TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Terry Hackelman, Information Technology Director
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Three-Year Agreement with Frontier Communications for Internet Services in the Estimated Total Amount of $170,550 (Information Technology Director Hackelman).
ADOPT RESOLUTION NO. 22-0105
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 22-0105 approving a three-year agreement with Frontier Communications for Internet services with an estimated total amount of $170,550.
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FISCAL IMPLICATIONS:
The funds are included in the current Fiscal Year 2022-2023 Information Technology budget and will be provided in future fiscal years’ budgets.
BACKGROUND:
As a result of a Request For Proposals (RFP) issued in June 2016, the City Council awarded a three-year contract to Frontier Communications for internet services at the December 20, 2016, City Council meeting. The estimated five-year contract value was $234,000, $46,800 annually, or $3,900 service cost monthly for three 1 Gigabit circuits at the City Hall, City Yard, and Fire Station 2. The agreement included the option for the City Manager to extend the term for two additional one-year periods. With the last extension expiring on July 31, 2022, there is a need to establish a new contract.
DISCUSSION:
The Internet provides opportunities for online services to citizens and utilizes new technologies to improve the quality of life for people. Internet access is essential for organizations' daily functions, services, communications, and information sharing. Local government is no exception. The City depends on the Internet services for the delivery of numerous services and communications to the citizens and businesses, including the website, social media platforms, online public-facing portals (citizen self-service for permitting and planning, public records, employee self-service, and so on), class registrations, online payments, and cloud technologies. Staff relies on the Internet for many cloud-based applications including public safety timekeeping, work order management, recruiting, alarm permit billing, and more.
The three-year contract with Frontier Communications for Internet access at the City Hall and City Yard is included for Council approval. The new agreement continues the provisioning of Internet services but is adjusted to meet the City’s current needs. As a result, the new agreement reduces the three 1 Gigabit circuits to two circuits, with the City Hall Internet circuit speed being increased to a 2 Gigabit circuit. The increased bandwidth of the City Hall Internet circuit reflects the expanded reliance on online services and cloud technologies. The agreement also includes a month-to-month clause to allow the delivery of the essential Internet service in the case the contract negotiations extend beyond the contract end date.
Furthermore, the monthly cost for 1 Gigabit Internet circuit has decreased from the currently charged $1,300 to $1,240 (no government fees and taxes included). The three-year contract amount for Internet access alone is $129,204 - $43,068/year or $3,589/month. However, the approximate Internet services three-year total is $170,550, including Internet access of $129,204, an estimated 10% government fees and taxes of $12,921, and a 20% contingency of $28,425. The additional estimated costs account for future government taxing changes for the delivered Internet services or prolonged contract discussions until another agreement is executed.
Because of the importance of Internet access for City functions, the City has two Internet providers, Frontier Communications and Race Communications. Frontier Communications is the primary Internet Service Provider (ISP), and Race Communications is the secondary ISP utilized if the primary ISP service is unavailable. Other ISP options are limited at present and most likely require a vendor to include a significant construction buildout which is usually recovered with higher monthly fees. Another important consideration is the extensive IT staff work that needs to take place if there is a change in the service provider and potential disruption of City services.
In conclusion, staff recommends that the City Council adopt Resolution No. 22-0105 approving a three-year agreement with Frontier Communications for Internet Services with an estimated total cost of $170,550.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 22-0105
2. Agreement - Frontier Communications