SR 05-10-2022 3C
City Council
Report
City Council Meeting: May 10, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services
Department, Infrastructure and Cloud Services
Subject: Approval of First Modification to Agreement with Windstream
Communications for Telephony Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to agreement #10460 in the amount of $247,500 (including
10% contingency) with Windstream Communications for telephony services for the City
of Santa Monica. This will result in an amended agreement with a new total amount not
to exceed $584,500, for a new 8-year agreement, with two additional 1-year renewal
options for a total 10-year agreement not to exceed $584,500. This recommended
award is made as an exception to the competitive bidding process pursuant to Section
2.24.250 (c) and is for a total amount not to exceed $584,500 with future year funding
contingent on Council budget approval.
Summary
The City uses a Voice over Internet Protocol (VoIP) based telephony services for all
voice communications and business telephone lines. The service is essential for
communicating with the public, vendors, and other entities for the purposes of
conducting City business. All telephone calls to and from City business lines are routed
to the Public Switched Telephone Network (the national, regional, and local telephony
infrastructure and services for public telecommunication), using Internet Telephony
services currently provided by Windstream Communications. The current agreement
with Windstream Communications terminates in June 2022. For the proposed first
modification, the City will be piggy backing off a Los Angeles County Agreement (MA-
IS-1940306-1). Windstream Communications was awarded the County of Los Angeles
contract for their telephony services following a competitive bid process. Based on
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Windstream’s agreement with Los Angeles County, the City will achieve an estimated
30% savings off the monthly usage charges (pre-tax and excluding surcharges), as
compared to the prior agreement. This pricing also includes bundled minutes, which will
help to ensure that City usage charges remain relatively level, irrespective of variances
in usage. At this time, staff recommends Council approve a First Modification to
reinstate and modify Agreement No. 10460 (CCS) with Windstream Communications for
an additional three-year term with two additional 1-year renewal options. If all option
terms were exercised, this would result in a 10-year reinstated and amended agreement
with a new total cost not to exceed $584,500.
Discussion
The approach to utilize the City’s fiber-optic network as a way to transport telephony
services over the Internet has been a forward-thinking strategy and a proven cost
saving model since 2011. The City’s fiber extends to One Wilshire telecommunications
colocation facility in Downtown Los Angeles. This facility is an important
telecommunications Hub for the region, which the City leverages as a part of a broader
strategy for its Information Technology (IT) business continuity and disaster recovery
plan. The City uses its presence at One Wilshire as a conduit to its colocation data
center facility in Las Vegas for disaster recovery; for access to Internet service providers
(ISPs); to connect to the ICI (interagency communications interoperability) regional
network for public safety radio communications; to provide access to broadband for
Community Broadband customers; and, as a way to connect to the Public Switched
Telephone Network (PSTN) for Internet telephony service.
As part of the approach discussed above, the City requires Internet telephony service
providers to provide services at the following three facilities: 1) from the One Wilshire
facility in Los Angeles, 2) at the City’s disaster recovery data center in Las Vegas,
Nevada and 3) at the City’s main data center in Santa Monica. These requirements are
essential, as the current services for Internet telephony are available through all three
facilities, which provides the City geographical diversity essential for its business
continuity plan.
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For the first modification, the City will be piggy backing off a Los Angeles County
Agreement (MA-IS-1940306-1). Windstream Communications was awarded the County
of Los Angeles contract for their telephony services following a competitive bid process.
The City seeks to enter into a First Modification of Agreement No. 10460 to reinstate
and amend Agreement No. 10460 for an additional 3-year term, with 2-additional 1-year
renewal options, for a total contract amount not to exceed $584,500.
Vendor Selection
Exception to Competitive Bidding
Staff recommends Windstream Communications to furnish and deliver/provide
telephony services as an exception to competitive bidding per Muni Code 2.24.250 (c):
competitive procedures were followed by a governmental agency, federal, state, county,
city, joint powers agency, special district, or cooperative purchasing agency and the
goods or services are supplied to the City at the same or better price.
