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HomeMy WebLinkAboutC-2430 - Consulting Agreement for Telephone System Studyi • CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK 1714) 640 -2251 TO: FINANCE DIRECTOR EXECUTIVE ASSISTANT FROM: CITY CLERK DATE: May 30, 1984 SUBJECT: Contract No. C -2430 Description of Contract Agreement for Telephone Consulting Services Effective date of Contract May 30, 1984 Authorized by Minute Action, approved on (City Manager's approval) Contract with Earline Reeves & Associates Address 38753 Yucca Tree Palmdale. CA 93550 Amount of Contract See Agreement Wanda E. Andersen City Clerk WEA:lr attach. City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 0 AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT, made and entered into this 30th day of MAY , 1984, by and between the CITY OF NEWPORT BEACH,'a municipal corporation, hereinafter referred to as "CITY," and EARLINE REEVES & ASSOCIATES, hereinafter referred to as "CONSULTANT." W I T N E S S E T H WHEREAS, the CITY desires to retain the services of a qualified consultant in the field of telephone communications to assist in the development of contract documents and the installation of a Private Automatic Branch Exchange (PABX) telephone system to replace the CITY's current C.U. CENTREX telephone system; and WHEREAS, CONSULTANT agrees to perform such services; NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: 1. SCOPE OF SERVICES CONSULTANT agrees to provide services to the CITY within certain time frames as follows: TASK 1 - RE- EVALUATE SYSTEM EQUIPMENT Before the CITY enters into sales agreement for a PABX Telephone System, a re- evaluation review of each department's present tele- communications needs from a procedural, equip- ment, and cost - effective standpoint shall be conducted by CONSULTANT. CONSULTANT shall conduct departmental inter- views, discuss operational procedures and required communications flow. Each department's needs will be analyzed to determine where further 0 system streamlining will result in improved operational efficiency and increased cost - effectiveness. The results of departmental interviews and analysis with precise recom- mendations will be submitted to the CITY. Approved recommendations shall be included in contract specifications. TASK 2 - PREPARE CONTRACTUAL AGREEMENTS CONSULTANT shall assist in the preparation and fully review all telephone system contractual agreements and provide necessary technical addendums to optimize CITY protection and to delineate installation parameters to insure proper installation and system service. The CITY's legal counsel will review re- commended technical addendums and provide necessary legal addendums. TASK 3 - COORDINATE AND SUPERVISE NEW SYTEM INSTALLATION CONSULTANT shall coordinate the installation of all parts of the new system, with the CITY and all vendors involved in any facet of the project. CONSULTANT shall prepare all nec- essary documentation, installation worksheets, draft master vellum telephone prints from CITY blueprints, prepare data base information, establish master transition schedule, establish training criteria with the CITY and prepare training schedules. CONSULTANT shall monitor all work progress and maintain installation status schedules. Revisions of any type, which occur between the signing of a telephone system contract and the actual installation date, will be documented and distributed to appropriate individuals or firms affected by the revision. The revision -2- 0 schedule shall assure that the final installa- tion will meet precise needs. CONSULTANT shall supervise the telephone system cutover and verify that all equipment is installed and functioning properly. TASK 4 - CONDUCT NEW SYSTEM INVENTORY /AUDIT AND CONTRACT RECONCILIATION - ESTABLISH TELEPHONE SYSTEM INVENTORY CONTROL RECORDS After new system installation, CONSULTANT shall audit the entire telephone system, item by item. A final accounting and reconciliation will be prepared showing actual equipment installed with associated costs. Appropriate debits and credits will be reflected for any revisions which have occurred between contract signing and final installation. The telephone system contract will then be amended to reflect the installed equipment and finalized cost. Master telephone system inventory control records will be turned over to the CITY for future admini- stration. CONSULTANT shall thoroughly familiarize and instruct the CITY in maintenance of the control records. The CITY's telephone system inventory control may be maintained as part of the CITY's data base or in hard copy format. The inventory control records shall simplify future system rearrangements and eliminate unnecessary costs for installation and /or requirement for new equipment when telephones and other system com- ponents may be available from CITY surplus in- ventory. The records also shall delineate the location where each telephone is installed (by individual, by department, by address) and shows precisely what lines are answered on each instru- ment, comlines, lights and other equipment. -3- 0 0 TASK 5 - RE- EVALUATE COST FOR CALLS /USAGE ANALYSIS The CITY's current usage and expense for local, zone and long distance calls will be analyzed by CONSULTANT. The cost for calls, after final telephone company deregulation, will be explored, showing comparisons of cost for calls via local telephone company, AT &T lines, WATS service, MCI, SPRINT and other common carriers. This analysis, including forthcoming "access charges" shall present documented cost comparisons with recommendations to optimize cost- effective- ness and improve overall calling efficiency. 