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HomeMy WebLinkAboutResolution No. 2017-55CITY OF KENAI RESOLUTION NO. 2017-55 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A THREE YEAR CONTRACT FOR TELECOMMUNICATIONS SERVICES TO ALASKA COMMUNICATIONS. WHEREAS, the following quotes for monthly telecommunication service was provided by Alaska Communications and General Communications Inc., Service Alaska Communications General Communications Inc. Metro Ethernet $2,034.00 $7,043.00 Internet $380.00 $3,260.00 PRI with 200 DID blocks $864.00 $697.85 Total $3,278.00 $11,000.85 and, WHEREAS, Alaska Communications submitted the lowest responsive quote; and, WHEREAS, award of the contract for telecommunications services to Alaska Communications would be in the best interest of the city; and, WHEREAS, the recommendation from City Administration is to sign a three year contract for telecommunications services with Alaska Communications; and, WHEREAS, executing a contract with Alaska Communications doesn't obligate the City to a specific monthly cost; and, WHEREAS, executing a contract with Alaska Communications will only prevent the City from purchasing the same services from another vendor for the term of the contract; and, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a contract for telecommunications services to Alaska Communications for a period of three years. Section 2. That this resolution takes effect immediately upon passage. Resolution No. 2017-55 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1611 day of August, 2017. rH^ALr V� -r i BRIAN GABRIEL SR., MAYOR Jamie nz, Acting City Clerk by Finance —/ �� the V MEMORANDUM 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 www.kenai.city TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager -7 `-"' THROUGH: Terry Eubank, Finance Director II FROM: Dan Castimore, IT Manager DATE: August 9, 2017 SUBJECT: Telecommunications Contract The City of Kenai currently uses Alaska Communications for telephone, internet, and wide area network services. The previous three year contract expired on July 151, 2017. 1 recommend that the City sign a new three year contract with Alaska Communications. By signing a three year contract, the City will receive lower rates and more flexible terms when changing service levels. Alternative pricing was provided by General Communications Inc. (GCI). The pricing from GCI was substantially higher than Alaska Communications. Competitive pricing was requested from General Communications Inc. (GCI). The prices listed below are only a partial list of all of the telecommunication services we use, however these are the most substantial items making up the bulk of the costs. To provide comparison for the remaining items would be difficult, as GCI does not offer equivalent services for all of our requirements such as leased telephone lines. Service Alaska Communications GCI Metro Ethernet $2,034 $7,043 Internet $380 $3,260 PRI w 200 DID $864 $697.85 Total $3,278 $11,000.85 Page 2 of 2 Subject: Telecommunications Contract By entering into a new three-year contract, the city will no longer pay early termination fees on any of the services that were active at the time of signing. This will allow the city more flexibility in future years as we make changes to existing services. Another benefit of signing a three-year agreement is that the city will receive discounted and fixed rates for most of our services for the term of the contract. Dan Castimore IT Manager