CITY OF MERCED
ADMINISTRATIVE REPORT
Merced Civic Center
678 W. 18th Street
Merced, CA 95340
Agenda Item I.13. Meeting Date: 6/7/2021
Report Prepared by: Jeff Bennyhoff, Director of Information Technology SUBJECT: Approval to Waive the Competitive Bid Process to Allow for the Cooperative Purchase with the State of California and Approval of the State of California’s CALNET 4 Category 16:
Long Distance Calling, Category 17: Toll Free Voice Calling, Category 18: Long Distance Calling, Category 18.3.1.1: Analog Service, Category 20: MPLS Data Network Services, Category 22:
Cloud Hosted VoIP Services, Category 23: Metropolitan Area Network (MAN) Ethernet Services and Features, Category 24: Flat Rate Internet Services, Category 25: Sustained Bandwidth Internet Services and Features, Category 30: Broadband with Internet Services for AT&T Corporation Providing Telecommunication Services not to Exceed the Annual Amount of $75,000 and a Total Amount of $300,000
REPORT IN BRIEF
Considers waiving the competitive bid process and approving the State of California’s competitively bid contract CALNET 4 for AT&T Corporation providing telecommunication services not to exceed the annual cost of $75,000 and a total cost of $300,000 and authorizing the City Manager or designee to execute the contract.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the competitive bid process and approving the competitively bid State of California CALNET 4 contracts; and,
B. Authorizing the City Manager or designee to execute the necessary documents, including future amendments to the agreement; and,
C. Authorizing the Finance Officer to make any necessary budget adjustments.
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny the request; or,
3. Refer back to staff for reconsideration of specific items as requested by Council.
AUTHORITY
Charter of the City of Merced, Section 3.04.120 of the Merced Municipal Code.
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File #:21-376 Meeting Date: 6/7/2021
DISCUSSION
In March of 2015 the City entered into a contract for telecommunication services taking advantage of the State’s competitively bid CALNET 3 contract with AT&T Corporation. Telecommunication services include long distance calling, toll free voice calling, analog service, cloud hosted VoIP services, flat rate internet services, and broadband with internet services. This is exclusive of any cellular phone services. All cellular phone and data services are already under separate contracts with AT&T and Verizon Wireless.
The City’s current CALNET 3 contract was set to expired in June 2019 and is currently operating under a 2 year extension by the State. This fully expires in June 2021. Currently, under the CALNET 3 with AT&T Corporation agreement the City’s approximate annual rate for the various telecommunication services is $55,000. City staff researched other providers and found the State’s CALNET 4 agreement with AT&T Corporation to be the lowest rate for most services. AT&T is the only vendor that can provide all of the services required by all City Departments. Although other vendors may provide a single service category cheaper, only AT&T offers all services required. In addition, as a public utilities company, AT&T is the sole provider for some of the service categories provided to the City.
The City utilizes many different types of telecommunication services through the current CALNET 3 agreement with AT&T Corporation. Under the new CALNET 4 with AT&T Corporation agreement some service costs will decrease, while other service costs will increase. The net cost for all current services is expected to remain the same. We are seeking authority to spend up to $75,000 annually to procure telecommunication services through AT&T for a total expenditure authority of $300,000 for the contract duration through 2025. Although the City currently expends approximately $55,000 annually, it would be prudent to authorize additional expending authority as ever changing and evolving business requirements may require additional telecommunication services. Any expenditures exceeding $75,000 annually will be taken back to Council to seek additional expenditure authority.
If the City does not enter into the CALNET 4 with AT&T Corporation agreement, the extended CALNET 3 agreement will expire and the City’s monthly rates will increase due removal of current discounted pricing and pricing will be based upon tariff rates.
By signing into the CALNET 4 with AT&T Corporation agreement, the City will not be entering into a multi-year contract. The City will remain on a monthly service agreement with AT&T for services as needed while receiving the benefits and pricing of the CALNET 4 agreement. Service categories of the CALNET 4 with AT&T Corporation agreement are set to expire as outlined in the list below. The City will have the opportunity to remain on the State’s CALNET 4 agreement for each category beyond the contract end date, should the State extend the contract duration as described in each of the category terms.
Category 16, Long Distance Calling:
· Contract award: 01/03/2019
· Contract end: 01/02/2024
· 5 optional extensions, 1 year per extension
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File #:21-376 Meeting Date: 6/7/2021
Category 17, Toll Free Voice Calling:
· Contract award: 01/03/2019
· Contract end: 01/02/2024
· 5 optional extensions, 1 year per extension
Category 18, Long Distance Calling:
· Contract award: 01/03/2019
· Contract end: 01/02/2026
· 3 optional extensions, 1 year per extension
Category 18.3.1.1, Analog Service:
· Contract award: 01/03/2019
· Contract end: 01/02/2022
· 2 optional extensions, 1 year per extension
Category 20, MPLS Data Network Services:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
Category 22, Cloud Hosted VoIP Services:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
Category 23, Metropolitan Area Network (MAN) Ethernet Services and Features:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
Category 24, Flat Rate Internet Services:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
Category 25, Sustained Bandwidth Internet Services and Features:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
Category 30, Broadband with Internet Services:
· Contract award: 04/15/2020
· Contract end: 06/30/2025
· 3 optional extensions, 1 year per extension
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File #:21-376 Meeting Date: 6/7/2021
*Due to the large file size, a copy of the original is on record in the Clerk’s Office. To view the agreement in its entirety please contact the Clerk’s Office at 388-8650.
IMPACT ON CITY RESOURCES
The funding will be included in the budget process under each departments utilities account line as determined by the department’s telecommunication needs.
ATTACHMENTS
1. Authorization Pages
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