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APPROVE A MOTION TO UTILIZE CALNET NEXTGEN PARTICIPATING AGREEMENT FOR CELLULAR VOICE AND DATA SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to utilize the State of California CALNET NextGeneration (NextGen) contract (Attachment A) for AT&T Mobility cellular voice and data services for the remainder of the contract, which expires on June 30, 2023, and exercise any optional extensions to this agreement;
2. Authorize the City Manager to utilize the State of California contract with AT&T for Public Safety (FirstNet) broadband services (Attachment B) for the remainder of the contract, which expires on October 21, 2023, and exercise any optional extensions to this agreement;
3. Authorize the City Manager to utilize the State of California CALNET NextGen contract for Verizon Wireless cellular voice and data services (Attachment C) for the remainder of the contract, which expires on June 30, 2023, and exercise any optional extensions to this agreement;
4. Authorize the City Manager to utilize the State of California CALNET NextGen contract for Verizon Wireless CALNET First Responder Cellular Services (FirstNet) (Attachment C) for the remainder of the contract, which expires on June 30, 2023, and exercise any optional extensions to this agreement;
5. Authorize the City Manager to enter into these agreements in the estimated amount of $3,783,218;
6. Approve findings that support and justify an exception to the competitive bid process; and
7. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City utilizes AT&T Mobility services and Verizon Wireless services for all departments for cellular voice, cellular data services, and equipment. The services include; cell phone service, Police and Fire laptop and iPad cell phone services, internet data service, phone lines for elevators and alarm systems, long-distance services, and cellular services.
Since 2000, the City has used different CALNET contracts for communications and data services for all departments. By leveraging the State of California’s CALNET agreements, which the State Department of Technology established through a competitive bidding process, the City will continue to receive the State’s average 22% discount on pricing.
Staff is seeking approval to utilize the CALNET contracts to continue services with Verizon Wireless and AT&T Mobility for $2,349,775 and $1,433,444, respectively, over the next five years, for a total estimated amount of $3,783,218.
DISCUSSION
Background
On June 26, 2007, the City Council, through resolution 07-0254, authorized the City’s participation in the State of California’s Wireless equipment and Services contract (1S-05-58-02) for Verizon Wireless services. Verizon’s services enable the City to extend services to employees out in the field. All departments use Verizon for cellular communication, and Fire uses cellular data in the Fire vehicles as part of dispatch and reporting. Municipal Utilities and Public Works use cellular data to connect to their work order systems while out in the field. In June of 2012, this contract expired. After the contract period, the City continued to utilize Verizon Wireless services with discount pricing through their National Association of State Procurement Officials (NASPO), formerly WSCA (Western States Contracting Alliance), cooperative agreement no. 1907. The NASPO cooperative agreement no. 1907 will expire on March 31, 2021.
The City utilized AT&T Mobility services under the WSCA contract (WSCA 7-06-70-01) approved by City Council under resolution 10-0136. The Police department’s primary use of this service is to provide connectivity from the police vehicles to our dispatch and reporting systems. This agreement expired in 2013. After the contract period AT&T Mobility continued to offer the City its services and equipment with similar discount pricing through various cooperative agreements. Through the State CALNET program, AT&T will no longer continue to extend the State discounts to agencies that are not participating in the CALNET contracts. For the City to be compliant, the City must be under the CALNET contract to share in these discounts.
Present Situation
In 2020, the City spent approximately $655,000 for cellular voice, data, and equipment with both AT&T Mobility (including FirstNet which is a wireless network created specifically for First Responders) and Verizon Wireless with a cost breakdown in the amount of $250,000 and $405,000 respectively. Public Safety utilizes AT&T Mobility for the FirstNet component that AT&T provides through their service. Other departments utilize Verizon Wireless mostly for field services where the overall coverage of the service better meets their needs.
