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Item 4ICITY OF SOUTHLAKI MEMORANDUM (June 18, 2013) To: Shana Yelverton, City Manager From: Greg Hendricks, Deputy Director of Information Technology Subject: Approve telecom expenses pursuant to state contract (DIR-SDD- 604) with Verizon services in the amount of $124,000. 4I Action Requested: Approve budgeted expenses of $124,000 for Verizon telecom services. Background Information: Verizon is the City's primary vendor for wireless services with additional landline services supporting the automation of irrigation systems. With the increasing requirement for mobility, wireless services will continue to grow in all areas and departments as well as enabling the City Council. Financial Considerations: The projected year-end expenses for Verizon services in the amount of $124,000 come in lower ($5,600) than what was budgeted and approved in the FY 2013 budget. This cost includes Verizon Phone services for $24,000 and Verizon Wireless services for $100,000. The expenditures are made pursuant to the terms of the state contract —Department of Information Resources (DIR)—with Verizon. A DIR contract meets both state and City of Southlake bidding requirements, thus expediting the bidding and selection process for the City. Although the City has a contract with Verizon; any expenditure(s), whether individually or collectively exceed $50,000, shall be brought forward for Council approval. Strategic Link: 136 — "Optimize Use of Technology" — enables the IT department to efficiently enable control and mobility requirements. 134 — "Provide High Quality Customer Service" — enables IT to support and quickly enable mobile applications improving customer service internally and externally. Citizen Input/ Board Review: Legal Review: Not Applicable Not Applicable Alternatives: 1) Approve as proposed. Honorable Mayor and City Council Community Events Partnership Program Page 2 of 2 2) Reject — cancel account services and severely limit mobile services and automation services. Supporting Documents: Verizon agreement—DIR-SDD-604. Staff Recommendation: Approve item as proposed VERIZON WIRELESS AGENCY AGREEMENT FOR PURCHASES PURSUANT TO STATE OF TEXAS DIR CONTRACT NO. DIR-SDD-604 This agreement is dated March 29 2010 between Dallas MTA, LP d/b/a Verizon Wireless, GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless, GTE Mobilnet of Texas RSA #17 Limited Partnership d/b/a Verizon Wireless, San Antonio MTA, L.P. d/b/a Verizon Wireless, Southern & Central Wireless, LLC d/b/a Verizon Wireless, Verizon Wireless Power Partners Inc. d/b/a Verizon Wireless and Verizon Wireless Texas, LLC d/b/a Verizon Wireless ("Verizon Wireless") and City of Southlake ("Agency"), an agency of the State of Texas, a city, county, municipality or other political sub -division of the State of Texas that agrees to be bound by the Contract for Wireless Voice & Data Services and Equipment between the State of Texas Department of Information Resources (the "DIR) and Verizon Wireless, DIR Contract No. DIR-SDD-604 (the "DIR Agreement"). This Agency Agreement shall be governed by the terms and conditions of the DIR Agreement dated October 2, 2007. A copy of the DIR Agreement is incorporated herein by reference. Verizon Wireless hereby agrees to extend the privileges and benefits of the DIR Agreement in consideration of Agency's agreement herein to be bound by all the terms and conditions set forth in the Agreement. DIR will only be responsible for services provided to DIR and will not be responsible for payments for services provided to any individual Agency. Agency hereby agrees that it is separately and solely liable for all obligations and payments for equipment and services provided hereunder. For all purposes of the Agreement, Agency shall perform its obligations in the same manner as DIR under the DIR Agreement and Verizon shall provide equipment and services to DIR and Agencies in like manner, except as otherwise provided here. IN WITNESS WHEREOF, the authorized representatives of the parties hereto execute this Agreement below, intending to be bound. VERIZON WIRELESS By: Name: Title: Date: i p AGENCY By: �. Name:(��r, Title:� Date: -3 k--a Cq / ('a Revised 01/29/2010 Vemon Wireless Agency Agreement lox DIR-SDD-604 Data furnished in this document shall not he duplicated, used, disclosed in whole or in part for any purpose other than to evaluate the docunient DIR Contract No. DIR-SDD-604 STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT FOR WIRELESS VOICE & DATA SERVICES AND EQUIPMENT VERIZON WIRELESS Introduction A. Parties This Contract for products and related services is entered into between the State of Texas, acting by and through the Department of Information Resources (hereinafter "DIR") with its principal place of business at 300 West 15th Street, Suite 1300, Austin, Texas 78701, and: Dallas MTA, PD d/b/a Verizon Wireless GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless GTE Mobilnet of Texas RSA #17 Limited Partnership d/b/a Verizon Wireless San Antonio MTA, L.P. d/b/a Verizon Wireless Southern & Central Wireless, LLC d/b/a Verizon Wireless Verizon Wireless Power Partners Inc. d/b/a Verizon Wireless Verizon Wireless Texas, LLC d/b/a/ Verizon Wireless (hereinafter "Vendor"), with its principal place of business at 750 State Highway 121 Bypass, Lewisville, TX 75067. B. Compliance with Procurement Laws This Contract is the result of compliance with applicable procurement laws of the State of Texas. DIR issued a solicitation on the Texas Building and Procurement Commission's Electronic State Business Daily, Request for Offer (RFO) DIR-SDD-TMP- 089, on April 23, 2007, for Wireless Voice and/or Data Services and Equipment. Upon execution of this Contract, a notice of award for RFO DIR-SDD-TMP-089 shall be posted by DIR on the Electronic State Business Daily. C. Order of Precedence This Contract; Appendix A, Standard Terms and Conditions For Products and Related Services Contracts; Appendix B, Vendor's Historically Underutilized Businesses Subcontracting Plan; Appendix C Product and Pricing Index; Exhibit 1, Vendor's Response to RFO DIR-SDD-TMP-089, including all addenda; and Exhibit 2, RFO DIR- SDD-TMP-089, including all addenda; are incorporated by reference and constitute the entire agreement between DIR and Vendor. In the event of a conflict between the documents listed in this paragraph, the controlling document shall be this Contract, then Appendix A, then Appendix B, then Appendix C, then Exhibit 1, and finally Exhibit 2. In the event and to the extent any provisions contained in multiple documents address the same or substantially the same subject matter but do not actually conflict, the more recent provisions shall be deemed to have superseded earlier provisions. Page 1 of 6 DIR Contract No. DIR-SDD-604 2. Term of Contract A. The term of this Contract shall be one (1) year commencing on the last date of approval by DIR and Vendor. Prior to expiration of the original term, DIR and Vendor may extend the Contract, upon mutual agreement, for up to three (3) optional one- year terms. B. DIR agrees that Vendor may accept Purchase Orders with a termination date up to one year beyond the then —effective termination date of the Contract. Vendor agrees that it shall not accept Purchase Orders under the Contract for any term beyond one year from the effective termination date of the Contract. 3. Product and Service Offerings Wireless Voice and Data Products and Services available under this Contract are all published Verizon Wireless Voice and Data National Plans, plus Custom State of Texas Calling Plans (created specifically for DIR Customers and not available to commercial or retail customers). Vendor may incorporate changes to their product offering; however, any changes must be within the scope of Products and Services awarded based on the posting described in Section 1.13 above. 4. Pricing A. Manufacturer's Suggested Retail Price (MSRP) MSRP is defined as the product sales price suggested by the manufacturer or publisher of a product. B. Customer Discount The minimum Customer discount from the Vendor for all published Verizon Wireless Voice and Data National Plans is 18%. Custom State of Texas Calling Plans are firm fixed prices and are identified in Appendix C Product and Pricing Index. The minimum Customer discount from the Vendor for all accessories is 25% off of current retail price. C. Customer Price 1) The price to the Customer shall be calculated as follows: Customer Price = MSRP — Customer Discount 2) Customers purchasing products and services under this Contract may negotiate more advantageous pricing or participate in special promotional offers. In such event, a copy of such better offerings shall be furnished to DIR upon request. 