REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Blanket Purchase Order to Verizon Wireless for Cellular Wireless Service and Related Equipment, and Modify a Blanket Purchase Order with Verizon Wireless for Cellular Wireless Service and Related Equipment (F20-169)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a three-year blanket purchase order to Verizon Wireless of Dallas, TX, for cellular wireless service and related equipment in a not-to-exceed amount of $720,000 beginning July 1.
Approval is also requested to amend an existing blanket purchase order with Verizon Wireless, for cellular wireless service and related equipment, increasing the not-to-exceed amount by $80,000 for a new not-to-exceed total amount of $179,933 for services performed through June 30, 2020.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Further, Sunnyvale Municipal Code section 2.08.220 (b) authorizes the Purchasing Officer to participate in a cooperative agreement for the procurement of goods and/or services publicly solicited by another governmental, public or quasi-public entity.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City's wireless service program includes mobile broadband devices (MBBs, also referred to as data modems), smart phones, tablets, and cellular phones. In 2010, the City consolidated wireless carriers to Verizon Wireless to save costs and improve communications efficiency (RTC No. 10-241). The City’s ongoing commitment to invest in technology has added mobile devices to allow field staff to be effective. Almost half of the monthly MBBs service are used by Department of Public Safety (DPS) Patrol and Fire to access the Computer Aided Dispatch (CAD) system remotely through in-vehicle computers as well as other necessary applications. The Environmental Services Department has implemented multiple remote reporting tools including Lab Inventory Management, Supervisory Control and Data Acquisition System (SCADA), and expanded the Infor Asset Management licenses recently which require the use of MBBs. The Department of Public Works utilizes MBB’s for remote access for traffic monitoring, field supervisors, and engineering. Executive leadership have also benefited from the ability to work remotely through the access and use of MBBs. Staff response and access to appropriate tools and resources during the current state of emergency has benefited from the increased access to technology.
The Information Technology Department (ITD) expected to have incremental increases as smart phones (which require cellular data service) were added. The increase from $116,000 in 2016 to $222,000 in 2020 shows that the investment in technology has doubled because of the use of mobile technology over the last four years. The initial increase is reflective of the recent investment; however, ITD anticipates the ongoing increases will be at a slower pace during the next few years.
This staff report recommends two actions. First, an increase of $80,000 is necessary pay for services performed through June 30 on the existing NASPO ValuePoint contract. The City is currently using Verizon Wireless as the main provider of its cellular wireless services, "piggybacking" off a California Participating Addendum to NASPO ValuePoint (formerly known as Western States Contracting Alliance or WSCA) Master Price Agreement Contract No. 7-10-70-16. While the State created a new contract (C4-CVD-19-001-03) for Verizon Wireless through CALNET in 2019, it was extremely delayed in extending the NASPO ValuePoint agreement. The City, therefore, has continued to use the terms from the NASPO ValuePoint contract until it transitions to the new CALNET contract.
Second, staff is requesting to participate in the new State of California CALNET contract beginning July 1 and issue a new blanket purchase order in the not-to-exceed amount of $240,000.
FISCAL IMPACT
Funds for wireless services are budgeted throughout the City's various operating programs based on estimated actual use. Staff have worked to consolidate the costs into ITD with departments paying for the service through internal service charges. New services are budgeted by departments and consolidated into ITD annually.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety; and by making the agenda and report available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a three-year blanket purchase order to Verizon Wireless, in substantially the same format as Attachment 1 to the report, in a not-to-exceed amount of $720,000; and
- Authorize the City Manager to amend an existing blanket purchase order with Verizon Wireless, in substantially the same format as Attachment 2 to the report, increasing the not-to-exceed amount by $80,000 for a new not-to-exceed total amount of $179,933.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Blanket Purchase Order
2. Draft Change Order to Blanket Purchase Order