SR-09-12-1978-11DCITY OF SANTA MONICA, CALIFORNIA
REPORT SUMMARY SHEET
Submittal: August 21, 1978 For Council Meeting: September 12,1978
Agenda Item Number: ! I
E P 1 2 1978.
Summary of Situation or Request
The City's telephone system is over twenty years old. During the past several
years, problems with the equipment have reached the point where employee produc-
tivity is affected and where complaints from the public are occurring all too
frequently. There is also some question as to whether further deterioration of the
equipment may impair the City's ability to respond in emergency situations. This
report presents information regarding the installation of new telephone equipment
including cost analysis and discussion of other related factors.
Background Information
In April, 1976, the City engaged COM Consultants to study the existing telephone
system, to analyze the City's communication needs, to prepare specifications for
new equipment, and to research the marketplace for a system which would meet present
and future service requirements. Having completed this work, the consultant re-
commends, and staff concurs, that the City install the Stromberg- Carlson Crossreed
Electronic 800 PABX switching equipment (SC -800) and new desk instruments.
This equipment can be acquired in one of two ways: purchase on the open market or
rental from General Telephone. Equipment rental from the utility is more economical
if the new system will be replaced within six years following installation. Beyond
six years, however, equipment purchase begins to generate savings. If the system
remains for ten years, for example, projected savings of purchased equipment over
equipment rental amount to over $140,000. In staff's opinion, once a new system is
installed, it is likely to remain for ten years or longer.
Policy Implication
The City currently rents telephone equipment from General Telephone. To purchase
equipment would be a departure from past practice. It should be pointed out, how-
ever, that the City would still remain a customer of General Telephone, purchasing
over $60,000 per year in service and other equipment.
Recommendation
Approve purchase of the telephone equipment with lease - purchase financing through
a local bank.
Prepared by: JEANNE L. KENNEDY
Administrative Assistant
STAN SCHOLL
Director, General Services
JLK:SS:dvl
Attachment
//
5 f p 1 2 WIS'
Santa Monica, California August 21, 1978
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Selection of Telephone System
Introduction
This report reviews results of consultant's study regarding improvements
to the City's telephone system and recommends the purchase of telephone
equipment from Stromberg - Carlson Communications.
Background
The telephone system in current use is a 300 -line manual PABX system with
two separate PABX switchboard stations (Police Station and City Hall).
Manufactured prior to 1949, the switchboards were installed as used items
(reconditioned) during the late 1950's. The system is over twenty years
old.
The two most critical problems regarding continued use of the existing telephone
system are frequency of repair and inadequate capacity (see Problems and
Repair History, Attachment 1).
Employees and the public are continuously plagued with such problems as
excessive static, momentary loss of power and disconnection while dialing.
This means that repair crews are often required at City Hall on a daily basis..
While repair costs are not directly charged to the City (they are included in
the monthly service charge), interruption of telephone service diminishes
employee productivity, reduces daily business activity, and causes citizen
frustration.
To: Mayor and City Council -2- August 21, 1978
Furthermore, the City's service requirements have exceeded the technical
capacity of the system. At City Hall the PABX stations have been expanded
and modified so that regardless of need no additional stations can be added
without the installation of a second switchboard with operator. Citizens
frequently complain of difficulty in reaching City personnel due to the
telephone system.
At the Police Station, the capacity problem is one of community access and
department productivity. As the work load expands, it becomes necessary
that dialing out preempt more of the available lines. Consequently, the
10 -line capacity of the present PABX is frequently reduced to six incoming
community lines.
Telecommunications Study
In response to these problems, on April 27, 1976, the City Council approved
the retention of COM Consultants to conduct a telecommunications study for
the purpose of reducing operating costs and updating the system to meet
current and anticipated service requirements.
In the area of cost reduction, the consultant initiated a number of changes
with an estimated annual savings to the City of $8,300 (see Attachment 2).
