HomeMy WebLinkAbout170-03 RESOLUTION•
RESOLUTION NO. 170-03
A RESOLUTION AWARDING BID #03-59 AND APPROVING A
THREE-YEAR CONTRACT WITH SBC GLOBAL SERVICES, INC
IN THE AMOUNT OF SIXTEEN THOUSAND DOLLARS
($16,000.00) PER YEAR FOR LONG DISTANCE 1 ELEPHONE
SERVICES FOR THE CITY OF FAYETTEVILLE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas,
hereby awards Bid #03-59 and approves a three-year contract with SBC Global
Services, Inc. in the amount of Sixteen Thousand Dollars (516,000.00) per year for
long distance telephone services for the City of Fayetteville. A copy of the
contract, marked Exhibit "A" is attached hereto, and made a part hereof.
PASSED and APPROVED this 18th day of November, 2003.
By:c,r✓ na+t742
SONDRA SMITH, City Clerk
APPROVED:
By
DAN COODY, May
�t
•
LONG DIWNCE VOICE SERVICES ONLY AGREEMENiCP II PLUS
This Agreement between SBC Global Services, Inc., a Delaware corporation, with a place of business at One SBC Plaza
Dallas, Texas 75202, on behalf of Southwestern Bell Communications Services, Inc., a Delaware corporation d/b/a SBC Long
Distance (individually and collectively, "SBC"), and City of Fayetteville ("Customer'), a Arkansas government agency, with a
place of business at the address below, is effective as of the date last signed below ("Effective Date").
1. High Volume Calling Services. This Agreement is subject to (1) the Voice Product Reference and Pricing Guidebook
containing product descriptions, technical information, definitions, and SBC Long Distance Voice Terms and Conditions, as
modified from time to time and incorporated herein by reference, and (2) applicable state tariffs. The Guidebook can be
obtained at www.sbc.com or from an SBC salesperson. The Voice Terms and Conditions can be obtained at
www.sbc.corn/LD_voice_terms_and_conditions or from an SBC salesperson.
High Volume Calling enables Customer to place domestic and international Direct Distance Dialed ("DDD") calls. Toll Free
Service ("TFS") is a reverse -billed service using a universally recognized numbering scheme. Customer agrees to pay a
Minimum Annual Commitment ("MAC") specified below (excluding applicable taxes and surcharges) for Services from SBC
during each year of this Agreement to begin on the PIC change date. The monthly recurring charges (excluding applicable
taxes and surcharges) for DVA, DOV, or PRI Services, if any, will contribute to the MAC. If Customer fails to satisfy the MAC,
Customer will be billed and shall pay the shortfall as an under -utilization charge. The term commitment for the MAC shall end
in the number of years specified below. The term commitment, MAC, and Interstate Switched ( Sw"), Dedicated ("Ded"), and
Proprietary Calling Card ("PCC") Rates per minute for this Agreement are:
❑
High Volume
Customer
SBC Affiliated
is purchasing
is purchasing
Calling Plan II Plus ("HVCP 11 Plus":
SBC Long Distance Services
Local Service Provider for the term of this
$600 - $9,000 MAC
and agrees to maintain a minimum of 2 access lines from an
Agreement.
$90,000 MAC
to maintain a minimum of 4 access lines from an
0
■
0
1 Year -
Interstate Rates
Not Applicable
Q.
2 Year - Interstate Rates
Not Applicable
3 Year - Interstate
Rates
$6,000 MAC - Sw $.0310 / Ded $.0250 /
PCC $.0410
❑
0
❑
High Volume
Customer
SBC Affiliated
is purchasing
Calling Plan 11
SBC
Local Service
Plus ("HVCP 11 Plus':
Long Distance Services
Provider for the term of this
$12,000 -
and agrees
Agreement.
