SR-6-F (76)
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IS:JW: ST: f: \admin \share\stfrpt\SWItch OCT 2 5 199%
October 25, 1994 Santa Momca, Califorma
STAFF REPORT
TO: Mayor and City Council
FROM: CIty Stafr
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute
a Contract with PacTel Meridian for the Purchase of a DIgItal Telephone
System.
TNTRODTrc.TTON
This report recommends that the CIty Counc1l authonze the CIty Manager to negotiate and execute
a contract with PacTel Meridian for the purchase of a digItal telephone SWItch and telephones to
enhance the CIty'S telecommunications capabilIties.
BAr.KGROTTND
The Federal CommunIcations CommISSIon has recently announced implementatIOn of the North
American Numbering Plan (NANP) on January 1, 1995. The NANP will mcrease the number
of aVaIlable three dIgit area codes by expanding the use of the second digit beyond a value of zero
or one. This is in response to a shortage of area codes due to the increased use of
telecommumcauons devices throughout the country. The City currently operates a switch to
support City Hall and offslte locations WhICh WIll not support the NANP.
The present SWitch was purchased in 1983 by the General ServIces Department and has been
managed by Information Systems since 1987. In 1990, the switch was upgraded to increase Its
capaci1y to support a growing number of telephones, ClICUI(S and call volumes, Wlul6:r.- 199% !f
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of the current sWItch IS possible to provIde compliance with the NANP, the overall system
technology IS now obsolete; there are a hmIted number of quahfied repair technicians; and the
eqUipment is no longer enhanced by the manufacturer. To implement new features and seTVlceS,
a new digital telephone switch is required.
nTsrnSSTON
City Staff initiated a detailed inventory of existIng eqmpment and an assessment of the City's
telecommumcations requirements. This mformation was assembled in an RFP that was ISSUed in
May 1994 and included servIces for digital phones, vOlcemail notification, full redundant backup,
callmg party name dIsplay, rnter-department and rntra-department conference calls, and integrated
VOIce and computer networks. The City received ten proposals in response to the RFP.
Responses to the RFP were evaluated and measured agamst the hst of reqUIrements, deSIred
features and functionalIty. The Northern Telecom Option 61C digital SWitch was selected to be
the best fit for the City's long range telecommunications goals.
There were three vendors that offered the Northern Telecom Option 61C SWItch. They were
PacTe! Mendian, WilTel and GTE. After careful reVIew of their proposals, It was determined
that PacTe! Mericban met all required cntena, prOVided the best implementation plan, and offered
the SWItch and telephone equipment at a pnce sIgmficantly lower than the other vendors. The
PacTel bid is $429,900 (without tax), $35,997 less than WllTel, and $45,135 less than GTE.
When the cost of service over the next three years is mcluded, PacTel's bid is $61,483 lower than
GTE's, and $88,695 lower than WiITel's.
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Pac Tel Meridian is recognIZed as a leader in the sales, installation and service of Northern
Telcom 's Meridum line of dIgital switches. Upon Council approval, the CIty Manager will
negotiate and execute a contract with PacTel Mendlan for the purchase of a Northern Te1com
OptIon 61C digital switch to be Installed In January 1995.
RnOCTET/FINANC:TAT. TMPACT
The cost of the Northern Te1com Option 61C digital sWItch is $465,367 (includIng tax). There
is $375,000 currently aV31lable In account 01-710-223-20095-8900-99499 and $38,500 is
avaI1able in departmental unlIty accounts. A General Fund appropriatIOn of $51,867 is necessary
to complete funding of the switch and related tr31ning and Installation costs.
REC':OMMFNnA TTON
It IS recommended that Council authorize the CIty Manager to negotiate and execute a contract
with PacTel Mendlan for the purchase of a Northern Te1com Option 61C digital SWItch and
appropnate $51,867 from General Fund reserves.
prepared by: Jory Wolf
Manager of InformatIon Systems
Sanford Taylor
Technical Services Supervisor
Robert Hernandez
Telecommunications Analyst
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