HomeMy WebLinkAboutStaff Report 2602-5980CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, April 20, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
7.Approval of Amendment Number 1 to Contract C23187554 with Vox Network Solutions
to Increase Compensation by $212,819 and to Extend the Term to June 30, 2027, for
Maintenance of the City’s Enterprise Phone System; CEQA Status – exempt under section
15061(b)(3).
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: April 20, 2026
Report #:2602-5980
TITLE
Approval of Amendment Number 1 to Contract C23187554 with Vox Network Solutions to
Increase Compensation by $212,819 and to Extend the Term to June 30, 2027, for Maintenance
of the City’s Enterprise Phone System; CEQA Status – exempt under section 15061(b)(3).
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to
execute Amendment No. 1 to Contract No. C23187554 with Vox Network Solutions
(Attachment A) for an additional year for the maintenance of the City’s Enterprise Phone
System and to increase compensation by $136,897 for basic services and $75,921 for additional
services. This amendment results in a revised total contract not-to-exceed amount of $713,740.
BACKGROUND
The City’s enterprise phone system was replaced under a VOX contract following a 2012 RFP
process after the prior system was no longer supported by the manufacturer. City Council
approved replacing the City’s legacy phone system with a modern Avaya VoIP/hybrid system on
June 6, 2012, and the new system was fully implemented in October 20131. After
implementation, the City continued to procure ongoing maintenance and support from VOX
Most recently, on June 19, 2023, City Council approved Contract no. C23187554 to upgrade the
City’s phone system and provide a three-year support term using a National Cooperative
Purchasing Alliance (NCPA) cooperative agreement2. Amendment No. 1 maintains service
continuity by adding a one-year extension and increasing not-to-exceed authority to address
additional, unforeseen licensing necessary to sustain the City’s phone system.
1 June 4, 2012 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/from-
archive/agendas-minutes-reports/reports/city-manager-reports-cmrs/2012/cmr-2760.pdf
2 June 19, 2023 City Council Staff Report:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82463&dbid=0&repo=PaloAlto&cr=1
ANALYSIS
Staff recommends extending services with VOX Network Solutions for one more year
to maintain stable, uninterrupted support for the City’s enterprise phone system while the City
completes a structured assessment of the best long-term direction (continued on-premises
Avaya modernization vs. a cloud solution). The City’s current phone environment supports
essential municipal operations and integrations, particularly those tied to public safety, call
center reporting, payment-by-phone/IVR workflows, outage/emergency operations, call
accounting/audit needs, and hybrid work which are not always supported “out of the box” by
basic cloud phone offerings. The existing system is now antiquated and approaching the end of
its vendor-supported lifecycle. The City anticipates replacing and modernizing the phone
system in the next fiscal year.
As authorized under PAMC section 2.30.360(j), the current contract was procured through
NCPA cooperative agreement5, which is reduced pricing available to local government agencies
and provides a compliant, efficient procurement path for this interim period. The one-year
renewal provides the City time to: (1) assess the City’s current Avaya platform and remaining
lifecycle needs, (2) evaluate cost and risk options to upgrade or optimize the City’s on-premises
Avaya environment, and (3) competitively investigate leading industry providers for a cloud-
based solution without introducing avoidable service disruption or emergency/after-hours
support gaps during the evaluation period.
The requested contingency will fund payment of an outstanding $30,383 invoice that could not
be paid because additional services funds were exhausted and provide a 10% contingency for
unforeseen licensing adjustments during the extension period. This will help maintain
continuity of the City’s telecommunications systems during ongoing changes and transition
planning.
The costs are expected to occur in FY 2027. Funding for this one-year amendment will
be included in the FY 2027 annual budget development process, subject to City Council
approval consistent with how multi-year technology support contracts are funded in future
years. The Information Technology Department (ITD) is supported through an internal service
fund model. Approximately 49% of ITD’s costs are funded by the General Fund, with the
remaining 51% supported by enterprise and special revenue funds.
The services were coordinated with internal stakeholders and the service provider.
5 NCPA Cloud and On-Premise Communications Solutions Contract No. 01-125:
https://www.omniapartners.com/suppliers/jenne/public-sector/contract-documents
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental
Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3).
