5 Resolution Approving a Support Service Agreement for Fiber Optic Internet Services with Frontier Communications and Authorizing the Interim City Manager to Execute the Agreement

Meeting Date: March 07, 2017

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STAFF REPORT

AGENDA ITEM: Resolution Approving a Support Service Agreement for Fiber Optic Internet Services with Frontier Communications and Authorizing the Interim City Manager to Execute the Agreement

MEETING DATE: March 7, 2017

PREPARED BY: Odi Ortiz, Interim City Manager/Finance Director

REVIEWED BY: Jose M. Sanchez, City Attorney

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RECOMMENDATION:

Adopt Resolution No. 2017- , authorizing the Interim City Manager to execute a three (3) year or Five (5) year support service agreement for fiber optic internet services with Frontier Communications in a form approved by the City Attorney.

BACKGROUND:

City management, staff and IT Consultants have been dedicating efforts at upgrading and improving the City’s overall network areas. Network improvements are essential for efficiencies, especially sensitive customer service areas. It’s important for Livingston to stay on top of technology upgrades. Charter Communications has been the main source of internet and cable services for City departments over the years. AT&T has also been used to support our communication needs and to serve as a backup to our internet service areas.

Over the recent years, the City has been experiencing service connection issues with the current Charter and AT&T setup which have impacted efficiencies and customer service areas. To improve the reliability of services and the overall efficiencies of City operations, management and staff are highly recommending purchasing fiber optic support services. ·

Management met with Frontier several months ago and again a few weeks ago with the interest of moving internet services to fiber optic.

Frontier is the only provider of fiber optic in our immediate area.

The current service line runs just over our police department which works perfectly since our police department is the main point of service on our network environment. The police department will be the main point of service connection and support other City sites at no additional costs or major modifications.

Frontier Communications has been providing phone and other minor communication services to the City of Livingston for years and do have a local presence on "B" Street. We have been satisfied with Frontier’s level of services.

Internet reliability is essential for public services, customer service and to support new network applications being considered for the "Cloud" environment. Mid-Valley IT, our IT consultant, has participated on the assessment of our needs and has participated in our recent meeting and conversations with Frontier.

Frontier Communications is the only fiber optic option currently available at no extra cost to make the service lines available to us. Frontier estimates a 45 day turn around period to complete the implementation of the services once approved. Again, the City and IT Consultant don’t anticipate any additional costs over the annual support fees.

DISCUSSION:

Frontier Communications has offered the City a three (3) year or five (5) year support services agreement for fiber optic internet services with Frontier Communications for a 100 Mbps plan. Frontier Communications is currently the only fiber optic option for the City; at this time staff does not foresee that changing in the near future. Council is being asked to consider a three (3) year or five (5) year agreement.

Section 1-11-6 of the Livingston Municipal Code authorizes the City to purchase materials or services without formal bid procedures if the supplies or services are only available from one source (1-11-6(C)). Frontier is currently the only provider of fiber optic. Further, Section 1-11-10 of the Livingston Municipal Code exempts from bidding contracts for services where the city manager/director of finance’s requirements can be met solely by a single patented article or process. The Interim City Manager is recommending moving forward with the fiber optic option, which is only provided by Frontier Communications.

FISCAL IMPACT:

Three (3) year term $16,092 per year with an automatic one year extension Five (5) year term $14,976 per year with an automatic one year extension

Moving onto fiber optic will create the opportunity to cancel other internet services with Charter and/or AT &T and those cost reductions will assist in paying for the upgrades. Anticipated cost reduction by cancelling such services is $10,000 per year for AT&T and $1,080 for Charter. Management and staff may consider keeping Charter as a backup.

Proposed network upgrade costs are included on the 2016-17 operating budget and allocated to the benefiting department areas accordingly.

ATTACHMENTS:

1. Draft Frontier Communications Service Agreement

2. Resolution No. 2017- Approving a Three (3) Year or a Five Year Support Services Agreement for Fiber Optic Services and Authorizing the Interim City Manager to Execute Agreement with Frontier Communications

RESOLUTION NO. 2017-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE A THREE (3) YEAR OR A FIVE (5) YEAR SUPPORT SERVICES AGREEMENT FOR FIBER OPTIC INTERNET SERVICES

WITH FRONTIER COMMUNICATIONS

WHEREAS, the City’s network is in need of significant upgrades. City management and staff have been dedicating efforts at upgrading and improving the City’s overall network areas.

Network improvements are essential for efficiencies, especially sensitive customer service areas; and

WHEREAS, it’s important for Livingston to stay on top of technology upgrades. Charter Communications has been the main source of internet and cable services for City departments over the years. AT&T has also been used to support our communication needs and to serve as a backup to our internet service areas; and

WHEREAS, a more reliable internet service is highly recommended to improve efficiencies in overall City operations; and

WHEREAS, Management met with Frontier several months ago and again a few weeks ago with the interest of moving internet services to fiber optic; and

WHEREAS, Frontier is the only provider of fiber optic in our immediate area; and

WHEREAS, the current service line runs just near our police department which works perfectly since our police department is the main point of service on our network environment; and

WHEREAS, Frontier Communications has the fiber optic lines readily available at no capital one time cost to the City; and

WHEREAS, the City wishes to approve a _ year Term for Support Services Agreement for fiber optic internet services with Frontier Communications; and

WHEREAS, Section 1-11-6 of the Livingston Municipal Code authorizes the City to purchase materials or services without formal bid procedures if the supplies or services are only available from one source (1-11-6(C)). Frontier is currently the only provider of fiber optic. Further, Section 1-11-10 of the Livingston Municipal Code exempts from bidding contracts for services where the city manager/director of finance’s requirements can be met solely by a single patented article or process. The Interim City Manager is recommending moving forward with the fiber optic option, which is only provided by Frontier Communications.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby adopts a Resolution to approve a _ year support Services Agreement for fiber optic internet services with Frontier Communications and authorizes the Interim City Manager to execute agreement in a form approved by the City Attorney.

Passed and adopted this 7th day of March, 2017, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Jim Soria, Mayor

of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 7th day of March, 2017.

Betty Cota, Deputy City Clerk of the City of Livingston

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3. Exhibit A-Three year fee schedule on fiber optic internet services

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4. Exhibit B-Five year fee schedule on fiber optic internet services

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5. Exhibit C- Mid-Valley IT Support Statement on Fiber Optic Services

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6. Frontier’s general information on services

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