HomeMy WebLinkAboutRes2008-082Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-082
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
MAINTENANCE SERVICES AGREEMENT AND A SALES AND
INSTALLATION AGREEMENT WITH TELALASKA INCORPORATED TO
PURCHASE AND UPGRADE THE CURRENT PHONE SYSTEM TO
VOIP/PBX, FOR AN AMOUNT NOT-TO-EXCEED $405,244.42, AND
APPROPRIATING FUNDS
WHEREAS, the current phone system was established in late 1994 and upgraded in
2000; and
WHEREAS, the current telephone system will not handle the amount of voice mail
and attendant phone traffic causing dropped calls and unrecorded messages; and
WHEREAS, the current telephone system is out-dated and costs more to maintain
and operate on an annual basis than an upgraded system; and
WHEREAS, the upgrade of the current telephone system would provide a savings of
up to fifty percent annually in operational and maintenance costs, and is expected to pay for
itself in three years, with significant realized cost savings beginning in year four; and
WHEREAS, the new VOII'/PBX System would include all equipment and phones
for the City of Seward, Providence Seward Medical Center, and the Long Term Care Facility,
resulting in cost savings also to the hospital and long-term care facilities; and
WHEREAS, the local telephone company TelAlaska, Incorporated ("TelAlaska")
has reviewed the City's current system and recommends upgrading the current system to
VOIP/PBX rather than replacing the entire telephone system; and
WHEREAS, TelAlaska, is a local vendor capable of supplying the VOIP/PBX within
the City's current framework, maintaining and servicing the system with the ability to
respond immediately in case of an emergency; and
WHEREAS, administration recommends the approval of a contract with TelAlaska
to provide a VOID/PBX system, utilizing $181,131.16 in unspent funds previously
appropriated from the General Fund to the City Hall Facilities Fund for the purposes of re-
siding the Community Center building, plus one-time State revenue sharing funds received in
2007 in the amount of $198,412, with a remaining appropriation from the General Fund's
fund balance in the amount of $25,701.26; and
CITY OF SEWARD, ALASKA
RESOLUTION 2008-082
WHEREAS, the administration supports the inclusion of a forty (40) percent
contingency in conjunction with the current contract in light of the fluxuation in technology
and fuel prices, shipping, transportation and equipment costs, with any unspent project funds
to be returned to the General Fund; and
WHEREAS, the administration will carefully manage the proj ect with TelAlaska to
assure all efficiencies are considered and implemented to save on initial and long-term costs;
and
WHEREAS, the Seward City Code §6.10.120(a)(5), §6.10.120(a)(8) and
§6.10.120(a)(9) exempts specialized products and professional services from the competitive
procurement process, including "the purchase of electronic data processing software and
hardware systems and communication equipment".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The city manager is hereby authorized to enter into a Maintenance Services
Agreement with TelAlaska, in substantially the form presented at this meeting, to maintain
the VOID system for a monthly rate of $1,131.58.
Section 2. The city manager is hereby authorized to enter into a Sales and Installation
Agreement with TelAlaska, in substantially the form presented at this meeting, to purchase
and upgrade the City's telephone system for a price of $289,460.30.
Section 3. A contingency of forty (40) percent of the contract equal to $115,784.12 is hereby
authorized, for a total price not-to-exceed $405,244.42 for the Sales and Installation
Agreement with TelAlaska.
Section 4. The City Council finds that this contract involves specialized equipment and
professional services as described in SCC§ 6.10.120(a)(5), SCC§ 6.10.120(a)(8) and SCC§
6.10.120(a)(9}, and is therefore exempt from competitive procurement provisions.
Section 5. The City Manager is authorized to utilize TelAlaska as a sole source vendor due
to the following: a) TelAlaska is the supplier of the City's existing equipment and provided
the installation of the current telephone system and is the primary VOIP/PBX vendor in
Seward, Alaska, b) TelAlaska has represented that the City's annual operational and
maintenance costs following the upgrade will be reduced by approximately 50 percent, and c)
TelAlaska has demonstrated experience and knowledge related to such specialized
equipment and professional services necessary to carry out its responsibilities as set forth in
the contract.
