City Council
Report
City Council Meeting: May 10, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department, Infrastructure and Cloud Services
Subject: Approval of First Modification to Agreement with Windstream Communications for Telephony Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10460 in the amount of $247,500 (including 10% contingency) with Windstream Communications for telephony services for the City of Santa Monica. This will result in an amended agreement with a new total amount not to exceed $584,500, for a new 8-year agreement, with two additional 1-year renewal options for a total 10-year agreement not to exceed $584,500. This recommended award is made as an exception to the competitive bidding process pursuant to Section
2.24.250 (c) and is for a total amount not to exceed $584,500 with future year funding contingent on Council budget approval.
Summary
The City uses a Voice over Internet Protocol (VoIP) based telephony services for all voice communications and business telephone lines. The service is essential for communicating with the public, vendors, and other entities for the purposes of conducting City business. All telephone calls to and from City business lines are routed to the Public Switched Telephone Network (the national, regional, and local telephony infrastructure and services for public telecommunication), using Internet Telephony services currently provided by Windstream Communications. The current agreement with Windstream Communications terminates in June 2022. For the proposed first modification, the City will be piggy backing off a Los Angeles County Agreement (MAIS-1940306-1). Windstream Communications was awarded the County of Los Angeles contract for their telephony services following a competitive bid process. Based on 2 of 4
Windstream’s agreement with Los Angeles County, the City will achieve an estimated 30% savings off the monthly usage charges (pre-tax and excluding surcharges), as compared to the prior agreement. This pricing also includes bundled minutes, which will help to ensure that City usage charges remain relatively level, irrespective of variances in usage. At this time, staff recommends Council approve a First Modification to reinstate and modify Agreement No. 10460 (CCS) with Windstream Communications for an additional three-year term with two additional 1-year renewal options. If all option terms were exercised, this would result in a 10-year reinstated and amended agreement with a new total cost not to exceed $584,500.
Discussion
The approach to utilize the City’s fiber-optic network as a way to transport telephony services over the Internet has been a forward-thinking strategy and a proven cost saving model since 2011. The City’s fiber extends to One Wilshire telecommunications colocation facility in Downtown Los Angeles. This facility is an important telecommunications Hub for the region, which the City leverages as a part of a broader strategy for its Information Technology (IT) business continuity and disaster recovery plan. The City uses its presence at One Wilshire as a conduit to its colocation data center facility in Las Vegas for disaster recovery; for access to Internet service providers (ISPs); to connect to the ICI (interagency communications interoperability) regional network for public safety radio communications; to provide access to broadband for Community Broadband customers; and, as a way to connect to the Public Switched Telephone Network (PSTN) for Internet telephony service.
As part of the approach discussed above, the City requires Internet telephony service providers to provide services at the following three facilities: 1) from the One Wilshire facility in Los Angeles, 2) at the City’s disaster recovery data center in Las Vegas, Nevada and 3) at the City’s main data center in Santa Monica. These requirements are essential, as the current services for Internet telephony are available through all three facilities, which provides the City geographical diversity essential for its business continuity plan.
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For the first modification, the City will be piggy backing off a Los Angeles County Agreement (MA-IS-1940306-1). Windstream Communications was awarded the County of Los Angeles contract for their telephony services following a competitive bid process.
The City seeks to enter into a First Modification of Agreement No. 10460 to reinstate and amend Agreement No. 10460 for an additional 3-year term, with 2-additional 1-year renewal options, for a total contract amount not to exceed $584,500.
Vendor Selection
Exception to Competitive Bidding
Staff recommends Windstream Communications to furnish and deliver/provide telephony services as an exception to competitive bidding per Muni Code 2.24.250 (c):
competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price.
Competitive procedures were followed by the County of Los Angeles for Internet Telephony Services and services are supplied to the City at a better price, resulting in an estimated 30% in savings over previous contract. Windstream Communications is uniquely qualified to provide Internet Telephony Services by their ability to leverage cityowned fiber network. This results in additional savings to the City by eliminating the need for costly leased data circuits to deliver the service.
Past Council Actions
Meeting Date Description
May 23, 2017 Contract Award with Windstream for Internet Telephony Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Information Technology Replacement & Services Fund, funding allocated by all other City funds to cover enterprise technology costs, to increase the amount of the agreement with Windstream Communications for telephony services. Staff recommends modifying the existing agreement to create a new 8-year agreement with an additional two one-year renewal options, for a total of a 10-year agreement. The total modified amount is not to exceed $247,500 for a total 10-year agreement not to exceed $584,500. Future year funding is contingent on Council approval.
Contract/Agreement/Purchase Order Modification Request
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Agreement
#
Current Authorized
Amount
FY 2022-23
Budget
Modified
Request
Amount
Dept/CIP Account
#
Total Revised
Contract
Amount
10460 $337,000 $49,500 C7100020.689000 $584,500
Prepared By: Sarkis Metspakyan, Systems & Network Manager Approved Forwarded to Council
Attachments:
A. Windstream 10460-CCS
B. Oaks_Initiative_Windstream
C. May 23, 2017 Staff Report: Award Agreement with Windstream for Telephone Services (Web Link)