Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH CENTURYLINK COMMUNICATIONS, LLC, AND FOR THE EXPENDITURE OF FUNDS
Staff Contact: Chuck Murphy, Chief Information Officer, Innovation and Technology
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a new Linking Agreement with CenturyLink Communications, LLC. (CenturyLink) for a term commencing June 14, 2016 and ending on June 30, 2017, and to authorize the City Manager, at their discretion, to renew the agreement for three additional one-year periods until June 30, 2020. Under the terms of the agreement, CenturyLink will provide products and services to the City utilizing the State of Arizona cooperative purchasing agreement ADSPO15-088468. This request also includes approval of expenditure authority in an amount not to exceed $2,500,000 over the life of the agreement
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Background
CenturyLink provides Internet, Voice, Video and Data circuits to the city at a monthly cost based on the state contract. Century Link has signed a new State contract (ADSPO15-088468). In order for the city to take advantage of the State Contract pricing a new linking agreement must be approved to reflect the new pricing.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
This new linking agreement reflects the state contracted pricing for products and services from CenturyLink. Every five years the State of Arizona negotiates new contract pricing for products and services from CenturyLink for a multitude of voice and data communications services. In order for the city to take advantage of these changes a new linking agreement and new Carrier Service Orders must be signed with CenturyLink. Included in these agreements is a request for a data service from CenturyLink to move the city to new SIP voice communication trunks. These trunks will allow to city to provide additional voice redundancy and flexibility to the cities telephone systems. The City will also gain increased data speeds without increased costs.
Previous Related Council Action
On January 28, 2014, City Council approved the Linking Agreement (C-8781) with CenturyLink for a single CSO.
Community Benefit/Public Involvement
Approval of this agreement will enable the city to benefit from the state contracted pricing for products and services provided by CenturyLink while maintaining or reducing the monthly costs of these services.
Budget and Financial Impacts
The amount budgeted in the Telephone Fund will fluctuate based on annual budget capacity and needs. It is estimated to be $625,000 per year with contingency.
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Cost |
Fund-Department-Account |
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$625,000 |
2591-18400-514600, Telephone Fund |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?