Consideration and Approval of Contract:  Fiber Network Project - Award of Design-Build Services Contract to Wecom, LLC
 

1. Award the Design-Build Services Contract to Wecom, LLC; and
2. Authorize the City Manager to execute the necessary documents.

The City has been looking for ways to improve not only its own fiber network, but also improve broadband competition and availability throughout the Flagstaff community.

In March 2024, the City issued a Request for Statement of Qualifications (RSOQ) to identify the most qualified provider for not only a city fiber network, but also construction of a fiber network throughout the Flagstaff community and immediate surrounds.  The intent is to meet the City's internal needs, as well as the needs of the community for expanded broadband offerings. In exchange, the City is able to pay approximately $2 million towards design and construction costs for the City Fiber Network, and will allow use of its excess capacity in City conduit (both existing conduit and certain new conduit being installed as part of ongoing capital improvement projects). 

This was a competitive solicitation and the City received several responses. A 5-member evaluation committee, comprising City staff and community partners, reviewed the submissions and selected Wecom Fiber as the most qualified provider. A copy of Wecom Fiber's response to the solicitation is attached.  Wecom Fiber intends to construct a fiber network throughout the Flagstaff community and immediate surrounds. The City Fiber Network will be installed along some of the same routes.  

Contract Approval

The City Council is asked to consider the award of a Design-Build Contract to Wecom, LLC, doing business as Wecom Fiber, for the design and construction of a City Fiber Network, The City Fiber Network will connect approximately 35 City facilities and approximately 45 City traffic signal lights, and extend approximately 9 miles throughout the City. The City Fiber Network will provide opportunities for future Smart City Initiatives.

The scope of work for the Contract is being approved in phases. City Council is being asked to approve the design phase first. City Council will then later be asked to approve contract amendment(s) for construction. The parties are still in negotiations over the overall financial deal, which is more complex as the City will be paying less than the actual costs of construction of the City Fiber Network and offering in kind contributions and/or credits against otherwise applicable license and permit fees in exchange. The Contract (including the scope of work for the design phase) will be attached prior to the City Council meeting.

Additional contracts that will be needed to complete the overall transaction include a license for use of the public rights-of-way, and lease for use of City conduit.  These will be presented at a future City Council meeting for consideration.

The City has budgeted up to $2,000,000 in FY2024-25 Budget in account 001-01-014-0044-1-4407 and 001-09-402-6321-1-4407 which have been set aside over the past few years dedicated to fiber construction.  As we move into construction, we expect to expend the entire $2,000,000. 

The City will provide access to City-owned conduit as an in-kind contribution in exchange for conduit and fiber in locations, the City does not have infrastructure. The City may also negotiate right-of-way fees as an in-kind contribution towards the project cost as part of future agreements.

For the last several years, Council has provided American Rescue Plan Act (ARPA) funding for fiber with the intent of utilizing the funding as a grant match. As the latest infrastructure grants came out, rules required the City to partner with an Internet Service Providor (ISP) to qualify for the grants. The RSOQ was intended to find an ISP to work with in order to provide fiber to the community utilizing private capital and federal grants as available.

The City could continue to build our existing conduit. This would be at a much slower pace and would not benefit the community for many years.

The Procurement staff ran a formal solicitation through a request for statement of qualifications on the PlanetBids from 1/15/2024 to 3/19/2024. Published on Saturday, January 27^th, 2024 and Saturday, February 3^rd, 2024 in the Arizona Daily Sun. The solicitation pulled three responsive statements. A team of six evaluators scored t6he statements to determine which firm was most qualified to work with the City. The following is the final scoring. Wecom was determined to be the most advantageous contractor to work with the City in this project. 
Wecom - 506
Allo - 411
Entry Point - 350

• Implement and communicate innovative and efficient local government programs, new ideas, and best practices
• Deliver outstanding services to residents through a healthy, well-maintained infrastructure system
• Utilize existing long-range plans that identify the community’s future infrastructure needs and all associated costs
• Provide, manage, and maintain effective infrastructure for multimodal and active transportation
• Attract employers that provide high quality jobs and have a low impact on infrastructure and natural resources

Goal CC.5. Support and promote art, science, and education resources for all to experience.
Goal LU.1. Invest in existing neighborhoods and activity centers for the purpose of developing complete, and connected places.
Goal LU.7. Provide for public services and infrastructure.
Goal PF.2. Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
 

While this project doesn't directly impact the Carbon Neutrality Plan, many of the strategies require connectivity or data collection to be successful.