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CITY COUNCIL AGENDA ITEM NO. 7



Meeting Date: October 28, 2008

Subject/Title: Adopt a Resolution Authorizing the City Manager or designee to sign contracts with AT&T to provide phone and data line services to the City of Brentwood through the State of California-negotiated contract CALNET 2.

Prepared by: Yun Cho, Chief Information Systems Officer

Submitted by: Pam Ehler, Director of Finance and Information Systems



RECOMMENDATION
Adopt a Resolution Authorizing the City Manager or designee to sign contracts with AT&T to provide phone and data line services to the City of Brentwood through the State of California-negotiated contract CALNET 2.

PREVIOUS ACTION
None.

BACKGROUND
The State of California completed the Request for Proposal (RFP) bidding process for phone and data line services, selecting a contract package called CALNET 1, or simply CALNET in December 1998. The City of Brentwood’s purchasing policy allows the City to utilize cooperative agreements and for several years, the City of Brentwood purchased phone and data line services through AT&T under the State’s CALNET contract.

The State’s CALNET contract is set to expire on December 3, 2008. The State went out to bid to establish a new contract to replace the expiring agreement and awarded AT&T the contract to provide phone and data line services, referred to as CALNET 2. CALNET 2 is a five year contract, with the option by the State of California to extend the contract an additional two years. CALNET 2 offers a wide variety of services, including long distance, trunk lines, internet, fiber optic, data lines, and centrix lines at a discounted rate. The new CALNET 2 contract’s pricing is 3% lower than the previous CALNET agreement, assuming current levels of service are maintained. The City currently contracts for internet service under a separate AT&T/SBC contract which expires in November 2009. At that time, one option staff will evaluate is contracting for internet service under the CALNET 2 contract.

The City of Brentwood can take advantage of the discounted pricing by participating in the cooperative agreement and contracting with AT&T through the CALNET 2 contract. This contract stipulates that the City remain under contract for two (2) years of the State’s five (5) year agreement. If the City chooses to terminate the contract after the two year term, the City could do so. If the City does not participate in the cooperative agreement (CALNET 2) by December 4, 2008, the phone and data line services will be charged at the tariff rate, which will be much higher than the current CALNET, or proposed CALNET 2 rate. To maintain a competitive rate, the City must then develop an RFP and bid for these services. This will require the City to retain consulting services to develop and evaluate all plans under consideration, and it is unlikely these plans would realize the cost savings the CALNET 2 contract offers. Since the State completed the RFP process with no cost to the City, and the City will realize a reduction in costs associated with the CALNET 2 contract, staff recommends participating in the cooperative agreement by authorizing the City Manager or designee to sign the CALNET 2 contract on behalf of the City.


FISCAL IMPACT
The estimated phone and data service cost for fiscal year 2008/09, excluding internet, is $110,000. These amounts are budgeted in the 2008/09 Adopted Operating Budget. If service levels stay the same for the life of the agreement, there will not be a cost increase.

Attachment:
Resolution
CALNET 2 Contract: Exhibit A - MSA1, contract for data lines
Exhibit B - MSA2, contract for long distance
Exhibit C - Letter of Agency Authorization for Change of Providers
Exhibit D - Letter of Agency for Access to Current Records
Exhibit E - Letter of Agency for Slamming Protection
Exhibit F - Form 20 State Telecommunications Service Request
Exhibit G - Proof of Insurance

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN CONTRACTS WITH AT&T TO PROVIDE PHONE AND DATA LINE SERVICES TO THE CITY OF BRENTWOOD THROUGH THE STATE OF CALIFORNIA-NEGOTIATED CONTRACT CALNET 2.

WHEREAS, the State of California completed the Request For Proposal (RFP) bidding process for phone and data line services called CALNET 1 or simply CALNET; and

WHEREAS, the City of Brentwood’s purchasing policy allows the City to utilize cooperative agreements; and

WHEREAS, for several years, the City of Brentwood purchased phone and data line services through AT&T under the State’s CALNET contract; and

WHEREAS, the State of California CALNET contract is set to expire on December 3, 2008 and the State went out to bid to establish a new contract called CALNET 2 to replace the expiring agreement and awarded AT&T with a five (5) year contract with the option by the State of California to extend for an additional two (2) years; and

WHEREAS, the new CALNET 2 contract is 3% lower than the previous CALNET agreement; and

WHEREAS, the CALNET 2 contract stipulates that the City remain under contract for two (2) years of the State’s five (5) year agreement, afterward the City can choose to terminate the contract; and

WHEREAS, if the City does not participate in the cooperative agreement (CALNET 2) by December 4, 2008, the phone and data line services will be charged at the tariff rate, which will be much higher than the current CALNET, or proposed CALNET 2 rate structure; and

WHEREAS, to maintain a competitive rate, the City would then develop an RFP and bid for these services on its own; and

WHEREAS, the City would be required to retain consulting services to develop and evaluate all phone and data line service plans and it is unlikely these plans would realize the cost savings the CALNET 2 contract offers: and

WHEREAS, the State completed the RFP process with no cost to the City and the City will realized a reduction in cost associated with the CALNET 2.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve and authorize the City Manager or designee to sign contracts with AT&T to provide phone and data line services to the City of Brentwood through the State of California-negotiated contract CALNET 2.

PASSED, APPROVED AND ADOPTED by the Council of the City of Brentwood at a regular meeting held on the 28th day of October 2008 by the following vote:

 
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