City Council Agenda Report
Meeting Date: June 3, 2025
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Senior Administrative Assistant Subject
AT&T Connected Entity Access Services 5-year Master Agreement and CAISO Connected Entity Order Form
Recommendation
A. Pursuant to Vernon Municipal Code Section 3.32.220(B), find that it is commercially unreasonable to rebid the proposed Master Agreement with AT&T in three years as AT&T is the only provider of the desired service; and
B. Approve and authorize the City Administrator to execute a Master Agreement with AT&T and related CAISO Connected Entity Order Form, in substantially the same form as submitted, for an upgraded fiber network connection to the California Independent System Operator (CAISO) network for a total amount not-to-exceed $28,651.88, for a 5-year term.
Background
The Information Technology Division is requesting to enter into a 5-year agreement with AT&T for Connected Entity Access Services, which provides an upgraded fiber network connection to the California Independent System Operator (CAISO) network.
AT&T is the Energy Communications Network (ECN) service provider for the CAISO. The CAISO oversees the operation of California's bulk electric power system, the electricity market generated and transmitted by its member utilities. The ECN is used by the Public Utilities Department to communicate with the CAISO on a daily basis. Technology changes within the ECN will allow current and future CAISO market participants and resource owners to connect at a reduced cost and with additional options compared to those currently provided. In order to continue accessing the ECN, AT&T requires that the City update the current connection from a 1.5 Mbps T1 connection to a 2Mbps fiber connection.
Pursuant to Vernon Municipal Code (VMC) Section 3.32.220(B), it would be commercially unreasonable to rebid the AT&T contract for the CAISO fiber connection after 3 years because AT&T is the only provider of this service. Additionally, a five-year contract is advantageous to the City, as it secures a competitive rate for a longer term. The upgraded connection under this new agreement will cost $365.30 per month ($4383.60 annually). The approximate cost over the fiveyear term of the agreement is $28,651.88 including a one-time equipment and installation charge of $4,433.88 and $2,300 in taxes. Pursuant to VMC Section 3.32.030(B), City Council approval is required if, in the 12 months preceding the effective date of the proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000 pursuant to contract(s) with the vendor. Within the past 12 months, the City has paid AT&T approximately $385,604.16.
The attached Master Agreement and Connected Entity Order Form have been reviewed and approved as to form by the City Attorney's office.
Fiscal Impact
The total fiscal impact of the upgraded connection and agreement is $28,651.88 including equipment, installation, monthly fees and taxes. Sufficient funds are available under account 055- 050-586-526010 for VPU Utilities – IT for the current fiscal year and will be budgeted in subsequent fiscal years.
Attachments
1. AT&T Master Agreement (Connected Entity Agreement)
2. CAISO Connected Entity Order Form