11-13-2001 Council Packet - Laserfiche WebLink

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NOV 1 3 2001 REQUEST FOR COUNCIL ACTION y OflONO DATE: November 6,200 1 ITEM NO: / 7 Dcpartinciil Approval: Naa« Lin Wet TMk City Ckrk Adminblrator Reviewed:Agenda Section: City Administraioc's Report Item Description: Maintenance Agreement for Telephone System Attachments: Inter-Tel Axxess Telephone System Price List S Year Equipment Maintenance Agreement Background The current telephone system was upgraded in February of 1999 with installation and equipment provided by McLeod USA. The original equipment warranty has expired and McLeod has offered a maintenance agreement with 1,3 and S year coverage options. 1lie agreement provides coverage of the Inter-Tel Axxess Telephone System with 46 phones and 4 port Axxessory Talk Voice Mail and includes the following: • 100% coverage on ports and labor in the event of equipment failure • Discounted labor rate on moves, adds and changes to the system (1 0%) • Free ovcr-lhc-phone assistance from Tech Support (S40 per call without) • Two-hour response at equipment failure/prompt system restoration to full operation • I'oster up time/parts are replaced more readily • Budget protection against large unexpected costs There have been several scr\ ice calls and phones replaced over the last year. As the system ages, we con anticipate the continued need for ser\ice colls, to replace phones, and the possible re. .ment of other pieces of equipment. Cost of Equipment Maintenance Agreement McLeod USA has proposed the following coverage options: I year agreement: $2,300.00 3 year agreement: $2,070.00 per year (1 0% savings) 5 year agreement: $ 1840.00 per year (20% savings) Attached is a listing of irutial and replacement equipment costs. As the price list indicates, the cost to replace several phones and/or a major piece of equipment could offset the cost of a mainteruuice agreement.