SR-101-003-04-05 (3)
CM:ISD:DY:mwise\Sysdev\DavidY\Wpdocs\Verizon wireline.doc
Council Meeting: 5/22/01 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Two-Year Agreement with Verizon for Trunking and Local and Long
Distance Telephone Service.
Introduction
This report recommends the City Council authorize the City Manager to negotiate and
execute a two-year agreement with Verizon for trunking and local and long distance
telephone service.
Background
The Information Systems Division (ISD) administers configuration, service and billing
for the City’s wireline telephone service. Since two vendors have historically provided
separate local and long distance calling service (Verizon and AT&T, respectively),
preferential rates for bundled services were not available to the City. Due to recent
regulatory changes, telecommunications service vendors are now able to offer local
governments a complete suite of products including T1 trunks, local, intrastate and
interstate calling services. The City solicited bids from Verizon, Pac Bell and AT&T,
and employed a consultant to aid in analyzing vendors’ proposals.
Discussion
Pac Bell was eliminated from the bidding process because it could not provide the full
suite of products and services requested. AT&T's bid is unacceptable and non
responsive due to its inability to provide local services through a system that meets the
City's needs for reliability, performance and minimum risk for public safety response.
Verizon’s proposal for bundled services (T1 trunks, local, intrastate and interstate
calling) meets the City’s needs in terms of local call routing and billing efficiency, and is
acceptable based on price, reliability and performance. A multi-year contract for these
services will result in savings of approximately 25%.
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 2001/02 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 for trunking, local and long distance
telephone service.
Prepared by: Jory Wolf, Chief Information Officer
David Yeskel, Systems Analyst