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HomeMy WebLinkAboutE-11 Staff Report SPECTRUM Agreement 3 yrCONSENT ITEM E-11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: ANN GRAF, DIRECTOR OF INFORMATION TECHNOLOGY AND LIBRARY SERVICES DATE: APRIL 3, 2017 SUBJECT: REQUEST TO APPROVE A THREE YEAR AGREEMENT FOR FIBER INTERNET SERVICES WITH SPECTRUM COMMUNICATIONS SUMMARY: The City currently contracts with Spectrum Communications for its business internet access via a fiber connection. Staff recommends that the City continue to utilize Spectrum Communications for its business internet services, but with increased bandwidth and at a reduced rate. In order to obtain the reduced rates, the City will need to enter into a newly renegotiated agreement with Spectrum Communications. This action approves a three year Service Agreement with Spectrum Communications. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Waive the competitive bidding process as authorized under Azusa Municipal Code § 2-520 (b) sole sources purchased due to proprietary equipment; and 2) Approve a three year Service Agreement with Spectrum Communications; and 3) Authorize the City Manager to execute the Service Agreement, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: The City contracts with Spectrum Communications (formerly Charter) for fiber internet services. In looking at ways to reduce on-going costs, and the need for increased bandwidth, Staff negotiated a new agreement. Based on this, Staff recommends that the City enter into a new 3 year contract. A summary of the current and proposed rates under the new contract are provided on the next page. If approved, the new contract will save the City approximately $14,244 annually. APPROVED CITY COUNCIL Date: 4/3/2017 Approve Agreement with Spectrum Communications April 3, 2017 Page 2 Current Speed Current Rate New Speed New Rate 50 MBPS $2,086 100 MBPS $899 This is a billing change only. No installations are required. FISCAL IMPACT: The estimated savings from the proposed three year agreement is approximately $14,244 annually. Funding for the fiber internet services are included in the FY 2016-17 budget under account 48-49-942- 000-6846. Prepared by: Fiscal Impact Reviewed by: Ann Graf Talika M. Johnson Director of Information Technology Director of Finance and Library Services Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Business Internet Agreement with Spectrum Communications