HomeMy WebLinkAboutAgenda Report - December 21, 2005 E-07AGENDA ITEMS -7
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Authorizing Three -Year Extension of E)isting Telephone Servioe
Contract with SBC ($231,333 per year)
MEETING DATE: December 21, 2005
PREPARED BY: Information Systems Manager
RECONMEMMO ACTION: Adopt resolution authorizing the City Manager to extend the current
contract with SBC, of Stockton, under the terms of the State of
California CALNET contract, for three (3) years for telephone
services and hardware ending in November 2008.
BACKGROUND INFORMATION: The existing CALNET contract Authorization to Order (ATO) expired
on November 10, 2005, but will auto -renew one additional year if no
action is taken. However, after November 2006 SBC services will
fall back to straight tariff pricing, which is two to three times higher
than the current pricing under the terms of the State of California CALNET agreement. SBC is offering to
lock in the current CALNET pricing if the City signs a renewal contract that expires in 2008. Over the past
five years the City Council has allowed staff to purchase telephone services and equipment from SBC
under the terms of the State of California competitively bid CALNET contract; related Council resolutions
99-53, 99-106, and 2001-220.
The State of California is currently working on a new agreement called CALNET II. The SBC contract
extension to 2008 will honor the terms of the original CALNET contract, and allows the City of Lodi to
terminate the contract without penalty should a newer CALNET agreement become available. It is
anticipated that the State of California will award the CALNET II contract sometime during 2006 or 2007.
The CALNET agreement has been written with a refresh clause that ensures that the State (and the City)
will get the lowest prices for goods and services during the term of the contract. The current CALNET
contract ends in 2005.
CALNET agreement refresh clause:
1.7. ANNUAL SERVICE REVIEW
For the purpose of maintaining competitiveness throughout the term of this Agreement,
Contractor agrees to a joint review of its pricing and service functionallity, and marketing efforts
annually to ensure State and its customers will receive cost and technologically competitive
services throughout the terms of the Agreement. Contractor agrees that no other customer of
Pacific Bell (SBC) and MCI, collectively or as individual companies, will receive better rates for a
substantially similar suite of services offered under substantially similar terms and conditions
when the volume of business from the other customer is equal to or less than the volume of
business the State delivers under this Agreement.
Revised: Amendment No. 1 - 1214198
APPROVED::7)-
Blair King, City Manager
It is therefore staff's recommendation that the City Council authorize a three-year extension to the
existing SBC contract in order to avoid expiration of the current contract and having the City pay tariff
rates, with the understanding that the City retains the option of canceling the contract should terms be
found more favorable under the proposed CALNETII agreement.
FISCAL IMPACT: There will be no fiscal impact by approving the extension, as recommended.
However, the City's telephone costs could dramatically increase next year if the
contract is not extended.
FUNDING: Telephone Budget (100242.7335)
James #. Krueger, Deputy CitV Manager
Resp u Submitted,
Steve Mann
Information Systems Manager
Prepared by Mark White, Information Systems Coordinator
CMW
cc: Janice Magdich, Deputy City Attorney
Joel Barris Purchasing Officer
EXH3i31 Baa
AUTHORIZATION TO O ILER UNDER STATE AGREEMENT
(TERM COMMITMENT)
(Please print oy type clearly)
Pacific Bell ("Pacific"), MCI Telecotirrunications Corporation. ("MCI") (collectively,
*'Contractor") and the State of California. ("State") have entered into all Agreement for the Provision of
Telecommunications Serviec(s) and Products, rated December 4, 1998 ("Agreement"), 'rhe term of the
Agreement ends December 3, 2005. The State may, at its sole discretion, extend the Agreement for three
additional one year periods. Pursuant to tie Agreement, which is incorporated herein by reference,
Municipalities of the State are allowed to order services and products out of the Agreement ("Service")
upon execution of dais Authorization to Order. A description of the Service, applicable rates and charges
and the spQcific term and conditions under which the Service will be provided to Municipalities of the
State (c.g., cities, counties, school districts and other such entities of the State) are fully set forth in the
Agreement.
