current arrangement unreliable. Airport staff has identified reliable, wired internet service as an ongoing goal for airport operations.
In 2015, some tenants of the airport contacted Cox to obtain wired internet services, compelling the service provider to explore the feasibility of expanding their infrastructure to accommodate these requests. As part of that effort Cox contacted several other airport tenants outside of the terminal to obtain signed contracts for future service, exhibiting their commitment to using Cox services if available.
Analysis
Cox initially established a budget of $150,000 for the installation of fiber along Glen Harbor Boulevard, starting at the Glendale Avenue intersection and terminating south of the South Box Hangars. However, the low bid for this project came in at $221,421, and Cox decided to cancel the project due to the higher cost. The City opened negotiations with Cox to identify terms to retain the project, and Cox sent an agreement where the City would provide a capital contribution of $60,000 towards the budget to continue the project. Under this agreement, Cox will pay the remainder of the project costs.
The proposed fiber installation will allow for internet, video, and phone services. Each tenant will be responsible to contract directly with Cox for each of their desired services.
The Aviation Advisory Commission has been kept apprised of the progress of this project on a monthly basis. The Aviation Advisory Commission passed a recommendation to approve the amendment and expenditure of funds ($60,000) to the City Council at their May 11, 2016 meeting.
Community Benefit/Public Involvement
The benefit to the airport will be reliable wired internet service to the city staff and tenants. It will also allow us an opportunity to provide a valued public service of free wireless internet service to our customers in the terminal only. Pilots will be able to check weather, conduct preflight activities, get flight information, etc. Many airports offer free wireless internet access including several in the valley such as Phoenix Sky Harbor, Deer Valley, Goodyear, Chandler, and Buckeye Airports.
The availability of wired internet access and other services should increase customer satisfaction. The availability of these services will be a major selling point to potential tenants and for the rental of the airport conference room. Additional tenants and conference room rentals will increase revenues and increase the potential self-sustainability of the Airport, enabling staff to better maintain and operate the public facility.
Budget and Financial Impacts
Funding for the installation of fiber cable is available in the Fiscal Year 2015-16 Airport Capital Improvement budget. Expenditures with Cox are not to exceed $60,000.
Monthly services fees for internet access are estimated at less than $2,400 per year and are available in the Airport’s Operating budget, contingent upon Council Budget approval.
|
Cost |
Fund-Department-Account |
|
$60,000 |
2210-65078-550800, Airport Matching Funds - Improve Other than Bldgs |
|
$2,400 |
1760-16410-518200, Professional and Contractual |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?