SR 05-23-2017 3B
Ci ty Council
Report
City Council Meeting : May 23, 2017
Agenda Item: 3.B
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer , Information Systems
Department, Broadband
Subject: Agreement for 24x7 Network Operations Center and Tier 3 Onsite Network
Support services
Recommended Action
Staff recommends that the City Council:
1. A ward RFP#108 to Mosaic451, LLC, an Arizona based company to provide 24x7
Network Operations Center network monitoring and remote support, and Tier 3
Onsite Network Support, for the City’s business broadband customers ;
2. A uthor ize the City Manager to negotiate and execute an agreement with
Mosaic451, LLC, in an amount not to exceed $222,000 for one year, with four
one -year renewal options on the same terms and conditions, for a total not to
exceed amount of $1,110,000 over a ter m of five years with future year funding
contingent on Council budget approval .
Executive Summary
S anta Monica’s broadband initiative, Santa Monica CityNet (CityNet), delivers network
services, and data communications to the City’s technology, entertainme nt, and
healthcare businesses, and to affordable housing residents participating in the City’s
Digital Inclusion Pilot program. As a network service provider, CityNet’s business
customers rely on the City to provide industry standard 24x7 network monitori ng and
troubleshooting in the event of a network incident. To continue assisting staff with
network monitoring, troubleshooting and incident resolution, staff recommends
contracting for Network Operations Center services. The Network Operations Center
wo uld continue providing real -time network performance monitoring, manage business
customer requests for network support, complete City approved remote maintenance
procedures, as well as other services. In addition, the recommended vendor,
Mosaic451, LLC, w ould provide highly advanced Tier 3 Onsite Network Support,
assisting City staff prevent and respond to any major network outages with an impact to
over 5% of broadband customers, or an extended network outage exceeding 2 hours.
At this time, staff recomm ends executing an agreement with Mosaic451, LLC, to provide
Network Operation Center and Tier 3 Onsite Support services for the City’s business
broadband customers, in an amount not to exceed $222,000 for one year, with four one -
year renewal options, for a total not to exceed amount of $1,110,000 over a five -year
period .
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Background
T he City of Santa Monica’s broadband initiative, CityNet, delivers network services and
data communications to Santa Monica businesses. As a network service provider,
CityNet’s business customers rely on the City to provide an industry standard 24x7
network monitoring and immediate response times for troubleshooting network
incidents. The City has contracted with vendors for Network Operation Center services
since 2012, a perio d that marked a rapid growth of the CityNet business customer base.
The surge in CityNet customers created an ongoing operational need for a Network
Operation Center with greater capacity to respond to business customers. Internal City
staff resources cou ld not reliably provide the required Network Operation Center
services to business class customers on a 24x7 basis. Furthermore, the City was able
to achieve efficiencies by contracting network monitoring and remote support services.
With global increases in cybersecurity threats and Distributed Denial -of -Service (DDoS)
attacks, there also exists a need for onsite support from a vendor to assist staff in
prevention and resolution of these highest level, or Tier 3, incidents. These incidents
have the poten tial to cause an extended network outage to a significant number of
customers, simultaneously, and require resolution from highly qualified personnel. City
staff will continue to be dispatched to provide onsite customer support for Tier 1, or the
initial support level for basic network incidents, and Tier 2 network incidents which
impact less than 5% of customers but remain challenging and complex in nature.
CityNet’s operational focus on network reliability and prompt customer incident
management, has co ntributed to a loyal customer base with annual customer retention
rates of 98% - 100% over the past 5 -year period. In order to continue providing
responsive service and outstanding network reliability, staff recommends executing an
agreement for Network O peration Center services and support for the City’s business
broadband customers .
Discussion
B y contracting Network Operations Center (NOC) services and support, and Tier 3
Onsite Support, which is recognized as the highest level of network support, the City
would achieve efficiencies by leveraging economies of scale and expertise offered by
firms that provide similar services to public agencies and private firms. The City is able
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to procure these services at a competitive cost, due to the service provid er’s ability to
allocate NOC staff across various network clients during CityNet’s non -incident periods.
CityNet business customers rely on the City to provide industry standard 24x7 network
monitoring, immediate network response times for required troubl eshooting, and
execute preventative maintenance measures to protect the CityNet network. Dedicated
City staff supporting CityNet operations would continue to provide onsite Tier 1 and Tier
2 support, while NOC and Tier 3 Onsite Support services would be p rovided by
Mosaic451, LLC. These services would be funded from CityNet business customer
revenues .
