HomeMy WebLinkAbout05.E- Information Technology RESOLUTION (ID # 1523) DOC ID: 1523 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract
From: Lea Deesing M/CC Meeting Date: 02/06/2012
Prepared by: Larry Martin, (909) 384-5947
Dept: Information Technology Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of an Agreement and Issuance of a Purchase Order to Verizon for Centranet
Telephone Service.
Financial Impact:
Account Budgeted Amount: $420,000.00 Account No. 630-250-0035-5157
Account Description: Telephone charges
Balance as o£ 1/11/2012 $261,300.00
Balance after approval of this item: $106,300.00
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred, but not yet processed.
Motion: Adopt Resolution.
Synopsis of Previous Council Action:
January 8, 2007 - Mayor and Common Council approved Resolution 2007-8 authorizing an
agreement with Verizon for Centranet telephone service for the City of San Bernardino.
Background:
Verizon is the local exchange carrier for much of the City of San Bernardino. Verizon has
provided much of the telephone communications services to the City. If approved, this
agreement would provide Centranet telephone service to many of the smaller City of San
Bernardino facilities. Verizon has provided service to the City for the last 14 years.
This resolution does not provide a new service, but rather continues an ongoing service that
provides voice phone service to many of the smaller facilities within the City (Fire stations,
Parks facilities, etc...). Savings are realized by the fact that contractual rates (Cal Net 11) are
substantially cheaper than tariff rates (rates charged when not on a contract).
Cal Net 11 is a contract awarded by the State of California under a formal open bid process. It is
common for vendors to honor this pricing to other customers.
While other vendors can provide this service, The ongoing relationship with Verizon, contract
Updated:2/2/2012 by Mayra Ochiqui A
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1523
pricing and the amount of staff resources required to change vendors makes staying with Verizon
a logical choice.
This agreement is for a thirty-six (36) month term with the option of two (2) single year
extensions. The cost of service for the remaining five (5) months of fiscal year 2011/12 is
$155,000.00. The annual cost is not to exceed$372,000.00.
City Attorney Review:
Supporting Documents:
Exhibit A (PDF)
Verizon Resolution (PDF)
Verizon Centranet Selected Source (PDF)
Verizon Costs for Agenda Item 1523 (PDF)
Updated:2/2/2012 by Mayra Ochiqui A
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CUSTOMER SPECIFIC ARRANGEMENT
(Intrastate Detariffed Services—California)
Routing Code: 5V
Customer Name: City of San Bernardino("Customer') IMain Billing Tel. No: 909-384-5211
Address: 300 North"D"Street, San Bernardino, CA 92418 jAgreement No. CSS-2011
Services. Customer hereby requests and agrees to purchase from the Verizon company(ies) identified in the
applicable Exhibit(s) ("Verizon") the services, at the Customer locations identified in Exhibits A and B attached to
this Agreement, and in any Addendum expressly made a part hereof, (the"Services") pursuant to this Agreement
and Verizon's applicable ILEC Product Guide, for the service period stated in the Exhibit or Addendum applicable
to such Service (the "Service Period"). This Agreement and any Exhibit hereto shall become effective when
executed by an authorized Verizon representative and an authorized representative of Customer (the "Effective
Date"). Under no circumstances may Customer resell the Services being provided under the rates, terms and
conditions of this Agreement. Each Verizon entity contracting under this Agreement is responsible only for the
performance of the Services it is providing as set out in each Exhibit hereto and is not responsible for the
performance of any other entity's obligations under this Agreement. x
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Customer Consent to Use of Customer Proprietary Network information (CPNI). Verizon acknowledges that d
it has a duty, and Customer has a right, under federal and/or state law to protect the confidentiality of Customers V
CPNI. CPNI includes information relating to the quantity, technical configuration, type, destination, location, and o
amount of use of the telecommunications and interconnected voice over Internet Protocol services Customer N
purchases from Verizon, as well as related local and toll billing information, made available to Verizon solely by °'
virtue of Customer's relationship with Verizon. With Customer consent, Verizon may share Customer CPNI and
other Confidential Information among its affiliates, including Verizon Wireless, and with agents and partners, so N
that all may use this information to offer Customer the full range of products and services offered by Verizon and
its affiliates, including local, long distance, wireless, and Internet services (see www.verizon.com for a description
of Verizon companies and services). By signing this Agreement, Customer consents to Verizon using and N
disclosing Customer CPNI as described above. Customer may refuse CPNI consent by signing this Agreement o
and by notifying Verizon in writing at cpni-notices(werizonwireless.com and cpn!- •v1
notices averizonbusiness.com of Customer's decision to withhold Customer's consent. Customer's consent or >
refusal to consent will remain valid until Customer otherwise advises Verizon, and in either case, will not affect
Verizon's provision of service to Customer. Q
ILEC Product Guide. Verizon's provision of the Services hereunder shall be governed by Verizon's incumbent
Local Exchange Carrier Product Guide (located at http://www.verizon.com/tariffs) ("ILEC Product Guide") and this x
Agreement. The ILEC Product Guide is incorporated into the Agreement by this reference. in the event of a w
conflict between the terms and conditions of the ILEC Product Guide and this Agreement, the terms and =
conditions of this Agreement shall prevail. With respect to the documents of the Agreement, the terms and E
conditions of the Service Exhibit shall have the highest order of precedence. Verizon may modify the ILEC
Product Guide at any time and such modifications will become binding on Customer as further described below.
