Loading...
HomeMy WebLinkAbout09-271 Resolution No. 09-271 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH PAETEC COMMUNICATIONS, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Sean R. Stegall, City Manager, be and is hereby authorized and directed to execute an Agreement with Paetec Communications,Inc. on behalf of the City of Elgin for phone service, a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: December 16, 2009 Adopted: December 16, 2009 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk • CITY OF ELGIN AGREEMENT WITH PAETEC COMMUNICATIONS,INC. FOR RFP Number: 09-023 for: ISDN PRI Circuits for Local& Long Distance Services n�G�ti THIS AGREEMENT is made and entered into this f L day of Aber,2009,by and between the City of Elgin("the CITY"), a municipal corporation organized and existing under the laws of the State of Illinois,and Paetec Communications,Inc.,incorporated in the State of Delaware and having a principal place of business at One PAETEC Plaza, 600 Willowbrook Office Park, Fairport,NY 14450 ("the CONTRACTOR"). ARTICLE I. DEFINITION. "THIS CONTRACT"as used herein shall mean this Agreement,the Request for Proposals (RFP) including all documents referenced therein and the Contractor's Proposal thereto dated April 13, 2009, incorporated by reference herein and made a part hereof including, but not limited to, the Standard Terms and Conditions of Service, the Service Level Agreement,and CONTRACTOR'S Proposal Price Sheet Quote 156199,consisting of two(2)pages. The CONTRACTOR agrees to provide the goods and/or services all in accordance with the RFP and CONTRACTOR'S Proposal. In the event there is a conflict between this Agreement and the Proposal documents,this Agreement shall supersede and control the Proposal documents. ARTICLE H. DURATION AND SCHEDULE. The CONTRACTOR shall commence the performance of THIS CONTRACT upon receipt of a fully executed CONTRACT from the CITY. THIS CONTRACT will be a three (3) year agreement, expiring three (3) years from the date of execution. The automatic renewal provisions in Section 2a) of the PAETEC Standard Terms and Conditions of Service are hereby deleted. ARTICLE III. DEFAULT. The following shall constitute events of default under THIS CONTRACT: a)any material misrepresentation made by the CONTRACTOR to the CITY,b)any failure by the CONTRACTOR to perform any of its obligations under THIS CONTRACT including, but not limited to,the following: (i)failure to commence performance of THIS CONTRACT at the time specified in THIS CONTRACT due to a reason or circumstance within the CONTRACTOR'S reasonable control, (ii) failure to perform THIS CONTRACT with sufficient personnel and equipment or with sufficient material to ensure the completion of THIS CONTRACT within the specified time due to a reason or circumstance within the CONTRACTOR's reasonable control, (iii) failure to perform THIS CONTRACT in a manner reasonably satisfactory to the CITY, (iv) failure to promptly re-perform within reasonable time the services that were rejected by the CITY as erroneous or unsatisfactory, (v) failure to comply with a material term of THIS CONTRACT,including,but not limited to the Affirmative Action requirements,and(vi) any other acts specifically and expressly stated in THIS CONTRACT as constituting a basis for termination for cause. In the event of default by the CONTRACTOR the CITY may pursue any and all remedies available at law or in equity including,but not limited to, the termination of this CONTRACT. ARTICLE IV. DAMAGES. From any sums due to the CONTRACTOR for goods or services,the CITY may keep for its own the whole or any part of the amount for expenses,losses and damages as directed by the Purchasing Director, incurred by the CITY as a consequence of procuring goods or services as a result of any failure,omission or mistake of the CONTRACTOR in providing goods or services as provided in THIS CONTRACT. Notwithstanding, in no event shall either party(or its affiliates,employees,officers,directors or agents)be liable to the other party for any indirect,special incidental,consequential or exemplary damages,including,without limitation,damages for loss of revenue, loss of profits, or loss of customers, clients or goodwill arising in any manner from the Agreement