The table below (Table 1) is a forecast of our expected expenditures, assuming a 5% growth in our cost for services each year.Utilizing the previous three years of data, staff determined the growth rate averaged seven percent, but on a downward trend. The City may also opt to expand the Verizon Wireless service to include a CALNET First Responder Cellular Services (FirstNet) component for Public Safety programs. Staff does not expect to exceed this 5% growth rate.
Table 1:
ESTIMATED ANNUAL SPEND FOR CELLULAR SERVICES
|
|
2021 |
2022 |
2023 |
2024 |
2025 |
TOTAL |
|
AT&T and FirstNet |
$259,417 |
$272,388 |
$286,007 |
$300,308 |
$315,323 |
$1,433,444 |
|
Verizon and FirstNet |
$425,250 |
$446,513 |
$468,838 |
$492,280 |
$516,894 |
$2,349,775 |
|
TOTAL |
$684,667 |
$718,901 |
$754,846 |
$792,588 |
$832,217 |
$3,783,218 |
To provide discount pricing, staff evaluated consortiums that offered agreements. And performed a comparison of the active NASPO participating agreements and the CALNET NextGeneration (NextGen) agreements. Although the pricing structure for the services was similar, the CALNET NextGen agreements offered advantages over the NASPO agreements including lower administration fees, month-to-month services with no cancellation fees, and California jurisdiction for any legal actions.
The City has used CALNET programs to procure communications and data technology services since 2000. Our most recent CALNET program is CALNET 3, which the City Council authorized with motion 2015-03-10-1207 on March 10, 2015. The agreements in this program were extended and currently expire on December 31, 2021. The extension allows agencies to use these agreements during the time necessary to secure and implement the new agreements. By utilizing the State of California CALNET NextGen contracts for AT&T and Verizon Wireless cellular voice and data, and FirstNet services (Attachments A, B, and C), we ensure continued service and the ability to contract new services at the State’s discounted pricing through June 30, 2023, excluding extensions.
FINDINGS
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding process where the City accesses the terms of a competitively bid and negotiated cooperative purchasing agreement and where the City council has approved findings that support and justify the exception. The findings are as follows:
1. The City’s Procurement Office recommends and approves the use of the State of California CALNET NextGen contracts, as they meet the criteria as an exception to the competitive bidding process by way of secured competitive pricing, making it a valuable alternative to the standard bid requirement.
2. The State of California has established cooperative agreements with AT&T and Verizon Wireless for wireless communications to governmental members,which includes the City of Stockton. These agreements provide discounts for products and services by leveraging the State’s purchasing power.
3. AT&T Mobility and Verizon Wireless are leaders in wireless services and through the CALNET NextGen agreements, they provide the lowest rates.
4. The City has an ongoing business relationship with AT&T Mobility and Verizon Wireless that has benefited the City with discounted pricing and reliable timeliness of purchasing products and services.
FINANCIAL SUMMARY
Expenditures for cellular equipment, voice, and data services using CALNET agreements are estimated to be $3,783,218 over the next five years (Table 2).
Table 2:
ESTIMATED ANNUAL SPEND FOR AT&T AND VERIZON WIRELESS CELLULAR AND FIRSTNET SERVICES
|
|
2021 |
2022 |
2023 |
2024 |
2025 |
TOTAL |
|
Estimated Annual Expenditures |
$684,667 |
$718,901 |
$754,846 |
$792,588 |
$832,217 |
$3,783,218 |
All purchases made from this cooperative agreement for cellular equipment, voice, and data services, will be funded through the Technology Internal Service Fund, project accounts, or department accounts and will not exceed budget authority approved through the annual budget process for FY 2020-21. Future annual costs will be included in the annual budget appropriation process. There is no impact on the General Fund.
Attachment A - CA ATT CALNET NextGen Cellular Contract
Attachment B - CA ATT CALNET NextGen FirstNet Contract
Attachment C - CA Verizon CALNET NextGen Cellular FirstNet Contract