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SR-101-003-04-05 (2) CM:ISD:DY:mwise\Sysdev\DavidY\Wpdocs\Verizon.doc Council Meeting: 3/6/01 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute a Two-Year Agreement with Verizon Wireless for Cellular Telephone Service. Introduction This report recommends the City Council authorize the City Manager to negotiate and execute a two-year agreement with Verizon Wireless for cellular telephone service. Background The Information Systems Division (ISD) administers the maintenance, service and departmental billing of the City’s 180 cellular phones. Since the inception of cellular phone service in the City, service has been provided by Verizon Wireless (previously Air Touch and PacTel Cellular), who was selected through a competitive RFP process. Service and support continue to meet City standards and requirements. Discussion Verizon has offered the City a two-year, discounted (up to 50%) service contract at their Southern California Government Account rates, which are superior to those offered the general public and competitive with other wireless providers. Many of the City’s cellular phones are assigned to public safety staff and feature phone numbers that have been widely published. Switching wireless carriers would entail changing phone numbers on all of the City’s cellular phones, which could conceivably disrupt vital communications. Therefore, the combination of discounted pricing, static phone numbers and no service disruption meets the City’s requirements. Budget/Financial Impact This is a two-year services contract that will not exceed $100,000 per fiscal year. Funds for the first year are budgeted in departmental utilities-telephone accounts (object # 522210) in the City's FY 2000/01 budget. Provisions for subsequent years will be included in future City budget requests to fulfill contract payment obligations. Recommendation Staff recommends that the City Council authorize the City Manager to negotiate and execute a two year agreement with Verizon Wireless for cellular phone service. Prepared by: Jory Wolf, Chief Information Officer David Yeskel, Systems Analyst