2. TIME SCHEDULES The estimated date for the cutover to the new system is Saturday, August 25, 1984. Departmental reviews and contract preparation shall be completed by May 24, 1984. The CITY and CONSULTANT agree that this is an accelerated pace, necessary to coincide with the anticipated occupancy of the CITY's new Technical Services Building. CONSULTANT shall expend all reasonable efforts including after hours work to assist the CITY meet these deadlines. 3. FEES AND PAYMENT Compensation to be paid to CONSULTANT by CITY for completion of services shall be as follows: TASK ONE - $ 2,000.00 TASK TWO - $ 500.00 TASK THREE - $ 4,000.00 TASK FOUR - $ 2,750.00 TASK FIVE - $ 2,000.00 TOTAL $11,250.00 Payments shall be due and payable for the above amounts upon completion of each TASK. Ten percent (10 %) of each payment shall be withheld by CITY pending completion of all TASKS. CONSULTANT agrees to provide all required services for the fees stated for each TASK or covering the entire project, regardless of any unforeseen delays beyond its control, or that of CLIENT, -4- which might extend projected time frames. CONSULTANT further agrees that additional consulting services, generally related to the scope of each TASK, or work being performed on the project, will be provided without additional fee. 4. AFFIDAVIT OF NON- AFFILIATION CONSULTANT agrees that no person employed by CONSULTANT and performing services under this contract will be affiliated with or have any financial interest in any manu- facturer, distributor, supplier or telephone company supplying any type of communications equipment or softward programs or packages. CONSULTANT shall not receive nor accept renumeration of any type from any manufacturer, distributor, supplier or telephone company for recommending and /or implementing any of their products or services. 5. TERMINATION This AGREEMENT is subject to termination by the CITY at any time upon serving written notice to CONSULTANT. The CITY shall be thereafter liable to CONSULTANT only for fees and costs incurred as of the date CONSULTANT receives such notice of termination. IN WITNESS WHEREOF, the parties hereto have entered in this AGREEMENT as of the date and year first above written. CITY OF NEWPORT BEACH, a Municipal Corporation 1UMUMMr�I WOMMM ATTEST: City Clerk KJD; mm 5/14/84 -5- APPROVED AS TO FOR14: 0 G City Attorney CONSULTANT By: /cam cw c EARLINE REEVES & A SOCIATES ft • • CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 14, 1984 TO: CITY COUNCIL FROM: City Manager SUBJECT: RECOMMENDED ACTION: COUNCIL AGENDA ITEM N0. F -9(f) BY THE CITY COUNCIL CITY OF NEWPORT BEACH MAY 14 ••, Approve in concept the lease /purchase of a NEC NEAX 2400 Telephone System from ASI Telesystems, Inc. to replace the City's existing Pacific Bell and AT &T System at an approximate cost of $460,000. and Approve the retention of the firm of Earline Reeves and Associates to assist in the preparation of contract specifi- cations and in the installation of a new telephone system for an approximate cost of $11,250.00. and Instruct staff to develop the necessary contracts, leasing arrangements, and budget documents for final City Council approval. BACKGROUND - THE CITY'S EXISTING SYSTEM A telephone system has three parts - switching equipment, instruments, and cabling: The City's existing switching equipment, which is leased from AT &T, is in disrepair and is obsolete. The mechanical switches, located in City Hall and the Police Department, regularly malfunction in damp weather and constant maintenance is required. The Public Utilities Commission classified the equipment as "Limited Service ", and service and replacement parts are limited and becoming unavailable. The switching equipment must, therefore, be replaced. The City's telephone instruments, like the switching equip- ment, are leased from AT &T and are still serviceable. However, many of the instruments are rotary dial and therefore incompa- tible with new switching equipment. Also, leasing instruments may not be economical and, consequently, the City may need to purchase either new or used instruments. TO: CIO COUNCIL - Page Two • The City's telephone cabling is serviceable, but to simplify the cut over to a new system and to extend a war- ranty to newly purchased equipment, the cabling most likely will need to be replaced. The City's current system utilizes two switches - one for the City Hall and another for Police and Fire. Outlying locations are tied to each switch over Pacific Bell lines, and the two switches are joined by tie lines. A prefix must be dialed to call an extension on the other switch. REPLACEMENT POSSIBILITIES Basically, two alternatives exist. First, Pacific Bell (PacBell), which is the regulated utility, offers the Central Office (CO) CENTREX System with switching equipment located in the PacBell facilities. PacBell would rent switching and cabling but not instruments which must be obtained from another company. AT &T will sell to the City the used instruments now in place. The CO CENTREX System would tie all City phones together and alleviate the need for tie lines and prefix dialing. It would also alleviate the mileage charges for connecting outlying locations over PacBell lines. The second alternative is the purchase of computerized switches, new cabling, and new instruments from a non - regulated vendor (PABX System). Dozens of such systems are available. Such a system would replicate the existing configuration of a City Hall switch and a Police switch joined together by tie lines and requiring prefix dialing. Outlying locations would be tied to the switches over PacBell lines continuing the mileage charges. SELECTION OF REPLACEMENTS A formal bid process was conducted to select the most suitable replacement, based primarily on reliability and cost. A consultant was employed, a detailed inventory of City equip- ment was conducted, specifications were prepared, and the choices of the best qualified replacements were narrowed to three: 1. The NEAX 2400 System, manufactured by.Nippon Electric Company (NEC). Sold and serviced by ASI Telesystems, Inc. (ASI), based in Woodland Hills, California. 