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Home My WebLink AboutItem 13 - Telecommunications Long Distance Services ContractITEM 0 �3 .MW MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGE MEETING DATE: JANUARY 20, 2004 SUBJECT: TELECOMMUNICATIONS LONG DISTANCE SERVICES .CONTRACT RECOMMENDATION: City Council consider approval of a two-year Telecommunications Long Distance Services Contract with SBC, authorize staff to execute said contract and take any necessary action. FUNDING SOURCE: Funds for services provided under this contract are budgeted in the various Departmental Budget Utilities line items. BACKGROUND: Currently, the City is operating without the benefit of a contract for Long Distance Telephone Service. The city is currently served by AT&T. The current plan provided by AT&T allows for a interstate long distance service rate of 28.5 cents per minute and a intrastate long distance service rate of 99 cents per minute. In addition, AT&T charges a minimum $15.00 per month per line if long distance charges are not accrued on the line during a particular month. We receive 11 different invoices and they run a total of approximately $400 - $500 per month. Annual savings will be $3,600. We have solicited bids for Long Distance services in the past and found that we do not use enough long distance service to interest many carriers. Several months ago, SBC came to city staff and presented a proposal for long distance service. The proposed SBC plan allows for an interstate long distance rate of 3.4 cents per minute and an intrastate long distance rate of 6.8 cents per minute. SBC does not have a minimum line charge. The SBC plan does require a commitment to a contract for a two-year term. Staff recommends approval. January 13, 2004 (3:54PM) LONG DISTANCE VOICE SERVICES ONLY AGREEMENT HVCP II PLUS 1/12/04 This Agreement between SBC Global Services, Inc., a Delaware corporation, with a place of business at One SBC Plaza, Dallas, Texas 75202, on behalf of Southwestern Bell Communications Services, Inc., a Delaware corporation d/b/a SBC Long Distance (individually and collectively, "SBC"), and City of Grapevine ("Customer"), a Texas government agency, with a place of business at the address below, is effective as of the date last signed below ("Effective Date"). 1. High Volume Calling Services. This Agreement is subject to (1) the Voice Product Reference and Pricing Guidebook containing product descriptions, technical information, definitions, and SBC Long Distance Voice Terms and Conditions, as modified from time to time and incorporated herein by reference, and (2) applicable state tariffs. The Guidebook can be obtained at www.sbc.com or from an SBC salesperson. The Voice Terms and Conditions can be obtained at www.sbc.com/LD_voice_terms_and_conditions or from an SBC salesperson. High Volume Calling enables Customer to place domestic and international Direct Distance Dialed ("DDD") calls. Toll Free Service ("TFS") is a reverse -billed service using a universally recognized numbering scheme. Customer agrees to pay a Minimum Annual Commitment ("MAC") specified below (excluding applicable taxes and surcharges) for Services from SBC during each year of this Agreement to begin on the PIC change date. The monthly recurring charges (excluding applicable taxes and surcharges) for DVA, DOV, or PRI Services, if any, will contribute to the MAC. If Customer fails to satisfy the MAC, Customer will be billed and shall pay the shortfall as an under -utilization charge. The term commitment for the MAC shall end in the number of years specified below. The term commitment, MAC, and Interstate Switched ("Svc'), Dedicated ("Ded"), and Proprietary Calling Card ("PCC") Rates per minute for this Agreement are: ® High Volume Calling Plan 11 Plus ("HVCP 1/ Plus"t $600 - $9,000 MAC Customer is purchasing SBC Long Distance Services and agrees to maintain a minimum of 2 access lines from an SBC Affiliated Local Service Provider for the term of this Agreement. ❑ 1 Year - Interstate Rates Not AP licable ® 2 Year - Interstate Rates $600 MAC - Sw $.0340 / Ded $.0280 / PCC $.0440 ❑ 3 Year - Interstate Rates Not Applicable ❑ High Volume Calling Plan 11 Plus ("HVCP 11 Plus"r $12,000 - $90,000 MAC Customer is purchasing SBC Long Distance Services and agrees to maintain a minimum of 4 access lines from an SBC Affiliated Local Service Provider for the term of this Agreement. ❑ 1 Year - Interstate Rates I Not Applicable ❑ 2 Year - Interstate Rates Not Applicable ❑ 3 Year - Interstate Rates Not Applicable ❑ High Volume Calling Plan 11 Plus ("HVCP 11 Plus"j $120,000 - $240,000 MAC Customer is purchasing SBC Long Distance Services and agrees to maintain a minimum of 6 access lines from an SBC Affiliated Local Service Provider for the term of this Agreement. ❑ 1 Year - Interstate Rates Not Applicable ❑ 2 Year - Interstate Rates Not Applicable ❑ 1 3 Year - Interstate Rates Not Applicable All other intrastate, interstate, and international usage, and other applicable Services shall be priced at the rates set forth in the HVCP II Plus (for the term commitment and MAC selected above) section of the Guidebook and tariffs. Except for International Mobile Termination Charges, Operator Toll Assistance Services, Directory Assistance Services, International, third -party pass-through charges, and regulatory fees and surcharges, the rates and charges for Services provided by SBC shall not change during the initial term