To the extent such changes are material (and other than changes related to governmental charges or any Q
applicable taxes), Verizon shall notify Customer of such changes via a bill insert,as a message on Customer's bill,
in a separate mailing, by email or by any other reasonable method at Verizon's discretion. Such changes will
become effective no sooner than thirty (30) days after such notice is provided. In the event such changes
materially and adversely affect Customer, Customer may terminate the affected Service without the application of
termination liability by providing Verizon immediate written notice of Customer's request to terminate, unless within
(30) thirty days after receipt of Customer's termination notice Verizon agrees to revise the change in such a
manner as to remove the material adverse effect on Customer. Customer shall remain responsible for the
payment for Services rendered until the effective date of the termination. Customer's continued use of the Service
after the material change becomes effective constitutes Customer's acceptance of the change.
Customer Responsibilities. Customer agrees to provide Verizon with any access and support necessary for the
implementation, maintenance and provision of the Services requested hereunder. Customer is responsible for
taking all steps necessary to interconnect the Services at Customer's location(s) including ensuring proper
interconnection with the facilities and equipment provided by Verizon, paying all costs associated with
interconnection, securing any necessary licenses, right of ways and permits and providing proper space, electrical
power, heating, ventilation and cooling. Verizon shall not be liable for any damages or losses caused by the failure
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of equipment, inside wire or other facilities provided by Customer or a third party, and Customer shall be liable if
such facilities cause damage to Verizon, its network, customers, equipment and/or Verizon's providers.
Customer is solely responsible for the selection, implementation and maintenance of security features for
protection against unauthorized or fraudulent use of the Service(s)and Verizon shall have no liability therefore.
Charges and Payment. Customer will pay the rates and charges set forth in the attached Exhibit(s) and in any
Addendum made a part hereof, which shall be fixed during the Service Period, and shall also pay all applicable
taxes, fees, and other applicable charges, including Federal End User Common Line Charges, charged pursuant
to applicable law or regulations in connection with the Services. Taxes, fees and/or surcharges are subject to
change without notice to Customer, except as may be required by law. Except as otherwise provided in the
Agreement, if Customer cancels or terminates this Agreement or any Services prior to expiration of the Service
Period, Customer will promptly pay to Verizon termination charges as set forth in the applicable Exhibit(s) and
Addendum(a).
Verizon shall invoice Customer monthly and payment will be due Net 30 days from the invoice date. Undisputed
charges paid after the due date may be subject to late payment charges as set out in the ILEC Product Guide until
Customer's account is current. Any back billing limitations otherwise applicable to the Services pursuant to the
ILEC Product Guide shall not apply to the Services under this Agreement.
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Unauthorized Use. Verizon shall not be liable for any damages, including charges for Services that Customer
may incur as a result of the unauthorized use or misuse of the Services by Customer, Customer's employees,
third parties or other members of the public. Customer shall remain responsible for such charges. v
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Indemnification. Customer agrees to defend, indemnify and hold Verizon, its employees, affiliates and agents, L
harmless from any and all losses, claims, demands, expenses (including reasonable attorney's fees), or any j
liability whatsoever, arising from any use of the Services by Customer or by person or entity permitted by
Customer to use the Services, including without limitation, liability resulting from the content of communication 0`4
such as defamation, fraud or invasion of privacy, or any combination of the Services with other products or
services not provided by Verizon, any modification of the Services or any infringement of intellectual property.
