TITLE
Adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents and amendments, with T-Mobile USA, Inc. (T-Mobile), of Bellevue, WA, for providing mobile devices and cellular and data service plans, on the same terms and conditions afforded to the State of Utah, through NASPO ValuePoint, in an annual amount not to exceed $325,000, until the NASPO contract expires on June 30, 2024, with the option to renew for as long as the NASPO contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Verizon and T-Mobile to provide mobile devices and cellular and data service plans.
The Technology and Innovation Department (TI) is responsible for purchasing, deploying, and maintaining City-owned mobile devices and administering cellular and data service plans for mobile devices, including tablets and laptops. For many years, the City has issued mobile devices to enhance employee productivity and efficiency. For departments under the City Manager's authority, department directors may approve requests for City-issued mobile devices, and the City Auditor’s Office conducts regular reviews of mobile device usage.
Currently, the City uses four vendors for cellular and data services: Verizon, Sprint Solutions, lnc. (Sprint), T-Mobile, and AT&T Mobility (AT&T). All four providers meet the City’s operational and customer service requirements. Effective April 1, 2020, T-Mobile merged with Sprint, and as a result of the merger, Sprint Corporation and all its subsidiaries are now subsidiaries of T-Mobile.
In 2010, the City Council adopted Resolution No. RES-10-0151 to utilize the State of California Department of General Services’ (DGS) Participating Addenda in the Western States Contracting Alliance (WSCA) Master Service Agreement for wireless products and services with Sprint. In 2014, the City Council authorized the adoption of Resolution No. RES-14-0032 to participate in the WSCA Master Service Agreement with Verizon. The WSCA Master Service Agreements for wireless products and services with Sprint and Verizon will expire with no renewal options on December 31, 2020.
To ensure that the City continues to have access to volume pricing discounts for cellular and data services with T-Mobile and Verizon, City Council approval is requested to execute participating addenda on the same terms and conditions afforded to the State of Utah under NASPO ValuePoint Master Agreement 152-1 with Verizon and Master Agreement 176 with T-Mobile.
The use of cooperative purchasing contracts provides agencies with opportunities for greater efficiencies in acquiring goods and services, reduces the City's administrative burden of conducting a competitive bid process, and offers more significant cost savings by leveraging multiple-agency buying volumes. The proposed Resolution allows purchases under the NASPO ValuePoint Master Agreement for as long as it is in effect, and the City's participation may be terminated at any time with 30 days' prior written notice.
City Charter Section 1802 provides an alternative procurement method by permitting the
City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on October 22, 2020, Business Services Bureau Manager Tara Yeats on October 21, 2020, and by Budget Management Officer Rhutu Amin Gharib on October 27, 2020.
TIMING CONSIDERATIONS
City Council action is requested on November 17, 2020, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The total aggregate annual cost for mobile devices and cellular and data service plans will not exceed $1,175,000. Sufficient funds are currently budgeted in the General Services Fund Group in the Technology and Innovation Department. Costs for mobile devices and cellular and data service plans are recovered from client departments through the annual TI Memorandum of Understanding (MOU). This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
APPROVED:
THOMAS B. MODICA
CITY MANAGER