PURPOSE

 

This item authorizes Burbank Water and Power (BWP) to execute master Communications Transport Services-Video (CTS) Agreements with NBC Universal, Inc. and KNBC, both local Burbank companies. These agreements will lease single-channel, uni-directional, point-to-point, transport services for high quality composite video signals, SDI, ASI, and HDTV video services capable of transmitting a duplex video signal and up to four associated audio signals for each video signal. These CTS agreements are for a period of one (1) year and thereafter extended annually for successive one-year terms.

 

This item also proposes an amendment to the 2005-2006 Citywide Fee Schedule to establish a rate schedule for CTS service and authorize the General Manager of BWP to enter into future customer agreements for telecommunications services without Council approval, provided such agreements reflect the rates prescribed in the Fee Schedule.

 

BACKGROUND

 

In December of 2003, both NBC Universal Inc. and KNBC requested information and a cost estimate for CTS services from 3000 West Alameda Avenue in Burbank to �The Switch� located at 3400 Motor Avenue in the City of Los Angeles. �The Switch� was launched in 1991 as a joint service offering of Beers Entertainment Inc. (BEI) and precursor of GlobeCast. In January of 2003, BEI bought out GlobeCast. Their facility in Los Angeles provides customer controlled video and audio switching with long-haul capability and connectivity to an operations center at 60 Hudson Street in New York City. BWP and the Los Angeles Department of Water and Power (LADWP) generated a Coordinate Network Agreement between our cities to provide this type of service to both Burbank and LA businesses. The Burbank City Council approved the Coordinate Network Agreement on November 10, 2004 and LA�s City Council approved it in December of 2004.

 

ANALYSIS

 

These Agreements allow NBC Universal Inc. and KNBC to transport broadcast quality video and audio signals to �The Switch� in the City of Los Angeles. NBC Universal Inc. will pay $1,000 per CTS circuit per month for a total of $24,000 a year for two-(2) CTS circuits. Per the Coordinated Network Agreement, this sum will be divided on a 70% (LA) � 30% (Burbank) split, yielding $7,200 per year for Burbank. This project and the work required under these Agreements utilize existing facilities. No new facilities are needed at this time.

 

FISCAL IMPACT

 

The two Agreements presented today are the inaugural Agreements for this type of service.  When combined, the NBC Universal Inc. and KNBC Agreements yield total annual CTS revenues of $14,400. As per terms in the Coordinate Network Agreement, LADWP will be responsible for monitoring the day-to-day operation of the circuits via their Network Operations Center in Los Angeles keeping Burbank�s operations and maintenance expenses to a minimum.

 

AMENDMENT TO FEE SCHEDULE AND AUTHORIZING GENERAL MANAGER TO ENTER INTO AGREEMENTS FOR TELECOMMUNICATIONS SERVICES:

 

Staff proposes that standard rates for CTS service be established by an amendment to Article XII of the Citywide Fee Schedule as shown on the attached Exhibit A.  Article XII presently contains only the rate for dark fiber leases, which would not change.  The title of Article XII would be changed to �Telecommunication Services Rates and Charges� instead of the present �Fiber Optic Services Rates and Charges.�

 

Staff further proposes that the General Manager of BWP be authorized to enter into both dark fiber and CTS agreements without City Council approval.  Having such authority will enable BWP to move quickly to sign up new customers when the opportunity presents itself.  Agreements would be made using standardized forms and the rates prescribed in the Fee Schedule, with each agreement receiving legal review and approval by the City Attorney�s office.  The maximum term of an agreement would be five years.  Examples of these forms are attached to the Resolution that accompanies this Memorandum as Exhibits B and C.  The General Manager would have discretion to revise the standardized form agreement to satisfy a particular customer�s requirements, but not with respect to material terms.  

 

RECOMMENDATION

 

Staff recommends that the City Council approve the resolution authorizing the General Manager of BWP to execute Communications Transport Services-Video (CTS) Agreement (No.CTS-001/05) with NBC Universal Inc. and Communications Transport Services-Video (CTS) Agreement (No.CTS-002/05) with KNBC. Staff also recommends that the City
Council approve the inclusion of the CTS circuit costs detailed on the attached Exhibit A into the Burbank Fee Resolution Schedule for future Agreements.

 

If the Council concurs the appropriate motions would be as follows:

 

1.         A motion to approve the Resolution entitled �A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING AND AUTHORIZING EXECUTION OF OPTICAL NETWORK LEASE AGREEMENTS FOR COMMUNICATIONS TRANSPORT SERVICES-VIDEO (CTS) WITH NBC UNIVERSAL INC. (No. CTS-001/05) AND KNBC (No. CTS-002/05).�

 

2.         A motion to approve the Resolution entitled �A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING ARTICLE XII OF THE 2005-2006 CITYWIDE FEE SCHEDULE TO ESTABLISH RATES FOR COMMUNICATIONS TRANSPORT SERVICES (CTS)�VIDEO AND AUTHORIZING THE GENERAL MANAGER OF BURBANK WATER AND POWER TO ENTER INTO AGREEMENTS FOR TELECOMMUNICATIONS SERVICES CONSISTENT WITH THE ADOPTED FEE SCHEDULE.�

 

RED:FCF:JJC:jjc

Alvord memo (CTS) 2-28-06 (RJM rev #4).doc

Attachments