HomeMy WebLinkAboutAgenda Report - October 6, 2004 E-0707 AGENDA ITEM &w
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt resolution authorizing the City Manager to award the long distance
telephone service contract to SBC -Long Distance, under the terms of the Merced
County FOCUS contract, for one year (estimate $5,400) (ISD)
MEETING DATE: October 6, 2004
PREPARED BY: Information Systems Manager
RECOMMENDED ACTION: Adopt resolution authorizing the City Manager to award the long
distance telephone service contract to SBC -Long Distance, under
the terms of the Merced County FOCUS contract, for one year. The
estimate value of this contract is $5,400.00 per year.
BACKGROUND INFORMATION: The City currently spends approximately $13,400.00 per year on
long distance charges using MCI as the City's long distance
provider. During the past four years the City has contracted with
MCI for long distance services under the terms of the State of
California CALNET contract. Long distance service providers are allowed to charge a Carrier Access
Charge. Each telephone line has a minimum MCI long distance Carrier Access Charge of $4.10 per
month unless there are long distance calls made.
By changing to SBC -Lang Distance under the terms of the competitively bid Merced County FOCUS
contract, Carrier Access Charges will be eliminated and the cost per minute for long distance calls will be
reduced to flat 3.7¢ per minute. MCI currently charges 4.6¢ for Intra -State calls (inside California calling):
and 7.7¢ per Inter -State calls (outside California calling). It is estimated that the City can save up to
$6,000.00 per year by eliminating the Carrier Access Charges. By taking advantage of the lower long
distance rates offered through the FOCUS contract the estimated savings per year for long distance is
another $2,000.00. The anticipated annual savings is $6,000.00 to $8,000.00.
FUNDING: hone Budget (Fundi g Available)
J es R. Krueger, Finance Director
Res II Submitt ,
Stev a
Information Sys ems Manger
Prepared by Mark White, Information Systems Coordinator
CMW
cc: Joel Harris Purchasing Officer
Steven Schwabauer, City Attorney
APPROVED:
Janet S. Keeter, interim City Manager
RESOLUTION NO. 2004-197
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO AWARD THE LONG
DISTANCE TELEPHONE SERVICE CONTRACT TO SBC -LONG
DISTANCE, UNDER THE TERMS OF THE MERCED COUNTY FOCUS
CONTRACT, FOR ONE YEAR-
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WHEREAS, the City currently spends approximately $13,400 per year on long
distance charges using MCI as the City's long distance provider. During the past four years,
the City has contracted with MCI for long distance services under the terms of the State of
California CALNET contract. Long distance service providers are allowed to charge a
Carrier Access Charge. Each telephone line has a minimum MCI long distance Carrier
Access Charge of $4.10 per month unless there are long distance calls made; and
WHEREAS, by changing to SBC -Long Distance under the terms of the competitively
bid Merced County FOCUS contract, Carrier Access Charges will be eliminated and the cost
per minute for long distance calls will be reduced to a flat 3.70 per minute. MCI currently
charges 4.60 per minute for Intra -State calls (inside California calling) and 7.70 per minute
for Inter -State calls (outside California calling); and
WHEREAS, it is estimated that the City can save up to $6,000 per year by
eliminating the Carrier Access Charges. By taking advantage of the lower long distance
rates offered through the FOCUS contract, the estimated savings per year for long distance
is another $2,000. The anticipated annual savings is $6,000 to $8,000.
NOW, THEREFORE, BE 1T RESOLVED that the Lodi City Council does hereby
authorize the City Manager to award the long distance telephone service contract to SBC -
Long Distance, uhder the terms of the Merced County FOCUS contract, for one year. The
estimated value of this contract is $5,400 per year.
Dated: October 6, 2004
I hereby certify that Resolution No. 2004-197 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 6, 2004, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hitchcock, and Howard
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Land and Mayor Hansen
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2004-197