ATTACHMENTS
Attachment A: Amendment No. 1 to Contract No. C23187554
APPROVED BY:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information
Technology/CTO
AMENDMENT NO. 1 TO CONTRACT NO. C23187554
BETWEEN THE CITY OF PALO ALTO AND
VOX NETWORK SOLUTIONS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C23187554 (the “Contract”
as defined below) is entered into as of April 20, 2026, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and VOX NETWORK SOLUTIONS, INC., a
Delaware Corporation, located at 110 S. Hartford Avenue, Suite 2502, Tulsa, OK 74120
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of upgrading the communications environment to the latest release of
software, that offers a more secure communication platform, as detailed therein.
B. The Parties now wish to amend the Contract in order to (1) extend the term end
date from June 18, 2026 to June 30, 2027, (2) increase the not to exceed compensation by Two
Hundred Twelve Thousand Eight Hundred Eighteen Dollars and Seventy-Two Cents ($212,818.72)
from Five Hundred Thousand Nine Hundred Twenty-One Dollars and Twenty-Seven Cents
($500,921.27) to Seven Hundred Thirteen Thousand Seven Hundred Thirty-Nine Dollars and
Ninety-Nine Cents ($713,739.99), and (3) update the scope, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C23187554
between CONSULTANT and CITY, dated June 19, 2023.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2027
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
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SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services shall be based
on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any
reimbursable expenses specified therein, and the maximum total compensation shall not exceed
Five Hundred Ninety-Two Thousand Two Hundred Eighty Dollars and Forty-Seven Cents
($592,280.47). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled
“SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no
cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-
to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of One Hundred Twenty-One Thousand Four Hundred
Fifty-Nine Dollars and Fifty-Two Cents ($121,459.52) for the performance of Additional
Services (as defined below). The total compensation for performance of the Services,
Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed
Seven Hundred Thirteen Thousand Seven Hundred Thirty-Nine Dollars and Ninety-Nine
Cents ($713,739.99), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services
up to the maximum amount of compensation set forth for Additional Services in this Section
4. CONSULTANT shall provide Additional Services only by advanced, written authorization
from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY
with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section
13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit
A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific
scope of services, schedule of performance and maximum compensation amount, in
accordance with the provisions of this Agreement. Compensation for Additional Services shall
be specified by CITY in the Task Order, based on whichever is lowest: the compensation
structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump
sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order
shall become part of this Agreement. The cumulative total compensation to CONSULTANT for
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all Task Orders authorized under this Agreement shall not exceed the amount of
compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be
compensated for Additional Services performed under an authorized Task Order and only up
to the maximum amount of compensation set forth for Additional Services in this Section 4.
Performance of and payment for any Additional Services are subject to all requirements and
restrictions in this Agreement.”
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are
hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO.1”, AMENDED,
REPLACES PREVIOUS.
b. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO.1”,
AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
VOX NETWORK SOLUTIONS, INC.
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Attachments:
EXHIBIT “A” ENTITILED “SCOPE OF SERVICES, AMENDMENT NO.1”, AMENDED, REPLACES
PREVIOUS
EXHIBIT “C-1” ENTITILED “SCHEDULE OF RATES, AMENDMENT NO.1”, AMENDED, REPLACES
PREVIOUS
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Sr Vice President
Klaus Hillmann
Evan Jones
Chief Customer Officer
EXHIBIT A
SCOPE OF SERVICES, AMENDMENT NO.1
AMENDED, REPLACES PREVIOUS
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. CITY agrees to purchase and CONSULTANT agrees to provide Signature Support
(“Services”) according to the terms of this Amendment No. 1. Waterfield Signature Support
(Services) is an Information Technology Infrastructure Library (ITIL) based service consisting of
the monitoring, troubleshooting, device and service management (incident, change, problem,
MACD), and reporting of the CITY’s Managed Infrastructure.
REQUIREMENT OF MANUFACTURER SUPPORT CONTRACT
Access to manufacturer escalation support and access to patches and software for the covered
systems is contingent upon purchase and maintenance of a Manufacturer Support Contract. If
no manufacturer support exists or when equipment is deemed unsupportable by the
manufacturer, or it is deemed not serviceable due to lack of replacement part availability,
Waterfield support will be best effort.
