Agenda Item: 12
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: January 9, 2024
SUBJECT: WIRELESS DATA, VOICE, AND ACCESSORIES CONTRACT WITH
T-MOBILE
DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
1. Approve the use of a “piggyback” contract through the NASPO Valuepoint Cooperative Contract #MA176 for Wireless Data, Voice, and Accessories from T-Mobile for a total contract amount not to exceed $225,000 per year through the remaining term of the NASPO agreement, which is valid through May 2025.
2. Authorize the City Manager or designee to execute additional renewals, not to exceed $225,000 per year, in coordination with contract extensions executed by the State of California and T-Mobile to NASPO Valuepoint Cooperative contract #MA176.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) utilizes various telecommunications providers for an assortment of services and product offerings, including traditional voice services, mobile voice and data, and the procurement of mobile phones and devices. Since 2005, the City has relied on Verizon Communications (Verizon) for providing the City with the bulk of its devices and associated wireless services. The decision to begin utilizing Verizon in 2005 was due to its expanding service footprint within the Santa Clarita Valley, the customer service issues that arose from the Sprint-Nextel merger, and the introduction of smart phones.
Since then, the telecommunications landscape in Santa Clarita has changed, and T-Mobile has emerged as a competitive alternative to Verizon. City staff from the Information Services
division routinely meet with the telecom providers to stay abreast of new service offerings, coverage changes, and product upgrades. A recent overview with T-Mobile, which began in spring 2023, allowed City staff to test T-Mobile devices to experience its customer service, coverage, and speeds at various City facilities.
Based on this analysis, T-Mobile matched or surpassed Verizon's speed and coverage at nearly every City facility. These results, coupled with T-Mobile's competitively awarded State contract, allows the City a unique opportunity to transition the majority of the City's aging mobile phones and devices to T-Mobile and receive new 5G devices. This offer is further advantageous in that T-Mobile will cover the sales and/or use tax associated with the procurement of all new devices, resulting in a nearly zero out-of-pocket cost to the City to transition its wireless services.
Additionally, monthly wireless service costs are not expected to increase with T-Mobile.
On July 11, 1995, the City Council approved the use of competitive and co-operative purchasing, aka "piggyback" agreements. This process permits the City to place orders against competitively awarded, existing public agency contracts. The State of California is a participating entity under the State of Utah's Cooperative #MA176 NASPO Valuepoint contract for Wireless Data, Voice, and Accessories with T-Mobile, which is valid through May 2025 and includes an option to renew for two additional years.
City staff recommends that City Council approve the use of this NASPO Valuepoint contract to transition the majority of the City's wireless services to T-Mobile as it provides competitive pricing, superior coverage and speeds, and new mobile devices to replace the City's aging mobile fleet.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Adequate funds are available in various City funds and expenditure accounts to support the recommended actions.
ATTACHMENTS
NASPO Contract MA176 (available in the City Clerk's Reading File)