I. CITY CJI' LODI desires to order the Service(s) identified in Attachment 1 to this
Authorization to Order, which is incorporated herein by reference, and Contractor agrees to provide such
Service(s) pursuant to this Authorization to Order and the terms and conditions and rate tables contained in
the Agreement. Municipality agrees, with respect to the specific Service identified in Attachment 1, to
utilize the Agreement as Municipality's single source for procuring the particular Service Identifier (e.g.,
Local Usage:, Centrex, Dedicated Services: Building Wiring, Pacific Bell Voice Mail) listed in the
applicable Service Categories (i.e., Line Side Products and Services, Voice Network Products and
Services, Data Products and Services, Additional Required Products and Services, and Other Services)
during the terra of the Authorization to Carder. For example, if Municipality selects the Service Category
Data. Products and Services and the Service Identifier .Dedicated Services, Municipality is agreeing to
utilize the Agreement as Municipality's single source for procuring all Dedicated Services and services
possessing largely equivalent applications to the Dedicated. Services,
2. Contractor shall bill Municipality and Municipality shall pay Contractor pursuant to this
Authorization to Order and the tern -is and conditions and rate tables contained in the; Agreement.
3, This Authorization to Order shall became effective upon execution by Municipality,
Contractor, and. the Departrnertt ol-General Services, Telecommunications Division ("Effective Date").
Upon the Effective mate, this Authorization to Order supersedes and replaces in its entirety the
Authorization to Order dated .November 10, 2000, issued under the Agreement. Unless sooner terminated
as provided herein, this Authorization to Order shall remain in effect for the term Municipality has indicated
below (check one).
Three -years from the Effective Date, but not beyond December 3, 2448. This
Authorization to Order is subject to one year extensions, but in no event shall any such
extension extend beyond December 3, 2008, Contractor shall provide Municipality with
60 days' notice of the scheduled expiration date and the intended extension of the
Authorization to Order. Each one year extension will occur automatically unless
Municipality provides Contractor with written notice. of .Municipality's intent not to renew
this Authorization to Carder at least 30 days' prior to the scheduled expiration date of this
Authorization to Order. Any work in progress or Service provided under- this
Revised, Amendment No. I I
rWAV PN CA
�lr<I "A1
Authorization to Order at the time the Agreement expires or is terminated shall be
handled as set forth in the second paragraph of Section 4 below.
This Authorization to Order shall continue in effect from the Effective mate
through the remainder of the term of the Agreement. In the event Contractor and the State
extend the term of the Agreement, Contractor shall provide .Municipality with 60 days'
notice of the untended extension of the Agreement. The term of this Authorization to
Order will be automatically extended to match the new term of the Agreement unless
Municipality provides 30 days' notice to Contractor prior to the automatic extension of its
intent not to renew this Authorization to Order. Any work in progress or Service
provided under this Authorization to Order at the tishhe the Agreement is terminated shall
be handles as set for-tlh in the second paragraph of Section 4 below.
_ years from the Effective Date, but not beyond December 3, 2008. (Applies only to
Services with term pricing as specifically authorized in the applicable Rider B and Rider
C.) This Authorization to Order is subject to one year extensions, but in no event shall
achy such extension extend beyond December 3, 2008. Contractor shall provide
Municipality with 60 days' notice of the scheduled expiration date and the intended
extension of the Authorization to Order. Each one year extension will occur
automatically unless Municipality provides Contractor with vvritten notice of
Municipality's intent not to renew this Authorization to Order at least 30 days' prior to
the scheduled expiration date of this Authorization to Order. Any Services with term
pricing provided under this Authorization to Order at the time the Agreement expires or is
terminated shall be hanclted as set forth in the second paragraph of Section 4 below.
