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HomeMy WebLinkAboutE-11 Staff Report - Blanket Increase - Frontier CommunicationsCONSENT ITEM E-11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ANN GRAF, INFORMAITON TECHNOLOGY AND LIBRARY SERVICES DIRECTOR DATE: JANUARY 17, 2023 SUBJECT: REQUEST TO INCREASE FISCAL YEAR 2022/2023 BLANKET PURCHASE ORDER FOR FRONTIER COMMUNICATIONS BACKGROUND: In accordance with Sec. 2-518 (a) of the Azusa Municipal Code, purchase orders over $50,000 require Council approval. The Information Technology Department is requesting authorization to increase the FY 2022/23 blanket purchase order with Frontier Communications for Citywide Phone Lines from $40,000 to $175,000. With the implementation of the new phone system, it was unclear what the cost savings would be due to the fact lines were being disconnected, and new lines for fail over where being installed in various locations. The 22-23 budget was underestimated because of this. There is still an overall cost savings compared to last FY due to the elimination of the Avaya costs, and ultimately some reduction with Frontier. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Approve an increase to the Frontier Communications Blanket Purchase Order for Fiscal Year 2022/23to a not-to-exceed amount of $175,000. ANALYSIS: The City uses Frontier Communications for Citywide Phone Lines. The payment of utilities is exempt per Azusa Municipal Code Section 2-517(13) – Solicitation and bidding exemptions for Utilities service payments, utility connection and/or installation charges. Council action is required to increase the blanket purchase order as the request exceeds the City Manager’s $50,000 approval authority in accordance with the City’s purchasing policy. APPROVED CITY COUNCIL 1/17/2023 Increase Blanket PO January 17, 2023 Page 2 FISCAL IMPACT: The fiscal impact for FY 22-23 associated with the recommended actions is an increase of $135,00. Staff is requesting a budget increase of $135,000 in account number 4849940000-6915. Upon Council approval, staff will prepare a FY22-23 budget amendment and increase the budget by $135,000 under 4849940000-6915. Prepared by: Reviewed and Approved by: Ann Graf Talika M. Johnson Director of Information Technology Director of Administrative Services and Library Services Reviewed and Approved: Sergio Gonzalez City Manager