$90,000 MAC
to maintain a minimum of 4 access lines from an
■
1 Year - Interstate Rates
Not Applicable
1 Year - Interstate Rates
Not Applicable
2 Year - Interstate Rates
■
2 Year -
Interstate Rates
Not
Not Applicable
Not Applicable
❑
3 Year - Interstate Rates '
All other intrastate, interstate, and international usage, and other applicable Services shall be priced at the rates set forth in
the HVCP II Plus (for the term commitment and MAC selected above) section of the Guidebook and tariffs. Except for
International Mobile Termination Charges, Operator Toll Assistance Services Directory Assistance Services, International,
third -party pass-through charges, and regulatory fees and surcharges, the rates and charges for Services provided by SBC
shall not change during the initial term of this Agreement, except by mutual agreement of the parties, and are in lieu of any
other discounts specified in Guidebooks or Tariffs, except applicable Guidebook Promotions or VIP discounts, where
available, and are available based upon the entire combination of Services, quantities, and revenue commitments made
herein. Additional recurring and non-recurring charges ("NRC") for TFS services and features may apply. All fully automated
Proprietary Calling Card intrastate calls from an approved state shall be at the tariff rate for that state. Payphone Origination
Charges may apply. Domestic and intemational usage rates are per minute of use ("MOO. Domestic billing increments are
18 seconds for the initial period and 1 second for additional periods. International billing increments are 30 seconds for the
initial period and 6 seconds for additional periods.
Customer acknowledges and agrees that if it fails to meet any of the above SBC Affiliate Local Service Provider requirements
to qualify for Customer's selected High Volume Calling Plan II+ during the term hereof, Customer will be moved to a High
Volume Calling Plan II with the same MAC and term commitments.
2. Termination Charges. Customer may terminate this Agreement or disconnect, in whole or in part, any Service
hereunder at any time and without cause upon written notice to SBC. If this occurs during the applicable term commitment,
HVCPII PLUS Voice Only 1 Rev. 09/26/03
High Volume
Customer
SBC Affiliated
is purchasing
Calling Plan 11
SBC
Local Service
Plus ("HVCP 11 Plus":
Long Distance Services
Provider for the term of this
$120,000 -
and agrees
Agreement.
$240,000 MAC
to maintain a minimum of 6 access lines from an
•
Lj
T
1 Year - Interstate Rates
Not Applicable
2 Year - Interstate Rates
Not Applicable
❑
3 Year - Interstate Rates
Not
Applicable
All other intrastate, interstate, and international usage, and other applicable Services shall be priced at the rates set forth in
the HVCP II Plus (for the term commitment and MAC selected above) section of the Guidebook and tariffs. Except for
International Mobile Termination Charges, Operator Toll Assistance Services Directory Assistance Services, International,
third -party pass-through charges, and regulatory fees and surcharges, the rates and charges for Services provided by SBC
shall not change during the initial term of this Agreement, except by mutual agreement of the parties, and are in lieu of any
other discounts specified in Guidebooks or Tariffs, except applicable Guidebook Promotions or VIP discounts, where
available, and are available based upon the entire combination of Services, quantities, and revenue commitments made
herein. Additional recurring and non-recurring charges ("NRC") for TFS services and features may apply. All fully automated
Proprietary Calling Card intrastate calls from an approved state shall be at the tariff rate for that state. Payphone Origination
Charges may apply. Domestic and intemational usage rates are per minute of use ("MOO. Domestic billing increments are
18 seconds for the initial period and 1 second for additional periods. International billing increments are 30 seconds for the
initial period and 6 seconds for additional periods.
Customer acknowledges and agrees that if it fails to meet any of the above SBC Affiliate Local Service Provider requirements
to qualify for Customer's selected High Volume Calling Plan II+ during the term hereof, Customer will be moved to a High
Volume Calling Plan II with the same MAC and term commitments.
2. Termination Charges. Customer may terminate this Agreement or disconnect, in whole or in part, any Service
hereunder at any time and without cause upon written notice to SBC. If this occurs during the applicable term commitment,
HVCPII PLUS Voice Only 1 Rev. 09/26/03
LONG DINNCE VOICE SERVICES ONLY AGREEMEN1CP 11 PLUS
SBC will compute the termination charges according to the following formula and render a bill to Customer, which Customer
agrees to pay within 30 days:
• 100% of any waived Non Recurring Cost, Credits, and Rebates
• 50% of the remaining MAC for Long Distance Service
• Termination charges assessed by the Local Access Provider. if Customer cancels,
in whole or in part, any Local Access Service procured by SBC on its behalf.
