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Home My WebLink AboutC36940 - Internet and Telephone Svc III F STAFF REPORT CITY OF PALM DESERT INFORMATION SYSTEMS DEPARTMENT MEETING DATE: October 11, 2018 PREPARED BY: Clayton von Helf, Information Systems Manager REQUEST: Approve Change Order to contract #C36940 with TPX Communications in the additional amount of $1,474.50 per month plus usage charges, $7,700 for equipment purchase, and authorize the City Manager to negotiate, finalize and execute agreement. Recommendation By Minute Motion, that the City Council: Approve Change Order to contract #C36940 with TPX Communications in the additional amount of $1,474.50 per month plus usage charges, $7,700 for equipment purchase, and authorize the City Manager to negotiate, finalize and execute agreement. Funds are available in 1 1 041 90-4365000, and 1 1 041 90-4404000. Strategic Plan Although the City's internal I.T. infrastructure is not addressed in the strategic plan, its upgrade underlays, and is essential to, all projects and services performed by the City. Information Technology Master Plan Internet Bandwidth is listed as Initiative 6 in the Information Technology Master Plan adopted by the City Council on February 23, 2017. It was rated as a high priority by the I.T. Steering Committee. Background Analysis The City currently uses a combination of services from Spectrum (formerly Time Warner) and Frontier (formerly Verizon) for our internet and phone service. For phone service there are two digital trunks of phone numbers (called PRI's), one from Frontier and one from Spectrum. The dual line setup provides some redundancy, and gives the City some outgoing call capabilities if one line is down. However true failover (the capacity to keep both lines up in both directions) of the primary phone number has never been possible using these carriers, so if the Frontier line goes down, the main published phone number for City Hall (346-0611) goes dead. Currently the City spends $1,800 per month for those lines, plus usage charges. For its October 11, 2018 - Staff Report TPX CO1 #C36940 Page 2 of 3 Internet connection, the City has a 50 MB connection from Spectrum which costs $1,035 per month. With more services being pushed to the Internet and more inspectors working in the field, this connection is now too slow for the City's needs. Total for the two phone lines and 50 MB internet connection is $2,835 — plus call usage charges. The City Council approved contract #C36940 with TPX Communications, a reseller of phone and internet services, on April 26th, 2018. In that agreement, TPX Communications would provide the City with a 100 MB fiber connection, and a backup 50MB wireless connection. TPX Communications would also provide two PRI phone lines over those connections with the City's current phone numbers. This dual connection provides us with redundancy for our phone lines — if one line goes down all call traffic with be automatically routed to the other. The cost for this bundled service is $2,690 per month, plus phone usage. During our installation process with TPX Communications, the City has reviewed our current internet usage and planned future growth of internet dependent services and determined that the 100 MB fiber connection and 50 MB wireless backup will not be sufficient for our future needs. The growth of programs and services that are dependent on the Internet for use continues to grow, and this trend will only increase over the next 60 months. From in-field inspections, cloud based data, and future plans for online services to the public, our Internet connection is a vital component of our daily operations at the City. The City requested a proposal from TPX Communications for a higher speed internet connection to meet with planned future internet demands. We have requested an increase to