HomeMy WebLinkAboutOrdinance 4771 City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
10/4/2005
City Council Meeting Date
Sharon Jenkins Utilities Management Operations
Submitted By Division Department
Action Required:
A resolution approving a bid waiver and contract renewal for the lease of the Plexar-Custom Telecommunications
Service with Southwestern Bell Telephone, L.P.
$69,000.00 $
Cost of this request Category/Project Budget (2005) Program Category / Project Name
Various Funds $ Utilities Management
Account Number Funds Used to Date Program / Project Category Name
$ Various Funds
Project Number Remaining Balance Fund Name
Budgeted Item �X Budget Adjustment Attached
�.Q Previous Ordinance or Resolution #
._TL�1_�4"•'7_ g off
DepartmentTDirector / Date Original Contract Date:
��� � (i✓ q is d5 Original Contract Number:
City Attorney
Received in City Clerk's Office 5
� Lf � 41 D
Fin na ce and Internal Service Director Date
Received in Mayor's Office
Mayor Date
Comments:
Approval of Bid Waiver and Plexar Contract Renewal
October 4, 2005 Council Meeting
Page 1 of I
AGENDA REQUEST MEMO
TO: Mayor Dan Coody
THRU: Gary Dumas, Director of Operations
FROM: Sharon Jenkins, Parking Manager
DATE: September 13, 2005 0
SUBJECT: Approval of a Bid Waiver and Contract Renewal with Southwestern Bell
Telephone Company
RECOMMENDATION
Staff requests the approval of a bid waiver and contract renewal for the lease of the
Plexar-Custom Telecommunications Service with Southwestern Bell Telephone
Company. The Plexar System is a Central Office based switching system that provides
dial tone as well as many other features to each of our offices and facilities. The Plexar
system is the only system where such service and switching equipment is based in the
office of the company providing the service (SBTC), thus making it a sole source
product. For this reason, staff recommends approving a bid waiver to renew the current
services we have in place.
BACKGROUND
The City originally subscribed to this service in 1989, renewed the contract in 1995, and
renewed again in 2000. The rates for this renewal have remained the same as the 2000
contract prices. We began the 2000 contract with 427 lines and grew to 481 lines.
Today, through efficient auditing and utilization practices, we have only 459 lines which
average about $ 12.00 per month.
DISCUSSION
The contract for the Plexar-Custom Service will be for a term of 5 years. We have a 15%
growth added into the contract for any additions that would be needed over the term of
the contract. Attached is the contract(s) for the lease of the Plexar-Custom System. Also
attached are the system highlights for further clarification of its benefits.
BUDGETIMPACT
All program budgets already have adequate funds budgeted in the Telephone Expense
Accounts to cover this cost. Since the rates remain the same, there will be no increase
necessary to any fund or program.
ORDINANCE NO.
AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL
COMPETITIVE BIDDING AND APPROVING A FIVE-YEAR RENEWAL OF
THE SERVICE AGREEMENT WITH SOUTHWESTERN BELL TELEPHONE,
L.P. IN THE AMOUNT OF $69,000.00 TO PROVIDE PLEXAR CUSTOM
TELECOMMUNICATIONS SERVICE.
WHEREAS, maximum cost savings, PBX system reliability, expandability and flexibility
can only be achieved through a Central Office based switching system; and,
WHEREAS, Southwestern Bell Telephone, L.P. is the only telecommunications company
that provides such a Central Office based switching system, making them the sole-source provider
for these telecommunications services.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF T,HECITY
OF FAYETTEVILLE, ARKANSAS : �- a
Section 1 . That the City Council of the City of Fayetteville, At h eby fi s that such
circumstances constitute an exceptional situation where competiti a bidding is dot feasible or
practical; waives the requirements of formal competitive bidding, an appy i ves a five-year renewal
of the service agreement with Southwestern Bell Tte` l phone, L P. i the ount of`$` 1000.00 to
provide Plexar Custom Telecommunications Service
C
PASSED and APPRithis 10'h
EDday of OVANober, 2001 .
APOVED :; .�
By.
AN COODY, Mayor
ATTES
SOI%SjjR+l SMITH, City Clerk
SOUTHWESTERN BELL TELEPHONE COMPANY PROPOSAL
PLEXAR-CUSTOM SYSTEM HIGHLIGHTS
The Plexar-Custom System is a leased telecommunications system housed in the Fayetteville Central
Office which can provide an unlimited number of plexar telephone lines. It is a switched voice
communications system provided by an arrangement of exchange access lines, station lines,
switching equipment and other facilities located on Telephone Company premises.