Services Elements Summary
The following tables summarize the service elements included in this Waterfield Signature
Support offer:
Service Element Included
Patch Management
Certificate Management
3rd Party Case Management
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Covered Assets Covered
Qty
Hardware
Replacement
Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA, US, 94301 - City
Hall & PD
ASP130 P5 SRVR 1
ASP110 SRVR - ASBCE 2
LSP 1
G450 GTWY 2 N/A
COMMUNICATION MGR - SIMPLEX/DUPLEX 1 Virtual
ADS 1 Virtual
SAL 1 Virtual
SYSTEM MGR 1 Virtual
SESSION MGR 1 Virtual
AADS 1 Virtual
BREEZE PRESENCE SERVER 1 Virtual
AES 1 Virtual
AVAYAMESSAGING R11 1 Virtual
AVAYAMESSAGING - Consolidated Server 1 Virtual
Center
ASP130 P3 SRVR 1
G450 GTWY 1
LSP - S8300 1
COMMUNICATION MGR - ESS 1 Virtual
SESSION MGR 1 Virtual
SESSION MGR - Resiliency 1 Virtual
IX MESSAGING 1 Virtual
G430 GTWY 1 N/A
S8300E SERVER 1 N/A
G430 GTWY 1 N/A
S8300E SERVER 1 N/A
GTWY
G430 GTWY 1 N/A
G430 GTWY 1 N/A
G430 GTWY 1 N/A
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Location : 5367316 Children’s Library – 1275 Harriet St. Palo Alto, CA 94301 - Children's Library
G430 GTWY 1 N/A
Location : 5367317 Art Center – 1213 Newell Rd. Palo Alto, CA 94303 - Art Center Remote
G430 GTWY 1 N/A
Location : 5367318 Cubberly Ctr – 4000 Middlefield Rd. Palo Alto, CA 94303 - Cubberly Center
G430 GTWY 1 N/A
Location : 5367320 Fire Station 1 – 301 Alma St. Palo Alto, CA 94301 - Fire Station 1
G430 GTWY 1 N/A
Location : 5367321 Fire Station 2 – 2675 Hanover St. Palo Alto, CA 94304 - Fire Station 2
G430 GTWY 1 N/A
Location : 5367324 Junior Museum – 1451 Middlefield Rd. Palo Alto, CA 94301 - Junior Museum
G430 GTWY 1 N/A
Location : 5367326 Water Quality – 2501 Embarcadero Way Palo Alto, CA 94303 - Water Quality
G430 GTWY 1 N/A
Location : 5367329 Utilities Engineering Office – 1007 Elwell Ct. Palo Alto, CA 94303 - Utilities Eng. Office
G430 GTWY 1 N/A
Location : 51758172 Fire Station 3 – 2501 Embarcadero Way Palo Alto, CA 94303 - Fire Station 3
G430 GTWY 1 N/A
Location : 51485177 Fire Station 4 – 3600 Middlefield Rd. Palo Alto, CA 94301 - Fire Station 4
G430 GTWY 1 N/A
Location : 51485178 Fire Station 5 – 600 Arastradero Rd. Palo Alto, CA 94301 - Fire Station 5
G430 GTWY 1 N/A
Location : 5367323 Fire Station 6 – 711 Serra St, Stanford, CA 94305 - Fire Station 6
G430 GTWY 1 N/A
Hardware Replacement Legend:
A = Manufacturer parts replacement NBD
B = Manufacturer parts replacement 24x7x4
C = Manufacturer parts Replacement 8x5x4
D = Manufacturer parts replacement and onsite dispatch NBD
E = Manufacturer parts replacement and onsite dispatch 24x7x4
F = Manufacturer parts replacement and onsite dispatch 8x5x4 N/A = Not Applicable
INTEGRATED APPLICATIONS NOT COVERED
If present, for applications that have an integration to covered assets listed above but that are
not supported by Waterfield directly; Waterfield will support integration points within the
covered assets only, far end applications to be supported by CITY or CITY’s vendor.
24x7x365 Service Desk
• Waterfield will provide 24x7 system support for the solution environment. This includes
access to Waterfield’s 24x7 Service Desk. All incidents will be responded to and
managed according to Waterfield’s ticketing system.
