City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 5, 2024
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Amendment to T-Mobile Agreement
RECOMMENDATION
It is recommended that the City Council Approve an Amendment to the Agreement with T-Mobile after supporting the Hot Spot program for 3.5 years, saving the City $140,000, and terminating it in June of 2024.
BACKGROUND
City staff negotiated with T-Mobile based on the Council’s recommendation to terminate the current contract. To terminate the contract T-Mobile requires a fee of $39,262.50. Instead of just terminating the contract, they have agreed to take the payment that would be charged and disbursed over the next six months to cover 450 hot spots that they have identified with the highest use. They proposed this opportunity so that those who are truly relying on the device can continue to use it through the end of June.
REVIEW & ANALYSIS
Duties and Commitments
For the fee that the City was going to pay to terminate the contract early, T-Mobile has proposed to provide the opportunity to keep 450 devices, with the highest use, active and draw down the $39,262.50 in monthly instalments instead of in one final payment. This option will still save the City a total of $140,000; and the contract will fully conclude in June.
Explain Recommendation and How it Supports the Vision
AGENDA
ITEM
8 Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: The City negotiated an early termination of the contract with T-Mobile. They understood that the cancellation was to save money and help our budget. T-Mobile then agreed to cut our contract, but instead offered to utilize the funds that were going to cover the termination of the contract to cover the cost of 450 lines that are most frequently used. Giving those that are relying on the device a little more time.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes _____No _____ NA
Explain: This new proposal still allows the City to be fiscally responsible and helps us save $140,000, but also makes the best use of our money.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education X Yes No N/A
Explain: Please see explanation above for the Vision.
ALTERNATIVES
If the Council decides not to approve the amendment to the agreement, the City will still be required to pay $39,262.50.
BUDGET IMPACT
The proposed Amendment to the contract would still save the City $140,000.
CONCLUSION
It is recommended that the City Council Approve an Amendment to the Agreement with T-Mobile after supporting the Hot Spot program for 3.5 years, saving the City $140,000, and terminating it in June of 2024.
Attachments:
1. Proposed Amendment