By implementing these changes and other recommended controls, the telephone
bill was reduced in excess of $1,000 per month during a time when both usage
and telephone tariffs were increasing.
With regard to updating the telephone system to meet current needs, COM
Consultants conducted an in -depth survey of the existing system and service
To: Mayor and City Council -3- August 21,1978
requirements, designed the optimum communication system for the City's
needs, prepared specifications for a new system, and evaluated proposals
from three vendors and the General Telephone Company.
New System Design
The telephone system proposed for the City is an improvement over the
existing system in many areas. Foremost among these is the addition of
more lines which will significantly improve responsiveness to the
community.
Second, the new system will provide increased emergency capability through
the combination of City Hall, Police and Fire Departments into one universal
switching system. Presently, an emergency call to the Police Department
cannot be identified as such by the operator.. Should an emergency
call come in -to City Hall; the party calling cannot be assured of
quick transfer to the Police Department under existing capabilities.. The
universal switching system will avoid this confusion and delay, improving
the ability to respond to the public in emergencies. The central switchboard
will be located at the Police Department and be staffed 24 -hours a day. It
will have 911 capability and be connected to the police emergency power
generator, The combined switching system will also permit the elimination
of one telephone operator position (approximately $10,000 /year),
Third, transfer of calls will be improved, saving employee time and decreasing
frustration on the part of the public. All transfers must now go through
the operator and the capability to transfer calls initiated by City personnel
does not exist.. Witli direct transfer and touch tone pad, both incoming and
TO: Mayor and City Cot it -4- August 21, 1978
outgoing calls will be transferred instantaneously rather than by using the
archaic method of "flashing the operator" as now exists.
Finally, communication between City Hall and the Police Department will be
improved. Presently, only one line between City Hall and the Police switchboard
exists. No other contacts can be made while this line is in use, including
transfer of emergency calls from City Hall to the Police Department. The new
system will include unlimited intercom and transfer between the City Hall, Police
and Fire Department.
Selection of the Best Utility and Private Systems for Comparison
Proposals based upon the system specifications prepared by COM Consultants were
received by private vendors Stromberg- Carlson Communications (a subsidiary of
General Dynamics), International Telephone and Telegraph„ and Universal Communi-
cation Systems, Inc. The General Telephone Company has offered several proposals.
A Stromberg - Carlson system was proposed along with the offerings of the other
vendors in September of 1976, and a ROLM System was proposed in October of 1977.
In August of 1978, General Telephone proposed to slightly upgrade the existing
system as a temporary measure which would enable the City to install a centrex-
type system after it becomes available in 1980, if the City should decide to do so.
Over the past two years, the City staff has met frequently with various General
Telephone personnel to receive and discuss these proposals.
In order to simplify further analysis a decision was made to select the best of
the private systems to be compared with the best of those proposed by the utility,
General Telephone. The primary factors in evaluating the proposals were adherence
to specifications, cost, and the experience of other.cities and businesses with
the equipment and the provider.
TO: Mayor and City Coun'. -5- August 21, 1978
With regard to the selection of utility - provided equipment, the ROLM proposal
was eliminated as it was more costly, did not meet the requirements in some areas,
and provided other features not needed for the City's type of usage. The proposal
to slightly upgrade the present system with the idea of installing a centrex -type
system as a later date was also eliminated from consideration. The improvements
would solve only a fraction of the problems which exist and this upgraded system
would cost nearly as much per year as a new system. In addition, it is not clear
that a centrex -type system, in which each station has its own telephone number, would
be considered favorably at some future date. Thus, the Stromberg- Carlson equipment
proposed by General Telephone was selected for comparison with the best private
system. The proposal includes installation of the Stromberg- Carlson Crossreed Elec-
tronic 800 PABX switching equipment (SC -800) and new desk instruments.
With regard to selection of a private system, the Hitachi equipment proposed by
Universal Communication Systems, inc., was not chosen for further consideration
because it is new to the market and has not been tried by cities. The ITT proposal
was eliminated from further consideration due to reports of deteriorating maintenance
service and the prospect of higher post- installation repair costs association with
extended travel time from the Company's maintenance facility in North Hollywood.
