1996 AGN AUG 20 I09 - Laserfiche WebLink

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City of Colton AGENDA REPORT FOR COUNCIL MEETING OF AUGUST 20, 1996 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: MALIK FREEMAN, INTERIM CITY MANAGER FROM: ANNA A. VEGA, FINANCE DIRECTORQL�_,� SUBJECT: CHANGE ORDER IN THE AMOUNT OF $152,810 FOR TELEPHONES PURCHASED FROM AT&T AND FINANCING THROUGH MPA LEASING DATE: AUGUST 12, 1996 BACKGROUND On December 19, 1995 the City Council awarded a bid to AT&T for a lease purchase of a Generic 3 telephone system in the amount of $250,612.80. This purchase was designed to provide a multitude of communication opportunities for the City of Colton as well as replacing a thirteen year old telephone system which will no longer be serviced by AT&T. DISC USS I ONIANALUYSI S: Upon approval by the City Council, AT&T and purchasing staff met with city department representatives and reviewed each individuals need and departmental telephone goals. The fiber optic cable telephone needs were also reviewed by city staff and AT&T. The, outcome of the reviews required changes in order to meet individual, departmental and fiber optic cable connection needs. The cost for these changes is estimate to be $66,000. Additionally, in order to meet citizens demands of incoming calls and allowing customers to access their utility accounts via the telephone, staff was recommended an automatic call distribution and an automated conversant system to be included in the telephone lease purchase. The purchase of these items will allows the City of Colton to obtain a one time government discount and include all of the purchases under one lease. The cost for these two items is $18,000 and $68,810 respectively. AT&T is no longer a viable leasing alternative. AT&T is requesting a letter of credit of which a fee has to be paid to the issuing bank. Therefore, the City Treasurer, Michael Williams obtained quotes from two other financial institutions Citizens Business Bank and MPA Leasing (see analysis attached). Citizens Business Bank is requesting unencumbered assets, other than personal property or cash as collateral. The only available option is MPA Leasing. ALTERNATIVES Not purchase the Automatic Call Distribution and Automated Conversant for a cost of $86,610. This alternative will generate lost calls, inability to track timely customers handling, possibility of having to increase staff and additional telephone lines in order to meet customer demands. FINANCIAL IMPACT Funds are allocated in the 1996-97 fiscal year budget Finance -Information Services Division, property rental and telephone expense accounts. However, proper accounting for these funds requires a budget transfer from the previously mentioned accounts to principal and interest accounts within Finance -Information Services Division. RECOMMENDATION Anna A. Vega, Finance Dire4t Staff recommends that the City Council approve the change order in the amount of $152,810 to AT&T and authorize MPA Leasing Company as the financing agent. ATTACHMENTS: AT&T Item Detail Activity Report ITEM NO. 9 Michael Williams Financing Analysis