Vendor/Consultant Selection
O n March 13, 2017, the City issued a Request for Proposals (RFP) for 24x7 Network
Operations Center and Tier 3 Onsite Support. The RFP was posted on the City’s online
bidding site, and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal code provisions. A total of 1,477 vendors
were notified, thirty -two vendors downloaded the RFP , and seven vendors responded.
Reponses to the RFP were reviewed by selection panel of staff from the Information
Systems Department. The following vendors submitted proposals: Apex Computer
Systems, Inc.; EMR CPR, LLC; Saalex Solutions, Inc.; Fujitsu Ne twork
Communications, Inc.; Burwood Group, Inc.; Management Applications, Inc.; and,
Mosaic451, LLC.
E valuation was based on the following selection criteria: price, ability, capacity to
respond to all customers simultaneously in the event of a major netw ork outage,
experience, technical qualifications, skill of the bidder to perform services, and capacity
of the bidder to perform the service on an ongoing basis, without delay or interference.
Staff then interviewed the two firms that obtained the minimum qualifying score of 85
points or above for consideration as a finalist. Based on this criteria and criteria in
SMMC 2.24.072, staff recommends Mosaic451, LLC, as the best qualified bidder to
provide 24x7 Network Operations Center and Tier 3 Onsite Networ k Support.
Mosiac451, LLC was the lowest bidder and has highly qualified personnel with
experience in cyberwarfare operations for the United States Air Force Red Team. In
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addition, Mosaic451, LLC provides NOC and Tier 3 onsite support services to private
firms and public agencies, including the City of Charlotte, Bonneville Power Authority,
Arizona Public Service Electric Utility, and Clark County School District .
Financial Impacts and Budget Actions
T he contract to be awarded to Mosaic451, LLC, is for a n amount not to exceed
$1,110,000. Funds of $222,000 for the first year of the contract are included in the
proposed FY 2017 -18 budget in the Information Systems Department. The contract will
be charged to Community Broadband Enterprise Fund account 28248 .555010. Future
year funding is contingent upon Council budget approval .
Prepared By: Gary Carter, Community Broadband Manager
Approved
Forwarded to Council
Attachments:
A. Oaks Form - Mosaic451, LLC - 2017
CITY OF SANTA MONICA
O A KS INIT I A TI V E NOTICE
NO T ICE TO A P PL IC A N T S , B IDD E R S , P R O P O SE RS
A ND O T H E RS SE E K I NG DI S CR E T I ON A RY PE R M IT S , CO N T R A C T S ,
OR O T H E R BE N E F I TS FROM T HE CI T Y O F SA NTA M ONICA
S an t a M on i ca ’s v o t e r s adop t ed a Ci t y C ha rt er a m end m e n t c o m m on l y k no w n as
t he O a ks I n i t i a t i v e. T he O a k s I n i t i a t i v e r e q u i r e s t he Ci t y t o p r o v i de t h i s no t i ce and
i n f o rm a t i on about t he I n i t i a ti v e ’s r e q u i r e m e n t s . Y ou m ay ob t a i n a f u l l copy o f t he I n i t i a t i v e ’s
t e x t f r o m t he Ci t y Cl e r k .
T h i s i n f o rm a t i on i s r e q u i r ed by Ci t y C ha rt er A rt i c l e X X I I —T a x pa y er P r o t e c t i on. I t
p r oh i b i t s a pub li c o f f i c i al fr o m r ece i v i n g , a nd a pe r son o r en t i t y fr o m co n f e rr i n g , sp e c i f i ed
p e r sonal ben e f i t s or c a m pa i gn ad v an t a g es fr om a p e r s on or e n t i t y a ft er t he o f f i c i al v o t es,
or o t h e r w i se t a k es o ff i c i al a c t i on, t o aw a r d a “pub li c ben e f i t ” t o t h a t p e r son or en t i t y . The
p r o h i b i t i on app li es w i t h i n and ou t s i de o f t he g e o g r a p h i cal bounda r i es o f S an t a M on i ca.
Al l pe r sons or e n t i t i es a pp l y i ng o r r e c e i v i ng pub l i c ben e f it s fr om t he Ci t y o f S a n t a
M on i ca sha l l p r o v i de t he n a m es o f tr u s t ees, d i r e c t o r s , p a rt n e r s , and o f f i c e r s , and na m e s
o f pe r so n s w i t h m o r e t han a 10% e q u i t y , p a rt i c i pa t i on or r e v enue i n t e r e s t . A n e x cep t i on
e x i s t s f or pe r s o ns se r v i ng i n t h o se cap a c i t i es as v o l un t ee r s, w i t hout co m pens a t i on, f or
o r g a n i z a t i ons e x e m pt fr om i nco m e t a x es under S e c t i on 501 (c )(3 ), (4 ), or (6 ), o f t he
I n t e r nal R e v enue C ode. H o w e v e r , t h i s e x cep t i on does n o t app l y i f t he o r g an i z a t i on i s a
po li t i c al co m m i t t ee or co n tr o l s po li t i cal c o m m i tt ee s . E x a m p l es o f a “pub li c b e n e f i t ” i nc l ude
pub li c con tr a c t s t o p r o v i de g oods or se r v i ces w o rt h m o r e t han $2 5 ,000 or a l and u se
ap p r o v al w o rt h m o r e t han $2 5 ,000 o v er a 12 -month pe r i od.