4. A. If Municipality, prior to the expiration of the term set forth in preceding
paragraph, (i) terminates this Authorization to Order, (ii) disconnects over 50% of a particular Service
provided pursuant to this Authorization to Order, or (iii) disconnects any portion of a Service provided
pursuant to this Authorization to Order and replaces the disconnected Service with a different
scrvicelfuncctionality in violation of Section I above, Municipality shall pay one of the following
tori-nination charges: (a) if Municipality terminated all of a particular Service, a tennination charge based on
65% of the 'Municipality's highest bill for the disconnected Service provided thereunder multiplied by the
i uniber of nnontihs remaining in the tenon of this Authorization to Order, plus any unrecovered nonrecurring
charges owed to Contractor on the date of termination; or (b) if Municipality terminated less than all of a
Inarticular Service, a termination charge: based on the monthly charges for the terminated Service multiplied
by the number of rnorhths remaining in the terra of this Authorization to Order, plus any unrecovered
rnorrrecurring charges owed to Contractor- on the date of termination. Notwithstanding the preceding
sentence, no termination charge shall apply if all existing traffic volumes carried by the terminated service
has been migrated to a like -Service offered under this Agreement.
Notwithstanding the preceding sentencce, if the State terminates the Agreement, in whole or in part,
prior to the expiration of this Authorization to Order, Municipality may, with respect to the Service
terznhinated by the State, (i) continue to subscribe to the Service under the tertxns of the Agreement for the
renhainder of tlhe term of this Authorization to Order, (ii) terminate the Service without term pricing under
this Authorization to Order without beim; subject to the termination charge set forth above, or (iii) terminate
the ,Services with term pricing winder this Authorization to Order and be subject to the termination charge set
forth above,
Revised: Amendment No. 1 I
PACIFICrEA34 B E4'-_
B. Notwithstanding the first sentence in Section 4.A. above, if, after the first fiscal
year in which a particular Service acquired hereunder- is installed, funds are not appropriated to eontinete
paying for that particular Service in a subsequent fiscal year or universal service discounts are not received to
enable Municipality to pay for that particular Service in a subsequent year; then Municipality may terrrrinate
this Authorization to Order- as it relates to that particular SGT -'ice as of the last day for Which fisnds were
appropriated or universal service discounts were received ("Date of Termination"), without being subject. to
the termination charge set forth above-, provided, however, that Municipality shall be obligated to pay all
charges incurred through the Date of Ter naination, plus any unrecovered nonrecurring charges which raaay be
owed Contractor on the Date of Termination. Municipality shall use its best efforts to obtain funding or
universal service discounts for the particular Service provided hereunder.
(i) ff the federal universal service discount program is discontinued, .Municipality
may terminate this Authorization to Order as set forth in Section 4.13. above.
(ii) if Municipality exercises its right to terminale this Authorization to Order for
non -appropriation or ineligibility to receive univetSa1 service discounts under the then
current program, Municipality agfees not to obtain substantially similar equipment and/or
services to replace diose provided hereunder for one year following the Date of
Termination. Municipality may exercise such right to terminate upon delivery to
Contractor of a 30 day written notice setting Forth the reason for termination and within
30 days following the delivery of such written notice, Municipality shall provide;
Contractor a legal opinion of counsel that no funds have been appropriated or otherwise
made available for payments due under this Authorization to Order or that Municipality is
ineligible to receive universal service discounts rnader the Agreernew and funds have not
been made avaiiahle for the acduisitiun of substantially similarly etluiprnerrt and/or
services to replace those provided he.€-t;Under.
5. Municipality, upon execution of this form, certifies that Municipality understands that
Contractor and the State naay, from time to trine and without Municipality's consent, arriend the terms and
conditions of the Agreement thereby affectiag the terms of the Service Municipality receives Prom
Contractor. Municipality further uDderstands that the. State will have access to all billing information,
including Haat of the rMunicipality, liar the sole pur'poze of conducting audits pertaining to Contractor's
performance under the Agreement.