3) If pricing for products or services available under this Contract are provided at a lower price to: (i) an eligible Customer who is not purchasing those products or Page 2 of 6 DIR Contract No. DIR-SDD-604 services under this Contract or (ii) any other entity or consortia authorized by Texas law to sell said products and services to eligible Customers, then the available Customer Price in this Contract shall be adjusted to that lower price. This Contract shall be amended within ten (10) business days to reflect the lower price. D. DIR Administrative Fee The administrative fee specified in Section 5 below shall not be broken out as a separate line item when pricing or invoice is provided to Customer. E. Shipping and Handling Fees The price to the Customer under this Contract shall include all shipping and handling fees. Shipments will be Free On Board Customer's destination. No additional fees shall be charged to the Customer for standard shipping and handling. If the Customer requests expedited delivery, Customer will be responsible for any charges for expedited delivery. F. Tax -Exempt As per Section 151.309, Texas Tax Code, Customers under this Contract are exempt from the assessment of State sales, use and excise taxes. Further, Customers under this Contract are exempt from Federal Excise Taxes, 26 United States Code Sections 4253(i) and 0). G. Travel Expense Reimbursement Pricing for services provided under this Contract are exclusive of any travel expenses that may be incurred in the performance of those services. Travel expense reimbursement may include personal vehicle mileage or commercial coach transportation, hotel accommodations, parking and meals; provided, however, the amount of reimbursement by Customers shall not exceed the amounts authorized by the current State Travel Regulations. Travel time may not be included as part of the amounts payable by Customer for any services rendered under this Contract. The DIR administrative fee specified in Section 5 below is not applicable to travel expense reimbursement. Anticipated travel expenses must be pre -approved in writing by Customer. H. Changes to Prices Vendor may change the price of any product or service at any time, based upon changes to the MSRP, but discount levels shall remain consistent with the discount levels specified in this Contract. Price decreases shall take effect automatically during the term of this Contract and shall be passed onto the Customer immediately. I. Telecommunications Fees 1) The only applicable FCC authorized fee, surcharge or assessment in effect as of the date of this Contract is the Federal Universal Service Fund charge. This fee may appear on billings to Customers. No other FCC or PUC authorized fee, cost recovery fee, surcharge or assessment applicable to wireless voice and/or data telecommunications services may be imposed during the term of this Contract, without the prior amendment to authorize such imposition under the Contract. Vendor acknowledges that certain Customers, that are political subdivisions, are exempt from the imposition and collection of certain Texas telecommunications fees, Page 3 of 6 DIR Contract No. DIR-SDD-604 including the Texas Universal Service Fund Charge and Texas Infrastructure Fund assessment. In addition, state agency -Customers have additional exemptions from Texas fees, including the 9-1-1 emergency service fee, 9-1-1 equalization surcharge, poison control surcharge, and late charges imposed under Section 55.010, Utilities Code. Vendor agrees to not bill for any items which are not mandated by the FCC or PUC and which are otherwise not applicable to wireless voice and/or data telecommunications services. Vendor also agrees to not bill for items for which a Customer has an exemption. Vendor agrees to promptly correct any incorrect billings that occur. 2) Except for changes in the law, during the term of this Contract, all changes in fee structures, which create or authorize Vendor to impose an unlisted telecommunications fee on these Products and or Services, which Vendor desires to impose under this Contract, shall require an amendment in order to be effective against the State of Texas and Customers. In the event of a change in the law or fee structures, which results in an exemption from payment in favor of the state of Texas or its Customers, Vendor shall give effect to the exemption without the necessity of a contract amendment. J. Other Fees Vendor acknowledges all activation fees and termination fees, including early termination fees, are waived for all DIR eligible customers (unless, with respect to early termination fees, the One Hundred Dollar ($100) Invoice Credit option is exercised as defined in Appendix C Product and Pricing Index). 