The system proposed by Stromberg- Carlson Communications was chosen as the best
private system, in part because it is identical to the equipment proposed by General
Telephone and simplifies comparison between the public and private systems. Futher-
more, the City's consultant is confident, and staff agrees, that the SC -800 will
provide reliable service regardless of whether it is purchased directly from Strom-
berg- Carlson Communications or.is installed by General Telephone.
It should be noted that there are currently in excess of 2,000 Stromberg- Carlson
systems in service across the United States. For example, the cities of La Habra
TO: Mayor and City Cour, 1 -6- August 21, 1978
and Baldwin Park have Stromberg - Carlson equipment, as does Hollywood Presbyterian
Hospital. Businesses in Los Angeles using the SC -800 are the American Reserve
Corporation, Elster's Inc.„ Frank B. Hall, and International Creative Management.
The Automobile Club of Southern California is currently installing Stromberg - Carlson
equipment in its Santa Monica office.
Cost Comparison: New Systems and Existing System
A cash flow analysis has been prepared for each of the proposed systems and for
the existing system over a 15 -year life cycle (see Attachment 3). Utilizing this
data, the table below illustrates the projected total cash outlay for the proposed
systems and the present system, at five year intervals. The cost projection for
the present system includes the installation of additional trunks necessary to
improve both internal and external capacity. These additions are imperative if
the present equipment is to remain any longer. It should be noted that all cost
figures used are for equipment only and exclude monthly charges by the utility
company for trunks and telephone usage.
At End of
Year
5
10
15
Present
System
Upgraded
$244,877
$514,053
$812,340
TABLE I
Cash Flow Comparison of Present System
with Proposed Systems
Total Expenditures (Cumulative)
Proposed
General Telephone
SC -800 (rental)
$267,545
$552,904
$869,575
Proposed
Stromberg - Carlson
SC -800 (purchase)
$324,766
$405,996
$512,395
From a strict cost savings perspective, new telephone equipment cannot be justified,
at least in the short term. As Table I indicates, the cost of both proposed systems
To: Mayor and City Council -7- August 21, 1978
exceeds the cost of maintaining the present system at the end of five years.
Cost savings of a purchased system over the present system begin during the
eighth year. The accumulated cost savings of a purchased system over the
existing system total $10$057 at the end of ten years and $299,945 at the end
of fifteen years.
Installing the new equipment as proposed by General Telephone would be more
costly than retaining the existing equipment. However, financial analysis
does not account for the indirect and intangible costs of lost productivity
due to system breakdowns and citizen and employee frustration. Furthermore,
in the opinion of the consultant, the present equipment cannot provide long
term service.
Cost Comparison: Rental and Purchased Telephone Systems
The graph on the following page indicates that major cost differences between
rental of the SC -800 from General Telephone (GTE) and its purchase through
Stromberg - Carlson Communications (SCC) occur after the sixth year. This
is due to the elimination of annual lease - purchase payments at which time the
City would acquire full ownership of the telephone system. (The lease - purchase
option assumes financing $225,894 for 5 years at 7% interest).'- This
is the essential difference between a private system and a utility -owned
system such as General Telephone, since a utility customer pays for the
equipment in perpetuity on a rental basis.
The cash flow analysis shows that during the first five years the rental
option would produce a total savings of approximately .$57,200 At the end of
1. Quotation from Santa Monica Bank, July 5, 1978.
CUMULATIVE COSTS
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To: Mayor and City Council -9- August 21, 1978
ten years, however, the lease - purchase option becomes more economical,
generating an accumulated savings of $146,908 (average annual savings of
$14,691). At fifteen years, the City would save $357,189 through purchase of
its own equipment.
Present worth analysis is another method of determining the cost of capital
expenditures. When comparing equipment rental and purchase the present
worths of the cost of each alternative for a given number of years are computed.