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Warranty Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE ILEC PRODUCT GUIDE, o
VERIZON DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR 2
ARISING BY COURSE OF PERFORMANCE, DEALING, CUSTOM OR TRADE USAGE, INCLUDING BUT NOT d
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
(EVEN IF VERIZON KNEW OR SHOULD HAVE KNOW SUCH PURPOSE) AND NON-INFRINGEMENT. Q
CUSTOMER AGREES THAT THE SERVICES PROVIDED HEREUNDER ARE PROVIDED ON AN "AS IS"AND
"AS AVAILABLE" BASIS. VERIZON DOES NOT WARRANT THAT THE SERVICES WILL MEET CUSTOMER'S
NEEDS, OR WILL BE UNINTERRUPTED, ERROR-FREE,OR SECURE. x
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Limitation of Liability. EXCEPT FOR DAMAGES RESULTING FROM UNAUTHORIZED OR ILLEGAL USE OF
THE SERVICE BY CUSTOMER, ITS EMPLOYEES, AGENTS, SUBCONTRACTORS OR OTHER THIRD E
PARTIES, NEITHER PARTY (NOR ITS SUPPLIERS OR AFFILIATES) SHALL BE LIABLE TO THE OTHER
PARTY FOR PUNITIVE, SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES INCLUDING
WITHOUT LIMITATION, LOSS OF BUSINESS PROFITS, OR OTHER COMMERCIAL OR ECONOMIC LOSS Q
ARISING IN CONNECTION WITH THE SERVICES, EVEN IF THE PARTY KNEW OR SHOULD HAVE KNOWN
OF THE POSSIBILITY OF SUCH DAMAGES.
EITHER PARTY'S MAXIMUM TOTAL LIABILITY TO THE OTHER PARTY IN CONNECTION WITH THE
SERVICES, FOR ANY AND ALL CAUSES OF ACTION AND CLAIMS, SHALL BE:
(A) FOR DAMAGES DUE TO FAILURES OR DISRUPTION IN THE SERVICES CAUSED BY THE PARTY'S
NEGLIGENCE OR BREACH OF OBLIGATIONS UNDER THE AGREEMENT, INCLUDING THE ILEC
PRODUCT GUIDE, THE CHARGES FOR THE AFFECTED SERVICES FOR THE PERIOD OF THE
FAILURE;
(B) FOR DAMAGES TO REAL OR TANGIBLE PERSONAL PROPERTY OR BODILY INJURY OR DEATH
TO ANY PERSON PROXIMATELY CAUSED BY THE PARTY'S NEGLIGENCE, THE AMOUNT OF
DIRECT DAMAGES PROVEN;
(C) FOR INDEMNITY, THE REMEDIES SET FORTH IN THE SECTION ABOVE TITLED
INDEMNIFICATION;
(D) FOR ANY DAMAGES ARISING OUT OF THE WILLFUL OR INTENTIONAL MISCONDUCT OF THE
PARTY, THE AMOUNT OF DIRECT DAMAGES PROVEN;
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(E) FOR ALL OTHER DAMAGES NOT SET FORTH ABOVE AND NOT EXCLUDED UNDER THE
AGREEMENT, INCLUDING THE ILEC PRODUCT GUIDE, EACH PARTY'S MAXIMUM LIABILITY
DURING ANY TWELVE MONTH PERIOD SHALL BE LIMITED TO THE LESSER OF (i) DIRECT
DAMAGES PROVEN, OR (ii) THE AMOUNT PAID BY CUSTOMER TO VERIZON UNDER THE
AGREEMENT, INCLUDING THE ILEC PRODUCT GUIDE, FOR THE ONE MONTH PERIOD PRIOR TO
ACCRUAL OF THE MOST RECENT CAUSE OF ACTION.
NOTHING IN THIS SECTION SHALL LIMIT CUSTOMER'S LIABILITY TO VERIZON FOR ANY AND ALL
CHARGES INCURRED FOR SERVICES.
Termination of Services. Verizon may discontinue or limit use of the Services by Customer for non-payment,
non-compliance with Verizon's rules of use, fraudulent use, and other conditions as provided in the Verizon
California Inc. General Exchange Tariff, Schedule D&R, Rule No. 11,as incorporated herein.
Termination of the Services, for any cause, shall not release Customer from any liability which at the time of
termination had already accrued to Customer or which thereafter accrues for any act or omission occurring prior to
the termination or from an obligation which, by its nature, survives termination.
