Agenda Item #12.12
For Council Meeting of: July 11, 2023
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: BRIAN TICKNER, CHIEF INFORMATION OFFICER, INFORMATION TECHNOLOGY DEPARTMENT SUBJECT: AMENDMENT TO PURCHASE ORDER 164812 FOR ZOOM – THREE YEAR EXTENSION UNDER THE NASPO VALUEPOINT MASTER COOPERATIVE AGREEMENT AR2472 AND STATE OF CALIFORNIA PARTICIPATING ADDENDUM 7-17-70-40-05 AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Information Technology (IT) and Finance Departments that the Council, by resolution, approve a Second Amendment to Blanket Purchase Order Number 164812 for a three-year extension under the current pricing from NASPO Valuepoint Master Cooperative Agreement AR2472 and State of California Participating Addendum Number 7-17-70-40-05 for Zoom licensing to Carahsoft, Inc., Reston, VA in the amount of $155,895.30, plus a contingency amount of $10,000, for a total not to exceed $165,895.30, and a not to exceed cumulative value of $265,895.30.
EXECUTIVE SUMMARY
The IT Department has submitted a request to Purchasing to extend the current Blanket Purchase Order 164812 for Zoom video conference licensing for an additional three year period under the NASPO Valuepoint Master Cooperative Agreement AR2472 and State of California Participating Addendum7-17-70-40-05.. The vendor has accepted City purchase order terms and conditions. The original Blanket Purchase Order term approved by City Manager on July 6, 2021 was for the term through July 24, 2023.
BACKGROUND
Due to the COVID-19 Pandemic and subsequent shut-down of City offices which began in March 2020, and the urgent need to hold all public meetings remotely, the City made the switch to Zoom as it’s video meeting/conference calling platform, because Zoom included some functionality that the City’s existing services didn’t have. On June 24, 2020, the City Manager approved a Waiver of Competitive Bid for the emergent need for issuance of Blanket Purchase Order 162198 directly to Zoom Video Communications for the amount of $95,000 through June 30, 2021.
On July 6, 2021, the City Manager approved issuance of a two-year Blanket Purchase Order 164812 for Zoom licensing through the NASPO Valuepoint Master Cooperative Agreement AR2472 and State of California Participating Addendum Number 7-17-70-40-05 to Carahsoft, Inc., Reston, VA in the amount of $54,202.50. The City Attorney’s Office reviewed the Zoom License terms and conditions for service on June 23, 2020. The Blanket Purchase Order was issued along with City PO Terms and Conditions that were received and acknowledged by the vendor.
On July 15, 2021, the City Manager approved the First Amendment to add funds in the amount of $27,409.90 with a contingency fund amount of $18,387.60 for additional licenses, not to exceed $100,000.
PRIOR CITY COUNCIL REVIEW
Not applicable.
ANALYSIS
With the NASPO Contract states are able to leverage their spending through a single solicitation that obtains best value pricing and superior contract terms. One of the largest benefits from this contract is the consideration of price, quality, reliability, warranties, and service, while protecting states’ interests with favorable terms and conditions. Contractors benefit greatly by avoiding the repetitive bid preparation expenses of bidding time and again on the same solicitations for different public entities throughout the country.
Utilizing Zoom software through the cooperative agreement is determined to be in the best interest of the City to mitigate disruption of City public meetings, in conjunction with use of the Teams platform as an alternative. The cooperative agreement does not expire until September 15, 2026. Carahsoft serves as the master government aggregator and distributor for Zoom.
Through this cooperative agreement the discount rate is 1% off of MSRP, and the price for paying 3 years up-front is less than paying a year at a time. However, Carahsoft was able to offer the City the 3-year pricing discount while accepting payment a year at a time, as our annual budgets are approved by Council.
The use of the competitively bid Naspo Valuepoint Agreement is allowed under City Code 3-08.160. Santa Rosa City Code Section 3-08.160 allows for the use of cooperative purchases when advantageous to the City.
FISCAL IMPACT
Funds for this expense are included in the Fiscal Year 2022-23 adopted Information Technology budget within Enterprise Software Support fund account 350307, and IT Customer Support fund account 140703 as a regular operating expenditure and are planned to be included in subsequent years’ budget proposals when presented to the City Council.
ENVIRONMENTAL IMPACT
This action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Guidelines Sections 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
PRESENTER
Kristie Bartlett, IT Section Manager
Brandalyn Tramel, Purchasing Agent
AMENDMENT TO PURCHASE ORDER 164812 – THREE YEAR EXTENSION UNDER THE NASPO VALUEPOINT MASTER COOPERTIVE AGREEMENT AR2472 AND STATE OF CALIFORNIA PARTICIPATING ADDENDUM 7-17-70-40-05 PAGE 3 OF 3