These furnish a measure of how much money the City would theoretically have
to set aside now at a given interest rate to provide for the future payments.2'
Table III shows the present worth of rental and purchase at five year
intervals using 8% interest.
TABLE III
Present Worth: 5, 10, and 15 Years
At End of Rental Purchase
Year GTE SCC
5 $ 215,185 $ 261,548
10 $ 369,755 $ 305,224
15 $ 486,516 $ 344,286
The present worth of savings from rental as compared to a purchased system is
$46,363 during the first five years. The present worth of: purchased system
savings over rental is $64,531 during years 6 -10, and an additional
$77,699 during years 11 -15. Thus, the total present worth savings of a
purchased system over equipment rental is V42,230 over a 15 -year period.
2. Norman N. Barish, Economic Analysis for Engineering and Managerial
Decision Making, (New York - McGraw Hill, 1962), p. 139.
To:
Mayor and City
Council
-10-
August 21, 1978
Rental
and Purchased
Utility Telephone
Systems
- Other Considerations
In addition to the cost differential, there are other factors which require
consideration: 1. Cost of moves in telephone location and other changes;
2. Relationship with the utility company should the City purchase its own
telephone system; 3. Quality of maintenance of privately owned equipment;
4. Costs associated with future remodeling of City Hall; and 5. Potential
obsolescence of the telephone system, including cost of termination.
Moves in Location and Other Changes
Once equipment is installed, there are additional charges if phones must be
moved and /or changed. There are significant cost differences between private
and utility systems for these moves and changes, and they have been included
in the financial analysis. The estimated cost of these operations through
General Telephone varies from $540 during the first year to $1,782 during
the fifteenth year. The projected yearly cost through Stromberg - Carlson
Communications ranges from $2,340 to $8,019 over a 15 -year period.
These estimates assume: A present average cost per move /change of $15.00
for GTE and $67.50 for SCC; a 5% yearly inflation rate; and three moves /changes
per month during the first three years, four per month during years four
through seven, and five moves /changes per month thereafter. It is unlikely
the moves and changes would exceed this amount since equipment locations
and types have been carefully planned to meet City needs.
To: Mayor and City Council
Relationship with the Utilit
-11- August 21, 1978
Should the City Purchase Its Own
A potential problem in purchasing telephone equipment is the smooth transition
from the utility -owned system to the private system. The ease of transition
depends in part upon the cooperation and responsiveness of the utility company.
Reports from other cities and businesses owning their own equipment suggest that
the relationship between the utility and the purchaser of a private system is
often strained initially and that the changeover is not always as smooth as
might be expected. However, while delays were inconvenient, none of the
organizations which were surveyed experienced significant problems. (See
Attachment 4).
Another potential problem area is the accountability for system failure after
installation. All private telephone systems guarantee that their repair
service will conduct the initial investigation of mechanical failures and
contact the phone company if the failure occurs on that end of the equipment
network. The cities contacted indicate that repair service problems between .
the utility and private vendors have been minimal and that the initially strained
relationship with the utility has become a cooperative one over time.
It should also be noted that with a decision to install its own telephone
switching equipment and desk instruments, the City would still remain a
customer of General Telephone, purchasing over $60,000 per year in usage and
other equipment.
To: Mayor and City Council -12- August 21, 1978 �
Quality of Maintenance of Privately Owned Equipment
Stromberg - Carlson employs nineteen service technicians who work out of
its service center in Marina del Rey. The facility has considerable room
for expansion and no changes in location are anticipated.
The company provides 24 -hour emergency service with a maximum response time
of four hours. Minor repairs are made during normal business hours and these
service requests are responded to within 24 hours of notification. As part
of the maintenance agreement Stromberg - Carlson also provides a system
inventory record, consultant services, and continued training of City
personnel. (See Attachment 5).
