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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Resolution Dispensing with Competitive Bidding and Authorizing use of CalNET Contracts
1. Resolution to dispense with competitive bidding and authorize use of CalNET Contracts.
COUNCIL ACTION
Item Type: Action Item
Approved for May 21, 2024 calendar
EXECUTIVE SUMMARY
The Information Technology Department is responsible for overseeing the City's telecommunications services, ensuring optimal service and cost-efficiency. Since 2010, the City has leveraged the CALNET program, administered by the California Department of Technology, for competitively bid telecommunications contracts. This strategic approach eliminates minimum purchase requirements, affording the City flexibility and control over future spending. It is important to note that all future telecommunications procurements are contingent upon budget allocations and approval processes. This ensures fiscal responsibility and alignment with the City's evolving needs and priorities.
The IT Department will continue to monitor industry trends and available options to guarantee that the City's telecommunications infrastructure remains efficient, reliable, and cost-effective.
RECOMMENDATION
That the City Council approve dispensing with competitive bidding for telecommunications services contracts and authorize the City Manager to execute all documents necessary to utilize the CALNET contracts for all telecommunication services which are available. 2{{section.number}}f
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ANALYSIS
The Information Technology Department is responsible for oversight of agreements with providers of telecommunications services citywide. Since 2010, the City has obtained telecommunications through the CALNET program which is administered by the California Department of Technology.
The California Department of Technology (CDT), CALNET Program helps approximately 160 State and 1,800 local government agencies effectively utilize the State voice and data networks and stay connected to the best available rates, services and equipment to meet business needs. This is accomplished through competitively bid master telecommunications and consultant contracts, and proactive project management.
The Department of Technology has the lead role for telecommunications vision, strategy and policy as authorized in California Government Code (GC) Section 11541 which requires CDT to develop strategic and tactical policies and plans for business telecommunications with consideration for the systems and requirements of public agencies. Operational policies and processes are continuously updated in the State Telecommunications Management Manual (STMM).
The vision, strategy and policy for procuring and implementing telecommunications and network services on a statewide basis are through the four service grouping modules of the CALNET Master Services Agreement (MSA) originally awarded on January 30, 2007.
The CALNET MSA is easy to use by both state and local government agencies because the mandatory services were competitively bid, allowing customer agencies to avoid individual and lengthy procurement processes.
The CALNET services are comprehensive and designed to meet the majority of the State’s telecommunications service requirements. Unless an exemption is granted, as described in STMM Chapter 3-501.0, State agencies under the jurisdiction of the Executive Branch are required to obtain mandatory services from one or more of the CALNET modules.
All California government agencies are highly encouraged to utilize the CALNET MSA because they provide ease of procurement, economic benefits, interoperability and convenience of a single point of contact for provisioning and maintenance, and other benefits.
Currently there are seventeen telecommunications service categories available collectively under the CALNET program which fall into the following four major service groupings:
•FirstNet
•Legacy
•Cellular
•Data Network and Communication Services
Across the seventeen service categories, contracts have been awarded to seventeen vendors with services generally available from multiple vendors in most categories. 3{{section.number}}f
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Since commencing use of the CALNET program in 2010, City Council authorization to utilize the CALNET contracts has been sought on an as-needed basis. While initially requesting authorization in this manner made sense, the City now is seeking blanket approval to utilize the full range of telecommunications services available through the CALNET contracts from all vendors awarded under each telecommunications service category.
Non-State entities are required to self-certify their organization meets the CALNET eligibility criteria by completing a Non-State entity Participating Agreement (NESPA).
Non-state entities must meet at least one of the criteria below to procure services using the CALNET services contracts.
Authorized Eligibility Criteria:
•Local government entities are defined as “any city, county, city and county, district or other governmental body empowered to expend public funds for the acquisition of goods”.
•Entirely 100% tax-supported entity
•A governmental entity with a Joint Powers Agreement (JPA) •Federally-recognized Indian Tribe
The City of Glendale executed a non-State entity Participating Agreement (NESPA) for the CALNET program on November 11, 2021. Once registered, non-state entities can sign up for a specific contract by completing an Authorization to Order agreement (ATO).
The City currently has executed ATOs established across fifteen categories with five vendors.
While the City of Glendale typically adheres to a competitive bidding process to ensure fair market value, there are circumstances where dispensing with the process may be justified. Specifically, City Charter Article VI § 9 Contracts requiring competitive bids delineates competitive bidding shall not be required for:
(h) Contracts with other governmental entities, or their contractors, for labor, materials, supplies or services.
In this case, staff believes that collectively the CALNET contracts meet the criteria delineated in City Charter Article VI § 9 and therefore should be categorically exempt from requiring competitive bids.
By authorizing the City Manager to execute all documents necessary to utilize fully the CALNET contracts for all telecommunication services categories and vendors which are available under the CALNET program, the City will be able to reduce the complexity, time and cost of procuring telecommunications services.
STAKEHOLDERS/OUTREACH
To provide telecommunications services, it is essential for the Information Services Department to maintain available resources.
Stakeholders include:
•City Department Representatives
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•Visitors to City Facilities
No public outreach for this telecommunications services contract is expected to be needed.
FISCAL IMPACT
There is no fiscal impact associated with authorizing the City Manager to execute all documents necessary to utilize fully the CALNET contracts for all telecommunication services categories and vendors which are available under the CALNET program, and no new appropriation is being requested at this time. All services ordered and provided under the CALNET contracts are subject to the appropriation limits approved by Council as part of the annual budget process.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and, therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Continue requesting City Council authority to utilize the CALNET contracts on an as needed basis. This would result in an increased cost of procuring telecommunications services, would slow the process, and delay needed services.
Alternative 2: Do not utilize the CALNET contracts and bid each telecommunications service procurement individually. This would result in a drastically increased cost of procuring telecommunications services, would significantly slow the process, delay needed services.
ADMINISTRATIVE ACTION
Submitted by:
Jason Bradford, Director of Finance/Information Technology Prepared by:
Jason Miller, Assistant Chief Information Officer
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS