HomeMy WebLinkAboutItem #08 Approval to Modify the Maintenance Contract with CenturyLink for Maintenance of the City's Telephone System in Order to Correct the Price of a One-Year Agreement, which will go from $20,012.49 to $20,834.491 kA 0 N 0 %a/0,1r
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AGENDA ITEM COVER SHEET
Meeting Date: September 17, 2013
Item # R
Contact Name: Al Butler, Director of
Support Services
Contact Number: 407 - 905 -3100, ext. 1543
Reviewed By:
Subject: Authorization to modify the maintenance contract with CenturyLink for maintenance of the
City's telephone system in order to correct the price of a one -year agreement, which will go from
$20,012.49 to $20,834.49.
Background Summary:
The City Commission approved an emergency agenda item at its July 16, 2013 to approve a new one -
year maintenance agreement between the City and CenturyLink to provide hardware and software
maintenance of the city's telephone system. 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)
This agreement was the subject of an emergency action due to the expiration of the software
maintenance agreement, which is a third -party service provided under an agreement between the
manufacturer of the city's PBX, CenturyLink, and the City. The agreement had expired due to the
amount of time required for CenturyLink to get an accurate inventory of city telephone facilities. The cost
of the desired service was proposed to be $20,012.49 per year, or $1,667.71 per month. When the first
month's invoice for the maintenance service was calculated by CenturyLink, a discrepancy was
discovered. That difference is the result of the original price quote not including the full cost of service at
those additional locations identified by the City for 24 hour service seven days a week. The actual
annual cost should be $20,834.49, or $1,736.21 per month. This is a difference of $822 over the one -
year term of the agreement.
Issue:
Should the City Commission authorize the Mayor to execute a revised one -year maintenance agreement
and subsequent renewals with CenturyLink for the City's telephone system facilities and software in the
amount of $20,834.49?
Recommendations
The Support Services Department recommends that the City Commission authorize the execution of a
revised maintenance agreement using the mixed 24x7 and 8x5 equipment maintenance and PASS Basic
software maintenance service option at a cost of $20,834.49, and the execution of any subsequent
renewals of this agreement under similar terms and subject to an annual price increase limit of 15 %.
Staff believes that the mistake in setting the initial price was a mutual mistake that overlooked the added
cost of the higher level of service. 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. In order to address any future issues of a similar nature, staff asks that the City
Commission allow price adjustments of 15% or less during the term of the agreement in order to allow
changes in the terms of service, the cost of those services, and the number and nature of locations
included, subject to the City Manger's approval and the available budget.
Attachments:
None.
Financial Impact:
The annual budget for telephone system maintenance is $41,000. The proposed agreement offers a
substantial cost reduction over prior years, even at the slightly higher cost.
Type of Item: (please mark with an `k')
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 0fri
N/A
Reviewed by Finance Dept.
N/A
Reviewed by ( )
N/A
K