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Home My WebLink AboutPR 24992: A CONTRACT RENEWAL WITH RINGCENTRAL, INC. FOR THE CONTINUED PROVISION OF HOSTED CLOUD TELEPHONE SERVICES FOR A THREE-YEAR TERM mmw INTEROFFICE MEMORANDUM Date: June 25, 2026 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Fay Young, Information Technology Director RE: Proposed Resolution No. 24992 —Telephone Service Introduction: This agenda item requests City Council authorization for the City Manager to execute a three- year contract renewal with RingCentral, Inc. for the continued provision of hosted cloud telephone services utilized by the City of Port Arthur. Background: On June 20, 2023, the City Council approved Resolution No. 23-278 authorizing the City to procure hosted cloud telephone services from RingCentral, Inc. through The Interlocal Purchasing System (TIPS) Contract No. 210303. The existing agreement expires on July 17, 2026. The City's hosted cloud telephone system provides voice communications for municipal departments and is critical to daily governmental operations,emergency coordination,and public service delivery. To ensure uninterrupted service, RingCentral has offered to renew the existing agreement for an additional three-year term under the attached Contract Renewal(Change Order Form). Budget Impact: The total cost of the three-year renewal is $185,424.84, payable in thirty-six (36) monthly installments of$5,150.69. Funding for Fiscal Year 2027 is available in the Information Technology Communication Account No. 001-09-023-5482-00-10-000. Funding for Fiscal Years 2028 and 2029 is contingent upon City Council approval of the annual budget and appropriation of sufficient funds. Recommendation: The recommendation is that the City Council authorize the City Manager to execute a Change Order with RingCentral, Inc.to continue hosting cloud telephone services for an additional three years. P.R. NO.24992 6/25/2026 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT RENEWAL WITH RINGCENTRAL, INC. FOR THE CONTINUED PROVISION OF HOSTED CLOUD TELEPHONE SERVICES FOR A THREE-YEAR TERM IN THE TOTAL AMOUNT OF S185,424.84, PAYABLE IN THIRTY-SIX (36) MONTHLY INSTALLMENTS OF $5,150.69; FUNDING FOR FISCAL YEAR 2027 IS AVAILABLE IN THE INFORMATION TECHNOLOGY COMMUNICATION ACCOUNT 001-09-023-5482-00-10-000. FUNDING FOR FISCAL YEARS 2028 AND 2029 IS SUBJECT TO THE APPROVAL OF THE BUDGET AND THE APPROPRIATION OF FUNDS. WHEREAS, reliable telephone communication services are essential to the efficient operation of the City of Port Arthur and the delivery of municipal services to the public; and WHEREAS, pursuant to Resolution No. 23-278, adopted on June 20, 2023, the City Council authorized the City Manager to execute an agreement with RingCentral, Inc.through The Interlocal Purchasing System (TIPS) Contract No. 210303 for the provision of hosted cloud telephone services; and WHEREAS,the current agreement expires on July 17, 2026; and WHEREAS, RingCentral, Inc. has offered to renew the existing agreement for an additional three-year term under the terms and pricing set forth in the Contract Renewal (Change Order Form), attached hereto as Exhibit "A." for a total amount of S 185,424.84,payable in thirty- six(36) monthly installments of S5,150.69; and WHEREAS, funding for Fiscal Year 2027 is available in Information Technology Communication Account No. 001-09-023-5482-00-10-000, and funding for Fiscal Years 2028 and 2029 is contingent upon City Council approval of the annual budget and appropriation of sufficient funds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. The City Council hereby authorizes the City Manager to execute the Contract Renewal with RingCentral, Inc.,substantially in the form attached as Exhibit "A," for the continued provision of hosted cloud telephone services for an additional three-year term in an amount not to exceed S 185,424.84, payable in thirty-six (36) monthly installments of S5,150.69. Section 3. Funding for Fiscal Year 2027 is available in Information Technology Communication Account No. 001-09-023-5482-00-10-000. Funding for Fiscal Years 2028 and 2029 is expressly contingent upon City Council approval of the applicable annual budget and the appropriation of sufficient funds. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of July, A.D. 2026 at a regular meeting of the City of Port Arthur, Texas by the following vote: Ayes: P.R. NO.24992 6/25/2026 Mayor: Councilmembers: Noes: Mayor ATTEST: Christe Whitley Ned, City Secretary APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED OR ADMINIST' • TION: _ Burt: �!0 M Cl' on Williams PB 0ti\ 0k INc Ronald 1 �' City Man., Purchasing Manager Fay Y g, CGC , PMP Information Technology Director APP D AS TO AV LABILITY OF FUNDS: L d oswell,MA C Director of Finance P.R. NO.24992 6/25/2026 EXHIBIT "A" PangCentral CHANGE ORDER FORM This Change Order Form ("Change Order"), amends the previous Order Forms placed under the agreement between RingCentral, Inc. ("RingCentral") and City of Port Arthur,TX("Customer" or"You") (together the "Parties"), for the purchase of the Services, licenses, and products listed herein. This Change Order is subject to and incorporates the terms and conditions of: (i) the separate written agreement, executed by the Parties governing the purchase of the Services described in this Order Form,or(ii)the RingCentral Online Terms of Service available at httos://www.rinacentral.com/legal/eulatos.html,if