TITLE
Recommendation to authorize City Manager to execute a contract with Verizon Business Network Services, Inc. (Verizon) to provide local telephone and data communications services in an annual amount not to exceed $1,470,700 for a period of three years, with options for two additional periods of one year each; and
Adopt resolution to participate in State of California Integrated Information Network Agreement (CALNET II), Master Services Agreement No. DTS 06E1392 and No. DTS 06E1393 with Verizon. (Citywide)
DISCUSSION
In May 1999, the City of Long Beach entered into a three-year Agreement (No. 26276) with GTE California Incorporated (now Verizon California, Inc.) to provide local telephone service, which also includes data communications service and support service for line additions, changes, and deletions. This contract was amended and the term extended to June 30, 2004.
Prior to the expiration of the Verizon contract, the Department of Technology Services (TS) initiated a Request for Proposals (RFP) process for telecommunications services in 2004. City staff selected Verizon from the five proposals received to provide local phone and data communications services because it offered the lowest overall rates. The RFP process resulted in a 35 percent reduction in rates, which equated to savings of approximately $800,000 annually. The contract was amended and the term extended through August 31,2009.
In January 2009, TS again initiated an RFP process for telecommunications services, which included local and long distance phone, data communications, and Internet services. Eight proposals were received by the March 6, 2009 submittal date. Based on a thorough analysis of the proposals and interviews with a short list of vendors, Verizon was selected to provide local phone and data communications services.
Currently, the TS annual budget for Verizon services is approximately $1.9 million. The new agreement with Verizon will reduce the rates paid by the City by over 20 percent, or $429,300 per year, with no reduction in service.
Section 1802 of the City Charter permits the City to participate in joint and cooperative purchasing agreements by adoption of a Resolution of the City Council authorizing purchases under contracts entered into by other governmental agencies, such as the California Integrated Information Network (CALNET II). This contract sets price caps on the equipment and services purchased thereunder, ensuring that City prices are based on the most competitive rates. The proposed Resolution allows purchases with Verizon under the CALNET II contract for as long as it is in effect. Verizon has agreed to provide the same rates offered by CALNET II. The City's participation in CALNET II may be terminated at any time with 30 days' prior written notice.
This matter was reviewed by Deputy City Attorney Gary Anderson on June 10, 2009 and Budget and Performance Management Bureau Manager David Wodynski on June 16, 2009.
TIMING CONSIDERATIONS
City Council action is requested on July 7, 2009, due to the expiration of the current contract on August 31, 2009, and to begin taking advantage of lower pricing offered under the CALNET II agreement as soon as possible.
FISCAL IMPACT
Annual expenditures will not exceed $1,470,700, and will be passed to client departments via the Technology Services MOU. Sufficient funding has been budgeted in the General Services Fund (IS 385) in the Technology Services Department (TS) to support this expenditure as well as user department budgets to cover MOU charges.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY TO EXECUTE AN AGREEMENT TO PURCHASE LOCAL TELEPHONE AND DATA COMMUNICATION SERVICES THROUGH THE CONTRACTS BETWEEN VERIZON NETWORK BUSINESS SERVICES AND THE STATE OF CALIFORNIA
Respectfully Submitted,
CURTIS TANI
DIRECTOR OF TECHNOLOGY SERVICES
NAME |
APPROVED: |
TITLE |
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PATRICK H. WEST |
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CITY MANAGER |