Five local organizations owning their own SC -800 equipment were contacted and
with the exception of one, all were very satisfied with the quality of main-
tenance service provided by Stromberg - Carlson: The company responds
quickly, its service people are knowledgable about the equipment, and
Stromberg - Carlson maintains positive relations with the utility company.
(See Attachment 4). The one organization not satisfied with Stromberg -
Carlson's maintenance performance cited a poor attitude on the part of the
repairman and unsatisfactory response time. This appears to be an isolated
case.
Future Remodeling of City Hall Building
Should the City Hall building undergo substantial office remodeling and
modification in floor plans, the City as a private telephone equipment owner
would incur additional expense to rewire the phone system where needed. It
is likely that some remodeling and modification in floor plans will occur within
T0: Mayor and City Cou— it -13- August 21; 1978
the next ten years. The total estimated cost of rewiring ranges from
$5,000 to $15,000 depending on the scope of the alterations. No such
expense would be incurred if the equipment were installed and owned by
General Telephone, as the utility would absorb the cost of rewiring.
Potential Obsolescence of Telephone System
The technology of telecommunications is rapidly advancing and the installa-
tion of a new system presents the possibility of that system becoming
technically obsolete.
The new technological developments are primarily in the area of computer-
ized switching equipment. This is especially beneficial for organizations
with complex line networks where least - cost routing of calls can produce
substantial savings. This level of sophistication is not necessary for
the simple calling patterns characteristic.of City usage where 80% of the
calls are from local citizens to City departments or from City employees
to citizens or to other departments. What the City requires and will con-
tinue to require is a system which is simple and reliable. Staff is
confident that the SC -800 can provide this type of service.
It is the.consultant's opinion that at least 10 years will pass before any
change would be considered and that the SC -800 could remain in service for 15 years
or longer. However, should the City decide to replace a new system due to some
To: Mayor and City Council -14- August 21, 1978
unforseen development, the costs are outlined below. Included is the basic
termination charge imposed by the utility if its system is discontinued
within the first five years of service. Also considered is a conservative
estimated salvage value of the SC -800 equipment proposed under the lease -
purchase option. (See Attachment 6).
TABLE IV
ACCUMULATED COST AT TERMINATION:1 5, 10, and 15 years
At End of Year Rental Purchase
(GTE) (SCC)
5
Ice
15
267,545
+ 1,400
26 45
552,904
0
TSL�3, 0�
Rental
Termination
charge
Rental
Termination
charge
869,575 Rental
0 Termination
charge
324,766 Payment
- 33,884 Salvage @ 30%
90,882
405,996 Payment
- 11,295 Salvage @ 10%
394,701
512,395 Payment
0 Salvage
512,395
As the table indicates, if a new system were to be installed and then retired
at some point beyond five years, the cost to the City would be less with a
purchased system. During the first five years the cost of terminating a
purchased system would be higher.
Conclusions
In reachina a decision, both equipment cost factors and the other considerations
must be evaluated. Other than the yearly cash outlay the most significant
To: Mayor and City Council -15- August 21, 1978
impacts on overall costs are the potential for additional expenditure due to
remodeling and the possibility of replacing the system as a result of improved
technology.
Accounting for these impacts, a comparison has been made of the estimated
cost of both systems should they be replaced after 5, 10 and 15 years of
service (see Attachment 7). The table below summarizes the cost savings
available through the purchase of telephone equipment as compared to rental
from General Telephone.
TABLE V
Cost Savings at Termination: Purchase Over Rental
Termination Period
5 years 10 years 15 years
Without remodeling $(21,937) $158,219 $357,180
With remodeling $(36,937) $143,219 $342,180
Note: Parentheses mean negative cost savings. If the new system were retired
within five years, it would be less expensive to rent equipment from General
Telephone than to purchase it from Stromberg - Carlson Communications.
In Staff's opinion, it is likely that the system will be replaced at some time
between 10 and 15 years and that during this period some remodeling may occur.
