AgdaPkt 2008-03-24 Clsd and Reg - Laserfiche WebLink

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REPORT 6.38 Page 1 March 24, 2008 SUBJECT Budget amendment for fiscal year 2007-2008 to appropriate revenue from Comcast. RECOMMENDATION Approve by resolutton the appropriation of $161,175 of Corneast revenue into two capital improvement projects (CIP); $75,000 for I-Net (fiber network) equipment, and $86,175 for PubITc, Education, Government (pEG) equipment. BACKGROUND The franchise agreement between the City and Corncast, dated January 6, 2006, includes a provision for Comcast to construct a fiber network (I-Net) among the fonowing factHties: Sandpiper Recreation Centef, Schaberg LIbrary, Redwood Shores Library, Fire Station #12, Fire Station # 20, Redwood City School District office, Sequoia Union High Schoor District office, and Carrington HaIT-Sequoia High School. The total cost of $674,613.17, referred to in the franchise agreement as both construction credits and construction costs, was derived from the estimated cost to build the I-Net, including the fiber and cost of laying it, as well as funding for the edge and sw~tching equipment used at each site to make commun~caHon over the fiber possible. After completion of the laying of the fiber, Comeast has remitted a check to the City in the amount of $161,175 as ~quidation of the remaining construction credit balance, including the funding for the edge and switching equipment, to be purchased directly by the City, By the terms of the franchise agreement, the City can use those remitted funds for I-Net capital expenditures or PEG capital expenditures on~y. The Information Technology Division of Finance has determined that $75,000 is required to purchase the edge and switching eqUipment. This includes a $20,000 contingency amount for maintenance, future replacement, and possible expansion of such equipment. It's allowable, through the terms of the franchise agreement, for the remaining balance of $86,175 to be allocated to the existing PEG CIP account, for use in the Council chamber audio/visual and broadcast systems retrofit projects. Al TERN-ATIVES Appropriate the revenue to these two capital projects using a different ratio, or direct staff to provide alternative, eligible, projects for consideration.