2. The OMNI SII System, manufactured by General Telephone and Electric (GTE). Sold and serv- iced by an independent subsidary, General Telephone Company (GTC), based in Cerritos, California. 3. The CO CENTREX System offered by Pacific Bell (PacBell), which is the regulated utility, based in Orange, California. TO: CITY IPOUNCIL - Page Three • A copy of the consultant's comparison report is available. Additionally, each of the best qualified firms were analyzed by staff for a variety of factors as explained in the summary below. BASIS FOR RECOMMENDATION A summary of the rankings of the three systems for each of six evaluative factors is as follows: Telephone System SIMPLICITY OF USE instruments equal equal equal switch 2nd 3rd 1st ADD ON FEATURES 2nd lst 3rd The recommendation for the NEC system stems primarily from the overwhelming cost advantages. As explained on the attachment, even though the NEC system is ranked below the other systems on other measures, the level of adequacy is more than sufficient. Thousands of NEC systems are opera- ting nationwide, and local references report excellent ex- perience with both the equipment and the service provided by ASI. NEC GTE CO CENTREX COST Initial (leasing) 1st 2nd 3rd over 5 years 1st 2nd 3rd over 10 years 1st 2nd 3rd over 20 years 1st 2nd 3rd RELIABILITY 3rd 2nd 1st MAINTENANCE 3rd 2nd 1st SERVICE 2nd 3rd 1st SIMPLICITY OF USE instruments equal equal equal switch 2nd 3rd 1st ADD ON FEATURES 2nd lst 3rd The recommendation for the NEC system stems primarily from the overwhelming cost advantages. As explained on the attachment, even though the NEC system is ranked below the other systems on other measures, the level of adequacy is more than sufficient. Thousands of NEC systems are opera- ting nationwide, and local references report excellent ex- perience with both the equipment and the service provided by ASI. TO: CITY OUNCIL - Page Four 0 The retention of Earline Reeves and Associates is recommended to provide expertise and continuity to the effort. This firm has performed exceptionally well on the first phase and has accumulated a reserve of data and familiarity with the City system. For example, the firm is negotiating with AT &T a refund for the City that should amount to enough to cover all City costs paid to the firm. Staff lacks the necessary expertise to super- vise installation of a telephone system, and Earline Reeves and Associates has demonstrated exceptional capabilities. ROBERT L. WYNN RLW:KJD;mm attachments 0 EVALUATION of TELEPHONE SYSTEMS for THE CITY OF NEWPORT BEACH In addition to a formal bid process which selected the three most qualified systems (report available), City staff visited the home offices of vendors, viewed demonstra- tion models, inspected maintenance and service facilities, and interviewed current users. The combined results of the evaluations are summarized here. COST The consultant's report deals in detail with the variety of costs affecting telephone service in the after- math of the AT &T system. In place of Ma Bell, several companies now offer parts of the telephone system. Cur- rently, the City rents its premises equipment from AT &T and,switching services to the outside world from Pacific Bell. The cost for providing telephone capability (not usage) to the City, as of July 1, 1984, will be approxi- mately $140,250 per year. A new system involves a variety of different costs. As of June, 1984, an access charge of $4.68 per month for each Direct Inward Dialing line will be levied. CO CENTREX will necessitate this charge for nearly every City phone, (approximately 500), while a non - regulated system (PABX) will necessitate this charge only for the incoming trunks (approximately -70). A PABX requires ongoing charges to PacBell for tie lines and trunks. Maintenance, service, and utilities are an additional cost for PABX, but in- cluded with CO CENTREX. Many added features and capabili- ties are inherent with PABX systems, but must be separately purchased with CO CENTREX. Installation charges for the two types of systems differ, and the choice between leasing and purchasing adds many cost Attachment Page 1 5 4W variables. Future tariffs and rates are also unknown. A summary of these many costs are provided on the table appearing on the next page. Some cost considerations cannot be quantified at this time. The unregulated telephone environment will have a tendancy to increase rates for local calls which are the bulk of City activity. A PABX system has the capability to generate management reports and to limit the use of certain telephones to help cut phone costs in the future. Also, a PABX will allow the City to adapt easily to private cost cutting services. The City's PABX system specifica- tions insure the flexibility and modularity of design needed to add new features and capabilities when introduced. Acqui- sition of a PABX system will provide the City with all new equipment and cabling and will replace the haphazardly in- stalled system with a well organized and tidy operation. CO CENTREX will not be able to lower its costs, provide more capabilities, and compete better with the PABX systems within the next five years. A PABX system is less expensive than CO CENTREX over a five year period. Consequently, the acqui- sition of a new PABX system, with a life expectancy of 20 years, is still a good decision even if the system is replaced in five years. Attachment Page 2 L S �- - commitment of PacBell to CO CENTREX remains unclear given the uncertainties of the unregulated environment. Also,. the recent divestiture and reorganization has resulted in confusion and lack of continuity of personnel, which has been evident to City staff. While PacBell will swear