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• Waterfield will document procedures for communicating issues and accessing support.
• CITY will be able to open and track tickets via the Waterfield Support Line (phone), the
Waterfield Collaboration Portal (web), and email.
Event Management
Waterfield will monitor for Events on all Managed Assets listed above.
Waterfield Responsibilities
• Detect that an Event has occurred by monitoring syslog, SNMP trap messages, KPIs, and/or
Threshold Crossing Alerts from Managed Assets.
• Implement Event correlation and filtering through Event Management policies when an Event
occurs.
CITY Responsibilities
• Provide access and make configuration changes required for Waterfield to receive messages
from the Managed Assets.
• Participate in mitigating and remediating events generated by CITY action or resulting from
CITY-owned infrastructure elements.
Incident Management
Waterfield will remotely identify, troubleshoot, and restore normal operational functionality if
an Incident is detected in a Managed Asset.
Waterfield Responsibilities
• Create tickets from detected or reported Events, where required.
• Manage Incidents by classifying, prioritizing, troubleshooting, and restoring normal operation.
• Escalation to the primary telephony OEM is included in Signature Support. Any other OEM or
third-party escalations are supported only under the Enhanced Signature Support offering for
3rd Party Vendor Management.
• Assign and reassess Incident priorities in accordance with Waterfield process and policy as
defined in the Waterfield Service Management Governance addendum.
• Notify relevant parties about Incidents, keeping the parties updated through Incident closure,
per communication protocols established at onboarding (preferred CITY contacts, escalation
points, etc.).
• Provide Incident reports pertaining to the Managed Assets via the Waterfield Management
Portal.
CITY Responsibilities
• Provide the means for Waterfield to access, troubleshoot, and resolve Managed Assets.
Primary remote access for Waterfield will be via the Waterfield Monitoring Server.
• Provide details about support contracts and other documentation/authorization required to
facilitate Incident resolution.
• Contact Waterfield if the CITY believes an Incident is in progress or has occurred.
• Perform Waterfield- or third-party-recommended changes to Managed Assets or third-party
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hardware, software, or services, if outside of the scope of Services Management.
• Provide Waterfield with updates to CITY-initiated actions related to the Incident(s).
Please note: Incident Tickets will be placed on “hold” for any period of time Waterfield is
delayed in receiving required information from the CITY, the End User, or applicable third-party
service providers.
Hardware Replacement (Parts Coverage)
Hardware replacement coverage listed in the Covered Assets table will be replaced under this
contract via Waterfield parts coverage or Manufacturer Support parts coverage, as noted. Parts
will be replaced on a Next Business Day basis if replacement is identified prior to 12:00 p.m.
PST.
Waterfield Technician Dispatch (Onsite Support)
Based on evolving virtualization technologies and support models that have greatly reduced the
need for onsite support, and to keep costs down for the CITY, technician dispatch for
troubleshooting or replacement hardware installation, if required, will be provided on a Time
and Materials basis only.
• If replacement parts provided by the OEM or Waterfield require pre-staging or configuration
prior to shipment to the CITY site, Waterfield will notify the CITY, stage the hardware at a
Waterfield office location, and ship the hardware to the CITY site for CITY installation.
• Upon request, onsite technician support will be provided on a best-effort basis with a Next
Business Day target for Priority 1 and 2 Incidents, subject to hardware and resource availability
and installation readiness. Onsite support will be billed on a Time and Materials basis or applied
against contracted Bundled Hours (if purchased). Dispatch will be supported by a Waterfield
resource or Waterfield-authorized contractor.
• If Manufacturer onsite dispatch is purchased, dispatch is subject to the SLA of the purchased
model per the Covered Assets table above.
Problem Management
Problem Management is the process of identifying the cause of an error in the supported
solutions, usually reported as occurrences of related Incidents, and removing the causes of
these errors permanently. Problem resolution and elimination of root cause often calls for the
application of a change in the existing environments.
Problem cases are created as necessary and worked by Waterfield staff in order to find the root
cause for a single issue or a set of related issues and apply a permanent fix.
