ITEM 4. 5
CITY MANAGER' S REPORT
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ITEM:
RECOMMENDATION:
RATIFY THE SERVICE CONTRACT WITH
ASTOUND BUSINESS SOLUTIONS, LLC FOR THE
RENEWAL OF INTERNET CIRCUIT SERVICES
Adopt a Resolution Ratifying the Service
Contract with Astound Business Solutions, LLC
for the Renewal of Internet Circuit Services.
SUMMARY:
The City of Lathrop requires secure, reliable, and uninterrupted internet connectivity to support essential municipal operations, public safety communications, critical business systems, and communications among City facilities.
Astound Business Solutions, LLC ( Astound) currently provides the City' s primary internet circuits through fiber infrastructure already established at the City locations covered by the existing Service Contract. The circuits are configured to comply with the City' s network design and technical standards and provide the capacity, speed, reliability, and compatibility required to support City operations. They are also integrated with the City' s existing network equipment, routing, security configurations, and redundant telecommunications architecture. Therefore, these circuits meet the City' sconnectivity requirements and are configured to operate with its existing telecommunications infrastructure and network design.
Based on the City' s technical assessment performed by the Information Systems Department, Astound is the only currently available provider that can continue these specific primary circuits without substantial reconfiguration, replacement or construction of supporting infrastructure, and the associated risk of disrupting essential City operations. The procurement therefore qualifies for the sole -source bidding exemption under Lathrop Municipal Code ( LMC) Section 2. 36. 110( A). To prevent a lapse in critical internet services, the City Manager executed the Service Contract before Council consideration. Staff request that the City Council ratify the agreement at an annual cost of $ 186, 783. Sufficient funding is available within the approved Fiscal Year 26-7 Information Systems Department operating budget.
BACKGROUND:
The Information Systems Department manages the City' s telecommunications infrastructure and is responsible for maintaining secure, reliable, and continuous connectivity among City facilities. Internet circuit services support cloud - based applications, telephone and critical communication systems, financial and administrative software, public safety technologies, remote access, electronic records, and other systems essential to the delivery of municipal services.
CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
RATIFY SERVICE CONTRACT WITH ASTOUND BUSINESS SOLUTIONS, LLC The City' s network architecture uses separate providers for primary and secondary internet connectivity. Astound provides the City' s primary internet circuits, while AT& T provides secondary connectivity for backup and redundancy. Maintaining separate service providers is an important component of the City' s continuity of operations strategy because it reduces the risk that an outage or service interruption affecting one provider will result in a complete loss of City connectivity.
Astound' sfiber connectivity is already established at the City facilities covered by the Service Contract. The circuits are configured to comply with the City' s network design and technical standards and provide the capacity, speed, reliability, and compatibility required to support City operations. They are also integrated with the City' s existing network equipment, routing, security configurations, and redundant telecommunications architecture.
Although AT& Talso provides fiber connectivity, its service is maintained as the City' s secondary connection. It is not an interchangeable replacement for Astound' sprimary circuits because using the secondary provider as the City' s primary and backup connection would eliminate the carrier diversity incorporated into the City' s network design. Depending on a single provider for both functions would increase the City' s exposure to a provider specific outage or other service disruption.
For the specific circuits included in this renewal, Astound is the only provider with existing fiber connectivity that can continue the required primary service at the affected locations while maintaining the City' s current network configuration and technical standards. Transitioning to another provider could require construction of new fiber connections, replacement or reconfiguration of network equipment, modification of routing and security settings, and coordinated migration, testing, and service cutovers. These activities would involve additional costs and could interrupt access to systems necessary for City operations.
The service being renewed is therefore not a readily interchangeable internet service that can be transferred to another provider without material changes to the City' s telecommunications infrastructure. Astound' sexisting fiber connectivity, compliance with the City' s network design, and role, within the City' s redundant network architecture make the service not readily substitutable without substantial reconfiguration or replacement.
LMC Section 2. 36. 060( A) generally requires contracts for services with an estimated value of $ 75, 000 or more to be awarded through formal bidding procedures.
However, LMC Section 2. 36. 110( A) expressly exempts sole -source purchases from those bidding requirements.
A formal bidding process would not produce a readily substitutable service capable of continuing the affected primary circuits under the City' s existing network design.
Any alternative provider would first need to establish compatible connectivity and complete the infrastructure, equipment, configuration, security, testing, and transition work necessary to replace Astound' sexisting service. 'Such an undertaking would constitute a separate network replacement or reconfiguration project rather than a continuation of the City' s existing internet circuits.