3. Credit and Deposits. SBC reserves the right to require Customer to establish, re-establish, and/or maintain
creditworthiness at any time and to the satisfaction of SBC. SBC reserves the right to examine the credit record and check the
references of Customer at any time. If Customer's financial condition is unknown or unacceptable, SBC reserves the right to
require a security deposit, which SBC may apply to overdue charges. SBC shall determine the amount of any deposit. in its
sole discretion, up to three months' estimated usage. SBC shall pay interest on deposits as required under state law. SBC
may review Customer's account to determine whether all amounts due have been paid within these terms and conditions. If
Customer's payment history is satisfactory, SBC shall refund the deposit in full within the time prescribed under state law.
4. Automatic Dialer Devices. CUSTOMER ACKNOWLEDGES AND AGREES THAT USE OF AUTODIALERS,
PREDICTIVE DIALERS OR OTHER DEVICES THAT GENERATE AUTOMATED OUTBOUND CALLS IN CONJUNCTION
WITH PRODUCTS AND SERVICES PROVIDED UNDER THIS AGREEMENT IS STRICTLY PROHIBITED. SBC MAY
TERMINATE THIS AGREEMENT IMMEDIATELY SHOULD CUSTOMER USE SUCH DEVICES.
5. Offer Availability. This offer is valid only if this Agreement is executed by Customer prior to December 31", 2003. If
this Agreement is not executed before that date this is withdrawn.
6. Order of Precedence. In the case of a inconsistency or conflict between terms and conditions of an applicable Tariff
or Guidebook, or this Agreement, the goveming order of precedence will be (1) this Agreement, (2) the applicable Tariff or
Guidebook. This Agreement shall at all times be subject to such modifications as a PSC/PUC and/or the FCC may, from time
to time, require under their respective jurisdictions.
SO AGREED by the parties' respective authorized signatories:
CITY OF FAYETTEVILLE
New or upgrade to a existing SBC Long Distance Agreement
0
138 N. East Ave., Room 100
This is a new SBC Long Distance Agreement
0
This is a upgrade to a existing SBC Long
Term plan Commitments, of the Voice Product
Distance Agreement and the guidelines
Reference and Pricing Guidebook
from Section 3.9.7 Revenue and
will apply to the old agreement.
SO AGREED by the parties' respective authorized signatories:
CITY OF FAYETTEVILLE
SBC GLOBAL SERVICES, INC.
ON BEHALF OF ITS AFFILIATE
113 W. Mountain
138 N. East Ave., Room 100
Fayetteville, AR. 72701
Fayetteville, AR. 01
Al
Custo er 'gnature/%,/
SBC
Signature
Print Name j/i(�ri. C00 c l
Print Name co>tt ,_.�A, d'wap itLAt
Titley
I// ‘J
Title:
2/0
Date: //// 1183
Date: R441/0
HVCPII PLUS Voice Only 2 Rev. 09/26/03
NAME OF FILE:
CROSS REFERENCE:
Item #
Date
•
Resolution No. 170-03
Document
•
1
11.18.03
Res. 170-03 w/agreement
2
10.24.03
memo to mayor
draft resolution
copy voice services attachment
copy of
comparison bid responses
11.18.03
staff review
form
memo to mayor & city council
3
11.21.03
memo to Sharon Crosson
NOTES:
• •
CONTRACT REVIEW MEMO
TO: Mayor Dan Coody
THRU: Gary Dumas, Director of Operati
FROM: Sharon Crosson, Parking and Telecommunications Manager Y _
DATE• October 24, 2003
SUBJECT: Bid Award and Contract Approval with SBC for Long Distance Services
//d/03
/70.
Set. ./obe / ..52rwics
SBC Long Distance Services Contract
Page 1 of 1
RECOMMENDATION
Staff recommends approving a 3 -year contract with SBC for long distance services. A 3 -
year contract will not only lower our rates even further than a I -year contract, it will also
guarantee our rates will not increase for the next 3 years. Our annual estimated
expenditure for long distance services is $16,000.
