Title
Resolution authorizing the City Manager to purchase cellular telephone service through the contract between the Western States Contracting Alliance (WSCA) and Nextel of California, Inc. (Citywide)
Discussion
The Technology Services Department (TSD) is responsible for administering cellular telephone service for all City departments. Since 1990, the City has used cellular telephones for many reasons including their cost effectiveness for remote person-to-person communications, limited availability of radio spectrum, improved responsiveness to customers, and employee safety.
For departments under the City Manager's authority, department directors approve requests for cellular service based upon jOb duties. The City Auditor conducts regular reviews of cellular telephone usage.
In October 2002, the City initiated a process to reduce cell phone expenditures. As a first step, departments were asked to perform a zero base review of their mobile devices (e.g., cell phones and pagers) and to turn in or consolidate devices. In addition, in the summer of 2003, a voluntary stipend program was initiated, which allowed for employees who currently had a Cityissued phone to receive a monthly allowance to obtain their own cellular service. Since October 2002, we have reduced the number of phones from 1,258 to 1,028, a decrease of 230, or 18.3 percent. We also reduced the number of pagers from 1,210 to 617, a decrease of 593, or 49 percent. In the months to come we will continue to look for further opportunities to reduce devices where possible.
Currently, the City uses two vendors for cellular service, Nextel of California (Nextel> and Verizon Wireless (Verizon). Both providers meet our operational and customer service requirements; however, Nextel has become the primary provider due to its two-way radio capability.
Verizon Agreement No. 28112 expired on June 30, 2004, and will not be renewed. The amount spent with Verizon will be less than $100,000 annually requiring a purchase order only. Nextel Agreement No. 26557, due to expire on November 30, 2004, was terminated as of Verizon's expiration date. This was done to facilitate aligning the two providers' terms going forward, and to allow the City to take advantage of the Western States Contracting Alliance Master Price Agreement (WSCA) discount as soon as possible. The new rate represents additional savings of approximately eight percent compared to the City's current agreements.
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 Master Price Agreement. 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 Nextel under the WSCA contract for as long as it is in effect.
Verizon has agreed to provide the same rates offered by WSCA. The City's participation in WSCA may be terminated at any time with 30 days' prior written notice.
This matter was reviewed by Deputy City Attorney Everett L. Glenn on June 24, 2004, and by Budget Management Officer David Wodynski on June 25,2004.
Timing Considerations
The current contracts ended June 30, 2004. Accordingly, City Council action is requested on July 6, 2004, to ensure cellular telephone service is continued without interruption.
Fiscal Impact
Total aggregate expenditures will not exceed $624,696 per year. Sufficient funding has been budgeted in the General Services Fund (IS 385) in the Technology Services Department (TS).
SUGGESTED ACTION
Adopt resolution authorizing City Manager to execute an agreement and all required documents to provide cellular telephone service for as long as WSCA contract is in effect or the City gives 30 days' notice of termination in the total annual aggregate amount not to exceed $624,696.
Body
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO PURCHASE CELLULAR TELEPHONE SERVICE THROUGH THE CONTRACT BETWEEN THE WESTERN STATES CONTRACTING ALLIANCE AND NEXTEL OF CALIFORNIA, INC.
Respectfully Submited,
[Respectfully Submited,]