Competitive procedures were followed by the County of Los Angeles for Internet
Telephony Services and services are supplied to the City at a better price, resulting in
an estimated 30% in savings over previous contract. Windstream Communications is
uniquely qualified to provide Internet Telephony Services by their ability to leverage city-
owned fiber network. This results in additional savings to the City by eliminating the need for
costly leased data circuits to deliver the service.
Past Council Actions
Meeting Date Description
May 23, 2017 Contract Award with Windstream for Internet Telephony
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Information Technology
Replacement & Services Fund, funding allocated by all other City funds to cover
enterprise technology costs, to increase the amount of the agreement with Windstream
Communications for telephony services. Staff recommends modifying the existing
agreement to create a new 8-year agreement with an additional two one-year renewal
options, for a total of a 10-year agreement. The total modified amount is not to exceed
$247,500 for a total 10-year agreement not to exceed $584,500. Future year funding is
contingent on Council approval.
Contract/Agreement/Purchase Order Modification Request
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Agreement
#
Current Authorized
Amount
FY 2022-23
Budget
Modified
Request
Amount
Dept/CIP Account
#
Total Revised
Contract
Amount
10460 $337,000 $49,500 C7100020.689000 $584,500
Prepared By: Sarkis Metspakyan, Systems & Network Manager
Approved
Forwarded to Council
Attachments:
A. Windstream 10460-CCS
B. Oaks_Initiative_Windstream
C. May 23, 2017 Staff Report: Award Agreement with Windstream for Telephone
Services (Web Link)
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
DocuSign Envelope ID: 8D424673-9C24-4E08-90FB-5B30746CD515
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CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5.Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Windstream Services, LLC
Please see attached
Please see attached
DocuSign Envelope ID: 8D424673-9C24-4E08-90FB-5B30746CD515
ben.bowen@windstream.com 8014147076
4/14/2022
Vice President - Enterprise SalesBenjamin Bowen
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Sensitivity: Internal
Windstream Services, LLC
Name(s) of trustees, directors, partners and officers:
Managers-Tony Thomas and Kristi Moody
Please see Page 4 for Full List of Officers
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
No natural person owns more than a 10% interest in Windstream Services, LLC. Windstream Holdings II,
LLC holds a 100% ownership interest in Windstream Services, LLC.
DocuSign Envelope ID: 8D424673-9C24-4E08-90FB-5B30746CD515
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Packet Pg. 251 Attachment: Oaks_Initiative_Windstream (5042 : Windstream Contract Renewal)
WINDSTREAM SERVICES, LLC
April 8, 2022
President & Chief Executive Officer Tony Thomas
Chief Financial Officer Robert E. Gunderman
President – Enterprise & Wholesale Ronald J. Bayer
President – Kinetic Jeff Small
Chief Human Resources Officer Mary Michaels
Chief Information Officer Stephen Farkouh
Chief Procurement Officer Mark M. Reed
Chief Marketing Officer – Enterprise Michael P. Flannery
Head of Enterprise Operations & Access Rich Martin
Executive Vice President – General Counsel & Corporate Secretary Kristi Moody
Executive Vice President – Enterprise Sales Shawn Murray
Executive Vice President – Wholesale Joe Scattareggia
Executive Vice President – Kinetic Sales & Marketing Jeffrey Auman
Senior Vice President – Controller John Eichler
Senior Vice President – Financial Planning & Treasurer Drew Smith
Senior Vice President – Process Development & Support Kevin Halpin
Senior Vice President – Service Delivery Brent McCutchin
Senior Vice President – Kinetic Field Operations Barry Bishop
Senior Vice President – Wholesale Marc Dyman
Senior Vice President – Head of Channel Robert Westervelt
Chief Compliance Officer Gregory Weill
Chief Information Security Officer Amanda Deusenbery
Vice President & Assistant Corporate Secretary Michelle Simpson
Vice President – Investor Relations Christopher C. King
Vice President – Tax Clay Robinson
Regional President – Sales Aaron Baker
President – Georgia Operations Michael Foor
President – State Operations Danny Ferguson
President – State Operations Stacy Hale
President – State Operations Brian Harman
President – State Operations Brad Hedrick
President – State Operations Susan Schraibman
Director – Regulatory Reporting Tim Loken
DocuSign Envelope ID: 8D424673-9C24-4E08-90FB-5B30746CD515
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