BACKGROUND
On October 20, 2003, formal bids were opened for long distance services for the City of
Fayetteville. There were 3 bids received by the City and SBC was the low bidder. Their
rates range from $0.033 to $0.068 per minute; the current rate paid to Alltel
Communications is $0.070 per minute for all calls. A 3 -year contract with SBC will
provide us even lower rates ranging from $0.031 to $0.068 per minute.
The City of Fayetteville previously solicited formal bids for long distance services in
March of 2000. At that time, Alltel Communications was the low bidder and was
awarded the contract for these services. Although staff does not solicit formal bids for
long distance services every year, we do periodically get quotes from various vendors
until such time that we see the rates are low enough to warrant the formal bidding
process.
DISCUSSION
SBC is a nationwide leader in this industry. SBC Long Distance network provides
survivability and redundancy in the event of any single point of failure. In the event of a
network failure or major catastrophe, SBC re-routes traffic across a redundant path where
backup services automatically take over until restoration is complete.
BUDGET IMPACT
City-wide, we have budgeted $20,000 for long distance services. Under this contract, we
estimate our annual expenditures for this service to be $16,000 or less.
• •
RESOLUTION NO.
A RESOLUTION AWARDING BID #03-59 AND APPROVING A
TI -TREE -YEAR CONTRACT WITH SBC GLOBAL SERVICES, INC.
IN THE AMOUNT OF SIXTEEN THOUSAND DOLLARS
($16,000.00) PER YEAR FOR LONG DISTANCE TELEPHONE
SERVICES FOR THE CITY OF FAYETTEVILLE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas,
hereby awards Bid #03-59 and approves a three-year contract with SBC Global
Services, Inc. in the amount of Sixteen Thousand Dollars (516,000.00) per year foj
long distance telephone services for the City of Fayetteville. A ,copty o�h
contract, marked Exhibit "N' is attached hereto, and made a part hereof. 1
PASSED and APPROVED this 18th day of November; 2003'
APPROVED:
i �
B
1
SONDRA'S'MITBI!City Clerk
1
DAN COIODY, Mayor
•
LONG Dis NCE VOICE SERVICES ONLY AGREEMEN1CP II PLUS
Domestic Voice Services Attachment HVCPII PLUS
The following rates shall apply for intrastate interlata and intralata DDD and TFS calls:
Term
California
1 Year
Not
Not Applicable
2 Year
2 Year
2 Yoar
Not Applicable
3 Year
Not Applicable
Not Applicable
MAC - Sw $0.068 /
Ded $0.058
Term
Texas Oklahoma and Kansas
1 Year
Not
Applicable
2 Year
2 Year
2 Year
Not Applicable
3 Year
Not Applicable
$6,000
Tenn
Arkansas
1 Year
Not Applicable
2 Year
2 Year
3 Year
Not Applicable
Not Applicable
3 Year
$6,000
MAC - Sw $0.068 /
Ded $0.058
Term
Missouri
1 Year
Not Applicable
2 Year
Not Applicable
3 Year
Not Applicable
Term
Nevada
1 Year
Not Applicable
2 Year
2 Year
Not Applicable
3 Year
Not Applicable
Not Applicable
Term
Michigan
1 Year
Not Applicable
2 Year
Not Applicable
3 Year
Not Applicable
The MAC and term commitment selected above must match those selected in Section 1. Otherwise, the rates selected above
shall be void and the applicable rates shall be those listed in the applicable state tariffs.
HVCPII PLUS Voice Only 3 Rev. 09/26/03
Prepared 10/20/2003
•
•
COMPARISON OF BID RESPONSES
BID NO. 03-59 FOR LONG DISTANCE SERVICES
SBC
MCI
Affin
1
On what increments of time do you base your charges tor
calls?
*
1 sec
6 sec
6 sec
2
Do you have a minimum in bilking seconds/minutes?
Specify.
18 sec
18 sec
18 sec
3
Specify method of call rounding
rounded
by half-
minute
nearest
1/10 min
nearest
1/10 min
4
to you require the customer to
fee?
pay an initial enrollment
no
no
no
5
Do your require
commitment?
a minimum monthly or annual revenue
Specify.
$6000 yr.
0
0
6
What is the term length of this Agreement?
1 year
3 years
0
7
Do you absorb any ot the charges from the local telephone
company for changing vendors? Specify.
*
yes 100%
NO
yes 100%
8
Do you
charge?
provide 24-hour customer assistance? Is there a
yes n/c
yes n/c
yes
g
Do you charge for calls which result in a busy or no
answer?
no charge
no charge
no charge
10
How do you handle credits for wrong numbers dialed?
no credit
yes credit
yes credit
11
Is there a minimum charge each month for your service?
Specify amount.
no
no
no
12
Is there a monthly service charge for your service? Specify.
*
no
YES
no
13
How many months can you guarantee the
without a rate increase?
proposed
rates
1 year
3 years
no
increase
14
In what form will we be notified of any rate changes?
no change
n/a
n/a
15
How soon in advance will we be notified ot a rate change
before the change actually goes into effect?
n/a
n/a
n/a
16
Is any equipment required
installed on our premises?
to be leased, purchased, or
no
no
no
17
Is your company a primary provider?*
yes
yes
no
18
Is your company a reseller?
*
no
no
yes
19
Where is your closest switch located?*
Fayettev.
Fayettev.
n/a
20
Do you
Continental
provide
dial access to
every telephone
in the
yes
yes
yes
U.S.?
21
In the event ot a network failure, how do you re-route calls?
Do you provide redundant path?
yes/redun.
yes
yes
22
Do you provide itemized billings?
yes
yes
yes
23
Do you otter an itemized billing
account number?
tor multi -locations under one
yes
yes
yes
P4
Do you
caller accounting
provide management reports
codes?
that detail calls by
yes
yes
yes
25
Do you provide management reports that detail calls by
station (phone number) where call originated?
yes
yes
yes
26
Does your billing provide invoice hierarchy capabilities?
yes
yes
yes
P7
Is there an additional charge for detailed management
reports? Specify amount.
no charge
no charge
no charge
28
Do you provide detailed billings on CD-ROM?
no CD
yes
no CD
29
Is there a charge for billings provided on CD-ROM? Specify
amount.
*
no
$75/
month
no
30
Do you
access?
provide detailed bilking information through web
What is the charge?
yes n/c
yes
yes n/c
31
Can you
through the
provide long distance service tor calls made
Plexar Custom System?
yes
yes
yes
32
Do you provide 4-digit access codes for call accounting
purposes through the Plexar Custom System?
yes
yes
yes
33
How do you assign 4-digit access codes to individual
users?
*
activated/
deactivat
codes
upon
request
witrImo
block of
100
nos.
you assign
code we
can
change
34
Can you restrict certain lines from long distance calling
without going through SBC?
yes, put
PIC freeze
on line
yes,
through
range
privileges
yes we
remove
PIC on
line
35
Do you provide calking cards which can be used tor
accessing long distance services?
yes
yes
yes
36
It you do
dialed to
provide calking
complete a call?
cards how many digits must be
35 digits
14 digits
14 digits
37
Is there a charge for calling cards? Specify amount.
no
no
no
38
Do you charge an access fee for calls made on calking
cards? Specify amount.
*
no
YES
no
39
Do you provide toll free numbers? Specify charge for
incoming calls.
yes same
yes same
yes same
rate as
outgoing
rate as
outgoing
rate as
outgoing
40
Do you charge a monthly fee for toll free numbers? Specify
the charge(s).
*
yes 55 00
yes,
$25.00
moltoll#
no charge
per
mo/toll#
41
Do you charge National Access Fees? Specify amount.
*
no
5.026
line/mo
per
no
42
A sample
(is it?).
of your current bilking statement must be included
yes
yes
NO
43
A detailed descnptton of software
included (is it?).
NO
yes
yes
capabilities must be
44
A list of current references must be included (is it?).
yes
yes
NO
•
•
45
Pricing»»
Per
Min.
Per Min.
Per Min.