and/or the performance or nonperformance hereunder. This does not limit Customer's responsibility for the payment of any and all properly due charges. Section 5 of the PAETEC Standard Terms and Conditions of Service is hereby amended by deleting the third sentence thereof (which provides in part for a monthly late charge)and by deleting the final sentence thereof(which provides in part for attorney's fees and costs). ARTICLE V. GOVERNING LAWS AND ORDINANCES. This CONTRACT is made subject to all the laws of the State of Illinois and the ordinances of the CITY and if any such clause herein does not conform to such laws or ordinances,such clause shall be void(the remainder of the contract shall not be affected)and the laws or ordinances shall be operative in lieu thereof. ARTICLE VI. AFFIRMATIVE ACTION. The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color,religion, sex, ancestry,national origin, place of birth, age or physical handicap which would not interfere with the efficient performance of the job in question. The contractor will take affirmative action to comply with the provisions of Elgin Municipal Code Section 3.12.100 and will require any subcontractor to submit to the CITY a written commitment to comply with those provisions. The CONTRACTOR will distribute copies of this commitment to all persons who participate in recruitment,screening,referral and selection of job applicants and prospective subcontractors. ARTICLE VII. ASSIGNABILITY. Neither party may assign the Agreement without the written consent of the other,which consent shall not unreasonably be withheld or delayed;provided that no such consent shall be required for any assignment by a party to an entity that either controls or is controlled by or is under common control with that party; or to an entity which succeeds to all or substantially all of such party's assets whether by merger, sale or otherwise; or to any institutional lender to whom this Agreement is assigned as collateral security for any indebtedness of the assignor or any affiliate of the assignor. In the event of any assignment by the CITY as permitted hereunder, the assignee must comply with CONTRACTOR'S credit and security requirements. ARTICLE VIII. AMENDMENTS. There shall be no modification of the CONTRACT,except in writing and executed with the same formalities of the original. ARTICLE IX. NOTICES.Any notice given under this CONTRACT shall be in writing and shall be deemed to have been given when hand delivered or deposited in the U.S. mail, certified or registered,return receipt requested,addressed,if to CONTRACTOR,at the address set forth above to the attention of the project manager or undersigned representative, and if to the City, to the attention of the City Manager, 150 Dexter Court, Elgin, IL 60120 or to such other address and/or authorized representatives as either party shall designate in writing to the other in the manner herein provided. ARTICLE X. INDEMNIFICATION. The CONTRACTOR (the "Indemnifying Party") will indemnify and hold harmless the CITY,its officials,officers,employees and agents(collectively,the "Indemnified Parties")from any and all liabilities,claims or demands(including the costs of suit and reasonable attorney's fees)instituted by any third party(collectively,"Liability")for personal injury or destruction to tangible property caused by the negligent or willful acts or omissions of the CONTRACTOR or its agent. In the event any such claim is filed, the Indemnified Party shall promptly notify the Indemnifying Party of such claim and shall cooperate with such Indemnifying Party in the defense of such claims. CONTRACTOR'S liability for any other claims shall be limited as set forth in Section 12 of CONTRACTOR'S Standard terms and conditions of the Agreement and the Service Level Agreement, which are a part of this CONTRACT. ARTICLE XI. PUBLICITY. The CONTRACTOR may not use,in any form or medium,the name of the City of Elgin for public advertising unless prior written permission is granted by the CITY. ARTICLE XII. APPROPRIATIONS.The fiscal year of the CITY is the 12 month period ending December 31. The obligations of the CITY under any contract for any fiscal year are subject to and contingent upon the appropriation of funds sufficient to discharge