a 1GB fiber internet connection, with a 100 MB wireless connection as a backup. Over these two connections, TPX Communications will still provide two redundant PRI phone lines with the City's current phone numbers. The month rate for the 2 PRI lines, 1 GB Fiber connection, and a 100 MB wireless connection is $4,164.50, and increase of $1,474.50 per month. As part of this updated proposal, the City will purchase from TPX Communications, two routers for a one-time charge of $7,700. By purchasing two routers, we will add a layer of redundancy for our internet and phone connections. Normally, the price for the routers would be absorbed in the monthly bill. However, by paying for it up front, we will save a 6% finance charge — a savings of $2,686 for the City. This is a 60 month service agreement — with our monthly cost of $4,164.50 plus phone usage remaining the same for the duration this contract. October 11, 2018 - Staff Report TPX CO1 #C36940 Page 3 of 3 Fiscal Analysis Approval of staff's request would result in a monthly expense of $4,164.50 from 1 1 041 90-4365000, and an equipment purchase of $7,700 from 1 1 041 90-4404000. Funds were budgeted and are available for this fiscal year. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER PK L ri Carney Robert W. Hargreaves Director of J et Moore Lauri Aylaian City Attorney Administr tive Services Director of Finance City Manager ATTACHMENTS: Updated Service Agreement Contract No. C36940 Quote: 163820/City of Palm Desert - Dash Page 1 of 4 Contract No. C36940 Quote/Order ID: 163820 Service Agreement City of Palm Desert TPx Communications will provide Customer with the specified type and amount of Services at the rates,and terms and conditions listed below and on the Rate Schedule(s)that follow.and Customer shall accept and pay for Services under the Terms and Conditions to which Customer agreed on the Telecommunications Account Agreement(TAA)/Master Service Agreement(MSA)and any related Addendums that follow that govern this Service Agreement. For any Access,MSx,and/or UCx Service listed below that is being added to Services currently provided to Customer at the below referenced Service Location.a new Service Term(as provided in the Term Length below)shall apply to any such Service. Federal,State and Local Taxes and Other Charges will be applied in accordance with the definitions stated at www.tpx corn/rates. The term for service(s)being ordered is 60 months.("Term") RS ID Title Address Non-Recurring Recurring 302189 73510 Fred Waring Dr,Palm Desert CA 73510 Fred Waring Dr,Palm Desert,CA 92260 $7,700.00 $4,164.50 Sub Totals $7,700.00 $4,164.50 Installment Payment Amount of Non-Recurring charges included in Installment Payments(60 months) ($7,700.00) Estimated Monthly Installment Payments(includes 6%APR compounded monthly) $173.10 Total Non-Recurring Charges $0.00 Total Monthly Recurring Charges $4,337.60 Agreed by:Customer Signature Date Customer Name(Print) Title Sales Representative Name Phone Agreed by:Sales Manager Signature Date v040117 https://dash.tpx.com/ribeye/service/file?id=656670&deleteAfterServing=l&inline=1 8/14/2018 Quote: 163820/City of Palm Desert - Dash Page 2 of 4 Contract No. C36940 T „,..K. Rate Schedule#302189 Quote ID: 163820 73510 Fred Waring Dr,Palm Desert CA 8/14/2018 City of Palm Desert Good through:9/13/2018 Address:73510 Fred Waring Dr,Palm Desert,CA 92260 The term for Service(s)being ordered is 60 months("Term"). TPx Data Only Service(Install) Description Qty Each Usage Type NRC MRC Data Only Service 1 $0.00 - xNet - S0.00 1G Port I 53.286.00 xNet - S3.286.00 1G Tier 1 Access(ICB Code:AO_CD) 1 $492.87 - xNet - $492.87 Time Warner Cable 1 $0.00 - xNet - $0.00 Internet 1 S100.00 - xNet - $100.00 IPv4-IP Address-16 1 $0.00 - xNet - $0.00 Data Only Service-Setup Charge 1 S500.00 - xNet $500.00 - $0.00 $0.00 S2,076.00 TPx Data