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HomeMy WebLinkAboutPR 11723: TELEPHONE SYSTEMS COUNCIL ACTION MEMO PUBLIC WORKS DEPARTMENT TO FROM SUBJECT DATE Steve Fitzgibbons, City Manager Leslie E. McMahen, P.E. Director of Public Works P.R. No. 11723 April 2, 2002 RECOMMENDATION It is recommended that the City Council approve Proposed Resolution No. 11723, authorizing the second year of the existing four-year contract to GTE Southwest, d.b.a. Verizon Southwest, of Houston, Texas for maintenance and service of the City of Port Arthur's telephone systems in the amount of $24,658.20 per year, or $2,054.85 per month. Funds are provided in various departmental budgets for Fiscal Year 2002. BACKGROUND On April 17, 2001 City Council awarded a four (4) year contract to GTE Southwest Incorporated, d.b.a. Verizon Southwest, renewable yearly by Council action, by Resolution No. 01-100. The contract was awarded in the amount of $23,940 per year or $1,995 per month. Increases in the contract price upon each renewal are tied to the Consumer Price Index for similar maintenance activities. This is the second year of the four-year contract, and Verizon has agreed to the extension as noted in the attached letter. BUDGET/FISCAL EFFECT In accordance with the terms of the maintenance contract with Verizon, the contract will renew for the second year using the Consumer Price Index of 3%. This raises the monthly payment to $2,054.85 and the yearly amount to $24,658.20. Each department that has a telephone system subject to maintenance and repair under this contract has provided funds for same in their Fiscal Year 2002 budgets. Funds will also be requested in the FY 2003 budgets. STAFFING/EMPLOYEE EFFECT Acceptance of this recommendation will have no staffing/employee effect as this time. SUMMARY It is recommended that the City Council approve Proposed Resolution No. 11723, authorizing the second year of the existing four-year contract to GTE Southwest, d.b.a. Verizon Southwest, of Houston, Texas for maintenance and service of the City of Port Arthur's telephone systems in the amount of $24,658.20 per year, or $2,054.85 per month. Funds are provided in various departmental budgets for Fiscal Year 2002. Leslie E. McMahen, P.E. Director of Public Works file c:\word~cams~phnmain2002 March 21, 2002 veri7on Verizon Enterprise Solutions 6210 Rothway Houston, TX 77040 Phone 713.867.6600 The City of Port Arthur C/o Mr. Leslie E. McMahen P.E. Director of Public Works P.O. Box 1089 Port Arthur, TX 77641 Dear Mr. McMahen, In accordance with the terms of your maintenance contract with Verizon, your contract will renew for year two using the consumer price index (3%) raising your new monthly payment to $2,054.85 per month. Should you have any questions please feel free to contact me at 713-867-6601. Craig Boettcher Corporate Account Manger P.R.#11723 0~03~02 vid RESOLUTION NO. A RESOLUTION AUTHORIZING THE SECOND YEAR OF THE EXISTING FOUR (4) YEAR CONTRACT TO GTE SOUTHWEST INCORPORATED, D.B.A. VERIZON SOUTHWEST OF HOUSTON, TEXAS, FOR MAINTENANCE AND SERVICE OF THE CITY OF PORT ARTHUR'S TELEPHONE SYSTEMS IN THE AMOUNT OF $24,658.20. FUNDS ARE PROVIDED IN VARIOUS DEPARTMENTAL BUDGETS FOR FISCAL YEAR 2002. WHEREAS, the contract for mainienance and service of the City's telephone systems was awarded to GTE Southwest, Incorporated, d.b.a. Verizon Southwest of Houston, Texas by Resolution No. 01-100 on April 17, 2001 in the amount of $23,940 per year, or $1,995 per month for the first year, said contract being renewable by City Council action for up to three (3) additional years; and, WHEREAS, in accordance with the terms of the contract, the monthly and yearly cost upon each yearly renewable shall be increased using the Consumer Price Index; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the second year of the contract for maintenance and service of the City's telephone systems with GTE Southwest Incorporated, d.b.a. Verizon Southwest of Houston, Texas, renewable in one (1) year increments by the City Council, is hereby approved in the amount of $24,658.20 per year or $2,054.85 per month as determined by applying the Consumer Price Index of 3% for similar maintenance activities to the first year's contract cost; and, THAT funds for the contract are available in various departmental budgets for P.R. No. 11723 Page ir2 Fiscal Year 2002; and, THAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this at a the following vote: AYES: COUNCILMEMBERS __ day of A.D., 2002, Meeting of the City Council of the City of Port Arthur, Texas, by MAYOR , NOES: ATTEST: Acting City Secretary APPROVED AS TO FORM: City Attorney APPROVED FOR ADMINISTRATION: Steve Fitzgibbons City Manager Leslie E. McMahen, P.E. Director of Public Works flte: c:\wlxIocsVesolutl~phnmaint2002 Mayor _cVED AS'~O AVAILABILITY OF FUNDS: Rebecca Underhill Finance Director