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HomeMy WebLinkAbout07-16-13 Emergency Item #1 - Authorization to Execute a One-Year Agreement in the Amount of $20,012.49 and Subsequent Renewals, with CenturyLink for Maintenance of the City's Telephone System1 4 k5 Y %/� 0 (-> fIorida AGENDA ITEM COVER SHEET Meeting Date: July 16, 2013 Item # Emergency # 1 Reviewed By: Contact Name: Al Butler, Director of Department Director: Support Services Contact Number: 407 - 905 -3100, ext. 1543 City Manager: Subject: Authorization to execute a one -year agreement in the amount of $26,02.49, and subsequent renewals, with CenturyLink for maintenance of the City's telephone system. Background Summary: The City received notice in May that the maintenance agreement with CenturyLink for the City's PBX - based telephone system was expiring; however, there was some uncertainty as to what facilities and equipment were actually part of the agreement. The parties subsequently agreed to a 60 -day extension during which they would work to identify all telephone equipment and software for which maintenance coverage would be provided. (There is a 25% penalty assessed if the maintenance agreement lapses.) CenturyLink discovered during this research process that it did not have a full inventory of City -owned equipment and service locations. Field crews were dispatched to all City service locations; the final list of equipment and software to cover under the agreement was not finalized until July 10 and the cost proposal for the maintenance coverage was not completed until July 12. Three basic equipment maintenance options were developed: 1. All telephone facilities and equipment would receive 24 -hour service seven days a week. 2. All telephone facilities and equipment would receive business day service (8 hours per weekday). 3. A mix of 24 -hour and 8 -hour service arrangements would be provided based on the nature of the location. CenturyLink also offered two levels of software maintenance: PASS Basic and PASS Plus. The difference between these two service levels is the cost of software upgrades, which are included in PASS Plus but not in PASS Basic. PASS Plus costs about $8,700 more and it is not always necessary to implement each telephone system software update, but when it is necessary, the cost for such an update is about $15.00 per telephone with PASS Basic ($7,380). Taken together, the various combinations of service options are: $23,629.02 — 24x7 equipment service at all locations and PASS Basic software maintenance $32,308,90 — 24x7 equipment service at all locations and PASS Plus software maintenance $20,012.49 — 8x5 equipment service at all locations and PASS Basic software maintenance $28,692.37 — 8x5 equipment service at all locations and PASS Plus software maintenance $20,012.49 — Mixed 24x7 and 8x5 equipment service at various locations and PASS Basic software maintenance $28,692.37 — Mixed 247 and 8x5 equipment service at various locations and PASS Plus software maintenance The schedule of maintenance for the City's telephone service locations selected by the parties is: 8 hours per business weekday: • City Hall Campus • Ison Center • Public Works 24 hours everyday: • Fire Station 25 • Fire Station 26 • Fire Station 38 and Police Substations • Fire Station 39 • Police Headquarters • South Water Plant • Utilities Administration and Wastewater Treatment Plant • Forest Oaks Water Plant • Beech Center (on same circuits as Utilities, so must have same coverage) Although the 60 -day time extension expired on July 14, CenturyLink has agreed to waive the 25% penalty assessment if the maintenance agreement could be executed by July 19 due to the amount of time required for their effort. Issue: Should the City Commission authorize the Mayor to execute a one -year maintenance agreement and subsequent renewals with CenturyLink for the City's telephone system facilities and software? Recommendations The Support Services Department recommends that the City Commission