other- wise, an unprofitable CO CENTREX may someday be abandoned or ignored. The City of Irvine uses CO CENTREX and reports excellent, but expensive, service. NEC is a $5 billion multi - national firm, but ASI is a 5 -1/2 year old $11.5 million dollar distributor. The fore- runner of ASI Telesystems, Inc. is Audience Survey, Incorpor- ated, a 25 year old marketing research firm, specializing in testing television pilot programs. ASI owns and operates Preview House in Hollywood. The diversification to the tele- phone interconnect business was the result of a marketing research effort. References for ASI telephone systems, including the City of Palm Springs, Buffum's Department Stores, La Habra Community Hospital, and Huntington Beach School District report excellent experience with ASI. GTE is a $13 billion communications conglomerate and GTC is an unregulated subsidary. The cities of Santa Monica and Pomona, Rio Hondo Community College, and Long Beach City College report good recent experiences with GTC and the OMNI SII system. Maintenance This factor relates to the ease and speed of repairing the system should it break down. An unavoidable maintenance problem with all three systems stems from the separation of responsibilities for different parts of the phone system. PacBell provides the trunk lines and switching to the outside world and provides tie lines between City facilities. With CO CENTREX, PacBell will pro- vide maintenance up to the jack where the telephone plugs into the wall. Telephone instruments will be serviced by another vendor or will simply be replaced. With either the Attachment Page 5 0 NEC or GTE systems, ASI or GTC will service the switch, the instruments, and the cabling between the two. But PacBell will still be responsible for'tie -lines between City facilities and trunk lines to the outside world. Regardless of the system selected, maintenance may be hindered while the trouble spot is located and the re- sponsible party identified. CO CENTREX, with technicians on- station 24 hours per day, can repair most switch malfunctions in minutes. Re- sponse time for other service calls is two hours, but PacBell will not contractually commit to that limit. PacBell main- tenance is free with the monthly service charge. Maintenance for all parts of the GTE and NEC systems is provided by the vendors, GTC and ASI. Each of the vendors dispatch technicians directly from their homes, with service centers located at Cerritos (GTC) and Woodland Hills (ASI). Each vendor has four technicians who live near Newport Beach. Both vendors will contractually commit to a two hour response time, and ASI will assume a $500.00 per hour penalty should it fail to meet the limit. Both vendors have 24 hour, 7 day per week emergency maintenance service. References for both vendors indicate excellent response to maintenance calls. Overall, GTC maintenance is rated above that of ASI because of the ready support from the GTE regulated utility mainten- ance staff. NEC will underwrite the service of ASI, but only to the extent of transferring the responsibility to another NEC distributor. Costs for maintenance are $65.00 per hour or $10,566 per year for a full parts and labor contract with GTC, and $42.00 per hour or $8,100 per year for a full parts and labor contract with ASI. The maintenance terminals provided with the NEC and GTE systems also allow City employees to do routine maintenance. Interactive software, which interrogates the user via a CRT, can pinpoint trouble spots and instruct corrective actions. Similar maintenance can be done remotely by ASI and GTC from their facilities in Woodland Hills and Cerritos. Attachment Page 6 10 0 0 Service This factor relates to the ease and speed of adding or rearranging the features or telephones of the system. ASI will respond within 5 working days and GTC will respond within 10 working days for requests to add or rearrange telephones. Reassigning of features or changing the numbers and ringing patterns of telephones can be done by City em- ployees via the maintenance terminal with GTE or NEC systems. Service charges are the same as maintenance rates, $42.00 per hour for ASI and $65.00 per hour for GTC. PacBell will respond to service requests within 5 days, and charges $26.35 for moving one phone, $47.00 for moving two, $53.00 for moving three, and $4.20 for each additional during one service visit. Reassigning of features or changing numbers and ringing patterns is accomplished within 24 hours with a telephone call for a charge of $5.20. Add on Features Various electronic phones, video terminals, and other Office -of- the - Future wizardry is available with these systems. CO CENTREX is currently limited in the use of these features because switching equipment is analog. Digital CO CENTREX switching is several years away. The NEC and GTE systems are digital and can transmit both voice and data. An assort- ment of exotic features are or will soon.be. available. More enhancement features are currently operable.for the GTE system than for the NEC system, and the design of the GTE features provides more flexibility and convenience. Simplicity of Use All three systems will use telephone instruments virtu- ally indistinguishable from present ones, and no changes in basic telephone usage will be experienced. Special features such as speed dialing, conference calling, and call forwarding are inherent to all three systems and require the use of special codes. Special training is provided during system installation; and, face plates, depicting the codes, are attached to telephone instruments. The CO CENTREX codes Attachment Page 7 utilize numbers and are somewhat cumbersome. The NEC and GTE codes use symbols and are somewhat simpler. The.NEC system allows the City to designate its own codes though this is not recommended. Regarding ease of use of the