SR-05-27-2014-3MCity Council Meeting: 05127/14
Agenda Item: 3 • Aq t
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Modification to Contract with Windstream for Internet Telephony
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third modification to Contract #2304 in the amount of $85,630 with
Windstream, an Arkansas -based company, to provide citywide Internet telephony
service, with two additional one -year renewal options in the amount of $69,145. This
will result in a five year amended contract with a new total amount not to exceed
$322,920, with future year funding contingent on Council budget approval.
Executive Summary
In December, 2011, the City entered into a service agreement with Windstream to
provide voice - over -IP (VOIP) local and long distance Internet telephone calling services
for all City facilities. The current agreement terminates in June, 2014. Staff
recommends renewing the agreement with Windstream for three additional years at a
cost of $69,145 per year. This will result in a five year amended contract with a new
total amount not to exceed $322,920.
Discussion
A 2011 RFP process solicited proposals from vendors capable of replacing the City's
legacy PRI local and long- distance telephone circuits that were originally installed and
still maintained by Verizon, the City's historical telecomm provider. These circuits
provide dial tone and route all inbound and outbound telephone traffic to /from all City
facilities. The original contract was executed by the City Manager in 2011. In 2012 and
2013, the City Manager executed modifications to this contract. The recommended
modification incorporates the original contract and its modifications for a total of five
years. Since installation, Windstream's VOIP solution has performed without issues
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and has outperformed the previous wireline -based solution. In April, 2014, the City
received a quote for renewal of the agreement originally executed in 2011, and
amended since. Since switching to another telephony provider at this time would entail
a problematic interface with the City's fiber optic infrastructure and extensive downtime
of all telephone circuits, staff recommends extending the Windstream agreement for
three additional years at a cost of $69,145 per year, per the table below.
FY 2013 -14 $16,485
FY 2014 -15 $69,145
FY 2015 -16 $69,145
FY 2016 -17 $69,145
Total $223,920
Contractor Selection
In 2011, the City published a Request for Proposals (RFP) for Session Initiation
Protocol (SIP) Trunks to deliver citywide Internet telephony. Three bids were received
and evaluated based on price, relevant experience, proposed schedule, and the ability
to meet the City's technical specifications of internet -based services that would make
use of the City's proprietary fiber optic network, thereby improving network speed and
reducing transmission costs. Windstream (then Paetec) was the only provider that
could accommodate these requirements and deliver the bundled local and long- distance
service with a cost/benefit ratio favorable to the City. Windstream (then Paetec) was
determined to be the best bidder, based on price and their ability to deliver a solution
that incorporated the fiber optic network
Financial Impacts & Budget Actions
The contract renewal to be awarded to Windstream is $223,920 for an amended
contract total not to exceed $322,920. Funds in the amount of $16,485 are available in
the FY 2013 -14 CIP Budget in account M55000613.589000. Funds in the amount of
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$69,145 will be available in the FY 2014 -15 Adopted CIP Budget in account
M55000614.589000, pending Council approval. Budget authority for subsequent years
will be requested in each budget cycle for Council approval. Future funding is contingent
upon Council approval.
Prepared by: David Yeskel, Systems Analyst
Approved:
0 � olf
C ief Information Officer
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9912
(CCS)