CITY MANAGER' SREPORT PAGE 3
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
RATIFY SERVICE CONTRACT WITH ASTOUND BUSINESS SOLUTIONS, LLC Based on these circumstances, the Information Systems Department has determined that Astound is the sole source for the uninterrupted continuation of the specific primary internet circuits covered by the Service Contract. The procurement therefore qualifies for the exemption from formal bidding provided by LMC Section 2. 36. 110( A).
LMC Section 2. 36. 110( C) requires the department head responsible for the procurement to certify in writing the reason for an exemption from the City' s purchasing procedures. This staff report documents and certifies the operational and technical basis for the sole -source exemption.
The prior agreement was approaching expiration, and a lapse in service could have disrupted the City' s ability to access critical systems and provide municipal services.
To maintain continuity of operations, the City Manager executed the renewal agreement before Council consideration. Because the annual contract amount exceeds $ 75, 000, City Council authorization is required pursuant to LMC Section
2. 36. 140( C). Staff therefore request that the City Council ratify the executed Service Contract.
To avoid disclosing information that could reveal vulnerabilities in the City' s information technology systems or increase the potential for an attack, specific technical and security information regarding circuit routes, network configurations, and supporting infrastructure has not been included in this report, consistent with California Government Code Section 7929. 210.
REASON FOR RECOMMENDATION:
Ratification of the Service Contract will ensure the continued availability of the City' s primary internet circuits and maintain reliable connectivity for daily operations, public safety technologies, communications, cloud - based applications, and other critical business systems. Continuation of Astound' sservices will maintain compatibility with the City' s existing telecommunications infrastructure, preserve the separation between its primary and secondary service providers, and avoid the costs and operational risks associated with replacing or substantially reconfiguring the existing circuits.
FISCAL IMPACT:
The annual cost of the Service Contract with Astound Business Solutions, LLC is 186, 783. This expenditure was included in the approved Fiscal Year 2026-7 budget, and sufficient funding is available within the Information Systems Department operating budget.
ATTACHMENTS:
A. Resolution Ratifying the Service Contract for the Renewal of Internet Circuit Services with Astound Business Solutions, LLC
B. Redacted Service Contract with Astound Business Solutions, LLC CITY MANAGER' S REPORT PAGE 4
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
RATIFY SERVICE CONTRACT WITH ASTOUND BUSINESS SOLUTIONS, LLC APPROVALS:
on Fernandes
Information Systems Director
resa Vargas
overnment Services Director
City Clerk
Cari Jam
Finance ector
Date
qithwie
Date
o( 7e /.z o z fo
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO RATIFY
THE SERVICE CONTRACT FOR THE RENEWAL OF INTERNET CIRCUIT SERVICES WITH ASTOUND BUSINESS SOLUTIONS, LLC.
WHEREAS, the City of Lathrop requires secure, reliable, and uninterrupted internet connectivity to support essential municipal operations, public safety communications, critical business systems, and connectivity among City facilities; and
WHEREAS, Astound Business Solutions, LLC (" Astound") provides the City' s primary internet circuits through existing fiber infrastructure integrated with the City' s telecommunications infrastructure, network equipment, and security configurations; and
WHEREAS, Astound is the only provider currently capable of continuing the specific primary circuits without substantial reconfiguration, replacement, or construction that could disrupt essential City operations; and WHEREAS, pursuant to Lathrop Municipal Code Section 2. 36. 110( A), sole - source purchases are exempt from competitive bidding procedures; and WHEREAS, the existing service agreement was approaching expiration, and the City Manager executed the Service Contract prior to City Council consideration to prevent a lapse in critical internet services; and
WHEREAS, sufficient funding is available within the approved Fiscal Year 2026-7 Information Systems Department operating budget.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby ratifies the Service Contract with Astound Business Solutions, LLC for the renewal of the City' s primary internet circuit services at an annual cost of 186, 783.
BE IT FURTHER RESOLVED, that the City Council confirms the procurement qualifies for the sole - source exemption pursuant to Lathrop Municipal Code Section
2. 36. 110( A) and authorizes the City Manager, or designee, to take all necessary actions to administer and implement the Service Contract.
Resolution No. 26-
The foregoing Resolution was passed and adopted this 14th day of September 2026, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 26-
City of
Office of the City Manager
Astound
P. O. Box 31001- 274
Pasadena, CA 91110
To whom it may concern:
390 Towne Centre Drive, Lathrop, CA 95330
Phone (209) 941- 7220 — Fax (209) 941- 7229
www. ci. lathrop. ca. us
NOTICE TO PROCEED
Enclosed please find your original executed Service Contract to Renew Internet Circuit Services. This is your Notice to Proceed to the attached Service Contract.
Should you have any questions regarding this project, please contact Tony Fernandes at 209) 941- 7340.
Thank you,
Stephen J. Salvatore
City Manager
Copy: Teresa Vargas, City Clerk
Project File