HomeMy WebLinkAbout9.d. Telephone System Upgrade Proposal �
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CITY OF RQ5EMOUNT
EXECUTIVE SUMI►IARY FOR ACTION �
CITY COUNCIL MEETING DATE: October 2 , 1990 '
AGENllA ITBM: AGENDA SECTION:
Telephone System Upgrade Proposa.l New Business '
PREPARED BY: AGENDA N�E� � � �
Don F . Darling , Finance Director
ATTACHMENTS : Cost Indicator Chart-Exhibit A APPRQ Y:
Letter of Intent- Exhibit B
Through Staff Discussion and investigation, it was recomme ded that a
request he addressed to the City Council to approve a "Letter of Intent" in
favor of Centel to Lease 'a "Gentel Digital Centrex" Communications System
to replace tt►e Executone System that has served the City ainee November of
1980 .
The existing Executone system is at its maximum number of phone extensions
and would require a sizable investment to expand the ability to add phone
extensions to the system.
The fact that we own the ' equipment associated with the Executone System we
are then charged with the cost of repair . We have not at any time selected
the Maintenance Contract for the equipment as the cost associated with the
number of extensions we have is prohibitive and we have been better served
to pay the maintenance on an ongoing basis , ie , time and materials , as we
have since the system was installed . The proposed system will be under
lease for approximately the same budget amount as the existing one except
we will not have to add budget for the repairs to any of the equipment
associated with the system. �
Tt►e attached Exhibit "A" ' is provided to show that within the remaining
budget for 1990 we can install this system and run to the end of the year
wittiout exceeding the budget for 1990 . We cannot guarantee to be within
budget for 1990 should considerable repair be required oti the existing
system before year end , t�ut , we have no reason to believe that will happen,
Furtiier , the attached also indicates that even ttiough the budget has been
reduceci for the 1991 period we can provide this new system within the
proposed 1991 budget . ',
Exhibit "B" attached is the Letter of Intent that approval is being
requested for at this time .
REGOMMENDED ACTION:
MOTIQN by the City Council to approve the execution of The Letter of
Intent in favor of Centel , authorizing Leasing a ��Centel Digital
Ceiitrex" Communications System for the City of Rosemount as
recommended .
COUNCIL ACTION:
Approved.
�
CNTRXBUD
��EXHIBIT—A" ,
REVIEW OF TELEPHONE SYSTEM COSTS' WITH CHANGE OCCURING OCTOBER OF 1990
PREPARED FOR COUNCIL REVIEW SEPTEMBER 1'2, 1990
EKISTING CENTREX FIPAG NGL DISTANCE EXREPA�IRE INSTALL
BUDGET SYSTEM SYSTEM
MONTHLY $1►750 $1,090 $1,230 $10 $100 5100
ANNUAL $21,000 $13,080 514,760 $120 51,200 $1,200 $3,000
�' EXISTING SYSTEM THRU SEPTEMBER
$9,810
CENTREX SYSTEM BALANCB OF YEAR $3,690
TOTAL PHONE COST FOR YEAR 513,500
CENTREX INSTALL - ONE TIME $3,000
LONG AISTANCE FOR YEAR
$1,200
EXLCUTONE REPAIR THRU SEPTL�MBER $900
FIRE HALL PAGING FOR YEAR $120
TOTAL YEAR WITH CHANGE $18,720
ANTIGIPATED �90 BUDGET BALANGE $2,280
1991 PROPOSED ANNUAL BUDGET $19,000
CENTREX ANNUAL OPERATION FOR '91 $14,760
� . . _ LONG DISTANCE F4R 1991 _ $1,200 __ . _ __ .
'91 P�iGING FIRE HALL ��2Q
TOTAL '91 ESTIMATED COST $16,080
ANTICIPATED BUDGET BALANCE $2'92�
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"EXHIBIT B.�
October 3 , 1990
Mr . John A Barger
Account Executive
Centel Inc
14450 Burnhaven Drive
Burnsville , Minn 55337
Dear Mr . Barger : .
Please be advised that the City Council at their Regular Meeting
on October 2, 1990 did act upon the proposal to lease a Digital
Centrex System for the City of Rosemount .
The City of Rosemoun't wishes to authorize installation of Centel ' s I
Digital Centrex Service as outlined in the attached layout of
equipment . ,
Service installation is desired by December 1 , 1990 , if at all
possible .
' Sincerely,
SJ/n ' Stephan Jilk
enc; Equipment Layout