switches, the CO CENTREX switch is neither seen nor heard. The GTE and NEC switches, however, require room and board. They must be air conditioned and fed electricity. Battery back up, generators, CRT's, and printers will require maintenance. The NEC and GTE systems are similar in this regard, except that the NEC system is somewhat smaller and easier to handle with more easily inter- changeable parts. The NEC uses building block modules, while the GTE uses a larger cabinet. The software and CRT terminals of the NEC and GTE systems are equally easy to use. Overall, the NEC switch would be easier to handle than the GTE switch. Attachment Page B 12 * 0 CITY OF NEWPORT LEACH P.O. BOX 1.768, NEWPORT BEACH, CA 92663 -3884 OFFICE OF THE CITY CLERK (714) 640 -2251 all, t -�".i/ am Cc i[�D T0: FINANCE DIRECTOR EXECUTIVE ASSISTANT FROM: CITY CLERK DATE: January 30, 1984 SUBJECT: Contract No. C -2430 Description of Contract Consulting Agreement for Telephone System Study (Phase,II) Effective date of Contract January 26, 1984 Authorized by Minute Action, approved on January 23, 1984 Contract with Earline Reeves 6 Associates Address .38753 Yucca Tree Palmdale CA 93550 Amount of Contract See Agreement 4"c Wanda E. Andersen City Clerk WEA:lr attach. 3300 Newport Boulevard, Newport Beach ORIGINAL. • Ll AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT is made and entered into on this(i6 day of 7AwoE4 R 19 (, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "CITY," and EARLINE REEVES & ASSOCIATES, herein- after referred to as "CONSULTANT." W I T N E S S E T H WHEREAS, the CITY desires to retain the services of a qualified consul- tant in the field of telephone communications to assist in the development and assessment of a request for qualifications and a subsequent Request For Proposals to provide a computer -based exchange (CBX) telephone system to replace the CITY'S current C.U. CENTREX telephone system; and WHEREAS, CONSULTANT agrees to perform such services; NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: 1. SCOPE OF SERVICES CONSULTANT agrees to provide services to the CITY within certain time frames as follows: TASK ONE - PREPARE REQUEST FOR QUALIFICATIONS With the assistance of CITY staff, prepare a request for qualifica- tions to be sent to CBX vendors offering state -of- the -art telephone systems in the 550+ station line size. The RFQ shall be sufficiently detailed to ascertain vendor expertise, experience, and overall ability to install and maintain a multi - location telephone system. The typed RFQ shall be submitted to the CITY for approval and mailing. Task One shall be completed by February 3, 1984. TASK TWO - EVALUATE STATEMENTS OF QUALIFICATIONS With the assistance of CITY staff, evaluate all SOQs received and submit a detailed evaluation report to the CITY. With CITY assist- ance, the three or four best qualified firms will be selected for , receipt of the CITY'S telephone system RFP. Task Two shall be completed by February 24, 1984. • E TASK THREE - PREPARE SPECIFICATIONS AND REQUEST FOR PROPOSALS With the assistance of CITY staff, prepare detailed telephone system specifications to address all facets of the CITY'S tele- communications requirements. Prepare, with the assistance of CITY staff, a Request for Proposals to replace the CITY'S C.U. CENTREX telephone system with a new CBX telephone system. Task Three shall be completed on or before February 29, 1984. TASK FOUR - PREBID CONFERENCE AND SURVEYS With the assistance of CITY staff, conduct one pre -bid conference and supervise all on -site surveys of CITY'S facilities by poten- tial bidders. Familiarize potential bidders with the CITY'S project and answer all bidder questions. Conduct an on -site walk - through to permit potential bidders an opportunity to estimate cabling costs, evluate existing telephone rooms and terminal closets, and ascertain other criteria necessary for successful bid responses. Be available, by telephone, to answer bidder questions as each firm completes its bid response. All bids shall be received and Task Four shall be completed by March 16, 1984. TASK FIVE - EVALUATE PROPOSALS AND PREPARE SYSTEM COST COMPARISON REPORT After bid opening and with assistance of CITY staff, conduct necessary analysis and evaluate the proposals received in response to the RFP. Audit each proposal to verify accuracy of calculations and to make sure that all items specified in the RFP are included in each bid. Prepare a comprehensive comparison of all system bids in every cate- gory of equipment capabilities, features, service, labor rates, training, and cost, including vendor expertise and references. This report will provide all facts and figures, including a discounted cash flow analysis necessary for the selection of the most qualified and cost effective bid. Task Five shall be completed by April 9, 1984. All time frames may be extended upon mutual consent of CONSULTANT and CITY. -2- CITY agrees to provide CONSULTANT with data listing equipment quantities and equipment locations and other data necessary to properly prepare the telephone system specifications. In the event the CITY is unable to provide the required data, CONSULTANT reserves the right to negotiate a mutually acceptable additional fee for obtaining the necessary information. 