TITLE
Recommendation to adopt resolution authorizing City Manager to execute contracts with Verizon Business Network Services, Inc., and authorize City Manager to execute contracts with Time Warner Cable, and Verizon Wireless to provide local and long distance telephone, data communications, and Internet services in an annual aggregate amount not to exceed $1,670,000 for a period of three years with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
In May 1999, the City of Long Beach entered into a three-year Agreement with GTE California, Incorporated (now Verizon California, Inc.) to provide local telephone service, which also included data communications service and support service for line additions, changes, and deletions. This contract was amended and the term extended to June 30, 2004.
Since 2004, the Technology Services Department (TSD) has undertaken competitive Request for Proposal (RFP) processes for telecommunications services with the goal of reducing City costs. TSD's efforts have resulted in substantial savings over the period, taking advantage of increased competition and technological advancements in the industry.
In keeping with this practice, TSD issued an RFP in August 2012 for telecommunications network services, including local and long distance telephone, data communications, and Internet services. Four proposals were received by the submittal date. Based on a thorough analysis and evaluation of the proposals, interviews were conducted with a short list of vendors and Verizon Business Network Services and Time Warner Cable were selected to provide the requested services. Verizon Wireless was also selected to provide cellular broadband services under the City's prior agreement approved by City Council on January 17, 2012.
TSD's current annual expenses for local and long distance telephone, data communications, and Internet services with existing vendors is approximately $2.1 million. Once the services are fully transitioned to the recommended vendors, total annual expenditures will be approximately $1.7 million, providing an estimated $400,000 in savings per year. The savings will be realized by moving to lower cost broadband and cellular technologies where appropriate. City departments will benefit as the savings will be passed through in future MOU allocations.
This matter was reviewed by Deputy City Attorney Gary Anderson on July 3, 2013 and by Budget Management Officer Victoria Bell on July 5, 2013.
TIMING CONSIDERATIONS
City Council action is requested on July 23, 2013, due to the expiration of the current contract on August 31, 2013.
FISCAL IMPACT
Annual expenditures will not exceed $1,670,000. Sufficient funding is budgeted annually in the General Services Fund (IS 385) in the Technology Services Department (TS). Costs are recovered from client departments and are budgeted in the annual Department of Technology Services (TS) MOU. There is no local job impact associated with this recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY TO EXECUTE AN AGREEMENT TO PURCHASE LOCAL AND LONG DISTANCE TELEPHONE, DATA COMMUNICATION AND INTERNET SERVICES THROUGH THE CONTRACTS BETWEEN VERIZON NETWORK BUSINESS SERVICES AND THE STATE OF CALIFORNIA
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CURTIS TANI
DIRECTOR OF TECHNOLOGY SERVICES
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER