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should be holding out 75% of the conversion costs until you have something to gl", - <br />tee that it is operational and refund payment when you are fully satisfied. <br />Mr. Thomas stated that his company is considered prime specialists for municipal <br />financing systems, and the final phase of their program would be the Facility Manage- <br />ment portion of their contract, wherein after the application systems are installed, <br />there is a need for on-going programming and other technical services, making changes <br />as requested or needed by the City, and this would all be covered in the Facility <br />Management portion of the contract. <br />City Manager Trevino stated the City is now under a 60 -day utility billing cycle, <br />and could this be converted to a 30 -day billing cycle. <br />Mr. Thomas answered yes, approximately one-third of the cities they service bill on <br />a monthly cycle, and others bill on a bi-monthly cycle. Mr. Thomas stated the <br />heaviest users, the commercial users, are billed on a monthly cycle and the resi- <br />dential users are billed on a bi-monthly basis, and therefore, you do not, in fact, <br />lose money by sending out bills too frequently for smaller amounts to the residen- <br />tial customers. Mr. Thomas stated that this, however, can be handled in whatever <br />way the City wants. <br />Mr. Thomas then explained their procedure for services stating a representative <br />would come out and discuss with the City Staff to determine how often and on which <br />days they would be needed to come in, and on the basis of those number of days, <br />N that would be the basis of the charge. Mr. Thomas stated it is felt that with the <br />number of systems that will be installed, and some of the potential difficulties <br />CY) the City has been having, an initial amount of 4 half days per week would be real - <br />7 istic, and that is what we are proposing, at a charge of $2,000 per month, with one <br />< additional charge for a travel expense of $300 per month, for a total charge of <br />Q $2,300 per month. Mr. Thomas said for that charge the City will get scheduled on- <br />site programming and other technical services for 4 half days or, if you choose, <br />2 full days per week. <br />Mr. Thomas said he would also like to point out that if the City should have diffi- <br />culties on a day when they are not scheduled to come out, there would be no addi- <br />tional charge if they would have to come out. <br />-- City Manager Trevino asked what the City would be bound to on the time of the <br />contract. <br />Mr. Thomas stated the term of the contract would be for a minimum of two years. Mr. <br />Thomas advised that in their seven years of business, they have had only one price <br />increase, which was approximately one year ago. <br />Councilwoman Garcia asked how many employees does Thomas & Associates have. <br />Mr. Thomas answered they currently employ six people, and they are now in the process <br />of interviewing two additional employees, within the next 30 to 60 days. <br />Councilwoman Garcia asked if these people are available to provide services to our <br />City. <br />Mr. Thomas answered yes, in fact, when they come in to do the installation, the City <br />will be seeing not less than 4 different people doing the installation and software. <br />Councilwoman Garcia stated that with the limited number of employees they have and <br />with the many contracts they take care of, how does that work in providing the <br />services. <br />Mr. Thomas stated the majority of cities have been with their company for over 3 <br />years, on 2 half days per week basis, and for those cities one individual could <br />cover five cities easily, by themself. Mr. Thomas also stated that telephone <br />communications equipment is also strongly recommended to assist in handling <br />emergencies and problems, until a representative can come out and check on <br />any difficulties. <br />Councilwoman Garcia asked what is the normal response time. <br />Mr. Thomas stated that within four hours would be the normal response time. <br />Mayor Gonzales asked the cost of the telephone system, would this be an on-going <br />cost or a one-time charge. <br />Mr. Thomas stated this would be an additional cost, in addition to their services. <br />Mayor Gonzales asked if anyone had additional questions. Mayor Gonzales then thanked <br />each representative for their presentations. <br />SEP 3 0 1981 <br />