02-96 Resolution No. 02-96
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
QWEST COMMUNICATIONS CORPORATION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Olufemi Folarin, Interim City Manager, be and is
hereby authorized and directed to execute an agreement on behalf
of the City of Elgin with Qwest Communications Corporation for
long distance communication services, a copy of which is attached
hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: March 13 , 2002
Adopted: March 13 , 2002
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Service Agreement for Customers with $10.00 Monthly Minimum Usage
Q.bizsm Service—Service Provided By Qwest Communications Corporation—
Term Length: Twelve(12)Month Term(122267)
Definitions: "Agreement" refers to this Q.biz Service Agreement. "Customer"refers to the name of the entity executing this
Agreement,which entity's name is set forth below. "Qwest"refers to Qwest Communications Corporation. "Term"shall refer
to the initial term of this Agreement as set forth above. "Excluded Charges" shall be defined as taxes and tax-related
surcharges (including USF, PICC charges), Audio Conferencing charges, Operator Services charges, Broadcast Fax charges,
international data service charges, Customer Premises Equipment("CPE")charges, and data and IP services other than"Qwest
Business Dial" (dial-up Internet access) and Dedicated Internet Access ("DIA"). "Effective Date" shall mean the date upon
which this Agreement is executed by both parties.
Services: Pursuant to this Agreement, Customer shall receive Q.biz Service, which shall include interLATA service(including
interstate, intrastate and international service) and, where available, intraLATA service (including interstate and intrastate
services).
❑ Customer has elected to subscribe to the Q.biz International Option Plan II under which Customer will receive the reduced
international rates of the plan which incurs a$3 monthly fee.
Tariff Considerations: Qwest will provide to Customer international, interstate and intrastate telecommunications service(s)
(the "Services") pursuant to this Agreement and Qwest FCC Tariffs No. 2 and No. 3 and any applicable intrastate tariff of
Qwest and/or its affiliates (individually, a "Tariff' and collectively, the "Tariffs"), to the extent permitted by law. This
Agreement incorporates by reference the terms of the Tariffs, which Qwest may modify from time to time in accordance with
law. Federal law currently prohibits Qwest from providing interLATA long distance services in Arizona, Colorado, Idaho,
Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming
(i.e.,voice and data services that originate in such states,private line with one end point in those states, or toll free service that
terminates in such states)until Qwest has obtained authorization to provide such services in those states.
If prior to the expiration of the term of this Agreement, Qwest is required to cancel any Tariff, or portion thereof, on file with
the Federal Communications Commission ("FCC") or is prohibited from filing a specific tariff option reflecting the terms of
this Agreement, as a result of a government or judicial action, then effective on such cancellation or prohibition("Cancellation
Date"),as applicable,and for the remainder of the term:
(a) The specific provisions contained in this Agreement that expressly apply in lieu of, or that apply in addition to,provisions
contained in the Tariffs and/or in Qwest's Rate and Service Schedules("Rate Schedules") shall be controlling;and
(b) Provisions contained in the Rate Schedules shall be subordinate to the specific provisions in this Agreement as described
in(a).
(c) Notwithstanding the above, for services for which a Tariff is required to be filed or is permitted after the Cancellation Date
to be filed, the Qwest Tariff provisions that remain in effect, as Qwest may amend from time to time in accordance with
law, shall be controlling over the terms contained in this Agreement or the Rate Schedule.
Any references to a Tariff under this Agreement pertaining to the services contained in the Rate Schedules shall be deemed to
refer to the Rate Schedules. Qwest may amend the Rate Schedules from time to time. The Rate Schedules shall incorporate or
be deemed to incorporate the applicable provisions of the Tariff in effect immediately prior to the cancellation of the Tariff
provisions.
Term and Monthly Minimum: Customer hereby agrees to the monthly minimum usage as set forth above ("Monthly
Minimum") for each month of the Term and any renewal terms of the Agreement. During any month of the Term or renewal
term that Customer's total usage of Q.biz Service falls below the Monthly Minimum, Customer shall pay for each such month
the actual amount billed for that service plus the difference between that amount and the Monthly Minimum. To determine
whether Customer satisfies the Monthly Minimum, Qwest will count Customer's total monthly Q.biz Service usage charges,
based on the applicable Tariff rates associated with the designated Term and Monthly Minimum)less Excluded Charges.
