City Council Agenda Report
Meeting Date: December 3, 2024
From: Daniel Calleros, Interim City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Senior Administrative Assistant Subject
Verizon National Association of State Procurement Officials (NASPO) ValuePoint Addendum for Wireless, Data, Voice and Accessories Services
Recommendation
A. Find that it is commercially unreasonable to rebid the contract for wireless services and wireless equipment in three years, pursuant to Vernon Municipal Code Section (VMC)
3.32.220(B), as the pricing available through the NASPO ValuePoint contract was negotiated through another public agency and provides highly competitive pricing that is advantageous to the City; and
B. Approve and authorize the City Administrator to execute the Verizon NASPO ValuePoint Addendum, in substantially the same form as submitted, in an amount not to exceed $1,000,000 for a five-year period.
Background
Since 2009, the City has purchased wireless services and wireless equipment from Verizon through their negotiated contracts with the National Association of State Procurement Officials (NASPO) Value Point. NASPO ValuePoint is a cooperative purchasing program facilitating public procurement solicitations and agreements using a lead-state model. As a non-profit organization dedicated to providing support and procurement resources, NASPO ValuePoint leverages the leadership and expertise of all states and the purchasing power of their public entities, offering public entities highly competitive prices.
On August 12, 2019, Verizon and the State of Utah entered into a Master Agreement #MA 152, which together with any and all amendments and/or addenda thereto constitute the "Master Agreement". This participating addendum applies to the purchase and use of products (e.g. wireless service, software, and other services) by state agencies and other eligible entities authorized by a state's statutes to purchase under state/entity contracts. On June 15, 2021 City Council approved a Verizon NASPO ValuePoint Addendum to allow the City to continue to procure wireless services and equipment from Verizon at discounted pricing available through the Master Agreement. The 2021 Addendum was effective for a three-year term. Staff recommends that the City now execute another participating addendum in order to continue to benefit from the competitive pricing offered through the Master Agreement #MA 152, Amendment No. 8, which expires on August 11, 2029. For continuity of pricing discounts available through the Master Agreement, and based on the expiration of the City’s previous NASPO ValuePoint Participating Addendum, the proposed Addendum is effective August 12, 2024 through August 11, 2029.
City departments use various Verizon communication tools that are critical to the success of City operations. Mobile phone services, wireless utility meters, and Vernon Police Department (VPD) mobile vehicle modems are each serviced through Verizon and have proven to be reliable and valuable to City staff. Mobile phones allow City employees to conduct business immediately and effectively from any remote location, and enable employees to promptly respond to urgent matters impacting the City. The Verizon wireless utility meter functionality allows Vernon Public Utilities (VPU) to read meters remotely via an internet portal. This method is efficient and accurate, and VPU staff time is optimized as a result. VPD utilizes Verizon wireless modems that allow communication with an integrated police network specifically designed for conducting important work, logging calls, and providing a means to access database information needed in the field (e.g. running driver license plates). Additionally, the modems facilitate a seamless connection to Police Dispatchers and are, therefore, critical to the safety and protection of the public and officers alike.
In accordance with VMC Section 3.32.110(A)(5)(b), the Addendum with Verizon for the NASPO ValuePoint Contract is exempt from competitive bidding and competitive selection since the wireless equipment/service referenced in said contract is priced in cooperation with other public agencies or associations either by competitive bid or through a negotiated process and the Finance Director or designee is of the opinion that it is to the advantage of the City to purchase in this manner. The Financial Services Administrator concurs.
The City Attorney’s office has reviewed and approved as to form the Verizon NASPO ValuePoint Addendum and related NASPO ValuePoint Master Terms for VSC Products.
Based on current usage, staff anticipates the cost associated with the proposed Addendum is approximately $200,000 per year.
Fiscal Impact
The fiscal impact is estimated at $200,000 per year. Sufficient funds are available in General Fund, Information Technology Utilities Account No. 011-010-110-526010 for the current fiscal year and shall be budgeted accordingly for each subsequent fiscal year during the five-year term.
Attachments
1. Verizon NASPO ValuePoint Participating Addendum
2. NASPO ValuePoint Master Terms for VSC Products