of this Agreement, except by mutual agreement of the parties, and are in lieu of any other discounts specified in Guidebooks or Tariffs, except applicable Guidebook Promotions or VIP discounts, where available, and are available based upon the entire combination of Services, quantities, and revenue commitments made herein. Additional recurring and non-recurring charges ("NRC") for TFS services and features may apply. All fully automated Proprietary Calling Card intrastate calls from an approved state shall be at the tariff rate for that state. Payphone Origination Charges may apply. Domestic and international usage rates are per minute of use ("MOU"). Domestic billing increments are 18 seconds for the initial period and 1 second for additional periods. International billing increments are 30 seconds for the initial period and 6 seconds for additional periods. Customer acknowledges and agrees that if it fails to meet any of the above SBC Affiliate Local Service Provider requirements to qualify for Customer's selected High Volume Calling Plan Il+ during the term hereof, Customer will be moved to a High Volume Calling Plan II with the same MAC and term commitments. 2. Termination Charges. Customer may terminate this Agreement or disconnect, in whole or in part, any Service hereunder at any time and without cause upon written notice to SBC. If this occurs during the applicable term commitment, HVCPII PLUS Voice Only 1 Rev. 10/24/03 LONG DISTANCE VOICE SERVICES ONLY AGREEMENT HVCP 11 PLUS SBC will compute the termination charges according to the following formula and render a bill to Customer, which Customer agrees to pay within 30 days: • 100% of any waived Non Recurring Cost, Credits, and Rebates • 50% of the remaining MAC for Long Distance Service • Termination charges assessed by the Local Access Provider, if Customer cancels, in whole or in part, any Local Access Service procured by SBC on its behalf. 3. Credit and Deposits. SBC reserves the right to require Customer to establish, re-establish, and/or maintain creditworthiness at any time and to the satisfaction of SBC. SBC reserves the right to examine the credit record and check the references of Customer at any time. If Customer's financial condition is unknown or unacceptable, SBC reserves the right to require a security deposit, which SBC may apply to overdue charges. SBC shall determine the amount of any deposit, in its sole discretion, up to three months' estimated usage. SBC shall pay interest on deposits as required under state law. SBC may review Customer's account to determine whether all amounts due have been paid within these terms and conditions. If Customer's payment history is satisfactory, SBC shall refund the deposit in full within the time prescribed under state law. 4. Automatic Dialer Devices. CUSTOMER ACKNOWLEDGES AND AGREES THAT USE OF AUTODIALERS, PREDICTIVE DIALERS OR OTHER DEVICES THAT GENERATE AUTOMATED OUTBOUND CALLS IN CONJUNCTION WITH PRODUCTS AND SERVICES PROVIDED UNDER THIS AGREEMENT IS STRICTLY PROHIBITED. SBC MAY TERMINATE THIS AGREEMENT IMMEDIATELY SHOULD CUSTOMER USE SUCH DEVICES. 5. No Resale. Services provided hereunder shall not be resold or provided to third parties. 6. Offer Availability. This offer is valid only if this Agreement is executed by Customer prior to December 3151, 2003. If this Agreement is not executed before that date this is withdrawn. 7. Order of Precedence. In the case of a inconsistency or conflict between terms and conditions of an applicable Tariff or Guidebook, or this Agreement, the governing order of precedence will be (1) this Agreement, (2) the applicable Tariff or Guidebook. This Agreement shall at all times be subject to such modifications as a PSC/PUC and/or the FCC may, from time to time, require under their respective jurisdictions. New or upgrade to a existing SBC Lonq Distance Agreement ® This is a new SBC Long Distance Agreement ❑ This is a upgrade to a existing SBC Long Distance Agreement and the guidelines from Section 3.9.7 Revenue and Term plan Commitments, of the Voice Product Reference and Pricing Guidebook will apply to the old agreement. Cn AGREED by tha nnrriaG' rPGnPctive authorized signatories: City of Grapevine SBC GLOBAL SERVICES, INC. ON BEHALF OF ITS AFFILIATE 501 Shad rook Dr. 1460 Round Table Dr. Gra evine, Texas 76051 Dallas, Texas 75247 Customer Signature SBC Si nature Print Name Print Name Title: Title: Date: Date: HVCPII PLUS Voice Only 2 Rev. 10/24/03 LONG DISTANCE VOICE SERVICES ONLY AGREEMENT HVCP II PLUS Domestic Voice Services Attachment HVCPII PLUS The following rates shall apply for intrastate interlata and intralata DDD and TFS calls: Term California 1 Year Not Applicable 2 Year Not Applicable 3 Year Not Applicable Term Texas, Oklahoma and Kansas 1 Year Not Applicable 2 Year $600 MAC - Sw $0.068 / Ded $0.050 3 Year Not Applicable Term Arkansas 1 Year Not Applicable 2 Year Not Applicable 3 Year Not Applicable Term Missouri 1 Year Not Applicable 2 Year Not Applicable 3 Year Not Applicable Term Nevada 1 Year Not Applicable 2 Year Not Applicable 3 Year Not Applicable Term Michigan, Illinois, Wisconsin, Indiana & Ohio 1 Year Not Applicable 2 Year Not Applicable 3 Year Not Applicable The MAC and term commitment selected above must match those selected in Section 1. Otherwise, the rates selected above shall be void and the applicable rates shall be those listed in the applicable state tariffs. HVCPII PLUS Voice Only Rev. 10/24/03