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Agenda Item 27.

City Council Meeting

Meeting Date:	06/19/2018
FROM:	Bill Gallardo

Subject:

CITY INTERNET BANDWITH UPGRADE

RECOMMENDATION

City staff recommends upgrading the existing internet service to 250 Mbps, ensuring faster high speed access for existing applicaitons and future demands.

BACKGROUND/DISCUSSION

The City of Brea currently receives all of our telecommunications (Telco) and internet service from AT&T. These services are extremely reliable with the industry's highest service availability (uptime) at a competitive rate (CalNet3 pricing or better) that has allowed the City of Brea to make effective use of online access. Technology is driving the City's demand for increased internet speed throughout the organization, and our existing level of service is becoming less adequate for meeting our organizational needs. Upgrading our existing AT&T service is the most cost-effective way to provide the needed bandwidth increase as our network and Telco infrastructure is built on AT&T's Internet Protocol (IP) platform.

Over the years, the demand for internet speed has increased in all industries, including local government. This is due to a greater use of web-based applications, hosted solutions, video conferencing, webinars and general online research that is done on a daily basis. To keep up with this demand, we are proposing to upgrade our existing internet service of 100 Mbps (megabits per second) to a 250 Mbps connection. By renegotiating a new two-year agreement with AT&T, we not only secure upgraded service but we also benefit from a reduced rate, resulting in cost savings.

COMMISSION/COMMITTEE RECOMMENDATION

The internet service upgrade was approved by the Finance Committee on May 29, 2018.

FISCAL IMPACT/SUMMARY

The cost of our existing two-year agreement for internet service is $36,541.20 ($18,270.60 annually). Our reduced rate with this new two-year agreement would be $30,739.20 ($15,369.60 annually) plus a one-time installation fee of $750. Over a two-year period this represents a savings of $5,052. The funding for this expenditure will continue to come from the Information Technology Internal Service Fund Account 475-14-1471-4212.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Anthony Godoy, Management Analyst II
Concurrence: Randy Hornsby, IT Manager

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