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Change Management
Change Management is the process of recording and managing the planned deployment of
alterations to CITY environments, processes, and documentation. Waterfield will utilize the
CITY’s documented Change Management process, if available. Otherwise, Waterfield will utilize
its own system-enforced Change Management process to complete any change needed as the
result of an Incident or Problem ticket.
If required by documented CITY change procedures, Waterfield will prepare and provide a
Method of Procedure (MOP) document in Waterfield’s standard format outlining the details,
timing, and impacts of the change for CITY change-approval processing. If Waterfield is required
to participate in CITY Change Advisory Board (CAB) meetings or utilize custom formats or
processes for MOP development, additional charges may apply.
Waterfield is not accountable for Changes made by CITY staff outside of the agreed-upon,
documented Change Process.
Waterfield will manage the deployment of technical changes to the Managed Assets (e.g.,
configuration changes) in the CITY’s environment as a result of a change activity. Change types
supported by Change Management are Emergency, Normal, and Standard Changes.
Waterfield Responsibilities
• Manage the lifecycle of Change Management Requests, as required, resulting from an
Incident, Problem, Service Request, as otherwise mutually agreed to in writing, or as required in
accordance with the Change Management Process.
• Coordinate, provide governance, and execute changes to Managed Assets, using
commercially reasonable efforts to minimize any adverse impacts of those changes to the
CITY’s environment.
• Validate and prioritize Change Requests based on urgency.
• Manage the end-to-end lifecycle of Change Requests.
• Provide notifications of change request start and completion for CITY-impacting changes.
• Work with the CITY to identify and approve Standard Changes.
• As part of the CITY’s CAB process, discuss with the CITY any changes to Monitored Assets that
may result from Changes approved with respect to the Managed Assets.
• Perform pre- and post-change Health Checks.
CITY Responsibilities
• Provide written documentation to Waterfield at onboarding, or as modified throughout the
contract term, defining any custom Change Policies or processes that must be adhered to by
Waterfield.
• Submit Requests for Change (RFCs) for Waterfield Managed Assets as Service Requests via the
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Portal, Smart Bonding, or the CITY ITSM.
• Submit Requests for Change (RFCs) for CITY Managed Assets as Changes via the Portal, Smart
Bonding, or the CITY ITSM.
• Inform Waterfield of CITY scheduling, communicating, and executing of changes or CITY-
performed additions or modifications to the supported environment.
• Provide Waterfield access to CITY CAB meetings and facilitate communication between
Waterfield and the CITY’s CAB.
• Confirm and maintain scheduled windows for change activities.
• Determine and mitigate any impacts to the Monitored Assets or out-of-scope devices as a
result of a change to the Managed Assets.
• Review and approve (within 48 hours or less) Waterfield-initiated Changes to Managed Assets
via Waterfield’s Service Portal.
WATERFIELD Service Portal
Waterfield will provide a web-based Portal that provides CITY reports and information related
to the Services. The Waterfield Management Portal will be the primary means of
communication on all cases between the Waterfield Service Team and the CITY.
Waterfield Responsibilities
• Implement and make available to the CITY a Portal for the Service.
• Provide the capability to open, update, and review cases, changes, etc.
• Provide the capability to view reports.
CITY Responsibilities
• Provide end user profiles for Portal access in accordance with relevant industry practice.
• Review and update (as needed) Incidents and Change Requests.
Bundled Hours – 6 Hours Annual Allotment
Upon contract activation and at the anniversary date of each subsequent year of a multi-year
contract, the CITY’s services account will be credited with the specified annual hours of
Waterfield Services to be used at the CITY’s discretion. Additional hours beyond the
included/bundled hours will be charged at the contracted rate below. Bundled hours allotment
and rate are covered in the Program Fees section below.
All work requested under Bundled Hours is facilitated, scheduled, and coordinated by the
Waterfield support team, and all hours spent by all roles engaged in the planning and execution
of requested work are accrued against the Bundled Hours. Utilization of hours is tracked and
reported to the CITY on a monthly basis or available upon request.
Bundled hours are intended to be used within the contract year and do not roll over to
subsequent years.
