TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
Miguel Guardado, Information Technology Director
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving an Agreement with the Channel Islands Technology Integrator’s Group (CITIG) for Network Equipment Refresh and Related Services for an Amount Not to Exceed $308,799, Including Contingency; and Appropriate $167,649 from the Information Technology Fund (Information Technology Director Guardado).
A) WAIVE FORMAL BIDDING DUE TO COOPERATIVE PURCHASING
B) ADOPT RESOLUTION NO. 24-0112
C) APPROPRIATE FUNDS
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bid requirements pursuant to Manhattan Beach Municipal Code Section 2.36.150 (cooperative purchasing);
b) Adopt Resolution No. 24-0112 approving an agreement with CITIG for network equipment refresh and related services for an amount not to exceed $268,521;
c) Authorize the City Manager or his/her designee to approve additional work up to $40,278 if necessary; If the City Manager or his/her designee exercises this option, the amended agreement amount is not to exceed $308,799; and
d) Appropriate $167,649 from the unreserved Information Technology Fund balance.
FISCAL IMPLICATIONS:
The overall project total of $308,799 includes the CITIG agreement cost of $268,521 and an additional 15% contingency of $40,278. Of the overall cost, $115,828 is being provided through the already approved funding for the Citywide Security Cameras project as part of the 5-Year Capital Improvement Program (CIP). The approved Information Technology budget includes $25,322 to utilize for this purchase. An additional appropriation of $167,649 is needed from the unreserved Information Technology Fund balance to fully fund the network refresh and related services project. Future licensing and warranty costs will be budgeted accordingly.
BACKGROUND:
Approximately 49 wireless access points and 17 network switches at various City locations must be replaced, given that they are out of warranty with no option to extend as of this year. Even though they are operational and licensed, these devices are no longer eligible for repair or replacement in the event of failure. Furthermore, they will no longer receive critical firmware updates or patches and bug fixes essential for maintaining optimal functionality and security.
Most of this old-generation equipment is from seven to nine years old and has maximized its useful life given the industry-standard replacement cycle of five years. By continuing the use of these outdated devices, the City faces an increased risk of network downtime and security vulnerabilities. Therefore, they must be replaced with modern, feature-rich equipment that aligns with current technological standards and enhances network reliability and security.
In collaboration with the Public Works Department, the Information Technology Department has been working on determining the technology needs for the Citywide Security Cameras project. To support this initiative, 16 new switches need to be purchased and implemented to meet the project-specific technology requirements as identified in the current Phases 1 and 2 construction concluding this fall, and the upcoming Phase 3 installation anticipated to begin this winter. The additional switches are necessary for the security cameras' functionality and ensure scalability for future growth.
DISCUSSION:
Switches and wireless access points are crucial components of the City network infrastructure, enabling seamless connectivity and extending Wi-Fi coverage across all City locations. As the City expands its business operations and services to the community, these devices are vital in ensuring robust and reliable communication networks. With the rapid advancement of technology, the demand for increased bandwidth continues to grow, putting additional pressure on the City’s network systems. The proposed hardware purchase improves connectivity, increases connection speeds between City locations, and provides further redundancy securing systems uptime and continuous access to essential systems.
Failure to upgrade outdated hardware presents significant risks. Older devices may become incompatible with newer networking technologies, potentially leading to degraded performance and increased vulnerability to cyber threats. Replacing this equipment elevates these potential issues that could compromise the network's security and reliability or negatively impact the City operations. The proposed network equipment replacements and additions align with the City’s constantly evolving needs in both networking and cybersecurity space.
After thoroughly evaluating several products, staff decided to continue with the current equipment manufacturer and replace the out-of-warranty wireless access points and switches with their equivalent models. This decision ensures compatibility, simplifies maintenance, and leverages the manufacturer’s proven performance. Since the equipment is being sold exclusively through authorized resellers, CITIG has been identified as the provider’s reseller.
The total project cost of $308,799 includes the City network equipment replacement with an extended co-termed subscription, the Citywide security camera project’s new switches and extended co-termed subscription, 15% contingency, and the co-termed (prorated) extended subscription for the remaining (non-replaced) devices providing the same expiration date across all access and switching devices. The co-termed subscription (licensing and support/warranty) anniversary date simplifies the licensing and support management, allowing for streamlined operations for all the equipment (proposed and remaining). The detailed breakdown of the proposed $308,799 is listed below.
A. Citywide Security Cameras Project
- New switches $93,148
- 36-month subscription (licenses and support/warranty) $22,680
Citywide Security Cameras Project Subtotal $115,828
B. General City Network
- Replacement Hardware $80,864
- Co-termed 29-month subscription for replacement hardware $16,772
- Co-termed 29-month subscription for non-replaced devices $35,057
C. Professional Services
- General City network and citywide security cameras project implementation services $20,000
General City Network Subtotal $152,693
Agreement Total $268,521
D. Contingency
- Up to $40,278 (15%) for unforeseen project expenses such as hardware, licensing/support, and/or services
Contingency Subtotal $40,278
Updated Overall Project Amount (not to exceed) $308,799
According to the Manhattan Beach Municipal Code, Section 2.36.150, the City Council has the authority to waive formal bidding when practical and, in the City’s best interest. The vendor’s price is based on the National Association of State Procurement Officials (NASPO) public cooperative contracting under Contract No. AR3227. The NASPO purchasing program leverages procurement through a single solicitation with the best value and contract terms with lowered administrative costs. However, CITIG’s proposal further significantly discounts the NASPO pricing by about 42% due to the large number of devices and the solution provider/reseller’s aggressive competitiveness.
In conclusion, this investment ensures the replacement of critical network hardware and supports the City’s ongoing efforts to modernize and secure its IT infrastructure. By leveraging existing funds and utilizing a contingency buffer, the City minimizes potential risks while maintaining financial responsibility by getting the greatest return on investment. Therefore, staff recommends that the City Council: a) waive formal bid requirements pursuant to Manhattan Beach Municipal Code Section 2.36.150 (cooperative purchasing); b) adopt Resolution No. 24-0112 approving an agreement with CITIG for network equipment refresh and related services for an amount not to exceed $268,521; c) authorize the City Manager or his/her designee to approve additional work up to $40,278 if necessary; If the City Manager or his/her designee exercises this option, the amended agreement amount is not to exceed $308,799; and d) appropriate $167,649 from the unreserved Information Technology Fund balance.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has determined that the proposed activity qualifies for an exemption pursuant to State CEQA Guidelines Section 15061(b)(3), the common sense exemption (formerly the “general rule”) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question can have a significant effect on the environment, the activity is not subject to CEQA, as is the case with the purchase of core switch replacement and failover systems.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 24-0112
2. Agreement - CITIG (Redacted)