04-219 Resolution No. 04-219
RESOLUTION
AUTHORIZING EXECUTION OF A CENTREX SERVICE AGREEMENT WITH
SBC GLOBAL SERVICES, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
David M. Dorgan, City Manager, be and is hereby authorized and directed to execute a Centrex
Service Agreement on behalf of the City of Elgin with SBC Global Services,Inc. for analog phone
services, a copy of which is attached hereto and made a part hereof by reference.
s/Robert Gilliam
Robert Gilliam, Mayor Pro Tem
Presented: July 28, 2004
Adopted: July 28, 2004
Vote: Yeas: 4 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
•
CENTREX SERVICE AGREEMENT
This Agreement is entered into as of the date of the last signature hereto(the"Effective Date")between SBC Global
Services, Inc. on behalf of Illinois Bell Telephone Company d/b/a SBC Illinois, an Illinois corporation,with its principal
place of business located at 225 West Randolph Street, Chicago, Illinois 60606("SBC Illinois")and City of Elgin with
a place of business at 150 Dexter Court, Elgin, Illinois("Customer").
In consideration of the mutual promises set forth herein,the parties agree as follows:
1. Description of Service
1.1 General Scope of Centrex Service and Features
In accordance with the terms and conditions herein, SBC shall furnish up to Customer's Network Point of
Presence("NETPOP"),the switching service supported by the appropriate equipment, materials,
accessories,software,firmware,engineering, installation and maintenance services. The Centrex Service
to be provided hereunder is a central office based switching service and shall be furnished by a Lucent
5ESS switch and located in the SBC central office known as"Elgin."
1.2 Service Features
The Service provided pursuant to this Agreement shall support the features described in III.C.C. No. 19,
Part 5, Section 1. Only those features listed in Attachment 1 for Basis Lines have been included in the
rates specified in Section 3.1 of this Agreement.
1.3 Service Transport Facilities
The Service provided pursuant to this Agreement includes the provision of Service Transport Facilities
("STF")as specified in Section 3.2 of this Agreement,which includes network access.
2. Term
2.1 Commencement and Term
This Agreement shall commence on the Effective Date and shall remain in effect for five(5)years thereafter
(the"Term"). If Customer should elect to continue Centrex Service beyond the Term of this Agreement and
has not entered into a new service agreement with SBC Illinois,then SBC shall continue to provide Centrex
Service to Customer at SBC Illinois's then-current monthly tariff rates.
2.2 Existing Centrex Agreement
Customer shall not be liable for termination charges under the current Centrex Agreement at the time
Centrex Service is provided pursuant to this Agreement and at such time said agreement shall
automatically terminate.
3. Charges
3.1 Centrex Service Rates
A. Customer shall pay the following Nonrecurring Charge and/or Monthly Charges, in accordance with Section
5:
CONFIDENTIAL INFORMATION
Solely for use by employees of SBC and Customer with a need to know.
Not to be disclosed to or used by any other person without prior written permission of SBC.
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Nonrecurring Monthly
Charge Charge
Common Equipment System Charge:
Includes STF pairs as configured in Section 3.2;
144 Centrex Basic Lines,
1 Ameritech Centrex Message Signal Interface(ACMSI) 1200 baud,
1 Uniform Call Distribution with Queuing, per Group, and
10 Uniform Call Distribution with Queuing, per line equipped. $ $1,728.00
*
B. Customer may subscribe to and, in that event, SBC shall provide the additional/optional services at the
rates listed in Attachment 2 in accordance with Section 5:
3.2 STF
The Common Equipment System Charge set forth in Section 3.1 includes the provision of STF at the
location(s)and in the quantities specified in Attachment 3.
The Nonrecurring and Monthly Charges for additional STF for the location listed in Attachment 2 or for any
other locations shall be provided and paid for at STF pair-at-a-time or cable complement rates as specified
in III.C.C. No.20, Part 4, Section 2 and III.C.C. No. 19, Part 5, Section 2.
4. Other Charges
4.1 Service Ordering Charges
The service ordering charge as specified in III.C.C. No. 19, Part 3, Section 1, shall apply at the time Centrex
Service is provided pursuant to the terms of this Agreement.
4.2 Line Connection Charges
Line connection charges as specified in III.C.C. No. 19, Part 3, Section 1, shall apply for each new Centrex
line installed pursuant to this Agreement.