2. FEES AND PAYMENT Compensation to be paid to CONSULTANT by CITY for completion of services shall be as follows: Task One - $ 500.00 Task Two - 1,500.00 Task Three and Four combined - 3,500.00 Task Five - 3,500.00 Total - $9,000.00 Payments shall be due and payable for the above amounts upon completion of each Task. Ten percent (10 %) of each payment shall be withheld by CITY pending completion of all tasks. CONSULTANT agrees to provide all required services for the fees stated for each Task or covering the entire project, regardless of any unforeseen delays beyond its control, or that of CLIENT, which might extend projected time frames. CONSULTANT further agrees that additional consulting services, generally related to the scope of each Task, or work being performed on the project, will be provided without additional fee. 3. AFFIDAVIT OF NON- AFFILIATION CONSULTANT agrees that no person employed by CONSULTANT and perform- ing services under this contract will be affiliated with or have any financial interest in any manufacturer, distributor, supplier or telephone company supplying any type of communications equipment or software programs or pack- ages. CONSULTANT shall not receive nor accept remuneration of any type from any manufacturer, distributor, supplier or telephone company for recommending and /or implementing any of their products or services. -3- 0 4. TERMINATION This Agreement is subject to termination by the CITY at any time upon serving written notice to CONSULTANT. The CITY shall be there- after liable to CONSULTANT only for fees and costs incurred as of the date CONSULTANT receives such notice of termination. IN WITNESS WHEREOF, the parties hereto have entered in this Agreement as of the date and year first above written. APPROVED AS TO FORM By: City Attorney CITY OF NEWPORT BEACH CONSULTANT By: X"4z1z';t— By: /_u PAO_10 `. Mayor Earline Reeves & Associ tes ATTEST City Clerk -4- TO: FROM: C -1-)Xi 3v ! ! (3g) CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER COUNCIL AGENDA No. F -16 January 23, 1984 BY THE CITY COUNCIL CITY OF NEWPORT BEACH MAYOR AND'CITY COUNCIL Executive Assistant JAN 231984 SUBJECT: Recommended Action: Authorize Mayor and City Clerk to execute consulting agreement with Earline Reeves & Associates, and Approve budget amendment no. BA -055 in the amount of $9,000 for the preparation (Agenda Item of Telephones Systems Specifications and # BA -055) Request for Proposals. Background: In March 1983, the City Council approved a three phase telephone system study and authorized commencement of Phase One with Communications Resource Company (C C). A copy of the original staff report is attached. Phase 0 has now been completed and Phase Two is ready to begin. C -D3 81 Phase One consisted basically of an inventory and an analysis of projected costs. A comprehensive inventory of each piece of equipment at each location and a cost breakdown was completed. It was also determined that the City's current system with its premises -based switch provided now by AT &T will rapidly become more expensive and provide limited service. More efficient economical systems are available. CRC completed Phase One at the contracted cost of $8,850, but not within contracted time frame. Also, other difficulties with the CRC firm were experienced by staff. CRC was to have completed Phase Two at a cost of $3,950. Basis for Recommendation: Phase One of the telephone study revealed that a new telephone system will be more efficient and economical. Commencement of Phase Two of the study is recommended to determine which system is best suited to the needs of the City in terms of features and cost. Phase two will investigate the two basic types of systems - on premises computer -based switches (CBX) and Pacific Bell's central office (C.O.) Centrex system. These two systems are dramatically different from one another and require separate investigations. TO: MAYOR AND CITY COUNCIL - Page Two Staff will investigate C.O. Centrex directly with Pacific Bell. A consultant is required to prepare specifications and requests for proposals for CBX systems, which are sold and manufactured by a multitude of firms. The work to be conducted by the consultant is as follows: Task 1 Prepare RFQ With the assistance of City staff, prepare a Request for Qualifications to be sent to CBX vendors. Pacific Tele- phone's C.O. Centrex system shall not be considered. Typing and mailing to be accomplished by City. Task 2 Evaluate Statements of Qualification With the assistance of City staff, evaluate the SOQs received in response to the RFQ and select the best qualified 3 or 4 vendors for receipt of an RFP. Task 3 Prepare RFP With the assistance of City staff, prepare an RFP to replace the C.U. Centrex system with a new CBX system. The City will provide all necessary descriptions and current costs of the existing system. (This has been prepared by another consultant.) All typing and mailing to be provided by City. Task 4 Pre -Bid Conference and Surveys With assistance of City staff, conduct one pre -bid conference and supervise all on -site surveys of City's facili- ties by potential bidders. Task 5 Evaluate Proposals With assistance of City staff, conduct necessary analysis and evaluate the proposals received in response to the RFP. Assist City staff in selecting the most qualified bidder. Final selection will be based on Discounted Cash Flow and reliability. Completion of this work and of the investigation by staff of C.O. Centrex will enable the Council to make a final selection of a new telephone system. Nothing in Phase Two will commit the City to any purchase or lease. TO: MAYOR AND CITY COUNCIL - Page Three j Selection of Consultant: Because of the time delay and other problems experienced with CRC, it is recommended that another firm be employed to assist in Phase Two. Three firms responded to an RFP from the City, submitted proposals, and were interviewed by the Purchasing Agent and the undersigned. The attributes of each of these firms are as follows: 1. THE PHOENIX CONCEPT - Pasadena, California a. Firm founded in October 1982. b. Principles oriented towards the engineering and technology aspects of a telephone system. c. During interview, recommended that problems to be encountered by City would be best handled with technical solutions such as micro -wave and laser transmitters and electronic telephones. d. No recent public agency experience and did not seem to understand the functioning or needs for a city. Little experience on systems with multiple locations. e. Proposed price: $9,600 2. THE CENTER FOR TELECOMMUNICATIONS - Laguna Hills, California a. Firm founded in 1980. b. Principles have sales background and primary business is seminars. C. Some public agency experience and good references. d. Seem to understand the functioning and needs of a City fairly well. Little experience on systems with multiple locations. e. Proposed price: $4,600. 