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MANAGEMENT SERVICES DEPARTMENT <br /> Management Information Services Division <br /> MEMORANDUM 2011-10 <br /> October 12, 2011 <br /> MEMO TO: Honorable Mayor and City Council Members <br /> FROM: Ryan P. McCrady, City Manager <br /> Gerard J. Bauer, Assistant City Manager for Administration <br /> Randy G. Aldrich, Manager, MIS Division <br /> SUBJECT: City Telecommunications Contracts <br /> SUMMARY RECOMMENDATION: Staff recommends that City Council approve the two <br /> attached resolutions, authorizing the Mayor to sign a letter of authorization and execute <br /> agreements with CallOne, submitted by Bodine Communications via a Request for Proposals <br /> (RFP), for the Reselling or Replacing of AT&T Services and Features, to reduce future <br /> telecommunications expenses. <br /> BACKGROUND: The City's voice telephone lines for local, long distance, and data services <br /> are provided by AT&T under existing and expired agreements. The agreements attached are a <br /> result of soliciting, by RFP, 36 month term agreements to reduce ongoing telecommunications <br /> costs and simplify invoice payments while maintaining or improving the level of service. The <br /> proposals do not change existing active AT&T agreements for Centrex and certain data lines, <br /> nor replace AT&T as our service provider. <br /> Three proposals were received as a result of the RFP. The two acceptable proposals came <br /> from Bodine Communications/CallOne and AT&T, with an estimated $7,200 annual cost <br /> difference favoring Bodine Communications/CallOne. The Bodine Communications/Cal[One <br /> proposal consists of a Letter of Authorization to appoint CallOne to act as the City's agent, a <br /> three year Customer Service agreement to establish discounted usage rates for local and long <br /> distance service, and ISDN-PRI (Primary Rate Interface) Re-Contracted Customer Service <br /> Agreement for the City's two PRIs. <br /> An improvement in efficiencies will be realized in the Finance Department by the consolidation <br /> of over 30 monthly AT&T invoices to a single invoice with costs allocated by department <br /> expense codes. <br /> POTENTIAL OBJECTORS: None anticipated. <br /> INPUT FROM OTHER SOURCES: None. <br /> STAFF REFERENCE: Randy G. Aldrich, Manager, MIS Division (450-2239), will be present at <br /> Council meeting to answer questions. <br /> BUDGET/TIME IMPLICATIONS: A projected fixed savings of $1,062 per month, and the <br /> estimated variable usage savings of $1,491 per month, giving an annual combined estimated <br /> savings of over $30,000. The projected savings represent 20% of the $12,790 current AT&T <br /> monthly payments. <br /> 3 Attachments <br />