Item No: 4.C.4.
Meeting Date: June 10, 2013
From: Mike Thornton, Purchasing Manager for
Stan Carter, Director Information Technology
Subject: Resolution authorizing the Mayor to sign a GSA-Federal Supply Schedule Purchase Order with Verizon Wireless for cell phone service pricing plan
Staff recommends approval of the resolution authorizing the Mayor to sign the GSA Federal Supply Schedule Purchase Order (GSA Schedule).
This action is a repeat of an agenda item previously presented on August 13, 2012. Verizon Wireless (Verizon) had a turnover in staff and the original GSA Purchase Order was not properly filed by the vendor. Approval of this resolution will allow the City to be placed on the proper pricing plan. Verizon will issue credits to the City retroactive to the original start date of the City’s service.
Original Memorandum Text:
Staff has performed an analysis of cell phone pricing and service and recommends changing cell phone and cell phone service providers from Sprint Nextel to Verizon Wireless Communications. In order to make a complete switch and receive the best pricing available to local governments staff is requesting the attached GSA Schedule be signed to allow the City to take advantage of the GSA Schedule pricing.
The City’s wireless communication service provider started with Nextel Communications and then changed Sprint following their merger with Nextel. Over the past year or more the service/reception provided by Sprint has continuously deteriorated. Sprint confirmed sometime ago they would not be upgrading their network in the Leesburg area to provide 4th Generation service (4G).
The City currently uses Verizon Wireless for data service through air cards. Air cards are a device that operate similar to a cell phone, a wireless modem, but are used for connecting a laptop or other mobile device to the cellular network to receive and transmit data. This change was made after Sprint confirmed they would not be upgrading their network in the Leesburg area. Availability of 4G service was critical to our public safety units and field crews to receive mobile data access while in the field. The police department patrol cars use 4G aircards in their laptop computers to connect to the public safety network. Reliable and fast wireless service is imperative for the patrol cars.
The reliability and quality of service provided by Sprint for regular cellular phone service has continued to decline. The IT Department is receiving more complaints and reports of dropped calls and/or no service in some areas of the City. Recently there was a gas line rupture. The gas utility director was trying to direct crews in response to the rupture and update other city departments but could not because of cell phone service failures in the field. The poor quality of Sprint service is becoming an issue of public safety.
The City was working with Verizon wireless on pricing plan options available should the City switch all cellular phone service from our current provider. The City has received a proposal from Verizon Wireless that uses both the Federal GSA pricing and State of Florida contract pricing. Either plan will be used based on the past usage of cell phones. Cell phones having sufficient minutes requiring a plan and smart phones will use the Federal GSA pricing. Cell phones with low usage and aircards will use the State of Florida contract pricing. Cell phones with low usage will be placed on a per minute plan instead of paying a flat monthly fee for a set amount of minutes.
Over the past several years, the City has reduced the number of cellular phones. In November 2008, the City had 219 phones and 120 air cards. We now have 142 phones and 126 air cards. There has been a 20.9% reduction in wireless devices in the City.
The savings to be realized is summarized here:
Current Sprint - $8,679.90 per month
Future Verizon - $8,073.00 per month
Savings - $606.9 per month x 12 months = $7,282.80 Annually
The switch to Verizon using the Federal GSA Schedule and the State of Florida contract will provide the level of service required of the City and save an estimated $7,282.80 per year.
The City will be provided cell phones at no cost when the switch from Sprint to Verizon occurs. Free replacement equipment is a condition of the State of Florida pricing contract.
The City has engaged the Florida League of Cities to perform a review of all telecommunication services. Their representatives agree with this proposed mixed pricing plan switch from Sprint to Verizon. They provided some assistance with cell phone usage analysis and savings estimates by switching to a multiple pricing plan model.
1. Approve the resolution authorizing signing of the GSA Federal Supply Schedule Purchase Order;
2. Such alternative action as the Commission may deem appropriate
Funds for wireless communications services are already budgeted within each department. This change will result in a savings for all departments at varying degrees depending on the number of devices they have and usage.
Department: _Information Technology___
Prepared by: _Mike Thornton______
Attachments: Yes____ No ______
Advertised: ____Not Required __X___
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _BLM,__________
Deputy C.M. ___________________
City Manager ___________________
Account No. _XXX-XXXX-5XX-41.10_
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR TO SIGN A GSA-FEDERAL SUPPLY SCHEDULE PURCHASE ORDER WITH VERIZON WIRELESS FOR CELL PHONE SERVICE PRICING PLAN; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor is hereby authorized to sign a GSA Federal Supply Schedule Purchase Order with Verizon Wireless Communications whose address is 7600 Montpelier Road, Laurel, Maryland 20723 providing an estimated expenditure for wireless communications services and equipment pursuant to Federal GSA Schedule 70 – Information Technology and Wireless Communications.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __10th _ day of ___June____ 2013.