Title
Approval of Amendment No.2 to General Services Agreement No. AGR24-46a-A2 and Amendment No.1 to General Services Agreement AGR24-46b, With Bonfire Engineering & Construction LLC to Remove the Service Connection Drops from the Design and Construction Agreement and add them to the Network Operations Agreement
Recommended Action
I move that Council approve Amendment No.2 to General Services Agreement No. AGR24-46a-A2 and Amendment No.1 to General Services Agreement AGR24-46b-A1, with Bonfire Engineering & Construction LLC to remove the service connection drops from the Design and Construction Agreement and add it to the Network Operations Agreement.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as requested.
Body
The Atomic Fiber project (formerly known as the Community Broadband Fiber Project) is structured into three parts, design engineering, construction of the fiber optic cables (either in-ground or aerially) , and operation of the network (service provided by Internet Service Providers and managed by Bonfire). This project was separated into two contracts with Bonfire, one for the design-build, and one for the operation of the network.
The subject of this amendment is regarding the service connection drops, which is the installation of the fiber optic cable from the main line to the point of service (i.e. the residential house or commercial building). Given that the number of service connection drops is dependent on the future customers requesting new service, it does contain uncertainty in the total number of future service connection drops.
Given the nature of construction of the Atomic Fiber project, our contractor, Bonfire has requested moving one segment of construction (service connection drops) from the design-build contract to the network operations contract. This will aid in the contractor providing the necessary surety bonding that is required of the contract and the New Mexico State Law for public infrastructure projects.
The operation contract (AGR24-46b) already had service connection drops already established in the contract, as originally this was going to continue the service connection after the construction is complete. This contract amendment is moving all the service connection drops from the design-build contract to the operations contract.
Alternatives
Council could choose not to approve the amendment, however the schedule for start of construction could be jeopardized.
Fiscal and Staff Impact/Planned Item
Overall there not a net change in the total cost, these contract amendments are moving one portion of construction to the another in the amount of $6,216,126.12. A future budget adjustment may be needed, which would require a re-balance of the Capital Improvements Plant (CIP).
Attachments
A - AGR24-46a Original Agreement
B - AGR24-46a Amendment No. 1
C - AGR24-46a Amendment No. 2
D - AGR24-46b Original Agreement
E - AGR24-46b Amendment No.1