the obligations which accrue in that fiscal year and authorization to spend such funds for the purposes of the contract. If, for any fiscal year during the term of the CONTRACT, sufficient funds for the discharge of the CITY'S obligations under the contract are not appropriated and authorized,then the CONTRACT shall terminate as of the last day of the preceding fiscal year, or when such appropriated and authorized funds are exhausted, whichever is later, without liability to the CITY for damages, penalties or other charges on account of such termination. ARTICLE XIII. COMPLIANCE WITH LAWS. Notwithstanding any other provision of this CONTRACT it is expressly agreed and understood that in connection with the performance of this CONTRACT that the CONTRACTOR shall comply with all applicable Federal, State, City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages,minimum wage,workplace safety and legal status of employees. Without limiting the foregoing, CONTRACTOR hereby certifies, represents and warrants to the CITY that all CONTRACTOR'S employees and/or agents who will be providing products and/or services with respect to this CONTRACT shall be legal residents of the United States. CONTRACTOR shall also at its expense secure all permits and licenses,pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work,and/or the products and/or services to be provided for in this CONTRACT. The CITY shall have the right to audit any records in the possession or control of the CONTRACTOR to determine CONTRACTOR'S compliance with the provisions of this section. In the event the CITY proceeds with such an audit the CONTRACTOR shall make available to the CITY the CONTRACTOR'S relevant records at no cost to the CITY. CONTRACTOR shall pay any and all costs associated with any such audit. ARTICLE XIV. WARRANTY. CONTRACTOR WARRANTS THAT THE QUALITY OF SERVICE PROVIDED HEREUNDER SHALL BE CONSISTENT WITH COMMON CARRIER INDUSTRY STANDARDS, GOVERNMENT REGULATIONS AND SOUND BUSINESS PRACTICES. CONTRACTOR MAKES NO OTHER WARRANTIES ABOUT THE SERVICE PROVIDED HEREUNDER,EXPRESSED OR IMPLIED,INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CONTRACTOR DOES NOT AUTHORIZE ANYONE TO MAKE A WARRANTY ON CONTRACTOR'S BEHALF AND THE CITY MAY NOT RELY ON ANY STATEMENT OF WARRANTY AS A WARRANTY OF CONTRACTOR. THIS SECTION SURVIVES TERMINATION OF THE AGREEMENT. ARTICLE XV. ENTIRE AGREEMENT. This CONTRACT which includes, among other matters,this Agreement,the Request for Proposals, CONTRACTOR'S Proposal Response thereto dated April 13, 2009, including but not limited to, CONTRACTOR'S Standard Terms and 3 Conditions of Service, CONTRACTOR'S Service Level Agreement and Pricing Proposal Quote 156199,consisting of two(2)pages,embodies the whole agreement of the parties. There shall be no promises, terms, conditions or obligations other than those contained therein; and this agreement shall supersede all previous communications,representations,or agreements,either verbal or written, between the parties. The person signing THIS CONTRACT certifies that s/he has been authorized by the CONTRACTOR to commit the CONTRACTOR contractual and has been authorized to execute THIS CONTRACT on its behalf. IN WITNESS WHEREOF the parties have hereto set their hands the day and year first above written. CONTRACTOR CITY OF ELGIN PAETEC COMMUNICATIONS, INC. Bye-+ By te. S:F R. Stegall egtisruetta L. Nr?J Vice (kccioLw i City Manager Name and Title FEIN NO. F:\Legal Dept\fonns\RFP-Agreement Paetec-Phone Service-redlined 11-10-09.doc 4 • C f E` Agenda Item Cityof Elgin No. \moi r41 or / i �'�_ �ir�r�occ�. L October 22,2009G j l}a TO: Mayor and Members of the City Council t.4 FINANCIALLY STANCE CTTYGOVERNMENT QLRLRYI EFFIC l ITNFRASfFClCR/RE SERVICES, FROM: Sean Stegall, City Manager"avg. AND Jeff Massey,MIS Directo SUBJECT: RFP 09-023 Renewal of Phone Service Agreement with Paetec PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to renew the 36 month agreement for phone service with Paetec (formerly McLeodUSA). RECOMMENDATION It is recommended that the City Council approve the 36 month renewal of the existing phone service agreement between the City and Paetec. The average monthly cost of the phone service is$2,640 for a contract total of$95,040. BACKGROUND In March, 