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AGENDA ITEM: Contract Extension with Peninsula Fiber Network (PFN) for Next Generation 9-1-1
ESInet from 2022 to 2032 (#004702)
COMMITTEE MEETING: Board of Commissioners
DATE: Thursday, October 20, 2022 6:04 PM - Click to View Agenda
ITEM SUMMARY SHEET
DEPARTMENT SPONSORED BY
Information Technology Gwen Markham
INTRODUCTION AND BACKGROUND
Oakland County recognized the need to transition from an analog copper telephone 911 network to
an IP based system over ten years ago The original copper network had been designed in the
1980s when almost all telephony consisted of hard-wired landlines, The analog network was able
to handle the subsequent proliferation of wireless and VoIP devices by “tricking” the network into
treating them as landlines. This approach worked to a certain extent, but was not sustainable long
term.
In March 2015, Oakland County developed an Request for Proposal (RFP) for an IP based fiber
911 network (Emergency Service IP Network or “ESInet”) that would meet the needs of
communication devices as they exist today, and, following an open, competitive bid process,
awarded the ESInet and 911 functionality to Peninsula Fiber Network (PFN), a Michigan company.
A multi-year construction, implementation and testing period followed, after which the 100+ service
providers were transitioned from the copper network to the ESInet, one by one. PFN has now been
selected as the provider of the “Next Generation 911” ESInets in 82 of Michigan Counties, assuring
statewide interoperability. The ESInet is a highly secure and redundant network and meets or
exceeds national 911 standards.
The current contract with PFN, authorized on December 7, 2017 by MR#17323, expires December
31, 2022.
Historically, the funding for the 911 network has been a user fee. When the copper network was
developed, landline telephone customers paid a fee, which the telephone companies retained to
cover 911 network costs. The fees have evolved over the years to include wireless and VoIP
communication devices. A fund that encompasses these diverse fees now exists at the State
Treasury.
Service providers, such as PFN, submit a cost study for each county to the Michigan Public
Services Commission for review and are reimbursed for approximately 85% of total costs by the
fund. It is critical that PFN have all supporting documents, including long-term contracts, in order to
obtain reimbursement for their costs in providing 911 service to Oakland County. Without adequate
reimbursement, the cost for the service would become an Oakland County cost. This
“reimbursable” cost is currently $3,018,100.56 annually. Per the Contract with PFN, Oakland
County is responsible for the small percentage of costs that are not considered “reimbursable”,
approximately $81,000 annually.
PFN has continued to enhance the service they provide as communication capabilities and national
standards have evolved. Since Oakland County’s initial contract, PFN has upgraded servers and
routers, added data centers for greater redundancy, and increased functionality with text-to-911
and location-based routing, using the position of the handset rather than the location of the tower to
route calls more effectively. The ESINet now exceeds the requirements of the initial RFP. The
major portion of these costs are reimbursed by the State fund, and are not county costs.
POLICY ANALYSIS
Peninsula Fiber Network (PFN) is the sole provider of Oakland County’s primary NG911 ESINet
services and has been chosen exclusively within the State of Michigan for those counties that are
deploying ESINet to date. The current contract between Oakland County and PFN expires on
12/31/2022 and the Departments of Information Technology and Purchasing have negotiated a
new 10-year contract at an estimated total cost of $8,250,000. The Purchasing Terms and
Conditions state in Section 2400.6 Duration of Contracts and under Procedure states “The Board of
Commissioners shall approve contracts beyond five years”.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.858.5115 (office) or andrewsmb@oakgov.com, or the department contact persons listed for
additional information.
CONTACT
Mike Timm, Director Information Technology timmmr@oakgov.com
ITEM REVIEW TRACKING
Gwen Markham, Created -
Kristine Powers,
Aaron Snover,
Monica Tinsley,
Diana McBroom,
Solon Phillips,
Sheryl Johnson,
Aaron Snover,
Michael Keys,
Gwen Markham,
AGENDA DEADLINE: 10/20/2022 7:20 PM
COMMITTEE TRACKING
2022-10-12 Finance - Recommend to Board
2022-10-20 Full Board - Approved
ATTACHMENTS
1. 004702_CO_05
2. 008194_06 - signed
3. Peninsula Fiber Network
4. PSC w-Everify.2010.03.10 NO NOT USE FROM HERE - Peninsula_Fiber_Network
5. Change Order Document - 004702_CO_01
6. Change Order Document - 004702_CO_02
7. Change Order Document - 004702_CO_03
8. Change Order Document - 004702_CO_04
9. PFN 4702
October 20, 2022
RESOLUTION #2022-2125
Contract Extension with Peninsula Fiber Network (PFN) for Next Generation 9-1-1 ESInet from
2022 to 2032 (#004702)
Sponsored By:
Gwen Markham, Commissioner
Chairperson, the Board of Commissioners recommends the following Board action:
Motion to approve the 10-year contract extension with Peninsula Fiber Network through December
31, 2032, further that a budget amendment is not required as there is sufficient funding within
Information Technology’s FY 2023 – FY 2025 operating budget to cover the cost of the expenditure.