The Plexar-Custom System provides efficient internal communications; direct inward dialing and
direct outward dialing.
The standard features of the Plexar-Custom System are included in the monthly rate, plus those
optional features you have selected. Optional features are at additional costs but are available on a
per station basis which eliminates the necessity of installing a feature package when only a few
stations need a particular feature. A list of standard and optional features is included.
Southwestern Bell Telephone Company is proposing the Plexar-Custom System for the City of
Fayetteville because we feel it has many advantages over a premise-based PBX system.
Specifically, we would like to state these advantages as:
1 . NO LARGE CAPITAL INVESTMENT REQUIRED
The Plexar-Custom System is offered under a Rate Stability Plan Lease Arrangement for a
period of one, two, three, four, or five years. Therefore, it is not necessary to invest
thousands of dollars in a purchased, premise-based PBX system which can quickly become
obsolete due to the fast-changing electronic technology. The Rate Stability Plan means that
the base charge of your Plexar rate will not change for the duration of the contract.
2. CONTRACT RENEWAL CAPABILITY
Although you subscribe to a fixed-term rate stability plan, you may, at your option prior to
the expiration of the existing contract term, renew the contract for any available term at the
time of renewal. A new contract is required and you will be subject to the prevailing rates
for the tern chosen (a longer contract period will ensure a cheaper rate).
3. MA3QMUM SYSTEM RELIABILITY
Since the Plexar-Custom System is provided from the Central Office, reserve power is
automatically provided from the generators that back-up our Central Office thus providing
the City of Fayetteville with the most reliable system available without the added expense
of purchasing a premise-based back-up power source for a premise-based PBX system.
4. LOWER MAINTENANCE COSTS
The monthly rate for your Plexar-Custom System includes Southwestern Bell Telephone
Company-provided 24-hour monitoring and maintenance on your plexar stations and trunks.
The only maintenance costs you wi11 incur will be charged by the equipment vendor for your
actual on-premise telephone equipment.
5. NO COSTLY SPACE REOUIREMENTS FOR PLEXAR-CUSTOM SYSTEM
For most on-premise PBX systems, the vendor requires floor space for the equipment. In
addition, most electronic systems require this space to be environmentally controlled. Since
the Plexar-Custom System is housed in the Fayetteville Central Office, the City will not have
to provide space for equipment. All that will be required is wall space for us to place our
Network Interface at your building on which your plexar station lines will terminate.
6. FACILITATION OF CHANGES AND ADDITIONS
Orders for station feature changes or additions may be placed with your local Southwestern
Bell Telephone Representative. The standard interval for minor changes or additions is three
working days. However, Southwestern Bell provides, at no charge, software to the customer
to enable them to initiate feature changes in-house and eliminate the standard service charge
of$4.50 per feature change. These customer initiated feature changes are instantaneous and
eliminate the 2 to 3 day wait.
7. NO ADDITIONAL DIRECT INWARD DIALING CHARGES ARE INCURRED
Trunk line charges for direct inward dialing normally run $49.50 per line per month. With
the Plexar-Custom System, all 427 stations are equivalent to a tnmk line by offering direct
inward dialing capabilities on each individual station, and are all included in the contract
price averaging $6.92 per station per month.
8. THE PLEXAR-CUSTOM SYSTEM HAS VIRTUALLY UNLIMITED GROWTH
No longer do you have to worry about the number of station or trunk ports available for
growth, the cabinet size, the size of the processor, the number of slots available for trunk
cards, the cost of equipment upgrades, or the size of your equipment facility.
9. NO AIR CONDITIONING HEATING OR ELECTRICAL COSTS
Since the Plexar-Custom System is housed at the Central Office, the City does not have to
provide a facility that is environmentally controlled.
10. SOUTHWESTERN BELL WILL HELP YOU BETTER MANAGE YOUR
COMMUNICATIONS
Southwestern Bell will provide you with a monthly printout of all stations and trunks
installed on your system and detailed charges incurred for all stations.
11 . LOCAL TECHNICIANS PROVIDE THE INSTALLATION AND MAINTENANCE TO
THE PLEXAR-CUSTOM SYSTEM
This will provide faster response times for installation of new lines and maintenance of
existing lines.