Section 6. The amount of $405,244.42is hereby appropriated as follows: 1) $181,131.16 in
unspent funds previously appropriated from the General Fund to the City Hall Facilities Fund
for the purposes of re-siding the Community Center building are hereby appropriated from
Fund 667-0000-3071-0668 to the City Hall Equipment account no. 668-6680-5930; and 2)
one-time State revenue sharing funds received in 2007 in the amount of $198,412 plus an
additional $25,701.26 for a total of $224,113.26, from the General Fund's fund balance
account no. 101-0000-3071-0669 to account 668-6680-5930, for a total appropriation of
$405,244.42.
Section 7. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 1 lcn
day of August, 2008.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayo
AYES: Dunham, Valdatta, Bardarson, Amberg, Smith, Corbridge
NOES: Amberg
ABSENT: Kellar
ABSTAIN: None
ATTEST:
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Je Lewis, ~ M ~,.~•••.•,~,
Ci y Clerk '`. ,~~'~ OF S~!'!-~'~~.
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Council Agenda Statement
Meeting Date: August 11, 2008
To: Mayor and City Council
From: Phillip Oates, City Managei~~~~
Agenda Item: Upgrade The City's Phone System
To A VOIP/PBX System and enter into an
agreement with TelAlaska Incorporated
BACKGROUND & JUSTIFICATION:
The current city phone system was purchased and installed in late 1994 under the
technology that was available at that time. In 2000, the current system had a major
upgrade that took us to the maximum allowable limits and cost the City of Seward over
$30,000.
The City administration has realized over the past few years that the current system has
reached its limits and has started to fail. Operational and maintenance costs have
continued rising and the need for an immediate upgrade to save costs and become energy
efficient is paramount.
During the implementation of our planning and the budget of an upgrade of the current
system to a VOIP/PBX System, the administration required a savings study of the current
system verses an upgrade to a new system. The initial equipment and upgrade costs
would be higher than our annual costs, but the administered annual operations efficiency
at lower cost to the City, with an annual savings of up to fifty percent.
Based upon TelAlaska's evaluation of the City's Phone and Network Systems, the City of
Seward will realize a cost savings by installing a new VOIP/PBX Phone System on the
following basis: (1) A reduction in the monthly recurring costs for local dial tone, (2)
The almost total elimination of any adds, moves and changes charges (MAC's) from 75%
to 100%, and (3) The efficiencies gained by using the Teleworker and Unified Messaging
Software and Systems.
Currently the City of Seward is spending approximately $7,000.00 per month for local
dial tone to 18 city departments. With the install of the new VOIP phone system, those
monthly charges will drop to approximately $5,500.00 per month resulting in a $1,500.00
per month savings -not including the savings from other agencies. In addition, when
Providence and the New Long Term Care Facility come on line, those savings should
increase to approximately $2,000.00 per month or about $24,000.00 per year.
This resolution also follows the guidelines of sole sourcing established by the City Code.
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This purchase /contract is exempt from competitive procurement procedures under
6.10.120(a)(5) To supplies, materials, equipment or contractual services which can only
be furnished by a single dealer, or which have a uniform published price; and
6.10.120(a) (9) To the purchase of electronic data processing software and hardware
systems and communications eq~ment; and
TelAlaska Incorporated is the only company that had the capability to meet all
specifications and equipment requirements for PBX/VOIP needed by the City of Seward.
INTENT:
To provide much needed cost savings by utilizing the current phone infrastructure and
upgrade to a PBX/VOIP System which will more efficiently and effectively meet the
City's needs while providing greater service to the community.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of
Procedure.
FISCAL NOTE:
Funding for this purchase will utilize $181,131.16 in unspent funds previously
appropriated from the General Fund to the City Hall Facilities Fund for the purposes of
re-siding the Community Center building, plus one-time State revenue sharing funds
received in 2007 in the amount of $198,412, with a remaining appropriation from the
General Fund's fund balance in the amount of $25,701.26 for a total of $405,244.42.
Approved by Finance Department L~/
RECOMMENDATION:
The City Council approve Resolution 2008 ~~ authorizing the City Manager's to allocate
funding, purchase, install and enter into a service and Maintenance Services Agreement
for $1131.58 per month and a Sales and Installation Agreement for $289,460.30 with
TelAlaska Incorporated for the VOIP/PBX phone system.
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