Rev.June 12,2001 QWEST CONFIDENTIAL Contract Number 1 YR 122267
Q.bizsm Service QBIZ
1
Y
Service Agreement for Customers with $10.00 Monthly Minimum Usage
Termination: Either Customer or Qwest may terminate this Agreement at the end of the Term by providing notice at least
thirty(30)days prior to the conclusion of such Term. Qwest's notice of termination to Customer shall be in writing. Customer
must contact Qwest at the Billing Inquiry telephone number provided on the first page of its monthly invoice to provide its
notice of termination of service to Qwest and such notice must be acknowledged by Qwest. If notice is not submitted to Qwest
at least thirty(30) days prior to expiration of this Agreement and Qwest has not given notice of termination to Customer,this
Agreement shall automatically renew at the same Monthly Minimum usage level and Term at the Tariff rates in effect at the
time of such renewal. Customer will be subject to the early termination charges stated in the Tariff if the Customer terminates
the Agreement prior to the expiration of the Term. Termination shall not relieve Customer of its obligation to pay all fees for
services accrued and owing up to and including the date of termination or otherwise payable pursuant to this Agreement, nor
shall it preclude Qwest from pursuing any other remedies available to it,at law or in equity.
Legislative, Regulatory or Judicial Activity:Notwithstanding any statement to the contrary contained in this Agreement or the
Tariff, in the event that any regulatory agency, legislative body or court of competent jurisdiction promulgates regulation or
modifies existing ones including, without limitation, regulations regarding payphone compensation, access charges and/or
universal service ("Regulatory Activity"), Qwest reserves the right, at any time and without notice, to: (i) pass through to
Customer all, or a portion of, any charges or surcharges directly or indirectly related to such Regulatory Activity; and/or (ii)
modify the rates, including any rate guarantees, and/or other terms and conditions contained in this Agreement and/or the Tariff
to reflect the impact of such Regulatory Activity.
Miscellaneous:
(a) If during the Term, Customer's Q.biz Service originates and terminates within the same state(s) and exceeds five thousand
dollars ($5,000) of the usage in a given month ("$5,000 Level"), Qwest shall have the right to increase the rate for all
usage within the applicable state(s)exceeding the$5,000 Level to$.25 per minute for such month.
(b) Customer may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of
Qwest.
(c) This Agreement and the Tariff constitutes the entire agreement between the parties and supersedes any prior or
contemporaneous proposals, discussions, or agreements, whether verbal or written, concerning Q.biz Service. All terms
and conditions contained in the Tariff are incorporated herein with respect to the services. Any amendments to this
Agreement must be in writing and signed by both parties.
(d) This Agreement shall become effective on the Effective Date. This Agreement and/or the rates or discounts herein are
subject to approval by state and/or federal regulatory bodies.
(e) Customer authorizes Qwest and its agents to: (i) use billing and usage information related to Customer's account to
evaluate whether Customer would benefit from other telecommunications services offered by Qwest; and(ii)market such
other telecommunications services to Customer.
(f) The provision of service under this Agreement is subject to the terms of the Communications Act of 1934, as amended(the
"Act"), and as interpreted and administered by the Federal Communications Commission ("FCC") or, if any part of this
Agreement is not governed by the Act,by the substantive law of the State of New York without regard to its choice of law
principles.
—(g) Any dispute relating to this Agreement shall be submitted for binding arbitration under the Commercial Arbitration Rules
of the American Arbitration Association and judgment on any award entered therein may be entered in any court of
competent jurisdiction.
-(h) Notwithstanding anything to the contrary, Customer may not make any disclosure to any other person or any public
announcement regarding this Agreement or any relation between Customer and Qwest,without the prior written consent of
Qwest's Senior Vice President of Corporate Communications. Qwest shall have the right to terminate this Agreement and
any other agreements between the Parties if Customer violates this provision.