I n o r d e r t o f ac ili t a t e c o m p li ance w i t h t he r e q u i r e m e n t s o f t he O a k s I n i t i a t i v e, t he Ci t y
co m p il es and m a i n t a i ns ce r t a i n i n f o rm a t i on. T hat i n f o rm a t i on i nc l udes t he n a m e o f any
p e r son or persons w ho i s se e k i n g a “p ub li c ben e f i t .” I f t he “pub li c b e n e f i t ” i s s o u g ht by an
e n t i t y , r a t her t han an i nd i v i dual pe r son, t he i n f o rm a t i on i nc l udes t he n a m e o f e v e r y person
who is : (a ) tr u s t e e , (b) d i r e c t o r , (c ) p a rt n e r , (d ) o f f i c e r , o r has (e) more than a t en pe r cent
i n t e r est i n t he e n t i t y . T h e r e f o r e, i f y ou a r e se e k i n g a “pub li c ben e f i t ” co v e r ed by t he O a k s
I n i t i a t i v e, y ou m u s t s upp l y t hat i n f o rm a t i on on t he O a k s I n i t i a t i v e Di sc l osu r e Fo r m . T h i s
i n f o r m a t i on m ust be upda t ed and s u pp li ed e v e r y 12 m on t h s .
CITY OF SANTA MONICA
O A KS INIT I A TI V E DI S CLO S URE FORM
I n o r d e r t o f ac ili t a t e c o m p li ance w i t h t he r e q u i r e m en t s o f t he O a k s I n iti a t i v e, t he Ci t y
co m p il es and m a i n t a i ns ce r t a i n i n f o rm a t i on. T hat i n f o rm a t i on i nc l udes t he n a m e o f any
p e r son or persons w ho i s se e k i n g a “p ub li c ben e f i t .” I f t he “pub li c b e n e f i t ” i s s o u g ht by
an e n t i t y , r a t her t han an i nd i v i dual pe r son, t he i n f o rm a t i on i nc l udes t he n a m e o f e v e r y
person who is : (a ) tr u s t e e , (b) d i r e c t o r , (c ) p a rt n e r , (d ) o f f i c e r , o r has (e) more than a t en
pe r cent i n t e r est i n t he e n t i t y .
P ub li c bene f i t s i nc l ude:
1. P e r sonal se r v i ces co n tr a c t s i n e x cess o f $25 ,000 o v er any 12 -m o n t h p e r i od;
2. S a l e o f m a t e r i a l , e q u i p m ent o r supp li es t o t he Cit y i n e x cess o f $2 5 ,000 o v er a 12 -
m on t h pe r i o d ;
3. P u r chase, sa l e o r l ease o f r eal p r op e rt y t o o r fr o m t he Ci t y i n e x cess o f $25 ,000
o v er a 12 - m on t h pe r i od;
4. N on -co m p e t i t i v e f r anch i s e a w a r ds w i t h g r oss r e v enue o f $50 ,000 or m o r e i n any
12 -m o n t h pe r i od;
5. Land use v a r i ance, spec i al use pe r m it , o r o t her e x cep t i on t o an es t ab li shed l and
use p l a n , w he r e t he dec i s i on has a v a l ue i n e x cess o f $2 5 ,0 00;
6. T ax “ab a t e m e n t , e x cep t i on, o r ben e f i t ” o f a v a l ue i n e x cess o f $5 ,000 i n a n y 12 -
m on t h pe r i o d ; o r
7. P a y m ent o f “c a sh o r sp e c i e” o f a n e t v a l ue t o t he r ec i p i ent o f $1 0 ,000 i n a ny 12 -
m on t h pe r i o d .
N a m e (s) o f pe r s o n s o r ent i t i e s r e c e i v i n g pub lic be ne f it:
N a m e (s) o f t r u s t ee s, d i r e ct o r s, p a r t ne r s, an d o f f ic e r s:
N a m e (s) o f persons w ith m o r e t h a n a 10 % e q u i ty , pa r tici pa ti on , o r r e v enu e i n t e r e s t :
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
REFERENCE:
Contract No. 10459
(CCS)