12. SOUTHWESTERN BELL'S TROUBLE RESPONSE BEGINS AS SOON AS YOU CALL
IN THE TROUBLE
Since the Plexar-Custom System is part of the Central Office, we have full remote diagnostic
and maintenance procedures that will help get you back in business quicker. Our average
clear-time for most problems is 2 to 4 hours.
Plexar-Custom System Features:
• Station-to-Station Call (call another station by dialing only 3 digits)
• Call Hold (place a call on hold)
• Conference Call (3-Way Call)
• Call Transfer (transfer call to another phone)
• Call Pickup (answer another ringing phone in your group)
• Call Hunting (incoming calls search a group of stations for first available line)
• Call Waiting (allows second call to come in on station already in use)
• Caller Identification (displays the number of the incoming caller)
• Call Forwarding - Variable (forward all calls to another station)
• Call Forwarding - Busy (forward incoming calls when your line is busy)
• Call Forwarding - No answer (forward incoming calls after 3 rings)
• Automatic Call Back (reinitiates call when station you are calling is no longer busy)
• Toll Restriction (restrict certain levels of outward dialing capabilities such as long distance)
• Speed Calling 6 (one button speed calling)
• Speed Calling 30 (two button speed calling)
• Plexor®-Custom Service Agreement SW-43258
Revised 8.03
ICB/CSP Number: 00-BAR- 1083A
Page 1 oft
I. PREAMBLE
The undersigned hereby agrees to subscribe to Plexar-Custom Service ('SERVICE') as set forth in the following terms and conditions.
it. SCOPE OF SERVICE
Plexar-Custom SERVICE is a central office based business communications system, which serves customers with a minimum of 75 stations within a
single serving office.
Plexar-Custom SERVICE is provided utilizing existing SOUTHWESTERN BELL TELEPHONE, L.P. (SWBT) facilities and equipment, construction of new
facilities, the purchase of new central office equipment, or any combination thereof. The SERVICE is provided by an arrangement of station lines,
switching equipment, customer facility groups, and other facilities located on SWBT's premises. Plexar-Custom SERVICE is offered pursuant to the
provisions of SWBT's tariffs and such rules, regulations, rates and charges are hereby made a portion of this Agreement. Should any part of this
Agreement be in conflict with the applicable tariffs, the tariffs will govern.
III. TERMS OF AGREEMENT
This Agreement shall be effective for 60 months, beginning with the date of service installation.
IV. GENERAL PROVISIONS
A. SERVICE will be provided to CUSTOMER for a Fixed Rate Term as specified on SWBT forth SW4325C, Services Covered, attached and made a
part hereof. This SERVICE is intended for the administrative use by CUSTOMER only and should not be used by or resold to any other entity.
B. This Agreement shall be subject to all applicable Federal, State, and Local laws, ordinances, and regulations, and shall be construed in accordance
with the laws of the stale in which SERVICE is furnished. The rates and charges, terms and conditions of this Agreement, including form SW-
4325C, are subject to the review and/or approval by the regulatory authorities of the State in which SERVICE is furnished.
C. Items specified in the attached SW-4325C will be provided at the rates and charges shown.
V. CUSTOMER SERVICE LOCATION(S) & PLEXAR STATION QUANTITIES
A. SERVICE shall be provided to CUSTOMER at the locafions specified and at the Cutover and Capacity Quantities for Plexar Station types (Digital,
Basic, Off-Premises and/or Non-Working Plexar Stations) shown on form SW-4325C attached.
B. Installation of Off-Premises stations will be subject to charges set out in the SW-4325C, charges in applicable sections of SWBT's tariffs, and all
other terms and conditions herein.
VI. FIXED PAYMENT PLAN PROVISIONS
A. The Fixed Payment Plan provides that CUSTOMER shall pay a Fixed Monthly Rate for SERVICE over the Fixed Rate Term, beginning on the dale
SERVICE is installed.
B. Installation and Non-Recurring Charges shown for this SERVICE may be deferred over the fixed rate term. For subsequent additions of service
items after the system is cutover (Additions), Customer may elect to defer Installation and Non-Reourring Charges over the remaining Fined Rate
Tenn based on the discount rate referenced on the SW4325C. Installation and Non-Recurring Charges will be applied each and every time
services are installed or reinstalled.
