Committee recommends $30.6M amendment to city’s Verizon wireless contract

The Board of Supervisors’ Budget and Finance Committee on Sept. 28 voted to forward a resolution that would amend the city’s agreement with Cellco Partnership (doing business as Verizon) to increase the contract ceiling to approximately $30.6 million and extend the term through June 30, 2027, with renewal options through 2030.

Hao Xie, strategic sourcing manager in the Department of Technology, said the amendment covers a shortfall in the current term and funds projected additional service costs for four additional years and one month. Xie described device growth since the start of the pandemic and usage increases: the contract currently covers roughly 7,346 devices (about 56% phones and 44% laptops, tablets, hotspots and vehicle modems), average monthly data usage rose about 19%, voice by 27% and messaging more than tripled. He reported the average monthly cost per device at roughly $38.66.

Xie said the contract consolidates procurement and guarantees competitive rates; the BLA’s report showed citywide device counts rose from 13,643 in January 2020 to 18,353 in June 2022 (about a 35% increase) and estimated that returning to pre‑COVID device counts could save roughly $2.5 million a year.

Supervisors asked about alternatives such as stipends for employees who use personal phones. Xie cited cybersecurity concerns — city policy requires secured devices for access to sensitive systems — and California’s Sunshine ordinance, which can make officials’ device contents subject to public records rules, as constraints on broad 'bring‑your‑own' policies.

There was no public comment and the committee voted unanimously to forward the amendment to the full Board with a positive recommendation.

Next steps: the full Board will consider the amendment; supervisors flagged a potential citywide policy discussion about device counts and usage that could affect future budgets.