Memorandum SAN JOSE CAPITAL OF SILICON VALLEY. FROM: Julia H. Cooper Julie Edmonds-Mares TO: HONORABLE MAYOR AND CITY COUNCIL

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1 COUNCIL AGENDA: 09/20/16 ITEM: 3.7 CITY OF SAN JOSE CAPITAL OF SILICON VALLEY Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Julia H. Cooper Julie Edmonds-Mares SUBJECT: SEE BELOW DATE: Approved Date SUBJECT: AGREEMENT WITH SMARTWAVE TECHNOLOGIES LLC FOR THE DESIGN AND DEPLOYMENT OF WIFI NETWORK IN SUPPORT OF EAST SIDE UNION HIGH SCHOOL DISTRICT COMMUNITIES REASON FOR ADDENDUM On June 28, 2016 the Mayor and Council adopted a resolution authorizing the execution of a funding agreement between the City of San Jose and Eastside Union High School District (ESUHSD or District) to establish and maintain a Community Wireless Network in the District. To expedite the execution of the SmartWAVE agreement and the project installation launch, and to ensure the full staff team is available for the Council discussion, it is requested that this item be added to the September 20, 2016 Agenda. RECOMMENDATION Adopt a resolution authorizing the City Manager to: 1. Execute an Agreement with SmartWAVE Technologies LLC (Suwanee, GA) for the purchase and installation of a WiFi Network Deployment for one East Side Union High School District attendance area, including hardware/materials/equipment, software, related professional services, maintenance and support, and applicable sales taxes, for an initial fiveyear term commencing on or about September 20, 2016, and ending on or about December 31, 2021, with an estimated maximum compensation not-to-exceed $1,535, Approve a contingency of $120,000 for any unanticipated expenses incurred during system development and deployment. 3. Execute five additional one-year options to extend the term of the Agreement after the initial five-year term, to provide ongoing maintenance and support, subject to the appropriation of funds.

2 Page 2 OUTCOME Provide greater internet access and services to underserved students in the East Side Union High School District to facilitate advancing student academic achievement through internet-based learning technologies and instruction both at homes and at District facilities. This pilot project will provide opportunities for students to connect to career and college resources online. Foster student safety during non-classroom times. BACKGROUND In 2011, a Request for Quote (RFQ) was published on the City of San Jose's e-procurement system entitled Partnership for a Downtown Wireless Network. SmartWAVE Technologies LLC was selected as having submitted the most advantageous proposal for a partnership solution. The City of San Jose (City) pioneered a public-private partnership with SmartWAVE Technologies and Ruckus Wireless to deploy a WiFi network, at minimal cost to the City, using state-of-the-art technology developed in Silicon Valley. The free, outdoor downtown WiFi service was officially launched as "Wickedly Fast Wi-Fi" on March 14, Wickedly Fast Wi-Fi is accessible through the downtown core from East St. John Street to the north, portions of Balbach Street and Viola Avenue to the south, North 6th Street to the east, and Almaden Boulevard to the west. The network benefits the City's downtown parking infrastructure, primarily the pay-to-park meters, by improving the speed by which time-sensitive transactions occur. In addition, it connects City facilities by providing high-speed alternatives to traditional telecommunications circuits. In 2014, a Request for Proposal (RFP) was published on the City's e-procurement system entitled Maintenance and Expansion of Wireless Network Utilizing Ruckus Equipment, and SmartWAVE was selected pursuant to the City's procurement requirements. Subsequently, the City has issued a series of smaller purchase orders and agreements in support of various City requirements for WiFi deployment, links, maintenance, installation of new access points, new equipment, and equipment upgrades. In early-2016, the ESUHSD reached out to City to explore leveraging the City's RFP and contract pricing with SmartWAVE to deploy a WiFi network that would serve ESUHSD families in some of the District's underserved communities. On June 28, , the City Council adopted a resolution authorizing the City Manager to negotiate and execute an Agreement between the City of San Jose and East Side Union High School District relating to the District's payment for 1 Link 6/28/16 Memo: id=&event id=2142&meta id=583300

3 Page 3 the City's expenses to establish and maintain a Wireless Network in a District attendance area for a term of five years, for an amount not to exceed $2,700,000. The agreement with Smart Wave is contingent upon receipt of funding payment from ESUHSD. At the June 28, 2016 Council meeting^, staff was directed to report back after the implementation and deployment of the Wireless Network in the first attendance area. Before proceeding with subsequent WiFi deployments in additional District attendance areas beyond the pilot the City Council requested a report on fundraising activity and/or other potential technologies to support project implementation. ANALYSIS Due to the complexity, size, scope and funding availability, the ESUHSD WiFi deployments will occur sequentially, in a phased approach for each attendance area for flexibility. At this time, only one attendance area is planned for initial installation and deployment. Depending on the results of the site survey of each attendance area, one of the three attendance options listed below will be selected as the initial attendance area for deployment. As requested by City Council, staff will return to Council to provide an update and to obtain approval to proceed with subsequent phases if appropriate, utilizing the City's existing Change Order Process. Attendance Area Options* Option 1: Option 2: Option 3: Description James Lick High School Attendance Area William C. Overfelt High School Attendance Area Yerba Buena High School Attendance Area * Optional Attendance Areas are subject to execution of a Change Order after one-year check-in and approval by Council The Department of Public Works will provide project management, construction support, inspection, plan review and coordination. The Department of Information Technology will provide technical review and guidance. Site surveys completed may assist in future City projects as well. In the proposed project the City would own the network and would be providing project management for installation and ongoing maintenance through a City contractor. This pilot project would also expand the City's capacity to deploy other Smart City initiatives. The District will be responsible for registering, providing passcodes and supporting students to access the network. Staff recommends leveraging the City's competitive procurement to provide beneficiary interest of the City's pricing discounts for the ESUHSD WiFi deployments. By leveraging the City's existing relationship with SmartWAVE and their knowledge of City's infrastructure, they can W Mayor 6/28/16 Memo: id=&event id=2142&meta id=583595

