HomeMy WebLinkAboutAgenda Report - June 21, 2006 E-08AGENDA ITEM Last
CITY OF LODI
COUNCIL COMMUNICATION
FM
AGENDA TITTLE: Adopt resolution authorizing the City of Lodi to contract for wireless services from
Verizon Wireless under the terms of the State of California Contract for Wireless
Services (Master Contract #1 S-05-58-02) (ISD)
MEETING DATE: June 21, 2006
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution authorizing the City of Lodi to contract for wireless
services from Verizon Wireless under the terms of the State of
California Contract for Wireless Services (Master Contract
#1 S-05-58-02)
BACKGROUND INFORMATION: The City of Lodi has purchased wireless (cellular) services and
wireless hardware from Verizon Wireless utilizing the discounts
available under the terms of the Western States Contracting
Alliance (WSCA) contract. Verizon Wireless has signed a contract
with the State of California and no longer offers the option to buy new service plans or renew expiring
service plans using the WSCA contract. Instead, Verizon Wireless is requiring the City of Lodi to sign a
Local Government Entity Authorization User Agreement in order to utilize the enhanced discounts offered
under the terms of the State of California Contract for Wireless Services (Master Contract #1 S-05-58-02.)
The WSCA contract still exists, but Verizon Wireless no longer participates in it, and is only offering the
State Master Wireless Services contract.
Typically, wireless service plans are for a period of one or two years for each wireless telephone. As
each of these Verizon Wireless service plans expire, the 15% WSCA government discount is ending and
the service plans are going up to full tariff pricing. Another important consideration is that under WSCA,
when a wireless phone is no longer needed, and the service plan is terminated early, there is a required
flat $175.00 early termination fee. This fee has been eliminated in the new State Master Wireless
Services contract. Under the new contract, new price plan changes may potentially save the City of Lodi
$350.00 to $900.00 per month.
One of the new contract offerings is a special State of California Zero Access Local Calling Plan. A brief
overview of the Zero Access plan is:
• No monthly access charges unless calls are made.
• Pay only for the minutes that are actually used.
• Per minute charge is only 6.50 per minute from the State of California Home Airtime Rate and
Coverage Area. Taxes and other charges may apply.
• Can switch to other more beneficial plans should staff go to training or have business out of state
(or seasonal spike in calling e.g. Parks & Recreation Department during summer months.)
Blair King, City Manager
Zero access would provide for standby wireless phones that might be used during emergencies or
natural disasters.
Government Code §6502 authorizes the City to participate jointly with other public agencies in such a
program, and Lodi Municipal Code §3.20.070 allows alternative methods of procurement when such
methods are in the best interest of the City. The City would benefit from volume pricing as well as saving
time and expense of competitive bidding on previously -bid contracts.
FISCAL IMPACT: This will allow the City of Lodi to continue participation in government discount
programs and there may be an overall reduction in ongoing wireless telephone
costs.
FUNDING: Each department has budgeted for ongoing wireless telephone costs.
Ruby te, Interim Finance Director
Respectfully Submitted,
s
J es R. Krueger
eputy City Manager
Prepared by:
MarK white, Information Systems Coordinator
emw
cc Steve Mann, Information Systems Manager
Steve Schwabauer, City Attorney's Office
Joel Harris, Purchasing Officer
RESOLUTION NO. 2006-113
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY
MANAGER TO EXECUTE CONTRACT FOR WIRELESS SERVICES FROM
VERIZON WIRELESS UNDER THE STATE OF CALIFORNIA CONTRACT
FOR WIRELESS SERVICES (MASTER CONTRACT #1S-05-58-02)
WHEREAS, Lodi Municipal Code §3.20.070 authorizes dispensing with bids for
purchases of supplies, services, or equipment when it is in the best interest of the City to
do so; and
WHEREAS, the City of Lodi has purchased wireless (cellular) services and
wireless hardware from Verizon Wireless utilizing the discounts available under the
terms of the Western States Contracting Alliance (WSCA) contract; and
WHEREAS, Verizon Wireless has signed a contract with the State of Califomia
and no longer offers the option to buy new service plans or renew expiring service plans
using the WSCA contract; and
WHEREAS, instead, Verizon Wireless is requiring the City of Lodi to sign a Local
Government Entity Authorization User Agreement in order to utilize the enhanced
discounts offered under the terms of the State of California Contract for Wireless
Services (Master Contract #1 S-05-58-02), and even though the WSCA contract still
exists, Verizon Wireless no longer participates in it, and is only offering the State Master
Wireless Services contract; and
WHEREAS, typically, wireless service plans are for a period of one or two years
for each wireless telephone. As each of these Verizon Wireless service plans expire,
the 15% WSCA government discount is ending and the service plans are going up to full
tariff pricing. Another important consideration is that under WSCA, when a wireless
phone is no longer needed, and the service plan is terminated early, there is a required
flat $175.00 early termination fee. This fee has been eliminated in the new State Master
Wireless Services contract. Under the new contract, new price plan changes may
potentially save the City of Lodi $350.00 to $900.00 per month; and
WHEREAS, one of the new contract offerings is a special State of California Zero
Access Local Calling Plan. A brief overview of the Zero Access plan is:
• No monthly access charges unless calls are made.
• Pay only for the minutes that are actually used.
• Per minute charge is only 6.50 per minute from the State of California Home
Airtime Rate and Coverage Area. Taxes and other charges may apply.
• Can switch to other more beneficial plans should staff go to training or have
business out of state (or seasonal spike in calling e.g. Parks & Recreation
Department during summer months); and
WHEREAS, Zero access would provide for standby wireless phones that might
be used during emergencies or natural disasters; and
WHEREAS, Government Code §6502 authorizes the City to participate jointly
with other public agencies in such a program, and Lodi Municipal Code §3.20.070 allows
alternative methods of procurement when such methods are in the best interest of the
City. The City would benefit from volume pricing as well as saving time and expense of
competitive bidding on previously bid contracts.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the City Manager to execute a contract for Wireless Services from Verizon
Wireless under the terms of the State of California Contract for Wireless Services
(Master Contract #1 S-05-58-02).
Dated: June 21, 2006
I hereby certify that Resolution No. 2006-113 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 21, 2006, by the following vote:
AYES: COUNCIL MEMBERS -- Beckman, Hansen, Johnson, Mounce,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NNIF M. PERRIN
Interim City Clerk.
2006-113