Performance Excused. No Viability, including but not limited to refund of Service charges, shall result from _
Service failures caused by fires, floods, severe weather, acts of government or third parties, strikes, labor x
disputes, inability to obtain necessary equipment or services, or other causes beyond such party's reasonable c
control.
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Notices. Notices under this Agreement shall be sent by first-class U.S. mail, postage prepaid, to Customer at the o
address specified above, and to Verizon at Verizon Business, Attn- Customer Service, 6415 Business Center L
Drive, Highlands Ranch, CO 80130, Email: noticeaverizonbusiness com with a copy to Verizon Business d
Services, 22001 Loudoun County Pkwy, Ashburn, VA 20147, Attn: Vice President Legal. Notices shall be
deemed effective five business days after such mailing. M
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Miscellaneous
(a) Neither party will disclose the terms of this Agreement to any other person without the prior written consent of
the other party, except as may be necessary to comply with applicable law, regulation, or filing requirements. o
Either party may issue or permit issuance of a press release or other public statement concerning this Agreement ]n
provided its contents have been reviewed and agreed upon by the parties. >
(b) In the event of a claim or dispute, the law and regulations of the jurisdiction in which Verizon provides to
Customer the particular Service that is the subject of such claim or dispute shall apply. This Agreement and its Q
provisions shall not be construed or interpreted for or against any party hereto because that party drafted or
caused that party's legal representative to draft any of its provisions.
X(c) Either party's failure to enforce any of the provisions of the ILEC Product Guide or the Agreement or to t
exercise any right or option is not a waiver of any such provision, right or option, and shall not affect the validity of w
the ILEC Product Guide or the Agreement. If any provision of the ILEC Product Guide or this Agreement or the =
provision of any Service under the terms hereof is illegal, invalid, or otherwise prohibited under applicable law or E
regulation in any State or jurisdiction, then the ILEC Product Guide and this Agreement shall be construed as if not
containing such provision or requiring the provision of such invalid, illegal, prohibited, or unapproved Service in r
such State or jurisdiction, and the remaining terms and conditions of the ILEC Product Guide and the Agreement Q
shall continue to apply as necessary to reflect the original intention of the parties.
(d)Verizon may assign or transfer part or all of this Agreement to any affiliate or successor to substantially all of its
assets in the locations where Service is provided hereunder. Upon reasonable prior written notice to Verizon,
Customer may assign or transfer this Agreement to any company that is the successor to substantially all of its
assets, provided all charges for Services provided prior to such transfer or assignment are paid in full when due.
Except as otherwise required by applicable law or regulation, all other attempted assignments shall be void without
the prior written consent of the other party.
(e) Services are offered in locations where made available by Verizon in its sole discretion.
(f) The terms and conditions contained on a Customer purchase order document(whether signed by one or both
parties)shall not serve to modify the terms and conditions of this Agreement.
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The ILEC Product Guide, and this Agreement (including the Exhibits attached hereto and any Addenda made a
part hereof)constitute the entire agreement between the parties with respect to the Services and shall supersede
all prior oral or written quotations, communications, negotiations, representations, understandings or agreements
made by or to any employee, officer, or agent of any party on the subject matter hereof. This Agreement may not
be modified or rescinded except by a writing signed by authorized representatives of each party.
AGREED AND ACCEPTED:
CITY OF SAN BERNARDINO(Customer) VERIZON BUSINESS NETWORK SERVICES
INC., on behalf of VERIZON CALIFORNIA INC.
By By
Name/title Name/Title
Date Date
APPROVED AS TO FORM:
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
3 AND THE ISSUANCE OF A PURCHASE ORDER TO VERIZON FOR CENTRANET
4 TELPHONE SERVICE
5 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
6 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The Mayor and Common Council of the City of San Bernardino
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hereby authorizes the City Manager to execute, on behalf of said City, an Agreement between v
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the City of San Bernardino and Verizon, a copy of which is attached hereto marked Exhibit
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11 "A"and incorporated herein by reference as fully as though set forth at length.
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12 SECTION 2. That Verizon is the selected source for the City's Centranet telephone Ln
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services. Pursuant to this determination, the Director of Finance or his/her Designee is hereby o
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15 authorized to issue an Annual Purchase Order to Verizon for the City's Centranet telephone
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services in the amount not exceed $155,000.00 for fiscal year 2011/2012. The contract term is 2
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36 months, with two (2) one year options. The annual cost is not to exceed$372,000.00.