With replacement at ten years, an estimated $:143,219 would be saved through the
lease - purchase of telephone equipment. This is an average yearly savings of
$14,322. Should replacement occur at the end of 15 years, the savings of a
purchased system over equipment rental would be even greater: a total of
$342,180, or an average yearly savings of $ 22,812.
T0: Mayor and City Co. Til -16- August 21, 1978
Equipment Acquisition Procedure
The City's consultant has researched four telephone equipment systems on an
informal basis and has recommended the Stromberg- Carlson equipment as the
best choice regardless of whether purchased or rented (see Attachment 8).
Requesting formal bids will cause unnecessary delay and expense. Furthermore,
bids would be extremely difficult to equate due to the specialized and custom
nature of telephone equipment systems. After careful analysis, the consultant
recommends and staff agrees that it is in the City's best interest to acquire
the SC -800 through negotiation and to waive the formal bidding process.
Alternatives
1. Continue to use existing telephone system. Even if temporarily upgraded,
increased interruption of telephone service, inadequate emergency response and
heightened citizen and employee frustration can be expected.
2. Approve rental of the SC- 800 from General Telephone. This would cost the
City considerably more for identical equipment and comparable service to that
which can be provided through a private vendor.
3. Approve the purchase of the SC -800 on the open market. This alternative
provides the most cost effective telephone system while ensuring quality
maintenance service.
Recommendati
It is recommended that the City Council take the following actions:
1. Adopt alternative #3 approving the purchase of the SC -800 on
the open market. Necessary funds for installation and first
Attachment 2
Telephone Cost Reduction Program
Estimated Annual Savings
1. Elimination of all 118" lines and replacement with 119" lines to
eliminate misuse of local lines. Estimated annual savings:
$6, 000.
2. Elimination of garage monitor system. Estimated annual savings:
$1, 200.
�I
3. Reduction in number of PL lines to police alarm board. Estimated
i
annual savings: $600.
4. Reduction of alarm board service contract. Estimated annual savings:
$500.
0
Preseat System Upgraded
(PABX)
Year Yearly Cumulative
Attachment 3
CASH FLOW SUMMARY
Proposed General Telephone
SC 800 (rental)
Yearly Cumulative
Proposed Stromberg- Carlson
SC 800 (Purchase)
Yearly Cumulative
Install
1,850
$ 11,000
$ 91111
1
$46,644
$ 48,494
$49,182
60,182
$59,253
68,364
2
47,604
96,098
50,182
110,364
68,541
136,905
3
48,584
144,682
51,202
161,566
65,913
202,818
4
49,586
194,268
52,452
214,018
64,251
267,069
5
50,609
244,877
53,527
267,545
57,697
324,766
6
51_,653
296,530
54,624
322,169
14,054
338,820
7
52,721
349,251
55,744
377,913
14,756
353,576
8
53,812
403,063
57,141
435,054
16,616
370,192
9
54,926
457,989
58,322
493,376
17,465
387,657
10
56,064
514,053
59,528
552,1904
18,339
405,996
11
57,228
571,281"
60,760
613,664
19,256
425,252
12
58,417
629,698
62,020
675,684
20,218
445,470
13
59,630
689,328
63,306
738,990'
21,229
466,699
14
60,872
750,200
64,621
803,611
22,290
488,989
15
62,140
812,340
65,964
869,575
23,406
512,395
Attachment 4
SURVEY OF BUSINESS AND PUBLIC AGENCIES
Quality of Quality of
Installation Ease of Problems in Owned Equipment Owned Equip. Utility
n_.., Maintnincd by MAintenAnre Maintenance Comments
A Uncy /win
American Reserve
SC -800
SCC works well
Corporation
200 lines
Yes
PT &T
5/77
Unknown
Seldom
SCC
Very good
- --
with PT &T;
service is
prompt
Elster's
SC -800
.,
Previous SCC;
Very good
Chanoed from
400 lines
Yes
PT &T
- --
Unknown
- --
now in -house
with SCC
- --
SCC maintenance
to in -house due
to volume of
moves /chances.