authorize the execution of a maintenance agreement using the mixed 247 and 8x5 equipment maintenance and PASS Basic software maintenance service option at a cost of $20,012.49, and the execution of any subsequent renewals of this agreement under similar terms and subject to an annual price increase limit of 15 %. Should the cost of any renewal exceed the annual cost of the prior agreement plus 15 %, then the agreement will need to be brought back to the City Commission for consideration. Attachments: Detailed cost proposal from CenturyLink. Financial Impact: The annual budget for telephone system maintenance is $41,000. The proposed agreement offers a substantial cost reduction over prior years. 2 Type of Item: (please mark with an 'V) Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion & Direction X Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by ( ) N/A N/A N/A 3 Products and Services Agreement Contract No. 130400697254 This Products and Services Agreement ( "Agreement ") between CENTURYLINK SALES SOLUTIONS, INC., as contracting agent on behalf of the applicable affiliated entities providing the Products and Services ( "Centuryl-ink ") and CITY OF OCOEE ( "Customer ") sets forth the terms and conditions for CenturyLink's provision of those Products and Services to Customer. Electronic signatures on this Agreement will be accepted only in the form and manner prescribed by CenturyLink. 1. SERVICES. Centun will sell to Customer the Services listed on the Services List, attached and incorporated by this reference. This Agreement is effective on the date all parties have signed below ( "Effective Date ") and continues for the longest Order Term listed on the Services List. 2. PURCHASE ORDERS. This Agreement controls over any Customer - issued purchase order, and any terms or conditions contained in a Customer - issued purchase order or other Customer ordering document will have no force or effect. 3. UNIFORM RESOURCE LOCATORS (URLS). References to URLs in this Agreement include any successor URLs designated by CenturyLink. 4. ENTITY. For an interim period until all work is completed to update systems and platforms related to the combination of EMBARQ and CenturyTel, and the acquisition of Qwest, the names EMBARQ and CenturyTel may be used in association with the products and services provided by CenturyLink in this Agreement and Qwest products and services will be sold under a separate agreement. VE"R31911 1 CENTURYLINK SALES SOLUTIONS, ZINC. Printed: Title: `_ , fix - ✓ 11 �.: • - Date: CITY OF OCOEE By: Printed: Title: Date: Address for Sales Administration Notices: 665 Lexington Avenue Mailstop: OHMAN130107 Mansfield, 01144907 And if related to a dispute to: CenturyLink -- Attn: Sr. Assistant General Counsel, Commercial Law 5454 W. 110` Street Overland Park, KS 66211 Sales Rep: Michelle Hansen Sales Rep Phone: (407) 661 -5658 Customer Address: Address for Notices (if different from above): 150 N LAKESHORE DR OCOEE, FL 34761 -2223 4316721 v.9 Page 1 of 2 05.13- QUVSvo Contract No. 130400697254 SERVICES LIST 1. SERVICES. Centur- yLink will provide to Customer those Services identified in the CenturyLink Price Quotes, attached and incorporated by this reference (each, a "Price Quote "). The name of the local operating company providing Services to Customer is listed on each Price Quote. Services are purchased on either a month -to -month basis or for a specific term for the particular Service ordered (each, an "Order Term "), as listed in each Price Quote. Each Order Term begins on the later of the first day of the first billing month after the Effective Date or the date that CenturyLink installs and makes that Service available to Customer. If Customer continues to receive a Service after expiration of the Service's applicable Order Term, CenturyLink will provide that Service on a month -to -month basis at its then - current list pricing and then - current terms and conditions, unless the parties otherwise agree in writing. CenturyLink will make the Services available only after its compliance with any state - specific regulatory filing requirements. CenturyLink Price Quote Number(s): 13- 017433 PRICING. 