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Service Requests (Move, Add, Change and Delete – MACD)
Typical uses for these hours include transactional programming requests generally related to
specific user additions, removals, or changes and not holistic or scoped changes as outlined
above. Waterfield maintains flexibility in working with the CITY on the utilization of Bundled
Hours; however, they are intended for use primarily for MACD, defined as follows:
• Requests are made via a ticket in the Waterfield Portal or via email to the Waterfield Service
Desk, and fulfilled by Waterfield with communications occurring within Waterfield’s ticketing
system.
• MACD is defined as not requiring multiple resources or coordination with external vendors or
parties, can be completed in less than two (2) hours per engagement, and does not require
Project Management or Coordination.
• Waterfield will utilize a proven change control process for managing changes requested under
this program.
• Complex requests requiring PMO management, third-party support coordination, multiple
phases, or that support net-new functionality, integrations, or capabilities will be quoted as
new project work through the Waterfield account team.
SEVERITY DEFINITIONS AND RESPONSE SLA:
LEVEL DEFINITION SERVICE LEVEL AGREEMENT
Priority 1
Service interruption affecting whole
site or network, mission critical server
or service, or critical application on a
Within one (1) hour
Priority 2
Service interruption affecting small
number of users, or service
degradation affecting many users
Within four (4) hours
Priority 3 Service interruption affecting a single
user, or service; degradation affecting Within one (1) business day
Priority 4 Informational & General requests, Within one (1) week
CITY acknowledges that incidents caused by system hardware or software may require third-
party manufacturer involvement. Waterfield is not liable for system hardware or software
failures or delays in receiving system software bug fixes, patches, maintenance releases,
upgrades, or new version
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EXHIBIT C-1
SCHEDUL OF RATES, AMENDMENT NO.1
AMENDED, REPLACES PREVIOUS
CONSULTANT’S schedule of rates is as follows:
Previously Paid Base for Year 1-3: $455,383.27
Previously Paid Additional Services Year 1-3: $45,538.33
Total Previously Paid Base and Additional Services Year 1-3: $500,921.60
Amendment #1:
Year #4 Base: $136,897.20
Additional Services Increased by: $75,921.19
Total for Amendment #1: $212,818.39
New Total Not to Exceed Compensation: $713,739.99
RATES AMENDED FOR YEAR 1-3 Paid: ($500,921.60)
These amounts for June 19, 2023 – June 18, 2026 are fully paid.
RATES ADDED FOR NEW ADDITIONAL TERM YEAR 4
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New Avaya Subscription | UC 12-Month and CC 15-Month Term
Description Recurring Qty Ext.
UC Subscription: July 1, 2026 - June 30, 2027 | 12 MONTH
Functional Location : 5233711 CITY OF PALO ALTO, 3201 E BAYSHORE RD, PALO ALTO, CA, US, 94303
255851 SA ON-SITE 24X7 APPL MED SRV R2D 1YPP $1,425.60 1 $1,425.60
NCPA not to exceed: Monthly: - Annual:
230192 SA ON-SITE 24X7 CM MED GTWY 1YPP $1,150.04 1 $1,150.04
NCPA not to exceed: Monthly: Annual:
230042 SA ON-SITE 24X7 CM SM SRV 1YPP $759.05 1 $759.05
NCPA not to exceed: Monthly: Annual:
352508 SA PREF ASP 130 R5 ESXI R7.X 1YPP $387.65 1 $387.65
NCPA not to exceed: Monthly: Annual:
434846 UC ADVANCED LIC FIXED SUBS ADJ LP $0.00 1 $0.00
Functional Location : 5367282 CITY OF PALO ALTO- UCC, 3241 E BAYSHORE, PALO ALTO, CA, US, 94303
434846 UC ADVANCED LIC FIXED SUBS ADJ LP $0.00 1 $0.00