4 Page 4 begin work immediately, expedite the project, and save significant costs in the deployment. The City's discounted pricing represents 30% off List Price on Ruckus Hardware items, plus an additional 5% off List Price for bulk equipment orders over $100,000. Further, SmartWAVE developed a preliminary design which is the basis of the cost estimate. Summary of Agreement: The Agreement with SmartWAVE includes estimated pricing for the hardware, software and related professional services inclusive of installation/deployment, and taxes. Pricing is estimated at this time because each school attendance area is unique and a site survey is required for detailed pricing. Once the Agreement is executed, SmartWAVE will initiate the following for each attendance area: 1) Planning Phase: Create a high-level design document specific to each attendance area's geography, facilities, and assets. Include GIS and land use data, building, street light, traffic signal and other asset information. Identify topology coverage issues, mounting assets, and preliminary bill-of-material for materials required, etc. 2) Design Phase: Develop detailed designs including site surveys to validate mounting locations, pole availability and restrictions, update material lists, price build-out, and finalize assumptions. 3) Installation Phase: Deploy the wireless mesh network with integration into existing City and ESUHSD networks. The Agreement includes a payment bond. Also, the recurring maintenance and support services are included as fixed price in the amount of $74,400 per attendance area, per year for the fiveyear term. After the initial five-year term, if exercised, renewal quotes shall be subject to review and approval by the City, and are subject to the appropriation of funds by the City. The Agreement is subject to the City's Prevailing Wage Policy and SmartWAVE will be contractually required to pay the prescribed prevailing wage rates identified in the Agreement. EVALUATION AND FOLLOW-UP Staff will return to Council in the spring of 2017 to report on any funding gaps and any technology advancements, and to seek approval to proceed with subsequent attendance areas, if appropriate. PUBLIC OUTREACH This item will be posted on the City's website for the September 20, 2016 City Council Agenda.

5 Page 5 COORDINATION The memorandum has been coordinated with the Department of Information Technology, Department of Public Works, City Attorney's Office, and the City Manager's Budget Office. COMMISSION RECOMMENDATION/INPUT No commission recommendation or input is associated with the action. FISCAL/POLICY ALIGNMENT This action is consistent with the City's Proposed Operating Budget City Service Areas (CSA): Neighborhood Services CSA: Healthy Neighborhoods and Capable Communities Community & Economic Development CSA: Safe, Healthy, Attractive & Vital Community Strategic Support CSA: Effective Use of Technology COST SUMMARY/IMPLICATIONS The following outlines the elements of the contract and other project-related costs. 1. AMOUNT OF RECOMMENDATION (5-year term, 1 attendance area): $1,535, COST ELEMENTS: - Attendance Area 1 Installation - Year 2 Maintenance/Support - Year 3 Maintenance/Support - Year 4 Maintenance/Support - Year 5 Maintenance/Support 3. SOURCE OF FUNDING: General Fund Subtotal Not-to-Exceed Contingency/Change Orders TOTAL $ ,400 74,400 74, $1,535,600 $ $ FISCAL IMPACT: After the initial installation/deployment, the ongoing technical support service cost is fixed for option years 2 through 5 at $74,400 per year, per attendance area. Funding for the ongoing technical support after implementation will be funded by ESUHSD.

6 Page 6 The City's project delivery cost for each attendance area is estimated to be $270,000, including project management, technical review, support, and field inspection. BUDGET REFERENCE The table below identifies the fund and appropriations proposed to fund the contract and contingency costs recommended as part of this memorandum. Fund# Appn. # Appn. Name East Side Union High School District Community Wireless Network Project Proposed Operating Budget Page* Last Budget Action (Date, Ord. No.) Current Amt. for Total Appn. Contract $2,700,000 $1,655, /28/2016, Ordinance No Total Current Funding Available $2,700,000 $1,655,600 * The Proposed Operating Budget was approved by City Council on June 21,2016 CEOA Exempt, Section New Construction or Conversion of Small Structure, File No. PP /s/ JULIA H. COOPER Director of Finance /s/ JULIE EDMONDS-MARES Deputy City Manager For questions regarding ESUHSD Project, please contact Julie Edmonds-Mares, Deputy City Manager, at For questions regarding the RFP or Agreement, please contact Mark Giovannetti, Finance Deputy Director, at (408)