Still Uses SCC
for some things
Frank B. Hall
SC -800
2/77
Smooth
SCC
Very
Seldom
required
Good response
time for SCC.
900 lines
Yes
PT &T
Seldom
good
Hollywood
SC -800
Previous SCC;
Attitude of
Presbyterian
850 lines
Yes
PT &T
1/74
Unknown
Not appl.
now in -house
Poor
- --
SCC repairman
Hospital
poor; response
time not nnod.
Changed to own
maintenance 3
ears ago.
International
Creative
SC -800
300 lines
Yes
PT &T
6/74
Smooth
Seldom
SCC
Very good
Good
Very pleased
Management
with the equip-
.
ment and main-
,
tenance y SCC_
City of
SC -800
Yes
PT &T
4/78
Smooth
Too early
SCC
Too early
- --
Balwin Park
to tell
to tell
City of
ITT
Yes
GTE
-5/78
Some
Too early
Too early
In past
Claremont
Problems
to tell
ITT
to tell
has been
fair
Attachment R (Oont'd. )
Quality of Quality of
Installation Ease of Problems in Owned Equipment Owned Equip. Utility
k;., a +;i; +„ n > +o arrnnntahilifv Maintained by Maintpnanrp Maintpnanre Comments
City of
Glendora,
ITT
Yes
GTE
3/76
Some
Problems
None
ITT
Poor
- --
Relationship
between City
& Utility was
Strained ini-
tially but is
cooperative now
City of
ITT
Yes
PT &T
11/73
Some
West Covina
Problems
Occasionally
ITT
Poor
- --
Private vendor
has provided qc
consultant
services /studie
as part of maic
tenance contrac
(Toll study)__
D'
Attachment 4
SURVEY OF BUSINESS AND PUBLIC AGENCIES
Quality of Quality of
Installation Ease of Problems in Owned Equipment Owned Equip. Utility
n,.,n., kin Il +iIi +v nA +o rhannamiar Ancnuntahility Maintained by Maintenance Maintenance Comments
American Reserve
SC -800
SCC works well
Corporation
200 lines
Yes
PT &T
5/77
Unknown
Seldom
SCC
Very good
- --
with PT &T;
service is
prompt
Elster's
SC -800
Previous SCC;
Very good
Changed from
400 lines
Yes
PT &T
- --
Unknown
- --
now in -house
with SCC
- --
SCC maintenance
to in -house due
to volume of
moves /changes.
Still Uses SCC
for some things
Frank B. Hall
SC -800
2/77
Smooth
Seldom
Good response
900 lines
Yes
PT &T
Seldom
SCC
Very good
required
time for SCC_
Hollywood
SC -800
Previous SCC ;'
Attitude of
Presbyterian
850 lines
Yes
PT &T
1/74
Unknown
Not app1.
now in -house
Poor
- --
SCC repairman
Hospital
poor; response
time not good.
Changed to own
maintenance 3
ears ago.
International
Creative
SC -800
300 lines
Yes
PT &T
6/74
Smooth
Seldom
SCC
Very good
Good
Very pleased
Management
with the equip-
ment and main-
tendnce by SCC
City of
SC -800
Yes
PT &T
4/78
Smooth
Too early
SCC
Too early
- --
Balwin Park
to tell
to tell
City of
ITT
Yes
GTE
5/78
Some
Too early
Too early
In past
Claremont
Problems
to tell
ITT
to tell
has been
fair
Agency/Company Agency/Company Fq u pme nt Ownership utility
Attachment 4
Installation Ease of
Date Changeover
(Cont'd. )
Problems in
Accountability
Quality of
Owned Equipment Owned Equip.
Maintained by Maintenance
Quality of
Utility
Maintenance Comments
City of
Glendora
ITT
Yes
GTE
3/76
Some
Problems
None
ITT
Poor
- --
Relationship
between City
& Utility was
Strained ini-
tially but is
cooperative now
City of
ITT
Yes
PT &T
11/73
Some
West Covina
Problems
Occasionally
'ITT
Poor
- --
Private vendor
has provided go
consultant
services /studie
as part of mair
tenance contrac
(Toll study)
I .