AGREED TO AND ACCEPTED:
QWEST COMMUNICATIONS CORPORATION CITY OF ELGIN 3/15/02
Print Compa Name Taxpayer ID Number/SSN
Authorized Signatu� A-1 Date Authorized Si.qa`ture Date
� 7SU//7k77L '� - l fibl.>�R.lLk
Print Title Print Title
150 Dexter Court, Elgin, IL 60120
Customer Address
Rev.June 12,2001 QWEST CONFIDENTIAL Contract Number 1 YR 122267
Q.bizSn Service QBIZ
2
Qwest/City of Elgin
Changes are underlined.
7. Publicity. Customer shall not: (a) make any disclosure to any other person or
issue any press release or other public announcement regarding this Agreement or any
relation between Customer and Qwest or(b) use the name, trademarks or other
proprietary identifying symbol of Qwest or its affiliates, without Qwest's prior
written consent except as may be required by law. In the case of a press release or
other public announcement, such prior written consent may only be provided by
authorized representatives of both Qwest's Legal and Corporate Communications
departments. Qwest shall, in addition to any other available remedies at law or
equity,have the right to terminate this Agreement and any other agreements between
the parties if Customer violates this provision.
9. Dispute Resolution. Any dispute arising out of this Agreement which cannot be
resolved by the parties will be settled by arbitration, which will be conducted in
accordance with the JAMS Comprehensive Arbitration Rules. Either party may
initiate arbitration by providing written demand for arbitration to JAMS (with a copy
to the other party), a copy of this Agreement and the administrative fee required by
JAMS. The written demand for arbitration shall be sufficiently detailed to permit the
other party to understand the claim(s) and identify witnesses and relevant documents.
The remaining cost of the arbitration, including arbitrator's fees, shall be shared
equally by the parties provided, however, each party shall bear the cost of preparing
and presenting its own case (including its own attorney's fees). The arbitration will
be held in Elgin, Illinois. The arbitrator has no authority to award any indirect,
incidental, special, punitive, or consequential damages, including damages for lost
profits. The arbitrator's decision shall follow the plain meaning of the Agreement
and shall be final, binding, and enforceable in a court of competent jurisdiction. If
either party fails to comply with the dispute resolution process set forth herein (e.g.,
non-payment of an arbitration award) and a party is required to resort to court
proceedings to enforce such compliance, then the non-complying party shall
reimburse all of the costs and expenses incurred by the party requesting such
enforcement (including reasonable attorney's fees).
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City of Elgin
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February 22, 2002 110 Pig
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FINANCIALLY STABLE CITY GOVERNMENT
ENT SERVKES,
TO: Mayor and Members of the City Council EFFKIYINFRASTRU
AND QUALITY INFRASTRUCTURE
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Long Distance Telephone Service
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider entering into an
agreement with Qwest for long distance telephone services .
BACKGROUND
ra. The City has received long distance service from MCI/Worldcom for
more than ten years. Since long distance rates have dropped
dramatically over the past few years, Request for Proposals for
long distance service for the City of Elgin were advertised during
fiscal year 2001 . The initial Request for Proposals produced one
response from MCI Worldcom; the rates were not much lower than
those currently paid and the proposal was deemed non-competitive.
A second Request for Proposals was not more productive; one late
proposal was received from MCI Worldcom and was thereby non-
responsive. Each procurement was advertised in the Courier News,
on the City' s website and RFPs were mailed directly to long
distance providers.
Apparently, as a business, the City is considered a small consumer
to long distance service providers . Therefore, because of the lack
of responses to advertised RFPs, representatives were directly
contacted to find a long distance service plan best suited to the
City' s long distance use . See attached tab sheet .
The proposal from Qwest offers a substantial savings (70%) over the
current long distance and line access charges . Qwest is a Fortune
120 public company, fourth behind AT&T, Sprint, and Worldcom, that
provides solutions for e-business, voice and data communications .
. . ,
€ Long Distance Telephone Service
February 22 , 2002
Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
C The long distance service cost (approximately $36, 000 annually) is
budgeted in each departmental budget expense line item 38-01
(contractual services, telephone) . The cost of long distance
services will be reduced by approximately 70%, or $25, 000 annually.
�GAL' IMPACT
l i None.
ALTERNATIVES
Continue with the current long distance provider or continue to
seek another long distance provider.
rRECOMMENDATION
It is recommended that the City Council approves QWEST as the long
distance telecommunications provider for the City for a period of
one year with an option to renew for a second year.
