TITLE
Recommendation to adopt resolution to participate in the Western States Contracting Alliance Participating Addendum (State of California Master Service Agreement No. 7-10-70-15) with Sprint Nextel to provide cellular telephone and Blackberry services; and authorize City Manager to execute a new agreement with Sprint Nextel. (Citywide)
DISCUSSION
The Technology Services Department is responsible for administering cellular and Blackberry e-mail service for City departments. Since 1990, the City has used cellular phones for many reasons, including their cost-effectiveness for remote person-to-person communications, limited availability of radio spectrum, improved responsiveness to customers, disaster responsiveness, and employee safety. Since 2001, the City has used Blackberry devices for mobile e-mail communication and browsing capabilities to enhance productivity and efficiency. For departments under the City Manager's authority, department directors approve requests for cellular telephone and Blackberry devices based upon job duties. Also, the City Auditor conducts reviews of cellular telephone usage.
Currently, the City uses three vendors for combined cellular and Blackberry services: Nextel of California, lnc., doing business as Nextel Communications (Nextel), T-Mobile USA, and Verizon Wireless (Verizon). All three providers meet our operational and customer service requirements; however, Nextel has become the primary provider due to its two-way radio capability.
The Master Price Agreement with State of California Wireless contract No. 1S-05-58-01 (CWC) for Nextel services will no longer be available after December 31, 2010. The State of California Department of General Services has executed Participating Addendum No. 7-10-70-15 with Sprint Nextel under the Western States Contracting Alliance (WSCA) cooperating purchase agreement for wireless products and services. City staff recommends using the current WSCA agreement to take advantage of the discounted rates for Nextel cellular phone and Blackberry services. The new rate will increase our discount to approximately 24 percent compared to the City's previous agreement of 22 percent.
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 WSCA agreement.
The proposed Resolution allows purchases under the WSCA 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.
This matter was reviewed by Deputy City Attorney Gary Anderson on November 22, 2010, and by Acting Budget and Performance Management Bureau Manager Lou Palmer on November 23, 2010.
TIMING CONSIDERATIONS
The City previously used the discounted rates of the Master Price Agreement with State of California Wireless Contract No. 1S-05-58-01 for Nextel. The agreement has expired. City Council action is requested on December 14, 2010 to ensure the City is afforded discounted pricing under the Western State Contracting Alliance (WSCA) Participating Addendum No. 7-10-70-15 beginning January 1, 2011.
FISCAL IMPACT
Total expenditures for cellular telephone and Blackberry services for Sprint/Nextel will not exceed $445,000 per year, consistent with the amount in the current agreement approved by the City Council in April 18, 2006. Costs for cellular telephone and Blackberry services are passed to client departments via the Technology Services MOU. Sufficient funds are budgeted in the General Services Fund (IS 385) and in the Technology Services Department (TS) as well as user department budgets to support this activity. There is no local job impact associated with this recommendation.
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 CELLULAR TELEPHONE AND BLACKBERRY SERVICES THROUGH THE CONTRACT BETWEEN SPRINT NEXTEL AND THE STATE OF CALIFORNIA
Respectfully Submitted,
CURTIS TANI
DIRECTOR OF TECHNOLOGY SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER