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APPROVE A MOTION TO EXTEND THE CALNET NEXTGEN PARTICIPATING AGREEMENT AND INCREASE EXPENDITURE AUTHORITY FOR CELLULAR SERVICES WITH AT&T MOBILITY, VERIZON WIRELESS, AND T-MOBILE
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to utilize the extension of 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, 2027;
2. Authorize the City Manager to utilize the extension of the State of California CALNET NextGen contract for Verizon Wireless cellular voice and data services (Attachment B) for the remainder of the contract, which expires on June 30, 2027;
3. Authorize the City Manager to utilize the extension of the State of California CALNET NextGen contract for Verizon Wireless CALNET First Responder Cellular Services (Attachment B) for the remainder of the contract, which expires on June 30, 2027;
4. Authorize the City Manager to utilize the State of California CALNET contract with T-Mobile for cellular voice and data services (Attachment C) for the remainder of the contract, which expires on June 30, 2027
5. Authorize the City Manager to utilize the State of California CALNET NextGen contract for T-Mobile CALNET First Responder Cellular Services (Attachment C) for the remainder of the contract, which expires on June 30, 2027;
6. Authorize the City Manager to amend the current AT&T Mobility and Verizon Wireless contracts and enter into a new agreement with T-Mobile for a total estimated amount of $1,587,813 through June 30, 2027;
7. Approve findings that support and justify an exception to the competitive bid process; and
8. 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, and cellular services.
T-Mobile has been added as an alternative service provider to help improve cellular coverage for sites identified as having cellular reception issues. Municipal Utilities Department’s (MUD) Regional Wastewater Control Facility (RWCF) is one of those sites where T-Mobile has shown a significantly better cellular connection.
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 recommend that the City Council authorize increased purchase authority for a total estimated amount of $1,587,813, to continue utilizing the CALNET contracts for services with AT&T Mobility and Verizon Wireless, and adding T-Mobile services, through June 30, 2027.
DISCUSSION
Background
On March 23, 2021, the City Council, through Motion 2021-03-23-1202, authorized the City’s participation in the State of California’s CALNET NextGeneration (NextGen) for AT&T Mobility cellular voice and data services and State of California CALNET NextGen contract for Verizon Wireless cellular voice and data services and First Responder Cellular Services (FirstNet). The motion was approved for five years for an estimated amount of $3,783,218.
The Police Department’s primary use of AT&T Mobility services is to provide connectivity from the police vehicles to dispatch and reporting systems. 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.
The current purchase authority was for five years and expires on 6/30/2025. Staff would like to use the remaining two-year extension and increase the expenditure authority for a total estimated amount of $1,587,813.
Present Situation
Motion 2021-03-23-1202 has reached its five-year Council authorization limit. The City wishes to use the remaining two-year extension on the CALNET NextGen contract for AT&T Mobility and the CALNET NextGen contract for Verizon Wireless. All City departments use AT&T Mobility and Verizon for their cellular services for smartphones, iPads, tablets, laptops, and hotspots.
T-Mobile has been added as an alternative service provider to help improve cellular coverage for sites identified as having cellular reception issues. MUD RWCF is one of those sites where T-Mobile has shown a significantly better cellular connection. MUD's current Verizon expenditure is estimated to be about $134,000 annually. The majority of these expenditures will be moved to T-Mobile.
The table below (Table 1) forecasts our expected expenditure, assuming a 5% growth in our cost of services each year. Utilizing the previous five years of data, staff determined the growth rate averaged seven percent, but it was on a downward trend. The City may also opt to expand the Verizon Wireless service to include a CALNET First Responder Cellular Services component for Public Safety programs. Staff do not expect to exceed this 5% growth rate.
Table 1: Estimated Annual Spend for Cellular Services
|
|
Projected Current Year Spend |
FY 2025-26 |
FY 2026-27 |
TOTAL |
|
AT&T Mobility |
$202,523 |
$212,649 |
$223,282 |
$435,931 |
|
T-Mobile |
|
$134,000 |
$140,700 |
$274,700 |
|
Verizon |
$535,137 |
$427,894 |
$449,288 |
$877,182 |
|
TOTAL |
$737,660 |
$774,543 |
$813,270 |
$1,587,813 |
The City has used CALNET programs to procure communications and data technology services since 2000. Our most recent CALNET program the City has participated in is NextGen, which the City Council authorized with motion 2021-03-23-1202 on March 23, 2021. The agreements in this program were extended and currently expire on June 30, 2025. The extension allows agencies to use these agreements during the time necessary to secure and implement the new agreements. By utilizing the CALNET NextGen contracts for AT&T, Verizon Wireless, and T-Mobile cellular voice and data 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, 2027.
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 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, Verizon Wireless, and T-Mobile 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, Verizon Wireless, and T-Mobile are leaders in wireless services and offer the lowest rates through the CALNET NextGen agreements.
4. The City has an ongoing business relationship with AT&T Mobility, Verizon Wireless, and T-Mobile that has benefited the City with discounted pricing and reliable timelines for purchasing products and services.
FINANCIAL SUMMARY
Expenditures for cellular equipment, voice, and data services using CALNET agreements are estimated to be $1,587,813 over the next two years (Table 2).
Table 2: Estimated Annual Spend for AT&T, Verizon Wireless, and T-Mobile Cellular and Data Services
|
|
FY 2025-26 |
FY 2026-27 |
TOTAL |
|
Estimated Annual Expenditures |
$774,543 |
$813,270 |
$1,587,813 |
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 2025-26. 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 Verizon CALNET NextGen Cellular Contract
Attachment C - CA T-Mobile CALNET NextGen Cellular Contract