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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- ------------------ 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