R95-168 AUTHORIZING AGREEMENT - Laserfiche WebLink

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. ' . ' , - MANAGEMENT SERVICES DEPARTMENT Budget and Technology Division Memorandum No. 95-33 November 29, 1995 MEMORANDUM FOR: Honorable Mayor and City Council � FROM: James C. Bacon, Jr., City Manager� Daniel R. Sommerfeldt, Assistant City Manager�� Linda J. Love, Supervisor, Budget and Technolo y Division `�� - David S. Johnston, Manager, MIS Division' - � SUBJECT: Renewal of Centreg Agreement In 1988, Council approved a 7-year contract with Illinois Bell Telephone Company (now Ameritech) establishing Service Transport Facility Centrex service to the city offices at the Law Enforcement Center. For a one-time charge of$12,425 and an flat monthly fee of$289.00, the contract provided a significant reduction in monthly line charges. That contract expires December 15, 1995. Ameritech in late October informed the city that the tariff under which the original contract was executed has expired and that the per line monthly charge would henceforth increase from $5.45 to $12.32. Following negotiations with Ameritech and discussions with a third-party service provider, Ameritech has agreed to renew the contract j for a second seven year period at the original rate and to waive the renewal charge of $12,425. � A brief cost comparison is provided for your review at Enclosure l. Over the life of the proposed contract, a copy of which is attached as Enclosure 2, this action provides savings to the city of approximately $27,080 (net present value), in addition to the $12,425 saved by the waiving of the renewal charge. Although the third party provider offered comparable cost savings, their terms require the City to surrender "ownership" of the Centrex numbers, which could potentially require the City to change established, published public safety telephone numbers in the future should we decide not to renew an agreement with that provider. The Ameritech agreement is therefore preferred. Recommend Council approve the resolution at Enclosure 3, authorizing the renewal of the agreement with Ameritech. Staff will be available at the meeting to answer any questions that you may have.