C. Fixed Rates are not subject to rate increases initiated by SWBT during the course of this Agreement.
D. Tariffed exchange access services and/or trunk services and miscellaneous service offerings not specified in the attached SW4325C are subject to
SWBT initiated rate changes.
E. The rates, minimum quantities and maximum capacities specified in the attached SW-4325C are applicable to Additions made during the period of
the Fixed Rate Term. Charges for Fixed Monthly Additions begin at installation of the Addition and end at the end of the Fixed Rate Tenn. For
Additions not specified on the SW4325C, the rate will be established by an addendum to this Agreement at the time of the Customers request.
r�aCl
• Plexar®-Custom Service Agreement• SW4325B
Revised 8-03
tCB/CSP Number: 00-BAR-1083A
Page 2 of 2
VII. PROVISIONS FOR DISCONNECTION'S OR MOVES
A. Disconnection of Plexar Stations
If CUSTOMER disconnects Plexar Stations prior to the expiration of this Agreement, termination liability may apply. Termination liability is applicable
only on those Plexar Stations disconnected which result in a reduction in the number of remaining in-service Plexar Stations below 65% of the Cutover
Quantity (including all other cutover station quantities resulting from subsequent system additions during the Fixed Rate Term). The termination liability
is the present worth of the sum of the station rates for the unexpired portion of the Fixed Rate Term for the number of Plexar Stations determined above.
In addition, the present worth of any Installation and Non-Recurring Charges that have been deferred must be paid in full. The discount rate to be used in
determining the present worth of these charges is shown on the attached SW4325C.
B. Complete Disconnection of SERVICE
If CUSTOMER disconnects SERVICE in its entirety, termination liability applies. The termination liability is the present worth of the sum of the station
rates for the unexpired portion of the Fixed Rate Term for the number of stations determined in VLA or 65% of the Cutover Quantity (including all other
cutover station quantifies resulting from subsequent system additions during the duration of the Fixed Rate Term), whichever is greater. In addition, the
present worth of any Installation and Non-Recurring Charges that have been deferred must be paid in full. The discount rate to be used in determining
the present worth of these charges is shown on the attached SW4325C. Note: Stations previously disconnected, for which termination liability has
already been incurred, should not be included in calculating station termination liability for a complete disconnection of service.
C. Moves of SERVICE to Different CUSTOMER Locations
CUSTOMER may move services from one CUSTOMER location to another where facilities permit, subject to the appropriate Installation, Non-Recuning
and Recurring Charges associated with the move, and subject to regulatory approval, where applicable. Fixed Monthly Rates for Plexar Stations at the
new location will be established by an addendum to this Service Contract at the time of the request. Fixed monthly rates for features affected by the
move will also be established by an addendum to this Service Contract at the time of the request. Termination liability may apply if the 65% condition of
paragraph VLA above is met.
VIII. MISCELLANEOUS PROVISIONS
All additions to this Agreement will be made coterminous with the original contract period unless the CUSTOMER initially requests a shorter tern.
One primary directory listing will be furnished with this SERVICE in accordance with the regulations set forth in the Directory Listings section of SWBrs
tariff.
The assignment of telephone numbers for this SERVICE shall be in accordance with the Rules and Regulations Applying to All Customers' Contracts
section of SWBT's tariff.
Sufficient floor space and the necessary wiring, outlets and commercial power for the operation of the SERVICE shall be furnished by the CUSTOMER
who assumes all responsibility for the safe condition of such Floor space, wiring, outlets and power.
Monthly End User Common Line Charges will be billed to CUSTOMER for each Plexar-Custom station as prescribed by the FCC and set forth in SWBT's
Access tariff. An additive equivalent to the Business End User Common Line Charge will apply for each Plexar-Custom Access Line. The difference
between these two amounts will be credited to the CUSTOMER's account.
IX. ENTIRE AGREEMENT
This Agreement, including SWBT form SW-4325C and any other Attachments, constitute the entire Agreement of the parties for the provision and use of
Plexar-Custom Service and can be amended only by a wrifing signed by the parties hereto.
IN WITNESS WHEREOF, the foregoing Agreement has been executed by the parties hereto, as of the dates set forth below.
Accepted: Accepted:
SOUTHWESTERN BELL TELEPHONE, L.P. g tv of Fa ettevi
By its General Partner
SWBT TE (AS, LL
1 i
By: `ANnrt, y C� By:
Title: ,v \ Title:
Date: Date:G- ?� JO /4 l
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