TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Miguel Guardado, Information Technology Director
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Five-Year Agreement with Frontier Communications for Internet Services, with an Estimated Total Cost of $178,020 (Budgeted) (Information Technology Director Guardado).
ADOPT RESOLUTION NO. 25-0089
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Adopt Resolution No. 25-0089, approving a five-year agreement with Frontier Communications for Internet services, with an estimated total cost of $178,020; and
b) Authorize the City Manager to approve and execute the five-year agreement with Frontier Communications.
FISCAL IMPLICATIONS:
Funds in the amount of $35,604 are currently included within the Information Technology Department Fiscal Year 2026 budget for the Internet services agreement with Frontier Communications. Future years will be budgeted accordingly.
BACKGROUND:
At the December 20, 2016, City Council meeting, the City Council awarded Frontier Communications (Frontier) a three-year agreement with optional two one-year extensions for Internet services based on a Request for Proposal issued in June 2016. The five-year contract was for an estimated total of $234,000 ($46,800 annually or $3,900 monthly) for three one-gigabit circuits at the City Hall, City Yard, and Fire Station 2.
On July 19, 2022, the City Council approved a contract renewal for another three years with a start date of August 1, 2022, and an end date of July 31, 2025. The agreement reduced the Internet circuits from three to two (City Hall and City Yard) and increased the bandwidth for the City Hall circuit from one gigabit to two gigabits. The contract also included a month-to-month clause providing for the delivery of the essential Internet service in the event the contract negotiations extend beyond the term end date. Since the current agreement expires at the end of July, a new agreement for Internet services is required.
DISCUSSION:
Local governments need Internet services for effective governance, business operations, and public safety. Internet connectivity facilitates faster communication, provides access to online resources and government information, and offers more civic engagement opportunities for the City. Online portals for services - such as permits, licenses, and utility payments - enhance citizen access by enabling a 24/7 availability for the City Hall. Internet services are essential for cloud-based applications utilized by the City, including timekeeping and scheduling for public safety, work order management, City meetings broadcasting and online streaming, recruitment, bid management, and so forth.
The proposed five-year agreement with Frontier lists two locations for Internet services: one two-gigabit circuit at the City Hall and another one-gigabit circuit at the City Yard. The contract includes moving the City Yard circuit to the newly built Fire Station 2 facility to accommodate essential services, disaster recovery, and business continuity design updates. The contract also stipulates a month-to-month clause if the agreement negotiations are not completed in time for the term to be renewed.
The Internet services' monthly cost for the two circuits is as follows:
• City Hall two-gigabit circuit $1,771
o Internet Access $1,490 (last contract price $2,299 - $809 decrease)
o Static IPs $50
o Estimated fifteen percent taxes and fees $231
• City Yard/Fire Station 2 one-gigabit circuit $1,196
o Internet Access $990 (last contract price $1,190 - $200 decrease)
o Static IPs $50
o Estimated fifteen percent taxes and fees $156
o City Yard to Fire Station 2 Circuit Move - Free
Estimated Monthly Cost: $2,967
Estimated Yearly Subtotal: $35,604
Estimated Five-Year (60 Months) Contract Total: $178,020
Additionally, Frontier-offered services are competitive in price compared to Race Communications (Race) Internet services' monthly cost for a one-gigabit Internet service circuit of $1,000, and for a two-gigabit circuit of $2,000. As the City’s secondary Internet access provider, Race services are acquired through the South Bay Cities Council of Governments competitively procured South Bay Fiber Network contract. Even though there are other service providers offering Internet services, the cost for switching from the current vendor would be too great as it relates to staff time and potential service disruptions to undertake such a great endeavor.
In conclusion, staff recommends that the City Council a) adopt Resolution No. 25-0089 approving a five-year agreement with Frontier Communications for Internet services, with an estimated total cost of $178,020, and b) authorize the City Manager to approve and execute the five-year agreement with Frontier Communications.
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.
ATTACHMENT:
1. Resolution No. 25-0089