HomeMy WebLinkAbout5/1/2013 - STAFF REPORTS - 2.I. 44LM City of Palm Springs
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Information Services
MEMORANDUM
Date: 5/1/2013
To: Mayor and City Council
From: James Smith, Manager of Information Technology
Subject. Revised Fiscal Impact for Perizon Staff Report
FISCAL IMPACT:
1. Airport
Without an agreement, tariff rates of $770 per month would apply. The 3-year contractual
agreement rates are $320 per month. The fiscal impact is a savings of $450 per circuit per
month. There are 2 circuits at the Airport, therefore the annual savings will be $10,800, or
$32,400 for the life of the contract.
2. City Facilities
Without an agreement, tariff rates of $27.95 per month per line would apply. The 3-year
contractual agreement rates are $19.00 per line per month. The fiscal impact is a savings of
$8.95 per line per month. There are 51 lines serving city facilities, therefore the annual
savings will be $5,477.40, or $16,432.20 for the three year period.
The total annual savings will be $16,277.40, or $48,832.20 for the three-year period. Funds have
been budgeted for this expense in account 001-1120-42015.
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IF It CITY COUNCIL STAFF REPORT
DATE: May 1, 2013 CONSENT CALENDAR
SUBJECT: AGREEMENTS WITH VERIZON FOR VARIOUS CITY FACILITIES AND
THE AIRPORT FOR TELECOMMUNICATION SERVICES FOR A
THREE-YEAR PERIOD
FROM: David H. Ready, City Manager
BY: Information Technology Department
SUMMARY
The City Council will consider waiving the competitive bidding requirement pursuant to
Municipal Code Section 7.04.020; approving two agreements with Verizon, as the sole
source provider, for telecommunication services at various city facilities and the airport
for a three-year period.
RECOMMENDATION:
1. Waive the competitive bidding requirement pursuant to Municipal Code
Section 7.04.020.
2. Approve two agreements with Verizon, as a sole source provider, for basic
telephone dial tone services at various city facilities and Integrated Services Digital
Network, Primary Rate Interface, (ISDN PRI) at the airport, for a 3-year period at the
rates approved by and on file with the California Public Utilities Commission in a
form acceptable to the City Attorney.
3. Authorize the City Manger to execute all necessary documents.
STAFF ANALYSIS:
Verizon is the local exchange carrier that provides telephone dial tone to the City of
Palm Springs. Verizon is also the provider of local-toll and long-distance toll as well as
the provider of circuits and CentraNet and Multi Location CentraNet services which
allow diverse City locations to be tied together on a local network. For an account the
size and diverse as the City, Verizon is the sole source provider for these services, and
in accordance with the City Charter and Palm Springs Municipal Code Section 7.04.020
the City may acquire these services without competitive procedures.
Item No. 2. 1 .
City Council Staff Report
May 1, 2013-- Page 2
Verizon Agreements
It should be noted that staff has conducted due diligence and reached out to other
providers; however, there has never been any interest or response based on the size
and complexity of the account and market conditions.
Verizon currently provides 51 lines of basic telephone dial tone service to various City
locations that do not require Multi Location CentraNet or other specialized features, and
ISDN PRI circuits for the Airport's telephone system to bring 24-channel inbound and
outbound phone service.
The City traditionally has entered into three-year agreements with Verizon to qualify for
the discounted rates.
FISCAL IMPACT:
1. City Facilities:
Without an agreement, tariff rates of $770.00 per circuit per month would apply. The
three-year contractual agreement rates are $320.00 per circuit per month. The fiscal
impact is a savings of$450.00 per circuit per month. There are two circuits servicing
city facilities; therefore, the annual savings will be $10,800.00, or $32,400.00 for the
three year period.
2. Airport:
Without an agreement, tariff rates of $27.95 per line per month per line would apply.
The three-year contractual agreement rates are $19.00 per line per month. The
fiscal impact is a savings of $8.95 per line per month. There are 51 lines at the
airport; therefore, the annual savings will be of $456.45, or $1,369.35 for the three
year period.
The total annual savings will be $11,256.45, or $33,769.35 for the three-year period.
Funds have been budgeted for this expense in account 001-1120-42015.
,OAes Thompson, Chief of Staff XJester of I.T.
David H. Ready, City M r
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