3. EARLINE REEVES & ASSOCIATES - Palmdale, California a. Firm founded in 1967. b. Principles have telephone company business office backgrounds and long experience doing hands on, nuts and bolts, telephone system upgrades. ' TO: 0 0 MAYOR AND CITY COUNCIL - Page Four c. Much public agency experience, including recent work with good references from the City of Glen- dale and the County of Orange. d. Excellent understanding of the City's needs and functions. e. Much experience on systems with multiple locations. f. Provided examples of work which were exceptionally complete, understandable and well organized. g. Proposed price: $9,000. KENNETH J DELINO KJD;rmr attachments CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER March 28, 1983 CITY COUNCIL AGENDA NO. F -3(c) TO: MAYOR AND CITY COUNCIL FROM:. City Manager SUBJECT: TELEPHONE SYSTE14S CONSULTING STUDY Background - The Divestiture of A,T & T During the mid 1970's, an antitrust suit was initiated by the United States Department of Justice against American Telephone and Telegraph ( A,T &T). The case was not settled until 1982 with the promulgation of a decree requiring A,T &T to divest itself of 22 out of 24 local telephone companies. Implementation of the decree commenced on January 1, 1983. General Effect of the Divestiture Process Prior to the divestiture decision, Pacific Telephone, which currently services Newport Beach, had been a subsidiary of A,T &T. With the divestiture, Pacific Telephone was completely separated from A,T &T and became subject to regulation of the State Public Utilities Commis- sion (PUC). In its new role as an independent utility, Pacific Telephone will continue to supply lines and access to toll networks with rates for these services being subject to PUC approval. Addi- tionally, Pacific Telephone continues to offer for lease, subject to PUC rate approval, Centrex telephone systems. Leasing this type of on -site telephone system is, however, relatively expensive and Centrex, according to those knowledgable on the subject, does not represent the state of the art. With the exception of Centrex, rates for new end -user telephone equipment (on -site telephone equipment) will for the most part be deregulated. The division of Pacific Telephone which had previously offered end -user equipment will now function separately from, and independent of, Pacific Telephone. This new company, American Bell, will function in a competitive marketplace as one of over 200 inde- pendent telephone and telephone- related equipment vendors. Hence, to put it simply, with respect to the provision of new end -to -end telephone system services, Pacific Telephone will supply the lines and related equipment, while independent vendors will offer user telephone equipment at competitive prices and under alternative acqui- sition arrangenents. The systems and equipment offered by these 4 W TO: MAYOR AND CITY COUNCIL - Page Two 4 independent vendors (including American Bell) is not subject to regulation and hence is offered in a "buyers' market." The City's Current Telephone System As noted previously, the City of Newport Beach is currently served by Pacific Telephone. This service consists of both telephone lines and equipment. In terms of equipment, the City leases an approximately 8- year old Centrex system which provides separate service to the Police and Fire Departments on the one hand and all remaining depart- ments on the other. The system requires access codes and "tie trunks" for exchange between the two non - integrated systems. As referenced earlier, the City's vintage Centrex arrangement is a relatively expensive type of system. Additionally, future rate increases for the leased equipment can be expected. Currently monthly City tele- phone bills are approximately $18,000. The Need for a Telephone System Study It is staff's position that a combination of factors including the cost and obsolesence of the existing leased Centrex system and the highly competitive market conditions which exist following the A,TST divestiture, make this an excellent time for the City to carefully evaluate its present and future telephone system needs. Obvious alternatives which exist in this regard range from continuing to lease the existing Centrex system to purchasing a new telephone system from a private vendor. Various intermediate alternatives, including "lease - purchase" and a Centrex upgrade, also demand study. Attachment I is an excerpt from Western Cities Magazine which dis- cusses the timeliness of municipal telephone studies in light of the A,T&T divestiture. The Need for a Consultant It is believed that the retention of a professional consultant to conduct the above- referenced study is justified for the following reasons: A. Technical Expertise - The comprehensive study of a telephone system the size of the City's requires a high level of specialized technical knowledge and expertise. B. Time Involved and Staffing Constraints - In addition to the lack of specific staff technical expertise in this area, significant constraints upon the use of City staff for a project of this magnitude are readily apparent. 