2003, the City selected McLeodUSA (now Paetec) through a public, competitive procurement as its provider for access to the public phone system. Paetec won an additional three-year term through a competitive Request for Proposal (RFP) process in March, 2006. Paetec provides six PRI trunk lines, Direct-In-Dial (DID) service and local and long distance service. Paetec has provided excellent service to the City during this contract term and the City has experienced no downtime or loss of service on the Paetec network. At the end of the 36 month term, the City requested competitive proposals for phone service. Four vendors responded to the RFP. Paetec has once again provided the City with the lowest cost proposal for phone service. The City now has 819 DID lines on the Paetec system. The quality of Paetec voice service and customer service is exceptional and the monthly charges are highly competitive with competing service providers. The City's agreement with Paetec allows for a 36 month renewal of the agreement with no increase in trunk line charges or DID service charges. As a renewing customer, Paetec is offering the City lower per minute charges for intrastate (local ri+ toll) from .033 to .029 cents per minute and an additional 8% volume discount percentage, RFP 09-023 Renewal of Phone Service agreement with Paetec October 22,2009 '4111) Page 2 making the total volume discount 18% for the new contract term. The City has saved more than $1,000,000 on phone line and usage charges over the last six years with the Voice Over IP phone system and Paetec phone service. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The monthly recurring service charge for the six PRI Trunk lines and the 819 DID lines is "'"?)--. $2,465. Based on average monthly per minute usage for local toll and long distance, monthly usage charges will be approximately$600 per month. At this service level,the City can expect a volume discount of $425 per month, making the net monthly cost $2,640. There have been sufficient funds allocated in the 2010 proposed budget in each departmental telephone utility expense account (xxx-xxxx-xxx.38-01) to pay the recurring service charge and monthly usage charges. Jp7GAL IMPACT 4111) None ALTERNATIVES 1. The Council may choose to renew the existing 36 month agreement for phone service with Paetec in the amount of$95,040. 2. The Council may choose to issue a new RFP for phone service and award a new contract to an alternative carrier. Respectfully submitted for Council consideration. jm Attachment 4) '°"1111 / / _, , ISDN PRI LINES AND LONG DISTANCE SERVICES TABULATION OF BIDS ATI CITY OF ELGIN Paetec(fka McLeod) First Communications 1272 Bond Street bid 1 E.22nd Street Suite 100 Invitation No: 09-023 10881 Lowell Ave. #720 Naperville IL 60563 Date of Opening:4/13/09 Suite 115 Lombard IL 60148 Department: MIS Overland Pk KS Description Amount Amount Amount Monthly service charge 1,995.6000 2,563.630 $ 2,234.20 long distance interstate 0.0290 0.250 0.0250 long distance intralata 0.0190 0.250 0.0200 long distance intrastate 0.0290 0.250 0.0250 directory assistance 1.9900 0.950 0.9500 international 0.6862 No bid Caribbean 0.2826 0.029 0.0400 Canada 0.0400 0.060 0.0400 Credit for future adds,changes etc $ (1,000.00) > TABULATION OF BIDS CITY OF ELGIN DNDC MIDCO SimpleComm Solutions 2051 Ogden Ave 221 Shore Ct. 125 N.Halsted St. Invitation No: 09-023 Downers Grove IL 60515 Burr Ridge IL 60527 Suite 302 Date of Opening:4/13/09 Chicago IL 60661 Department: MIS Description Amount Amount Amount Monthly service charge $ 2,539.10 2,539.1000 2,539.1000 long distance interstate 0.0250 0.0250 0.0250 long distance intralata 0.0200 0.0200 0.0200 long distance intrastate 0.0250 0.0250 0.0250 directory assistance 0.9500 0.9500 0.9500 international Caribbean 0.0400 0.0400 0.0400 Canada 0.0400 0.0400 0.0400 s,�,(O F f 4 Ci w„u,. Memorandum r 2 City of Elgin 7 '� n. U Obi..__.. \t 04,ireot,,1.' Date: December 18, 2009 To: Jeff Massey, MIS Director From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 09-271, Adopted at the December 16, 2009, Council Meeting Enclosed you will find the agreement listed below. Please retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you. • Agreement with Paetec Communication, Inc. for phone service