Item 4PMCITY OF
SOUTHLAKI
MEMORANDUM
(June 11, 2014)
To: Shana Yelverton, City Manager
From: Greg Hendricks, Director of Information Technology
Subject: Consent agenda item 4P - Approve telecom expenses for Verizon
services in the amount of $143,187.
Action
Requested: Approve budgeted expenses of $143,187 for Verizon
telecom services required for single -vendor spending above
$50,000.
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 are
$143,187 (FY14 General Fund approved budget). This cost
includes Verizon Phone services for $25,891 and Verizon
Wireless services for $117,296.
Strategic Link: 136 — "Optimize Use of Technology" — enables the IT
department to efficiently enable control and mobility
requirements.
134 — "Provide High Quality Customer Service through
sustainable business practices" — 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.
2) Reject — cancel account services and severely limit mobile
services and automation services.
Supporting
Documents: Verizon agreement for purchases based on DIR contract
DIR-SDD-604 in Laserfiche.
Staff Recommendation: Approve item as proposed
Honorable Mayor and City Council
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Attachments:
{ I 1
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: C1 l G
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
1. 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.
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
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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,
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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.
1. 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.
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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
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