6• Mtrlaicipahty, upon execution of this form, certifies that Municipality has received and has
reviewed the terra s and conditions, including the rates and charges, of the Agreement.
?, Whenever any notice or demand is to be given ander this Agreement to Contractor or
Municipality, the notice shall be: in writing and addressed to the following,
Municipality: Contractor:
CITY OF LORI Pacific Be11/MC1
221 West Pine Street, P.O. Box 3006 610 Sequoia Pacific Blvd.
Lodi, CA 95241-1910 Sacramento, CA 95814
Alin: Mark While. Attn: Contract: Program/ Manager
Revised: Amendment No, 1 1
F ELL �:
Notices delivered by overnight couner service (U.S. Express Mail, Federal Express, Purolator or Airborne)
shall be deemed delivered on the day following; mailing. Notices trailed by U -S. Mail, postage prepaid,
registered or certified with return receipt requested, shall be deemed delivered five (5) days anter trailing.
Notices delivered by amy other method shall be deemed given upon receipt.
IN WITNESS WHEREOF, the parties hereto have caused this Authorization to Order to be
executed on the daw shown below by their respective duly authorized representatives.
CONTRACTOR
BY:._�
Print Name:
Title:
Date
Approved By:
Departsrent of General Sexwices,
Teleconununications Division
By:
Print Name:
Title:
Date Signed:
4
CITY OF LODI
(INlonicipality)
Print Name:
Title:
Date Signed:
Revised: Amendment No. 1 l
x447
CITY OF LODI ATTACHMENT 1
Seices Selected
VOICE NETWORK — PRODUCTS AND SERVICES
Customer Initials
X
Local Usage
Group Video
Advanced Intelligent Network (CVN)
Services Selected
EINE SIDE ®- PRODUCTS AND SERVICES
Customer initials
X
Bus Access mines
z
x
JSD
Centrex
ACD (Centrex)
Acct. Codes
X
PBG Trunks
X
SuperTrunk
Compucall
Services Selected
DATA — PRODUCTS AND SERVICES
Customer Initials
X
Dedicated Services:
Analog Circuits, Adv. Digital Network,
HICAP/T1, DS3,
SONET Circuit Svc,
SONET Dedicated Ring (ICD)
X
PRI ISDN.
X
Frame Relay & ATM:
Frame Relay, ATM
Managed Frame Relay
DSS.
Services Selected
ADDITIONAL REQUIRED — PRODUCTS AND SERVICES
Customer Initials
Bldg. Wiring Services:
Wiring, Jacks
Inside Wiry; Repair Plan (Voice)
Inside Wire Repair Plan Data
X
Billing Products
Services Selected
OTHER SERVICES — PRODUCTS AND SERVICES
Customer Initials
X
Pacific Bell Internet Services
x
Pacific telt Information Services
IVR/Call Router
acific Bell Information Services Voice Mail
P_
Revised: Amendment No. I I
ArAV
ELL P O'
[?S11i �•1 • f�fr. . f
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXTEND THE CURRENT CONTRACT WITH SBC
UNDER THE TERMS OF THE STATE OF CALIFORNIA CALItET
CONTRACT FOR THREE YEARS FOR TELEPHONE SERVICES AND
HARDWARE ENDING NOVEMBER 2008
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to extend the current contract with SBC, of Stockton, under the
terms of the State of California CALNET contract for a period of three years for telephone
services and hardware ending November 2008.
Dated: December 21, 2005
I hereby certify that Resolution No. 2005-260 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held December 21, 2005, by the folkwAng
vote:
AYES: COUNCIL MEMBERS - Beckman, Hansen, Johnson, Mounce
and Mayor Hitchcock
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
SUSAN ..I. BL�4 _ "I�DIv
City Clerk