Direct Dialed Calls:
Intralata
*
0.068/.02
.1559/.05
.089/.03
Intrastate/Interlata
*
0.068/.02
.1559/.05
.089/.03
Interstate 1-100 Miles
*
0.033/.01
.0835/.03
.045/.02
Interstate 101+ Miles
*
0.033/.01
.0835/03
.045/.02
International
varies
varies
varies
Directory Assistance
2.49/1.25
0.5
0.89
Misc. Access Fees
n/a
n/a
Calling Card Access:
Local Toll
*
0.068/.02
0.25
.099/.05
Intrastate/lnterlata
*
0.068/.02
0.25.099/.05
Interstate 1-100 Miles
*
0.043/.01
0.25
.099/.05
Interstate 101+ Miles
*
0.043/.01
0.25
.099/.05
International
varies
0.75
varies
Directory Assistance
2.49/1.25
0.75
0.89
Misc. Access Fees
n/a
Fee Structure
Access Line Fee
0
Toll Free
*
$5.00/TF#
$25/mo/In
0
Account Codes
0
0
0
On -Line Billing
*
0
$25/mo
0
Report Fee
*
0
$75/mo
0
Hardcopy Billing
*
0
$25/mo
0
Universal Service Fund
9.50%
9.20%
9.50%
National Access Fee
*
0
.026/line
10.90%
Other
c
AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville
STOP REVIEW FORM
- FINANCIAL OBLIGA ON
City Council Meeting of:
/ Zoo 3.
n/a
FROM:
Sharon Crosson
Name
Utilities Management
Division
Operations
Department
Bid award and contract approval with SBC for long distance services for the City of
Fayetteville.
COST TO CITY:
$16,000 year
Cost of this request
1010-1380-5310-01
Account Number
Project Number
20,000.00
Category/Project Budget
9,896.00
Funds Used to Date
10,104.00
Remaining Balance
Services and Charges
Program Category / Project Name
Telephone Expense
Program / Project Category Name
General
Fund Name
BUDGET REVIEW:
Budget
X Budgeted Item
,,e)
Date
v3
Budget Adjustment Attached
CONTR)ICT/GRANT/LEASE REVIEW:
Cada_ jo/Arit3
Accounting Manager
W Citydo
Date
Z7 0
Date
Internal AJbitor
Purchasing Manager
Slain
Date
!v /a f5/03
Date
STS `F�R�ECQ*1EN ATION:
1 Ke t.AYI DS,Strk\
Department 0 rector
4,444
Finance d Internal Services Dir.
Chief
nistrat e Officer
r
Mayor
/0_27.03
Date
Date
14%3
Date
Received in Mayor's Office
Cross Reference:
Previous Ord/ResA:
Orig. Contract Date:
Orig. Contract Number:
New Item:
/)7.7Vo3
Daterd
Yes
No
fr
• • E. 00-03
FA YETTE VILLE
THE CITY OF FAYETTEI'/LLE, ARKANSAS
DEPARI MEN rAI.. CORRESPONDENCE
To: Mayor and City Council
From: Gary Dumas
Date: November 13, 2003
Subject: Council Item A.7, SBC Long Distance Bid Award
The City Council had questions concerning the prior costs for landline long distance
service for prior years and the costs per minute for this service.
The last two years actual costs have been between $14,000 and $16,000 per year. The
estimated costs for 2004 are not more than $16,000. All costs, prior year and future
years, are based on a cost per minute of usage. Our current Alltel rate is 7 cents per
minute. The proposed SBC rate ranges from 3.1 cents to 6.8 cents per minute, depending
upon the call type. With the reduced per minute cost in the SBC contract, our annual
costs should be reduced.
•
FAYETTEALE
INI CITY OF FAYITIEVIIIE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
•
To: Sharon Crosson
Parking & Telecommunications
From: Clarice Buffalohead-Pearman
City Clerk Division
Date: November 21, 2003
Re: Res. 170-03
Attached please find an executed copy of the above referenced resolution passed by City
Council, November 18, 2003 awarding Bid No. 03-59 to SBC Global Services, Inc.
Also attached is a copy of the sign agreement for long distance services. The original resolution
and agreement will be recorded in the city clerk's office and microfilmed.
If anything else is needed please let the city clerk's office know.
/cbp
Nancy Smith, Internal Auditor