Chairperson, the following Commissioners recommend the adoption of the foregoing Board action:
Gwen Markham.
COMMITTEE TRACKING
2022-10-12 Finance - Recommend to Board
2022-10-20 Full Board - Approved
VOTE TRACKING - Board of Commissioners
Motioned by: Commissioner Gwen Markham
Seconded by: Commissioner Michael Spisz
Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall,
Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Chuck Moss, Marcia
Gershenson, William Miller III, Yolanda Smith Charles, Penny Luebs, Janet Jackson, Gary McGillivray,
Robert Hoffman, Adam Kochenderfer (20)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. 004702_CO_05
2. 008194_06 - signed
3. Peninsula Fiber Network
4. PSC w-Everify.2010.03.10 NO NOT USE FROM HERE - Peninsula_Fiber_Network
5. Change Order Document - 004702_CO_01
6. Change Order Document - 004702_CO_02
7. Change Order Document - 004702_CO_03
8. Change Order Document - 004702_CO_04
9. PFN 4702
Scott Randall (Jul 29, 2021 19:12 EDT)
Scott Randall
Scott N.Guzzy (Jul 29, 2021 23:50 EDT)
AMENDMENT OF CONTRACT 008194
Page 1 Rev 2022/05/11
Information Technology WKP
AMENDMENT OF CONTRACT 008194
AMENDMENT 06
AMENDMENT DATE: August 25, 2022
This AMENDMENT OF CONTRACT (hereafter this "Amendment") is made and entered into by and between the
Contractor named and identified below, (hereafter “Contractor”) and the COUNTY OF OAKLAND (hereafter
“County”) whose address is 2100 Pontiac Lake Rd, Waterford, MI 48328.
CONTRACTOR ADDRESS
Peninsula Fiber Network LLC
1901 West Ridge Street Suite 2
Marquette MI 49855 Vendor Number: 20284
The County and Contractor agree and acknowledge that the purpose of this Amendment is to modify as
provided herein and otherwise continue the present contractual relationship between the Parties as described
in the Contract with the same contract number as above.
In consideration of the extension of the mutual promises, representations, assurances, agreements, and
provisions in the Contract and this Amendment, the adequacy of which is hereby acknowledged by the Parties,
the County and Contractor agree to amend the Contract as follows:
1.0 Any and all defined words or phrases in the Contract will apply equally to and throughout the
amendment.
2.0 Any and all other terms and conditions set forth in the Contract shall remain in full force and effect and
shall not be modified, excepted, diminished, or otherwise changed or altered by this Amendment,
except as otherwise expressly provided for in this Amendment.
3.0 Description of Change:
3.1 Due to conversion to Workday financial system, Oakland County is assigning a new contract
number. The old contract number 004702 will be replaced by 008194.
3.2 Amendment 5 to this Contract is deleted in its entirety. The subject matter of Amendment 5
will be transferred to a new contract between Contractor and the County with a contract
number of 009836. Legal requirements dictate that the subject matter of the Contract and
the subject matter of Amendment 5 be contained in separate contracts.
AMENDMENT OF CONTRACT 008194
Page 2 Rev 2022/05/11
The undersigned hereby execute this Amendment on behalf of the County and Contractor and by doing so
legally obligate and bind the County and Contractor to the terms and conditions of the Contract and this
Amendment.