there is no written agreement in place(hereinafter (i)and(ii)referred to as the"Agreement").The Parties agree to amend the quantities, Services, products,pricing and terms specifically set forth below. All other terms and conditions not expressly contained herein shall remain unchanged and in full effect. Capitalized terms not defined herein shall have the same meanings as set forth in the applicable Agreement between the Parties. Unless agreed by both Parties in writing, any terms or conditions set forth in a Customer-issued purchase order or ordering document shall not apply. Please note that RingCentral MVP is now RingEX. All references to "RingCentral MVP", whether in terms of service, advertising or product descriptions, mean"RingEX". Customer Service Provider City of Port Arthur, TX RingCentral, Inc. 444 4th Street 20 Davis Drive Port Arthur, TX 77640 Belmont, CA 94002 United States United States Oscar James Evans 4099838176 oscar.evans@ portarth urtx.gov Customer UID: 2298178005 Any new Services ordered under this Change Order will begin on the Start Date set forth below and will run coterminously with the Initial Term and Renewal Term previously agreed between the Parties, unless modified. Billing for incremental services will commence on the Start Date and will be invoiced on the same billing cycles as any preexisting Services. Other fee adjustments may not be effective until your next monthly service cycle. Service Commitment Period Start Date for Items Added in this Change Order: Effective as of the last date of signature below. Initial Term: 36 Months Starting on July 17, 2023 Renewal Term: 36 Months Payment Schedule: Previous: Monthly, New: Monthly Change Order Form Page 1 of 3 RingEX Services Recurring Services Existing Additional Change in Summaryof Service Total Qty Rate Subtotal Qty Qty(+/-) Service DigitalLine Unlimited Advanced 341 55 396 $11.49 $631.95 $4,550.04 DigitalLine Unlimited Advanced $6.99 Compliance and Administrative $3.50 Cost Recovery Fee e911 Service Fee $1.00 Polycom Trio 8800 Conference Phone- 4 0 4 $2.00 $-35.80 $8.00 Rental Poly Edge E350 IP Phone-DaaS 0 372 372 $1.50 $558.00 $558.00 Polycom WX 350 Business IP Phone- 283 -283 0 $1.75 $-495.25 $0.00 Rental Polycom WX 250 Business IP Phone- 34 -34 0 $1.50 $-51.00 $0.00 Rental Additional Local Number 86 -51 35 $0.99 $-50.49 $34.65 Monthly Recurring Services" $5,150.69 Please note that if you downgrade or upgrade your entire RingEX plan (i.e, from Standard to Premium, or Advanced to Core), your previous plan will not show on this change order, only your new plan will be shown. Total Initial Amount $5,150.69 *Amounts are exclusive of applicable Taxes, Fees, and Shipping Charges. Cost Center Billing For customers with cost center billing, it is the Customer's responsibility to provide cost center allocation information to RingCentral at least 10 days prior to the issuance of the invoice. After the information is received, itwill be reflected on future invoices, but will not be adjusted retroactively on past invoices. If purchasing additional services through the administrative portal, it is the Customer's responsibility to assign cost centers at the time of purchase; otherwise,those services will not be allocated by cost center on the next invoice. Please note that cost center allocation is not available for certain items, such as minute bundles and credit memos. For additional questions, please contact the RingCentral invoice billing team at billingsu000rt@ringcentral.com. Free Services Amount You will receive 10,301.38 US Dollars(the"Free Service Amount"), which will be applied against charges for the recurring Services set forth in this Order Form and any applicable taxes and fees associated with those Services invoiced by RingCentral. The Free Service Amount is non-transferable and non-refundable and will expire upon termination of this Order Form. You will be responsible for paying for any additional services and products ordered, and any applicable associated taxes and fees. Removal of Recurring Services from Customer's Account Customer acknowledges and agrees that RingCentral will not be able to process the removal of Services (and will continue to bill Customer for such Services) or conversion from existing Services to new Services, if any described in the above Recurring Services table(i.e., migrating Digital Lines to ALNs), pursuant to this Change Order as indicated in the table above, until Customer has provided all documents requested by RingCentral to process the removal of such Services (including Customer's identification of the specific phone numbers or lines to be removed from Customer's Account). Any other changes under this Change Order will begin on the Start Date specified herein,which will be reflected in the Administrative Portal. Add-on Services. Customer is responsible for reviewing additional terms and conditions that may apply to RingCentral add-on services (where available) and certain Advanced Support Services listed on this order form, and which are available at https://www.rinqcentral.com/legal/add-on-services.html. IN WITNESS WHEREOF,the Parties have executed this Change Order Form above through their duly authorized representatives. Change Order Form Page 2 of 3 Customer RingCentral City of Port Arthur,TX RingCentral,Inc. bilKirlt/1 C By: By: Name: Name: Michael Fiocca Title: Title: Regional Vice President, Public Sector Date: Date: Change Order Form Page 3 of 3