Only Service(Install) Description Qty Each Usage Type NRC MRC Replacing with 1G Data Only Service 1 $0.00 - xNet - $0.00 100M Port 1 $1,100.00 - xNet - 51.100.00 100M Tier 1 Access((CB Code: 1 $1,759.62 - eNa1 - 51,753.62 YU.CD) Time Warner Cable 1 $0.00 - xNet - 50.00 Internet 1 $100.00 - xNet - $100.00 IPv4-IP Address-4(Included) 1 $0.00 - xhel - S0.00 Data Only Service-Setup Charge 1 $500.00 - xNet S500.00 - $0.00 $0.00 Moo TPx Data Only Service(Install) Description Qty Each Usage Type NRC MRC Data Only Servim, 1 $0.00 - xNet - 50,00 50M Port 1 S/00.00 - xNet - 5/00.00 50M Tier 1 Access(ICB Code. 1 $',239.90 - xNet - $1.239 40 KO_CD) Other 1 $0.00 - xNet - $0.00 Internet 1 $100.00 • xNet St00.00 IPv4-IP Address-8 1 S0.00 - xNet - $0.00 Data Only Service-Setup Charge 1 $500.00 - xNet S500.00 - S0.00 $0.00 S872.10 MSx WAN(Install) Description Qty Each Usage Type NRC MRC POE Code:12345 MSx WAN Service 1 $0.00 MSx SO.00 MSx WAN Optimum 2 $0.00 - MSx . $0,00 1 $350.00 - xNet $350.00 - https://dash.tpx.com/ribeye/service/file?id=656670&deleteAfterServing=l&inl ine=1 8/14/2018 Quote: 163820 /City of Palm Desert- Dash Page 3 of 4 Contract No. C36940 Multi Seances Router-Optimum Install Included with Voice/Data SmartVoice-Related Voice Service 1 $0.00 - MSx - $0.00 TPx Provided DIA 1 50.00 - MSx - S0.00 MSx WAN-Optimum 1000M 2 5500.00 - MSx - $1.000.00 Multi Services Router 1000 2 $3,850.00 - xNel $1,100.00 - TPx Provided DIA 1 $0.00 - MSx - $0.00 Inbound Internet Failover-Block of 8(5 1 $75.00 - MSx - $25.00 usable) Inbound Internet Failover-Non 1 $50.00 - xNet 550.00 Recurnng Charge $0.00 $7,700.00 $750.00 SmartVoice Trunldng(Install) Description Qty Each Usage Type NRC MRC Caller ID(Inbound-Name Number) 1 $0.00 - oNet - $0.00 Abbreviated Dialing 1 $0.00 - xNel - $0.00 Outbound Calling Line ID(Name 1 $0.00 - xNet - $0.00 Number) Call Paths-SmartVoice 47 $12.00 - xNet - $564.00 PRI SmartVoice 47 $0.00 - xNet - SO.00 TPx Voice Data Circuit 1 $0.00 - xNet - $0.00 Tier G Equipment 1 $139.00 - xNet - $139.00 End User Connection Charge(EUCC) 47 $7.37 - xNet - $111.39 DID-Orr-Net(Up to 100) 3 $0.00 - xNet - $0.00 DID Numbers(block of 20) 2 $0.00 - xNel - $0.00 DID Numbers(sold in blocks of 20)- Setup Charge 2 S0.00 - xNet $0.00 - SmartVoice Portal 1 $0.00 - xNet - $0.00 Traffic Study Reports 1 $25.00 - xNet - $25.00 Trunk Group Call Forwarding to PSTN ' $25.00 - xNet - $25.00 Trunk Group Call Forwarding to PSTN- 1 $4400 - xNet $40.00 -Setup Charge Free Directory Assistance Listing 1 $0.00 - xNet . $0.00 $0.00 $0.00 S429.39 Virtual Fax(Install) Description Qty Each Usage Type NRC ARC Virtual Fax-Setup 1 $10.00 - xNet $10.00 - Virtual Fax 1 $10.00 - xNet - $10.00 Direct Inward Dial Number-On-Net 1 $0.25 - xNet . $0.25 Existing DID Porting Charge-On-Net 1 S0.00 - xNet $0.00 - $0.00 $0.00 $10.01 TPx Conference Central(Install) Description Qty Each Usage Type NRC MRC Conference Central Service 1 $0.00 - xNet - $0.00 Conference Central Basic 1 $0.00 - oNet - 50.00 $0.00 $0.00 $0.00 TPx Inbound Toll Free(Install) Description Qty Each Usage Type NRC MRC Toll Freo Number 3 $9.00 - xNet - $27.00 $0.00 $0.00 $27.00 https://dash.tpx.com/ribeye/service/file?id=656670&deleteA fterSery ing=l&inline=1 8/14/2018 Quote: 163820/City of Palm Desert- Dash Page 4 of 4 Contract No. C36940 INSTALLMENT PAYMENT DETAILS CHARGE_DESCRIPTION MONTHLY_PAYMENT_AMOUNT SELECTED_TERM Multi Services Router 1000 $173.10 60 Total of Monthly Payment Amounts $173.10 Initial monthly installment payment amounts may vary based on rounding. "Total of installment payments will be different from the NRC cash price. NRCS NOT INCLUDED IN THE INSTALLMENT PAYMENT PLAN CHARGE_DESCRIPTION NRC_AMOUNT Total of opted-out NRC Amounts $0.00 Currently there are no opted-out NRCs. https://dash.tpx.com/ribeye/service/file?id=656670&deleteAfterServing=l&inline—l 8/14/2018