City of Culver City, California
Agenda Item Report
Meeting Date: 02/14/2011 Item Number: C-3
CITY COUNCIL AGENDA ITEM: Approval of a Professional Services Agreement
with AT&T Telecommunications (Los Angeles, CA) for the Support and
Maintenance of Cisco Components that Comprise the City’s Telephone and Data
Network Systems.
Contact Person/Dept.: David Leuck Phone Number: 310.253.5961
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (02/09/11)
Department Approval:
John Richo (02/03/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/09/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (02/09/11)
City Manager Approval:
John M. Nachbar (02/09/11)
RECOMMENDATION:
Staff recommends that the City Council approve a professional services agreement
with AT&T Telecommunications (Los Angeles, CA) for the support and maintenance
of Cisco components for the City’s Telephone and Data Network systems.
BACKGROUND:
On July 20, 2009 the City Council approved the purchase of Cisco telephone system
and network components to transition from an analog to a digital telephone and data
network system. Included in the purchase were Cisco maintenance agreements
needed by the City to implement and maintain the systems during the first year.
Cisco maintenance ensures that the City has access to replacements, system
upgrades, and technical support on the devices and software now in production.
The City began the transition to the new digital telephone systems and data network
in the spring of 2010 with final acceptance of the completed system in January 2011.
DISCUSSION:
Cisco network and telephone equipment is covered for parts, labor, and technical
support through a contract known as SmartNet. While Cisco is the ultimate provider
of the services, the City is able to shop for the best price through the reseller City of Culver City, California
Agenda Item Report
community utilizing the discounts available through CMAS and other preferential
previously-bid pricing agreements.
For this year’s agreement, the Information Technology Department proposes to
combine the contracts for Cisco equipment previously owned and in service with the
new equipment to create a master renewal strategy for the components. Staff
reviewed the usage patterns and needs and updated the support strategy to ensure
that critical components and public safety site equipment was covered.
Culver City Municipal CodeSection 3.07.085.A exempts professional services from
the formal competitive bidding requirement, provided competitive quotations are
obtained whenever practical, as determined by the City Manager. For this renewal,
staff elected to shop for the best price for SmartNet contracts. Four vendors were
invited to bid:
• Black Box
• Continuant, Inc.
• CDWG
• AT&T Telecommunications
Black Box and Continuant after meetings and review declined to bid. Both
determined that unless the SmartNet coverage was combined with value added
services the City was not a fit for their support strategy. Value added services are
supplemental support and troubleshooting options provided by the company for
which additional fees are paid. CDWG and AT&T Telecommunications both
submitted bids with AT&T Telecommunications providing the lowest price.
CDWG Proposal: $58,658.80
AT&T Proposal: $40,209.12
The prior phone and data networking equipment had been maintained through
separate vendors in both the IT and the Non-Departmental budgets. Those amounts
for Fiscal Year 2009/2010 year were:
• IT Maintenance $11,341.51
• Non-Departmental $50,000.00
---------------
$61,134.51
The replacement of the telephone and network systems has decreased the overall
maintenance costs in Fiscal Year 2010/2011 by $20,925.39
It is proposed that the Agreement be for a four year term with a maximum allowable
increase in the following year of up to 10% of the prior year’s fee.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
Sufficient funds have been appropriated in account 31016100.512410 for the
purpose of funding the annual maintenance of the telephone and network systems.
ATTACHMENTS:
Attachment 1 – AT&T Bid
Attachment 2 – CDWG Bid
MOTION:
That the City Council:
1. Approve a professional services agreement with AT&T Telecommunications (Los
Angeles) for support and maintenance of the Cisco components of the City’s
telephone and data network in an amount not to exceed $40,209.12 for Fiscal Year
2011/2012 and an amount not to exceed a 10% increase per year for up to three
years thereafter (a total of a four year term); and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City;
MEETING DATE:
AGENDA ITEM:
2. CDWG Bid.
1. AT&T Bid.
Pages
1
2
02/14/11
Authorization to Contract for Telephone and Data
Network Annual Maintenance with AT&T
Telecommunications (Los Angeles, CA)
ATTACHMENTS `Correspooding
. Tab tbeloW)
Quote1
Part Number
Numbe r)
2253247
Description
-
iservIto.Maintaiianee Level)
One Year Smartnet Proposal
Annual List Price
45,653.00
Prorated List P rice
42,694.84
AT&T Customor
.Extonded .
37,059.12
NA UCSS 3,150.00 3,150.00 3,150.00
ii $ .44;
40,209.12
Arun:lei :Teta I
All prices are USD
:QUOTE AMT;
ate
SmartNet Renewal Order Form Details for
Culver City r. Hortensia Ruiz
Katie Pocrnick
W: (720) 889-8663
F: (415) 962-5967
kp947mftatt Qom COW
Account Manager: Jeff Butchko
26125 N. Riverwoods Blvd
Mettawa, IL 60045
(847) 371-5500 phone
SMARTnet RENEWAL QUOTE FOR CITY OF CULVER
EFFECTIVE COVERAGE CO-TERMED THROUGH FEBRUARY 02, 2012
Please Note: This Quote is valid for 60 days from the Quote Date
Quotes Generated On: January 25, 2011
*CDW Confidential
,edlytttikpb: plotrAo,tiNuo 0 ...p tiorispip.E.T - $065.40 or le i i ) 11 LW4.r Cost.
SAS _ NEW Q12435055 Software Application Support $ 3,216.53
ESW NEW Q12435015 Essential SW $ 3,872.50
"(JCS S Unified Communications Software Subscription $ 3,912.00
SNT NEW Q12435090 SMARTnet 8x5xNBD $ 14,711.09
SNTP . NEW Q12435062 SMARTnet Premium 24x7x4 $ 32,946.68
Total: 58,658.80 1
Customer is responsible to pay freight charges. Estimated or actual freight charges are not included in quotes (unless specifically
Acceptance of Terms and Conditions of Sales and Services
By ordering or accepting delivery of Products from Seller or by engaging Seller to perform or to procure
Services on behalf of Customer, Customer thereby signifies its agreement with Seller: (i) that the terms and
conditions governing any such transaction ("Transaction") are those contained on Seller's website at
www.cdw.com under the title, "Terms and Conditions of Product Sales and Service Projects", except if there is
an effective written agreement between the parties applicable to the Transaction, then the terms and conditions
governing the Transaction are those contained in such effective written agreement; and (ii) that if Customer
delivers or conveys to Seller by any means: (a) any additional terms or conditions; or (b) any terms or conditions
that differ in any respect, material or otherwise, from those governing the Transaction, then such terms or
conditions will be null and void unless accepted in a writing executed by the authorized signatories of both
parties.
(