Respectfully submitted,
tlit. ok_ At. ....N0-
Olufemi ' o ari
Interi C; ty ager
MG/km
Attachment
rk
.
01/31r -1 --) -.) .
QWEST AT&T MCI MCI-Currently
Minutes* Rate Cost Rate Cost Rate Cost Rate Cost
IntraLata 9 0.03 0.27 0.0442 0.40 0.0760 0.68 0.1351 1.22
In-State 3,410 0.06 204.60 0.0691 235.63 0.0828 282.35 0.1364 465.12
State to State 6,045 0.05 302.25 0.0724 437.66 0.1216 735.07 0.1172 708.47
Dir Assistance 15 1.40 21.00 0.7500 11.25 1.7900 26.85 1.7900 26.85
Access Fees per line 695 0.45 312.75 0.0000 0.00 2.6100 1,813.95 2.6100 1,813.95
Access Fees per location 42 7.5000 315.00
Monthly Fee 13.00 50.00 35.00 35.00
Total 853.87 1,049.94 2,893.90 3,050.61
U K 79 0.07 5.53 0.0000 0.00 0.000 0.00 1.1422 90.23
Canada 28 0.06 1.68 0.0000 0.00 0.000 0.00 0.7085 19.84
Costa Rica 18 0.32 5.76 0.0000 0.00 0.000 0.00 1.7805 32.05
(discounted 47%) (not provided)
*Oct 15- Nov 14, 2001 Bill
•- WHO IS OWEST.?
Qwest treww4pytni,eonsj is an international Fortune 120 public company and Tier 1 provider
(#4 behind AT&T,Sprint and Woridcom)which offers e-bwtseas,voice and data solations to help
companies!lice yours improve all aspects of your communications needs and Lesigasmig at the
same time. We have over 57,000 employees and over 30 million customers worldwide,Including
the IRS,Citibank,Wal-Mart and AOL. We're the"2nd fastest growing company in the U.S.,"
according to ranting magazine. The network has enabled the company%to grow from the 25th to the 3rd
largest carrier of Internet traffic in only 14 months. QWEST has:
• World's first network built from the ground up for digital communications
• Largest and most robust network in North America and spans more than 104,000 miles globally
• World's first OC-192(10 gigabits per second,all-optical,coast-to-coast backbone)leads to
decreased provisioning times and increased performance
At QWEST,our goal is to become the global leader in customer service,web and voice solutions.
Whether your company needs are voice,Internet access,VPN,hosting,local or long distance,we provide
fop service and sontsedtive tcWng.
OWES"'cUf TOM $
Qwest has over 30 million customers worldwide,some of which include:
• General Motors • AOL
• IRS • Amazon.com
• U.S.Mint • Wal-Mart
• Citibank • Lucent
QWEST NETWOPU(
Qwest is a Tier One Provider offering e-business,voice,and data solutions. Qwest has the world's first
OC-192(10 gigabits per second,all optical,coast to coast-to-coast)backbone network,and 26 GAPS of
peering capacity in place in North America. What this means for you is faster provisioning time and better
network performance. If you would like to see our network in actions log on to http://stat.ywest.net/.
Qwest can also offer some of the best network SLA's in the industry. This includes a 100%bandwidth
availability goal for all components of the Qwest IP Network,a 65 ms node-to node delay on every trunk
in the network,and a 10-minute notification to our customers in the avant of an outage.
OWEST NETWORK SOLUTIONS
If you'd like,our Qwest Team can take more responsibility for the performance of the products and
services we deploy for you:
• We can assist you in managing your equipment and/or your network and we can provide security
across your network and allow you to communicate with Vendors and Customers with the confidence
that your information will be protected.
• Our 20 CyberCenters worldwide are staffed 24x7x365 with support and technical experts.
• Qwest was the winner of InfoWorld's`sweb hosting of the year"award and can provide turnkey
hosting solutions. Qwest can host applications such as SAP,Siebel,Oracle,People Soft,and Ariba.
In addition,Qwest offers value-added services such as data storage,inbound enhanced voice services,
rik audio and video conferencing.Qwest Interactive Services can work with you to leverage the intend,your
web site and the Qwest network and products to assist you in becoming#1 in your marketplace.
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