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CI'O OF SAN BERNARDCO - REQUOT FOR COUNCI~~
From: Raymond D. Schweitzer,. Acting
City Administrator
Dept:
Administrative
Deu: October 15, 1986
Subject: Report on the cost effectiveness
of using microwave or fiber
optics for voice communication
Synopsis of Previous Councilection:
On September 22, 1986, the Mayor and Council directed the City
Administrator's Office to work with CRC (City's telephone con-
sultant) to determine the cost effectiveness of using microwave
or fiber optics instead of land cables for voice communications.
The cost comparisons should be based on a longer than 10-year
period.
Recommended moti.on:
That the report presented by CRC relative to the cost effective-
ness of using microwave or fiber optics for voice communication,
be received and filed.
Contact person:
Ravmond D. Schweitzer
Phone:
5122
Supporting deU ettached:
Yes
Werd:
FUNDING REQUIREMENTS:
Amount:
N/A
Source:
Finence:
Council Notes:
75-0262
Agenda Item No.
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CITY OF SAN 8ERNARDINO
SITE CONNECTION ANALYSIS
The overall planning for telecommunications for the City of San Bernardino
includes the installation of a new telephone system which will be intercon-
nected to all City facilities. There are a number of mediums available to
interconnect these facilities which include telephone utility company (copper)
circuits, City-provided cable (copper), City-provided microwave, City-provided
fiber optic cable or a combination thereof, which are among "proven" technolo-
gies. Additionally, transmission utilizing infra red, CATV and laser technolo-
gies is now being marketed successfully.
Two types of communication occur within the City: voice and electronic data.
The new telephone system will primarily address voice communication initially,
with the capability to transfer data communications, both on and off-site, in
the future.
In selecting the proper transmission mediums, two basic considerations must be
evaluated: operational and cost.
Operational considerations include:
The requirement for, and volume of internal (intra-city) voice communica-
tions.
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The number of voice circuits necessary.
The requirem&At-for, and volume of electronic data communications.
Sophistication and speed of the data transmission.
The number of data circuits necessary.
Future growth and expansion of voice and data.
Proven reliable technology.
Serviceability of the transmission medium.
Compatability with host systems.
Life expectancy -- obsolescence.
Cost considerations include:
Rental and installation charges (if from utility company).
Cost escalation.
Cost to place and install (if City-provided).
Cost to maintain and service.
Future costs for expansion.
Costs for interconnection (i.e. multiplexers, channel banks, etc.).
The City of San 8ernardino has 50 sites with telephone service including the
City Hall and Police Department which are the largest users. Currently it is
planned to interconnect these City sites via telephone utility company facili-
ties. The exception is a microwave link which will connect the Police and
City Hall facilities for the transmission of computer data. Use of the micro-
wave facilities is also being explored for the City Hall to Police voice con-
nection. Initially, there will be 48 data and 6 voice circuits installed
using a "T-l" connection. Each T-l bank is capable of 24 circuits.
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CRC
DISCUSSION OF FI8ER OPTICS
At the request of the City, CRC has done some expl ori ng into the use of fi ber
optic cable. Fiber optics utilize lightwave transmission and therefore, offer
a much broader band spectrum with hi gher transmi ssi on speeds. The ult imate
optical fiber is capable of carrying between 40,000 and 60,000 simultaneous
transmissions. In reality, the maximum is usually in the range of 4,000.
Various grades of fiber optic cable are available to produce varying transmis-
sion qual ities.
The cost of fiber is ranging $.25 per foot -- relatively inexpensive when
compared to copper telephone cable which wHl range from $1.00 to $3.00 per
foot for large cables, The expensive part of fiber optic transmission is the
requirement for a "lightwave multiplexer" which divides and sorts the light-
wave signals, translating them to analog or digital copper connections. The
cost of these units is difficult to estimate without the involvement of ven-
dors in a bidding situation, Based on previous estimates, the multiplexers
will start at a cost of approximately $30,000 each.
Additionally, in the case of the City of San Bernardino, the cost of trenching
and right-of-ways through public streets is also a factor. This generally
runs from $10 to $15 per foot.
Operationally, it appears that only the Police facHity and the Purchasing and
Stores facility would be candidates for fiber optic transmission at this time.
Thi s assumes that each facH ity generates the volume of voi ce/data transmi s-
sion to warrant a "high volllne" transmission media.
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The cost to connect the Police Department only is estimated as follows:
Fiber Optic Cable (including splices)
Trenching and Excavation
lightwave Multiplexers
$ 700
15,000
60,000
Total Cost
$75,700
Purchasing and Stores, sharing the multiplexer installed with the Police Oe-
partment link, is estimated as follows:
Fiber Optic Cable (including splices)
Trenching and Excavation
lightwave Multiplexer
$ 2,000
30,000
35,000
Total Cost
$67,000
This cost compares to $25,000 for the City Hall to Police microwave. The cost
for the voice circuits to Purchasing and Stores is $47.25 per month from the
telephone utility company or an annual cost of $567. This cost was escalated
at lOt; per year over a 20 year period, including an additional two data cir-
cui ts to begi n at $693 in the fi rst year. With these assumpti ons, the total
cummu1ative cost at the end of 20 years is $39,692.
"Fiber Optics" is a very young technology. Today there are 6.flOO.OOO miles of
fiber optic cable world-wide -- most of which is utilized by high volume long
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distance carriers. Institutions, such as research and univerSity environments
are also installt", fiber. The University of Pennsylvania recently allocated
$8,000,000 to connect 117 campus buildings. This equates to $68,376 per build-
ing.
We have been observing cost reductions of 201 to 251 per year in the fiber
optic industry with continual improvements in technology. Trained fiber optic
technicians are scarce at this time but, as the demand increases, so will the
number of technicians.
The "missing link" still seems to be the optical switching device which will
allow end-to-end lightwave transmission. Other experts agree that prototypes
of optical telephone switches will appear in the mid to late 1990's.
In conclusion, it is our opinion that the use of fiber optics will gradually
replace copper wi re and today's switchi ng technology, as costs come down and
equipment is developed. 8y the year 2000, fiber will replace most traditional
cable and the use of satellite communications. Our recommendation to the City
is to delay any decision on the installation of fiber optic cable for at least
five years. The only exception would be the placement of "dark" (unused)
fiber cable in conjunction with the trenching and installation of any other
cab 1 e or condui t to City facil it i es or, at 1 east the p1 acement of a spare
conduit for future use.
CRC would be happy to develop an RFQ to obtain more firm pricing for installa-
tion of fiber optics for the City, however, we do not recommend this option at
this time.
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COUNCIL ACTION CORRESPONDENCE
To Raymond D. Schweitzer, City Administrator Subject Amendment t~ Lease Agreement
with Assignment between the City
Date of San Bernardino and GTE Leasing
October 9, 1986 Corporation - Phone System Line
Options
Meeting Date b 6, 1986 Agenda Item No. S-5
Octo er .
Action
Resolution No. 86-411 authorizing the execution of a first amendment to
lease agreement with assignment between the City of San Bernardino and
GTE Leasing Corporation for the installation of a new telephone system,
was adopted.
The City Administrator is to report back at the October 20, 1986 Council
meeting with information on the phone system line options (m:l.crowave vs.
fibre optics vs. leased lines).
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s:; ,\ SH)l({JNA CLARK
" City Clerk
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