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    12.    
City Council Regular
Meeting Date: 06/26/2018  

SUBJECT:
TELEPHONE, INTERNET AND DATA COMMUNICATION SERVICES
RECOMMENDATION:
  1. Find that waiving competitive bidding procedures is desirable and in conformance with state law for the reasons set forth below, and authorize the execution of a three-year agreement with two, one-year renewal options with Spectrum Enterprise to provide Citywide telephone, internet and data communications services. 
     
  2. Authorize the issuance of a purchase order to Spectrum Enterprise in the amount of $53,000 for Fiscal Year 2018-19 Citywide telephone, internet and data communication services.
BACKGROUND/ANALYSIS:
The City of Chino Hills utilizes Spectrum Enterprise for its Citywide telephone and internet services.  Spectrum Enterprise also supplies data communication services to the Grand Avenue Park and City Yard locations.
 
Staff completed a comprehensive analysis of the City’s internet and data communications needs and determined that additional bandwidth was necessary to satisfy network performance requirements associated with network file shares, web applications, Wi-Fi service and cloud backup.  The proposed service agreement will increase the City’s internet bandwidth by a factor of five, increase Grand Avenue Park’s bandwidth by a factor of ten and maintain the existing bandwidth at the City Yard.
 
In seeking a new agreement, the City reached out to any qualified data/telecommunication carriers that could provide services to the City based on the following specifications: all circuits must be fiber-based and the carrier must own and maintain those circuits within the City of Chino Hills.  Fiber is desirable as it is capable of higher speeds, more reliability and security versus other options. There are several data/telecommunication carriers that do not own and maintain the local path of the data circuit, creating the potential for additional lead time when network outages occur. The City did not pursue the RFP process with other vendors because only two vendors met these requirements: Frontier and Spectrum. Chino Hills Municipal Code Section 3.18.050.I. provides that the City Council can waive competitive bidding procedures if it finds that the waiver is required or desirable and in conformance with state law.  The waiver is desirable in this case because the City was able to submit direct quote requests to the only two vendors meeting the requirements.

The City received quotations from Frontier and Spectrum based on the provided service needs. Spectrum is the more cost effective solution, saving the City approximately 38% over the Frontier proposal.
 

The City presently budgets $65,000 annually for the existing telephone, internet and data communication services.  The proposed Spectrum Enterprise solution will significantly increase internet and data communication bandwidth and reduce the City’s expenses by approximately $12,000 per year. 
ENVIRONMENTAL (CEQA) REVIEW:
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines Section 15378 and is therefore exempt from CEQA as it is an administrative change that will not result in any direct or indirect physical change in the environment.
FISCAL IMPACT:
There is sufficient funding in the Information Technology operating budget to cover the Fiscal Year 2018-19 cost of $53,000 for the Spectrum Enterprise agreement.  Future contract costs will be budgeted for in the appropriate fiscal year.  The General Fund is charged a pro-rata share of the service cost based on the annual Information Technology budget allocation. 
 
REVIEWED BY OTHERS:
This item has been reviewed by the Information Technology Manager and City Attorney.
Attachments
Spectrum Enterprise Service Agreement

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