Monterey County Call Box Program: Verizon Wireless Contract Amendment No. 2:

1. APPROVE contract Amendment No. 2 with Verizon Wireless extending the term of the agreement to December 31, 2019;
2. AUTHORIZE the Executive Director to execute documentation necessary to enter into the updated Participating Addendum with NASPO Value Point (formerly Western States Contracting Alliance) and the State of California with respect to Verizon Wireless Communication and Equipment services; and
3. AUTHORIZE the Executive Director to execute the contract and changes to the contract if such changes do not increase the Agency’s net cost, subject to approval by Agency Counsel. 

In 2012, following a competitive procurement process, the Transportation Agency contracted with Verizon Wireless to provide digital cellular service for call boxes in Monterey County. The service contract with Verizon Wireless is subject to the terms of the user agreement with NASPO Value Point (formerly Western States Contracting Alliance) and the State of California with respect to Verizon Wireless Communication and Equipment services, which has been amended to extend service through December 31, 2019. This Amendment will bring the Agency’s contract into compliance with the updated NASPO Value Point agreement with Verizon Wireless.

The terms of the current contract will remain in effect, and currently the Agency pays a rate of $0.06 per minute. The current contract has a not to exceed amount of $34,200, of which approximately $27,000 is remaining. Staff estimates that the cost of this extension will be well within the remaining budget of the current contract. The funding for the cellular service comes from the $1 vehicle registration fee collected by the California Department of Motor Vehicles.

Monterey County’s call box system contains approximately 190 installed call boxes on most freeways and highways, as well as selected county roads. The Transportation Agency currently contracts with Verizon Wireless for digital cellular services for the call box program. The current agreement provides for a rate of $0.06/min, no monthly services fees, free nights and weekends, and no annual term requirement or termination fees. The contract expires at the end of the current fiscal year, June 30, 2017.

Although the Agency currently has approximately 190 call boxes in use, the total number of call boxes in Monterey County is expected to decrease in the coming years as the Agency implements its Call Box Modernization Plan, which is currently being drafted. Staff anticipates that the actual Verizon costs will be lower than the budgeted amount because the system is likely to be smaller in the future as call boxes are removed under the Modernization Plan. 

The current Verizon Wireless contract uses the pricing, terms and conditions of NASPO ValuePoint (formerly Western States Contracting Alliance (WSCA)), a Multi-State contract to which the State of California subscribes. Using the NASPO contract allows TAMC to receive a significantly higher discount than it would otherwise qualify for as a single entity since the pricing under the NASPO contract is based upon the 10,000+ line attainment level. The NASPO agreement was amended to extend the term of the agreement to December 31, 2019.

Staff recommends amending the current agreement with Verizon Wireless, and authorizing the Executive Director to enter into the amended NASPO agreement to allow the agency to be in concurrence with the NASPO agreement, and continue to provide digital cellular service to the Monterey County call box system through December 31, 2019.