REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
March 10, 2020
FROM
MICHAEL JIMENEZ, County Librarian, County Library
SUBJECT
Title v
Contract Extension for Library Telecommunications
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Agreement No. 16-142 with Level 3 Communications to exercise the second of two one-year options to extend the contract from July 1, 2020 through June 30, 2021, and increase the contract amount by $38,128, from $152,512 to $190,640, for the provision of telecommunications circuits connecting County Library Branches to the County’s Wide Area Network.
(Presenter: Michael Jimenez, County Librarian, 387-2220)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost for telecommunications circuits is expected to be $423,645 per year. With the receipt of E-Rate funding, the Library will receive an estimated discount of 82% off of this amount, which will result in a reduced cost of $76,256 per year. In addition to E-Rate funding, the Library also qualifies for California Teleconnect Fund (CTF) discounts provided by the State of California, which reduces the remaining portion by 50%. The total expected net cost to the Library is $38,128 per year for telecommunications circuits. The contract is funded with ongoing revenue received in the Library’s special revenue fund operating budget. Adequate appropriation and revenue will be included in Library’s 2020-21 budget.
BACKGROUND INFORMATION
Approval of Amendment No. 2 will exercise the second of two one-year extensions, for continued Internet access to all library branches. This contract will allow the Library to seek reimbursement for a portion of the telecommunications circuit charges through the federal E-Rate program. The Library provides staff and public computer access as well as Wi-Fi at all of its locations across the County.
On April 5, 2016 (Item No. 35), the Board of Supervisors (Board) approved Contract No. 16-142 with Level 3 Communications for $38,128 per year for the period of July 1, 2016 through June 30, 2019, to provide internet access service connecting all County Library branches to the Internet. On March 19, 2019 (Item No. 15), the Board approved the first extension of Contract No. 16-142 with Level 3 Communications for $38,128 for the period of July 1, 2019 through June 30, 2020.
The Library is a public library, which allows it to receive discounts on its telecommunications bills. This program is the Schools and Libraries Program of the Universal Service Fund, commonly known as "E-Rate," which is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC). This program provides discounts to assist a large number of schools and libraries in the United States to obtain affordable telecommunications circuits and Internet access. It is one of four programs funded through a Universal Service Fee charged to companies that provide interstate and/or international telecommunications services. Those fees are passed on to the consumer and are placed in a special fund for annual use by the FCC.
The E-Rate telecommunications discount rate is based on the total school free lunch program percentage applicable to the school district in which the library is located in. Since July 2012, the Library has successfully secured E-Rate funding which led to the build out and upgrade of faster telecommunications circuits which provide County Wide Area Network (County WAN) connectivity. Library branches have seen a significant upgrade in speed to meet the demands of increasingly enhanced content available on the internet, support public and staff PCs remotely, and increase the availability of Wi-Fi in library branches.
PROCUREMENT
County Policy No. 11-04 requires that all competitive and non-competitive purchase of services where the annual aggregate cost, per scope of services, per vendor, per agency, department or Board-governed Special District exceeds $200,000 during a single annual period must be approved by the Board of Supervisors. Contracts originally approved by the Board, may only be amended by the Board. E-Rate guidelines require that the Library post a Request for Proposal (RFP) to seek competitive bids for all new services being requested per local jurisdiction guidelines.
The Library posted a RFP for a 30 day period during December 2015 and January 2016 for WAN circuits at 29 branch locations and the hub site at the ISD Data Center. Two vendors responded to the RFP and it was determined that Level 3 Communications bid for the hub site at the ISD Data Center would provide the best value to the County at a reasonable cost. The Board approved the contract on April 5, 2016 (Item No. 35), and the first option to extend the contract on March 19, 2019 (Item No. 15). The Library currently seeks Board approval to exercise the second option to extend. No additional procurement was required, as the option to extend is provided for in the Board approved Contract.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Katherine Hardy, Deputy County Counsel, 387-5437) on February 6, 2020, 2020; Library (Patrick Scalzitti, Finance and Operations Chief) on February 14, 2020; Purchasing (Michelle Churchill, Lead Buyer, 387-2070) on February 11, 2020; Finance (Elias Duenas, Administrative Analyst, 387-4052) on February 18, 2020; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on February 24, 2020.