5. DIR Administrative Fee A) The administrative fee to be paid by the Vendor to DIR based on the dollar value of all sales to Customers pursuant to this Contract is two percent (2%). Payment will be calculated for all sales, net of returns and credits. For example, the administrative fee for sales totaling $100,000 shall be $2,000 B) All prices quoted to Customers shall include the administrative fee. DIR reserves the right to change this fee upwards or downwards during the term of this Contract, upon written notice to Vendor. Any change in the administrative fee shall be incorporated in the price to the Customer. C) Administrative fees are applicable to all invoiced sales for wireless voice and data service plans, equipment and accessories. The parties agree the administrative fee for wireless voice and data equipment and accessories is 2% of total annual sales paid in accordance with Section 8.B.4 of Appendix A. 6. Notification All notices under this Contract shall be sent to a party at the respective address indicated below. If sent to the State: If sent to the Vendor: Sherri Parks, Service Delivery Division Blake Pumphrey Department of Information Resources Verizon Wireless 300 W. 15th St., Suite 1300 750 State Highway 121 Bypass Austin, Texas 78701 Lewisville, TX 75067 Page 4 of 6 7 B. Phone: (512) 475-4700 Facsimile: (512) 475-4759 Email: sherri.parks@dir.state.tx.us Shrink/Click-wrap License Agreement DIR Contract No. DIR-SDD-604 Phone: (214) 770-9700 Efax: (972) 444-5631 Email: blake pumphrey(-a)verizonwireless.com Kirk Jamieson Verizon Wireless 1 Verizon Place Alpharetta, GA 30004 Phone: (678) 339-4958 Fax: (678) 339-8642 kirk.jamieson@verizonwireless.com Regardless of any other provision or other license terms which may be issued by Vendor after the effective date of this Contract, and irrespective of whether any such provisions have been proposed prior to or after the issuance of a Purchase Order for products licensed under this Contract, or the fact that such other agreement may be affixed to or accompany software upon delivery (shrink-wrap), the terms and conditions set forth in this Contract shall supersede and govern the license terms between Customers and Vendor. Authorized Exceptions to Appendix A, Standard Terms and Conditions for Product and Related Services Contracts. All references to Catalog Information System Vendors (CISV) in Appendix A are hereby deleted. 2. Appendix A, Section 6. E.2. Accurate and Timely Contract information is hereby restated as follows: 2) Accurate and Timely Contract Information Vendor warrants and represents that the website information specified in the above paragraph will be accurately and completely posted, maintained and displayed in an objective and timely manner. Vendor, at its own expense, shall correct any non- conforming or inaccurate information posted at Vendor's website within fourteen (14) business days after written notification by DIR. 3. Appendix A, Section 13. Customer Satisfaction Metrics is hereby added as follows: 13. Customer Satisfaction Metrics DIR will be providing quarterly "customer satisfaction scores" and DIR is reserving the right to engage a third party to build and gauge customer satisfaction metrics. Should a wireless vendor go two straight quarters with a low customer satisfaction score, DIR reserves the right to suspend all new prospective business orders for up to two business quarters till customer satisfaction issues are resolved. Further, DIR may be selecting an integrator that will serve as a single interface for wireless telecommunications management which may include single portal ordering, provisioning, billing, reconciliation and dispute management. The vendors will agree to utilization of this interface for their DIR wireless contracts. Page 5 of 6 DIR Contract No. DIR-SDD-604 This Contract is executed to be effective as of the date of last signature. Verizon Wireless Authorized By: Signature on File Name: James E. McGean Title: President — South Area The State of Texas, acting by and through The Department of Information Resources Authorized By: Signature on File Name: Cindy Reed Title: Deputy Executive Director Operations & Statewide Technology Sourcing Date: 9128/07 Date: 10/2107 Legal: Signature on File Page 6 of 6