It is anticipated that the annual expenditure for this service will fall incrementally over the next three years as the City completes its transition to the desk fiber network.  It is recommended that the City Council authorize the extension of a Service Agreement with the State Department of Information Resources at an annual amount of $509,000.00 for long distance and telecommunications network services using a Texas Department of Information Resources, Communications Technology Services Division Service Agreement for the Information Technology Solutions Department.

The Information Technology Solutions (ITS) Department will use State of Texas, Department of Information Resources (DIR), Communications Technology Services Division, Service Agreement (DIR-CTS-CSA-E11-115) to provide a portion of its telecommunication services including long distance services for all City departments.  This contract is designed so that local entities may enter into Agreements with DIR for long distance services and selected data network facilities.  The cost per minute for services under this contract will range from $.018 to $.026 per minute for intrastate/interstate calls, costs for calls outside of the United States will have higher rates.

It is anticipated that the annual expenditure for this service will fall incrementally over the next three years as the City completes its transition to the dark fiber network.  The State of Texas DIR is authorized to offer the Cooperative Purchasing Program to state agencies, public institutions of higher learning, public school districts and local governments.  Pursuant to Government Code Section 791.025, a local government that purchases goods and services under the Interlocal Cooperation Act satisfies otherwise applicable competitive bidding requirements.

ADMINISTRATIVE CHANGE ORDER:  An Administrative Change Order or increase may be made by the City Manager for the Service Agreement in the amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.

M/WBE OFFICE:  A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the M/WBE Office, in accordance with the DBE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

AGREEMENT TERMS:  Upon City Council's approval this Agreement will begin July 1, 2016 to coincide with the expiration of the previous authorization (M&C C-26399) and the term will end July 1, 2017.

RENEWAL OPTIONS:  This Agreement may be renewed at the City's option for two one-year terms in accordance with the terms of DIR-CTS-CSA-E11-115 or applicable successive DIR contracts for the same services.

This contract will be with a governmental entity, state agency or public institution of higher education:  State of Texas Department of Information Resources.