Attachment 5
MAINTENANCE
We intend to maintain the proposed equipment in a manner to meet your per-
formance requirements.
Because of our dedication and expertise in Telephony, it is our further
intention to provide your company with an operating system that performs
at a level that conforms to industry- standard telephone practices. For
the first year after installation, all parts and labor are covered under
the Stromberg- Carlson Communications warranty. At the end of the warranty
period, you have the option of entering into an annual or multi -year service
agreement with Stromberg - Carlson Communications.
SCCI shall dispatch qualified technicians to the equipment location within
two (2) to four (4) hours, twenty -four (24) hours a day, seven (7) days a
week after receiving notification of a major interruption of service.
Minor service requests will be responded to within twenty -four (24) hours
of the customer's request between the hours of 8:00 A.M. and 5:00 P.M.,
Monday through Friday. SCCI maintains its own installation and service
capabilities. Maintenance vehicles and personnel are radio - dispatched
and all vehicles carry an inventory of spare parts to insure rapid and
efficient service.
The following are highlights of our 3- point, full - service program furnished
during the first year warranty period, and is also included in our annual,
or multi -year service agreements:
EFFECTIVENESS
Preventive Maintenance - Your telephone system is one of your company's
most valuable assets. It'was designed and constructed to provide today's
most economical and reliable means of business communications. But, like
any other precision instrument, it requires periodic inspection and main-
tenance in order to insure its continued efficiency. SCCI's Maintenance
Service Program provides these essential check -ups. The program is based
upon the concept that preventive maintenance corrects the majority of poten-
tial problems before they can occur.
Emergency Service - Should unforeseen problems occur, SCCI will dispatch
technicians to your site to effect prompt repairs. Response time is usually
less than two hours. However, SCCI guarantees that all service calls will
be responded to within three hours following notification..
Parts Availability - SCCI guarantees consistent parts availability because
we maintain an extensive inventory of spare parts within each service region.
Furthermore, we guarantee that spare parts will continue to be available for
as long as you continue to use your telephone system.
,r
Attachment 5 (Cont'd. )
MAINTENANCE
2.
Priority Service - As a holder of a SCCI Maintenance Service Agreement,
your service requests and scheduled maintenance appointments will receive
priority over all other service agreements.
EFFICIENCY
Growth Flexibility - Your SCCI telephone system is designed so that it may
be expanded as your business grows. As your communication requirements in-
crease or change, SCCI consultants can advise and assist you in updating your
telephone system. Adding, changing or rearranging system features, functions,
trunks or station lines may be easily arranged with SCCI's technical assistance.
Documented Records - SCCI will provide you with a complete set of system
inventory records., These documents describe your telephone system by depart-
ments, the type and location of each telephone, the number assignments and
feature arrangements. These records are invaluable when planning system
expansions or changes.
Continued Training - If you have a turnover in personnel, SCCI Customer Service
Representatives can conduct a complete series of training programs ranging
from telephone etiquette through telephone usage and console operation. SCCI
training programs are designed to enable your personnel to maintain an excellent
corporate image via your telephone communications.
One -Point Contact - Whatever your telephone communication needs may be, your
SCCI service consultants are prepared to help you. They are backed by years
of technical experience plus the immediate availability of SCCI's outstanding
Engineering Department. You need only to ask SCCI for assistance and it will
be givew promptly. SCCI will act as your consultant in any coordination or
interfacing arrangements required with your local telephone company.
ECONOMY
Cost Stability - All of the above services are available to you through a
SCCI Maintenance Service Agreement. Cost stability is assured because your
annual payments are fixed in advance. Your service agreement eliminates
reinspection and reconditioning fees.
Your valuable investment is protected along with consulting services and
fixed maintenance costs.