1 ' TO: MAYOR AND CITY COUNCIL - Page Three C. Objectivity - Use of a consulting firm which is independent of the telephone company and any vendor interests will help insure the objectivity of findings and recommendations. D. Cost Recovery - The cost of a consultant study of this type should eventua ly be recovered through savings achieved as a result of the implementation of recommendations. Consultant Solicitation and Evaluation Process Based upon the preliminary findings and conclusions referenced in the preceding section, staff solicited proposals from several reputable telecommunications consulting firms. Attachment 2 is a copy of the information sheet which was provided to each prospective consultant. It can be seen that the following were to be included in the consulting proposals as areas for study: 1. Complete review and analysis of the existing telephone system and user patterns. 2. Identification and review of present and future system require- ments. 3. Presentation and analysis of available alternatives for upgrading and improving the system including the alternative of upgrading or enhancing the City's Centrex system. 4. Development of uniform bid specifications for release to system equipment vendors, should the City decide to proceed with a system upgrade. 5. Participation and assistance throuqhout the bidding process, including a recommendation as to the most responsive, cost - effective bidder. 6. Possible system implementation assistance. Upon receipt of the proposals submitted, staff conducted an extensive comparative evaluation and reference check process. Based unbn its review, staff has selected Communication Resources Company for recommendation to the City Council as the most responsive and competi- tive (low) bidder. Communication Resources Company Proposal (CRC) C - i Included with each Councilmember's agenda packet is a complete copy of the proposal submitted.by CRC. Attachment 3 to this staff report is a summary of the proposal which was prepared by staff. 7 TO: MAYOR AND CITY COUNCIL - Page Four It can be seen that CRC proposes a three - phased study with specific costs applied to each phase. It should be noted that specific City authorization would be required before the consultant would proceed from one phase to the next. Phase I, "Analysis ", which is covered on Pages 8 -13 of the proposal would involve a comprehensive review of all present telecommunication services to determine the degree to which they are meeting the needs and requirements of the City. In addition, the consultant would establish the degree of cost effectiveness present services are attaining as well as projecting complete communication services to meet the City's needs throughout the foreseeable future. Upon completion of Phase I, a "Phase I Report" would be presented to the City detailing initial findings, presenting recommendations and outlining further recommended actions to be taken. Upon completion of the Phase I study and report, and pursuant to City Council authorization, CRC would proceed to Phase II, "Competitive Bidding." The cost for Phase I is $8,850 and the projected time frame is 2.5 months. Phase II, "Competitive Bidding" which is covered on Pages 14 -15 of the proposal would involve the complete planning and establishment of unbiased and uniform bid specifications for a telephone system, should the City decide to proceed with such a bidding process. The solicitation of bids from vendors, the detailed analysis of all bids received, the development of a recommendation as to lowest responsible bidder, and contract negotiation assistance would all be part of this phase. Upon selection of a vendor by the City and pur- suant to authorization to proceed, CRC would commence Phase III, "Implementation." The cost of Phase II is $3,950 with a projected time frame of 2.5 months, Phase III, "Implementation" which is covered on Pages 16 -22 of the proposal would involve supervision assistance, telephone company coordination and compliance auditing by CRC on the City's behalf to insure the adequacy and performance of the system installed. Two alternative approaches to funding implementation are offered; one involving 58 of the system purchase price (full implementation) and one involving a flat payment of $6,000 (implementation supervision). As in the case of each phase of the study, the option as to which approach to take would be the City's following an evaluation of the information received as a result of the previous phase. As noted in the proposal, the City would be required to pay Phases I -III) is $19,400. By received for this consulting M bottom line net fees (the maximum the for required consultant services, i.e., way of comparison, the high bid study was $28,350. r' TO: MAYOR.AND CITY COUNCIL - Page Five In summary, the CRC proposal would involve three logical phases; analysis, competitive bidding and implementation. The total project cost (Phases I -III) would be $19,400 maximum and the total project time frame would be 12 months. CRC, which is located in Santa Ana, has eight years of telecommunica- tions consulting experience serving a wide variety of clients -- many of them municipalities. The municipal references checked by staff all rated CRC's performance on similar studies as excellent. Proposed Consulting Agreement Attachment 4 is a copy of the proposed consulting agreement. The agreement provides for specific City Council review and approval of the results of each phase prior to proceedtRa to the next phase. Funds would be appropriated for each successive phase by the Council following its review of the preceding phase. Proposed Course of Action It is proposed that the City Council take the following actions this evening: 1. Authorize execution of a consulting agreement with Communication Resources Company; AND 2. Approve Budget Amendment No. appropriating $8,850 for Phase I of the study. The Assistant to the City Manager and the Purchasing Agent will jointly serve as project coordinators on the City's behalf. ROBERT J WNN City Manager RLW:GJB:jmb Attachments i