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18 SECTION 3. This purchase is exempt from the formal contract procedures of N
19 Section 3.04.010 of the Municipal Code >
p , pursuant to Section 3.04.010. B.3 of said Code, ..
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"Purchases approved by the Mayor and Common Council". E
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SECTION 4. The authorization to execute the above-referenced Agreement is
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23 rescinded if not executed/issued within sixty(60)days of the passage of this Resolution.
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5.E.b
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
2 AND THE ISSUANCE OF A PURCHASE ORDER TO VERIZON FOR CENTRANET
TELPHONE SERVICE.
3
4
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a
meeting
7 X
thereof,held on the day of ,2012, by the following vote,to wit: m
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9 Council Members: AYES NAYS ABSTAIN ABSENT c
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10 MARQUEZ
11 JENKINS M
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BRINKER
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14 SHORETT N
15 KELLEY
16 JOHNSON
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17 MCCAMMACK
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20 Rachel G. Clark,CMC, City Clerk c
The foregoing resolution is hereby roved this
21 Y a pp day of ,2012.
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23 Patrick J. Morris,Mayor
24 City of San Bernardino
25 Approved as to form:
JAMES F. PENMAN,
26 City A orney
27 By:
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CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO: Deborah Morrow, Purchasing Manager
FROM: Lea Deesing, IT Director
DATE: January 12,2012
SUBJECT: Justification for Selected Source Purchase—Verizon (Centranet
Srvc.)
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On January 8,2007, the Mayor and Common Council approved Resolution 2007-8
authorizing an agreement with'Verizon for Centranet telephone service for the City of N
San Bernardino.
Under San Bernardino Municipal Code 3.04.010 A 3. "Purchases approved by the Mayor
and Common Council" are exempt from a formal bid process.
Pricing awarded to the City is under the Cal Net II contract. A previous open bid o
managed by the State of California. Cn
Under San Bernardino Municipal Code 3.04.010 A 2. "Purchases from a vendor or d
manufacturer which, through the City's bidding procedure, or other California in
government or governmental agency's bidding procedure,has established a price at which c
such a vendor or manufacturer is willing to sell to the City. During such a bid procedure
more than one responsive bid must have been received, and the bid award must have a
occurred within one year at the City's issuance of a purchase order" are exempt from a
formal bid process. N
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Department HeadtSignature a
Requisition# 20376_
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VERIZON Bill Sample Pulled from July 2010-March 2011
Department Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11
City Attorney 232.80 152.22 157.71 152.21 151.86 151.89 163.51
Comm.Dev. 2,231.91 2,215.89 2,216.04 2,216.34 2,207.32 2,207.57 2,382.51
Fire 2,994.71 2,994.91 3,108.19 3,320.25 3,263.07 3,098.07 3,335.31
Police 9,050.07 8,613.13 8,970.95 8,835.39 9,007.88 8,390.35 8,721.11
Animal 656.93 648.17 649.50 648.21 644.36 643.62 656.40
IT 232.69 227.57 237.78 226.44 231.50 226.41 256.51
CATV 72.56 73.60 72.21 66.90 67.35 66.12 77.24
Facilites 9,446.85 9,322.10 9,939.83 9,682.41 9,539.88 9,192.89 9,732.42
Parks 4,001.69 4,006.78 3,984.88 4,060.12 3,932.75 3,934.43 4,191.78
CID 197.34 190.56 193.65 194.51 186.29 179.31 201.75
Public Works 888.88 885.84 891.72 881.90 813.75 883.67 937.79
BB Stadium 132.60 127.15 132.43 126.47 131.84 126.36 136.40
Soccer 61.38 60.42 60.91 59.87 60.20 59.89 65.80 x
Library 4,040.43 4,054.23 4,015.30 3,887.79 3,892.47 3,579.68 3,985.20 Y
EDA 146.65 147.00 148.96 144.04 130.51 130.43 137.39
Sub-Totals 34,387.49 33,719.57 34,780.06 34,502.85 34,261.03 32,870.69 34,981.12 U
Less Long Distance Now included in
separate contract with ATT 5,048.54 5,499.35 5,245.56 5,294.23 4,776.67 5,227.18 5,106.06 N
Totals $29,338.95 $28,220.22 $29,534.50 $29,208.62 $29,484.36 $27,643.51 $29,875.06
Not to Exceed N
Average per month 7/10-3/11 $29,155.21 Additional Utilitization Estimate Council Ac Lo
5 months x average $145,776.06 6% $155,000
12 months x average $349,862.53 6% $372,000 N
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