2.1 Monthly Recurring Charges ( "MRC ") or Monthly Recurring Rates ( "MRRs"). CenturyLink will charge Customer the MRCs or MRRs for the Services described in each Price Quote. For purposes of this Agreement, MRCs and MRRs have the same meaning and may be used interchangeably. 2.2 Non- recurring Charges ( "NRC ") or Non- recurring Rates ("NRRs "). CenturyLink will charge Customer NRCs or NRRs related to the Services described in each Price Quote. For purposes of this Agreement, NRCs and NRRs have the same meaning and may be used interchangeably 2.3 Additional Charges. Rates do not include applicable local, state, or federal taxes, fees, or surcharges that CenturyLink may bill Customer. 2.4 Additional Payment Requirements. If Customer is not able to establish a satisfactory credit rating with CenturyLink, CenturyLink, in its sole discretion, may require Customer to submit a deposit or make an advance payment in connection with obtaining or maintaining the Services. 3. TERMS AND CONDITIONS. CenturyLink provides Services under the applicable terms and conditions listed and incorporated by reference on each Price Quote. Except for Services provided under Tariffs, in the event of any inconsistencies or conflicts between this Agreement and the applicable terms and conditions, this Agreement will take precedence. 4. TERMINATION. 11' Customer gives notice of cancellation or termination, disconnects any portion of a Service or otherwise breaches this Agreement resulting in the termination of a Service prior to the end of the applicable Order Term, termination liability will apply as calculated and set forth in the applicable terms and conditions listed and incorporated by reference on each Price Quote. If no termination liability is specified for Services in these terms and conditions, Customer will be liable for 50% of the monthly payments that would otherwise remain in the applicable Order Term. 5. RELATED PRODUCT PURCHASES. Customer may purchase Products related to the Services at the CenturyLink then - current list pricing and subject to the then - current Standard Terms and Conditions for Communications Services, the Equipment Sales Product Annex, and other applicable annexes based on Customer's selection of Products, all as posted to httn : / /about.centu .,com /lc. l /rates ccq 1+316721 v.9 Page 2 of 2 05.13- Out "Svc CITY OF OCOEE -CENTURION MAINTENANCE 2013-14- QUOTE BUILD � 17433 PROPOSED COVERAGE - A 'MIX' OF COVERAGE AS A POSSIBILITY FOR 2013 -14 CENTURION SERVICES FROM CTL S 14.591' 35 STANDARD SITE / LOCATION COVERAGE 8 x 5 � VERAGE ENDED 24 x 7 S 2,x.'277 -23 $ 25,809.05 CITY HALL w /PASS BASIC $ 14,597.35 S 0.58 UTILITIES ADMIN & WA PLANT FIRE STATION 25 $ 440.98 S 28.96 S 1,370.88 FIRE STATION 25 S 6' ..j0 S 545.84 1,370.88 FIRE STATION 26 S 46' 1 S 545.84 $ ';' 545.84 FIRE STATION 39 S 48.96 FIRE STA 38 & POLICE SUB $ 545.84 SENIOR CENTER S 146.88 S 40.32 S '..77 08 FIRE STA 38 & POLICE SUB PUBLIC WORKS w 967 68 S 146.88 POLICE DEPT S 20.' 6 $ 2,154.24 PUBLIC WORKS S 967.68 SOUTH WATER CENTER $ '; 24.48 COVERAGE SUBTOTALS $ 16,046.33 $ ! 4,788.16 TOTAL ANNUAL CHARGE FOR THE ABOVE NOTED "MIX" w /PASS BASIC $ 20,834.49 STANDA SITE / LOCATION COVERAGE 8 x 5 1/ERAGE 24 x 7 CITY HALL w /PASS BASIC S 14.591' 35 $ 17,129.17 CITY HALL w /PASS PLUS S 2,x.'277 -23 $ 25,809.05 UTILITIES ADMIN & WA PLANT S 0.58 $ 487.69 1 FIRE STATION 25 S 28.96 S 1,370.88 FIRE STATION 26 S 6' ..j0 S 545.84 FIRE STATION 39 S 46' 1 S 545.84 SENIOR CENTER S 40.32 S 48.96 FIRE STA 38 & POLICE SUB '20-96 S 146.88 POLICE DEPT S '..77 08 S 2,154.24 PUBLIC WORKS w 967 68 $ 1,175.04 SOUTH WATER CENTER S 20.' 6 S 24.48 w /Pass Basic S 20,012.49 w /Pass Plus $ 23,629.02 w /Pass Plus S 28,692.37 w /Pass Plus $ 32,308.90 00 00 N n IT co CO LO Ln Co M V O OD LO r- O Co C N N r ,-. 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