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APPROVE A MOTION AUTHORIZING INCREASED EXPENDITURE AUTHORITY AND CONTINUED PARTICIPATION IN CALNET (STATE OF CALIFORNIA) CONTRACTS WITH AT&T CORPORATION AND COMCAST
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager, or designee, to continue to utilize the State of California CALNET NextGeneration (NextGen) contracts (Attachment A) for telecommunication services, which expire on June 30, 2028;
2. Authorize the City Manager, or designee, to continue to utilize the State of California CALNET Legacy 4 contracts (Attachment B), which expire on June 30, 2026, and exercise any optional extensions to these agreements;
3. Authorize the City Manager, or designee, to amend the CALNET NextGen and CALNET Legacy 4 agreements for services and products from authorized vendors (Attachment C) for an increased total estimated amount of $2,423,842, beginning July 1, 2025, through the respective extension periods of each agreement;
4. Approve findings that support and justify an exception to the competitive bid process; and
5. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City has used CALNET programs to procure technology services since 2000. The CALNET contracts provide the City simple and cost-efficient access to telecommunications and network services. By piggybacking on the State’s competitive bidding process and subsequent agreements to purchase communication services and products under the same pricing arrangements, the City can forego lengthy procurement processes and the burden of managing a contract. However, the current contract, CALNET NextGeneration and CALNET Legacy 4, is expiring. Therefore, this recommendation is for the City of Stockton to leverage CALNET NextGen and Legacy 4 pricing by utilizing the remaining extensions.
Staff recommend that the City Council authorize increased purchase authority for a total estimated amount of $2,423,842, to continue utilizing the CALNET contracts for telecommunication services through June 30, 2028, including any optional extensions.
DISCUSSION
Background
The City has used CALNET programs to procure technology services since 2000. The CALNET contracts provide easy access to telecommunications and network services by enabling the city to order services using a simple ‘Authorization to Order’ form. This eliminates the costly and lengthy procurement process and eliminates the burden of managing a contract. The CALNET program includes provisions to allow other non-state governmental agencies to use the State’s competitive bidding process and subsequent agreements to purchase communication services and products under the same pricing arrangements, allowing local agencies to forego lengthy procurement processes. This comprehensive program includes many vendors such as AT&T, Verizon and Comcast and discounts on internet connectivity, cell phone services, computer network equipment and services, traffic/police camera installation and maintenance, VOIP phone services, etc.
The most recent CALNET program the City has participated in is the State of California CALNET NextGeneration (NextGen) and State of California CALNET Legacy 4 (Legacy 4), which the City Council authorized with motion 2021-06-22-1208 on June 22, 2021. The agreements in this program were extended and currently expire on June 30, 2025.
CALNET was also used for various City equipment purchases, such as Public Works Traffic Camera System expansion, Police Wireless infrastructure, the build-out of 400 E. Main, and the Voice over Internet Protocol (VoIP) system.
The City has used CALNET contracts for the following:
− Dedicated phone lines for alarms, elevators, and sites not equipped with VoIP.
− Long Distance Services.
− Dedicated data lines such as T1’s used to connect Libraries, PD substations, Fire Houses, and Radio Towers.
− Internet Connectivity.
− Structured Cabling.
− VoIP Maintenance.
− Network Hardware Maintenance.
− Traffic/Police Surveillance Camera Installation and Maintenance.
− Network Hardware Purchases.
− Cell or Mobility Services.
− Consulting Services.
− E-Rate rebate program eligibility.
The CALNET contracts are negotiated at the State level with vendors that include AT&T, Verizon, Comcast, and numerous others.
Present Situation
The City continues to use CALNET programs to procure communications and data technology services through the NextGen and Legacy 4, which currently expire on June 30, 2025. This motion would authorize the City to exercise the State of California’s remaining extensions through June 30, 2028, including any optional extensions. By utilizing the NextGen and Legacy 4 contracts for telecommunication services and products, we ensure continued service and the ability to contract new services at the State’s discounted pricing.
Over the past three years, the City spent an average of $676,543 on NextGen and Legacy 4 services. The projected, current-year spend for FY 2024-25 is estimated at $732,251. Comcast network services have been expanded to several locations, including Police remote sites and EDD Parking Facilities. Comcast services are expanding further and scheduled to be installed at the new City Hall. The estimated cost of continuing telecommunication services over the next three years using NextGen and Legacy 4 is $2,423,842 (Table 1).
Table 1: Estimated Annual Spend for CALNET NextGeneration and Legacy 4 Services
|
|
Projected Current Year Spend |
FY 2025-26 |
FY 2026-27 |
FY2027-28 |
TOTAL |
|
AT&T Corp |
$564,722 |
$592,958 |
$622,606 |
$653,736 |
$1,869,300 |
|
Comcast |
$167,529 |
$175,905 |
$184,701 |
$193,936 |
$554,542 |
|
Total |
$732,251 |
$768,863 |
$807,307 |
$847,672 |
$2,423,842 |
The CALNET NextGen and Legacy 4 agreements contain many telecommunications categories, which may contain multiple service providers. The categories include:
1. Dedicated Transport
2. Carrier DOS Services
3. Long Distance Calling
4. Toll-Free Voice Calling
5. Analog Services
6. Multiprotocol Label Switching (MPLS) Data Network Services
7. Standalone VoIP Services
8. Cloud Hosted VoIP Services
9. Metropolitan Area Network (MAN) Ethernet Services
10. Flat Rate Internet Services
11. Sustained Bandwidth Internet Services and Features
12. Standard Contact Center Services
13. Custom Contact Center Services
14. Converged VoIP Services
15. Broadband with Internet Services
While the City does not currently utilize all vendors attached to the CALNET NextGen agreements, the Information Technology Department will have the opportunity to identify and order appropriate future services through any authorized vendor on the contract in the future. It is recommended that the City Council authorize increased purchase authority for a total estimated amount of $2,423,842, to continue utilizing the CALNET contracts for telecommunication services through June 30, 2028, including any optional 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 CALNET NextGen and Legacy 4 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 multiple telecommunication vendors for governmental members, including the City of Stockton. These agreements provide discounts for products and services by leveraging the State’s purchasing power.
3. Service providers associated with the contracts are leaders in telecommunications, and through the CALNET NextGen and Legacy 4 agreements, they provide the lowest rates.
4. The City has ongoing business relationships with several vendors listed on the contract, which has benefited the City with discounted pricing and reliable timeliness.
FINANCIAL SUMMARY
Expenditures for services using CALNET NextGen and Legacy 4 agreements are estimated for a total amount of $2,423,842, through June 30, 2028, including any optional extensions. (Table 1).
All purchases made from these cooperative agreements will be funded through the Technology Internal Service Fund 510, project accounts, or department accounts and will not exceed budget authority approved through the annual budget process. There is no impact on the General Fund.
Attachment A - CALNET NextGeneration Standard Agreement Amendment
Attachment B - CALNET Legacy 4 Standard Agreement Amendment
Attachment C - CALNET NextGeneration and Legacy 4 Authorized Vendors