Functional Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA,
256194 SA ON-SITE 24X7 APPL LG SRV R2D 1YPP $2,851.20 1 $2,851.20
NCPA not to exceed: Monthly: - Annual:
255851 SA ON-SITE 24X7 APPL MED SRV R2D 1YPP $1,425.60 2 $2,851.20
Description Recurring
NCPA not to exceed: Monthly: $118.80 - Annual: $1,425.60
230042 SA ON-SITE 24X7 CM SM SRV 1YPP
NCPA not to exceed: Monthly: $63.25 - Annual: $759.05
352502 SA PREF S8300E R10.X ESXI R7.X 1YPP
Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B
NCPA not to exceed: Monthly: $29.37 - Annual: $352.40
284959 SA PREF ADS SAL GTWY OVA
284961 SA PREF ADS SLA MON OVA
284960 UPG ADV ADS SAL GTWY OVA
284962 UPG ADV ADS SLA MON OVA
352508 SA PREF ASP 130 R5 ESXI R7.X 1YPP
NCPA not to exceed: Monthly: $32.30 - Annual: $387.65
433926 AES DMCC ENTL LIC FXD SUBS ADJLP
418056 AES DMCC ENTL R10 RBA FXD SUBS
433924 AES BASIC TSAPI ENTL LIC FXD SUBS ADJLP
418054 AES BASIC TSAPI ENTL R10 RBA FXD SUBS
434845 UC ESSENTIALS LIC FIXED SUBS ADJ LP
NCPA not to exceed: Monthly: $5.52 - Annual: $66.24
418132 UC ESSNTLS R10 RBA FXD SUBS
434846 UC ADVANCED LIC FIXED SUBS ADJ LP
NCPA not to exceed: Monthly: $7.92 - Annual: $95.04
418133 UC ADV R10 RBA FXD SUBS
CC Subscription: April 1, 2026 - June 30, 2027 | 15 MONTH
Functional Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA,
405787 CC ELITE VCE LIC FXD SUBS ADJLP
NCPA not to exceed: Monthly: $57.02 - Annual: $684.24 – 15 Month: $855.30
Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B
Avaya Subscription | UC 12-Month and CC 15-Month Term
Description Recurring Qty Ext.
418118 CC ELITE R10 RBA FXD SUBS $0.00 28 $0.00
Annual Subtotal: $99,581.49
Signature Support | 12-Month: July 1, 2026 - June 30, 2027
Description Recurring Qty Ext.
WTSSP45931 Signature Support - Avaya $29,950.00 1 $29,950.00
WT-SSP-AV-MS Signature Support - Avaya
WT-SSP-AV-BH Signature Support - Avaya Bundled Hours
1
6
Annual Subtotal: $29,950.00
XIMA Software License ADD
Description Price Qty Ext. Price
X0016 Realtime Agent $245.97 3 $737.91
PR-XC-Standard Pro-rated Xima Care Support $0.20 170 $34.00
Subtotal: $771.91
XIMA: July 6, 2026 - June 30, 2027
Description Recurring Qty Ext.
Serial: CITYOFPALOALTO370D373E2CC216BA7B
XC-8x5-R [Renewal] Standard Xima Care Support Contract $944.00 1 $944.00
Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B
XIMA: July 6, 2026 - June 30, 2027
Description Ext.
This contract includes:
Cancellations and Refunds
In the event of a cancellation of a Service agreement with Xima, the Customer will forfeit all prepaid
Annual Subtotal: $944.00
TelStrat: July 6, 2026 - June 30, 2027
Description Recurring Qty Ext.
Serial Number:
162-MAINT-ENG- Maintenance - Record Perpetual License-Y4
REC-01
$78.00 8 $624.00
Serial Number:
162-MAINT-ENG- Maintenance - Record Perpetual License-Y4
REC-01
$62.40 42 $2,620.80
Annual Subtotal: $3,244.80
28 Agent Seat
Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B
Vers.: Aug. 5, 2019
Page 18 of 18
Professional Services - One-Time Charge
Description Price Qty Ext. Price
WTPSO45931 Subscription Conversion License Service -
Remote Refresh During Brief OT Event
$2,405.00 1 $2,405.00
Subtotal: $2,405.00
Summary
Description Recurring One-Time
Avaya Subscription | UC 12-Month and CC 15-Month Term $99,581.49 $0.00
Signature Support | 12-Month: July 1, 2026 - June 30, 2027 $29,950.00 $0.00
XIMA Software License ADD $0.00 $771.91
XIMA: July 6, 2026 - June 30, 2027 $944.00 $0.00
TelStrat: July 6, 2026 - June 30, 2027 $3,244.80 $0.00
Professional Services - One-Time Charge $0.00 $2,405.00
Subt $133,720.29 $3,176.91
$136,897.20
Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B