THE CONTRACTOR: SIGN / DATE:
Peninsula Fiber Network LLC
THE COUNTY OF OAKLAND: SIGN / DATE:
Scott N. Guzzy, CPPO, MBA, Purchasing Administrator
CLA
Scott Randall (Aug 29, 2022 09:56 EDT)
Scott Randall
Scott N. Guzzy (Aug 29, 2022 17:09 EDT)
Scott N. Guzzy
Supplier Contract CON00008194: E-E-911 Call Hndlng-P-COOP
Contract Number CON00008194
Version 1
Status Approved
Amendment Date 08/30/2022
Contract Information
Company Oakland County
Supplier Peninsula Fiber Network LLC
Contract Specialist Wendy Pucher (23900)
Buyer Wendy Pucher (23900)
Contract Type Professional Service
Contract Name E-E-911 Call Hndlng-P-COOP
Contract Reference 0000000000000000000004702/1080101
On Hold No
Terms and Amounts
Start Date 04/01/2016
Contract Signed Date 04/01/2016
End Date 12/31/2022
Total Contract Amount 163,210,234.60
Original Contract Amount 163,210,234.60
Line Total Amount 0.00
Currency USD
Default Tax Code
Default Payment Type EFT with Multiple References
Override Payment Type
Credit Card
Spend Transactions
Purchase Order Amount 19,998.72
Invoiced PO Amount 19,998.72
Non-PO Invoice Amount 0.00
PO Balance Remaining 163,190,235.88
Invoice Balance Remaining 163,190,235.88
Contract Overview
Contract Overview Original Contract Amount: 164000000 1080101- C1 2019/03/15 LMC ADD E FOR CRITICAL CONTRACT
REPORT, C2 2022/01/06 LMC CHANGE BUYER FROM RLB/SNG TO WP., C3 Mutual Non Disclosure
Agreement, C4 2017/03/07 CMK CO 01 Add the following contract item as described below: MEVO
Integration Appliance order enables SIP capability for the 911 Administrative Lines presentation on the
MEVO phones at each PSAP in the Oakland County 911 network provided by PFN. $30,000.00 Delete
Auburn Hill and Oxford PD's PSAP's from table 1 of Attachment A, C5 2021/07/30 CMK CO 05 Add
$1,400,000.00 to the Contract Not to Exceed (NTE) amount. The Contract NTE will change from
$15,000,000.00 to $16,400,000.00. Add to the Contract Scope of Services Attachment A - P25 Radio
System_ Ethernet Transport Network, C6 2017/01/12 CJB Contract is open until insurance is received. No
bills can be paid until this is remedied. 2017/01/23 CJB Insurance received, contract approved., C7
2019/07/23 CLA CO 04 Extended the contract expiration date from 03/31/2021 to 12/31/2022 per the
attached board resolution., C8 Event 003294A, C9 2016/03/29 AEC Contract Finalized, C10 2017/05/15
AEC CO 02 Auburn Hills and Oxford PSAP's hereby shall be eliminated from the contract Scope of
Services (reference contract Exhibit II Attachment A) Add the following contract item as described below:
Diversity Loop Install Southfield PD at $72,000.00/each (per Figures 1 & 2 which provide view of fiber
drops to Southfield PD), C11 2017/11/02 AEC CO 03 Update the following contract item as described
below. Pursuant to Section 10.21.1 of the Contract, the County approves the assignment of the following
rights to Peoples State Bank of Munising (“Bank”): (a) all rights of Contractor to receive moneys due and
View Supplier Contract: View Supplier
Contract
02:08 PM
09/28/2022
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to become due under or pursuant to the Contract; (b) all rights of Contractor to receive proceeds of any
insurance, indemnity, warranty, or guaranty with respect to or for breach of or default under the Contract;
(c) claims of Contractor for damages arising out of or for breach of or default under the Contract; and (d)
the right of Contractor to terminate the Contract, to compel performance, and otherwise exercise all
remedies thereunder (hereinafter collectively referred to as “Assigned Rights”). The County is only
obligated to make payments required by or associated with the Assigned Rights or honor the Assigned
Rights, if the County receives prior written notice from the Bank that Contractor is in default/breach of the
Security Agreement and Assignment (between the Bank and Contractor) and that such payments or other
actions are required. The Security Agreement and Assignment is attached hereto as “Attachment A.” The
written notice, required by this Paragraph, regarding the Assigned Rights shall be sent to: (1) Purchasing
Administrator, 2100 Pontiac Lake Road, Executive Office Building, Waterford, MI 48328 and (2) Fiscal
Services Officer, 2100 Pontiac Lake Road, Executive Office Building, Waterford MI 48328. Contractor
shall defend, hold harmless, and indemnify the County and County Agents for any Claims associated with
or arising out of the Assigned Rights or any payments by the County, which are required by or associated
with the Assigned Rights.
Catalog Item Pricing
Catalog
Catalog Discount Percent
Amendments
Amendments 2
Peninsula Fiber Network.pdf
File Name Peninsula Fiber Network.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
004702_CO_05.pdf
File Name 004702_CO_05.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
004702_CO_04.pdf
File Name 004702_CO_04.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
004702_CO_03.pdf
File Name 004702_CO_03.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
004702_CO_02.pdf
File Name 004702_CO_02.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
View Supplier Contract: View Supplier
Contract
02:08 PM
09/28/2022
Page 2 of 3
004702_CO_01.pdf
File Name 004702_CO_01.pdf
Content Type application/pdf
Updated By Christine Arakelian (23317)
Upload Date 05/11/2022 04:33:38 PM
Comment
008194_06 - signed.pdf
File Name 008194_06 - signed.pdf
Content Type application/pdf
Updated By Wendy Pucher (23900)
Upload Date 08/30/2022 08:07:36 AM
Comment Description of Change: 3.1 Due to conversion to Workday financial system, Oakland County is assigning a
new contract number. The old contract number 004702 will be replaced by 008194. 3.2 Amendment 5 to
this Contract is deleted in its entirety. The subject matter of Amendment 5 will be transferred to a new
contract between Contractor and the County with a contract number of 009836. Legal requirements dictate
that the subject matter of the Contract and the subject matter of Amendment 5 be contained in separate
contracts.
View Supplier Contract: View Supplier
Contract
02:08 PM
09/28/2022
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