4.3 Channel Charges
For any Centrex lines located outside of the Elgin central office boundaries, additional mileage charges for
2001D channels as specified in III.C.C. No. 19, Part 5, Section 2, are applicable in addition to the STF and
Centrex line rate.
4.4 Local Usage
Usage charges appropriate to Customer's local service shall be billed as specified in III.C.C. No. 19, Part 4,
Section 2.
4.5 Taxes
Customer shall remit to SBC all applicable federal, state, and local taxes and all applicable municipal and
state additional charges as then authorized under III.C.C. No.20, Part 2, Section 2.
4.6 End User Common Line Charges
If the EUCL charge is increased above$4.50 per line per month, SBC shall charge Customer each month
an amount equal to the increase in the EUCL charge(i.e.,the total new EUCL charge minus$4.50
multiplied by the appropriate number of PBX equivalent trunks for the number of Centrex lines then in
service as determined in III.C.C. No. 19, Part 4, Section 2. Any decreases in the EUCL charge below$4.50
shall be calculated using the same formula used for increases as detailed above and shall result in
appropriate credits. This procedure is intended to maintain an equivalence between the rates for central
* This rate includes the End User Common Line("EUCL")Charge.
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office based service and the PBX trunk rates for private branch exchange systems of comparable size
whenever the EUCL charge is increased or decreased.
4.7 Charges for Other Work
Service charges as specified in III.C.C. No.20, Part 3, Section 1, shall be applicable for services not
specifically provided under this Agreement.
4.8 Rate Stability
Subject to the provisions of Section 13-509 of the Illinois Public Utilities Act,the rates specified in Section
3.1,with the exception of the network access element of STF and EUCL,shall not be subject to rate
increases for the Term of this Agreement. The network access element of STF shall not be subject to SBC
Illinois-initiated rate increases for the Term of this Agreement.
5. Terms of Payment
Upon the Effective Date hereof, Customer shall be liable to SBC for Nonrecurring Charge and/or the
Monthly Charge specified in Section 3.1 with the Monthly Charge continuing each month thereafter during
the Term of this Agreement.
Customer shall also be liable for any additional services ordered pursuant to Section 3.1 of this Agreement
or pursuant to the tariff upon the installation of such services.
All invoices from and payments due to SBC shall be in accordance with SBC Illinois's standard billing
procedures.
6. Service and Maintenance Obligations
SBC represents to Customer that the Centrex Service and features provided pursuant to this Agreement
shall operate substantially and materially in accordance with the manufacturer's specifications and those
set forth in this Agreement during the Term of this Agreement.
If, under normal and proper use, Centrex Service and features provided pursuant to this Agreement fail to
perform substantially as specified above and Customer notifies SBC within the Term of this Agreement,
SBC shall correct such service degradations or failures without charge to Customer in accordance with the
provisions herein. Customer may report service and feature problems seven (7)days per week and twenty-
four(24)hours per day.
SBC Illinois's repair obligation does not include damage,defects, malfunctions, service degradations or
failures caused by Customer's or third party's abuse, intentional misuse, unauthorized use or negligent acts
or omissions. In addition,the foregoing repair obligation applies only if Customer provides SBC with access
on SBC Illinois's side of the NETPOP so as to enable SBC to perform maintenance or repair work.
When service is interrupted and the interruption exceeds twelve(12) hours(as measured from the time the
interruption is reported to or detected by SBC Illinois,whichever occurs first),a credit allowance shall be
made for that line or trunk,as specified in III.C.C. No. 20, Part 2, Section 2. No other liability shall attach to
SBC as a result of such interruption to service.
If SBC responds on site to a request for maintenance service from Customer where no actual service
problem exists or where the fault or defect is determined to be on Customer's side of the NETPOP and such
fault or defect is not covered by any other express obligation of SBC Illinois,then applicable charges shall
be assessed against Customer.
THE FOREGOING REPRESENTATION IS EXCLUSIVE AND IN LIEU OF ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED INCLUDING, BUT NOT LIMITED TO,
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CUSTOMER'S SOLE AND EXCLUSIVE REMEDY AGAINST SBCFOR LOSS OR DAMAGE CAUSED BY,
OR ARISING IN CONNECTION WITH,THE PERFORMANCE OR NONPERFORMANCE OF THE
CENTREX SERVICE AND FEATURES PROVIDED PURSUANT TO THIS AGREEMENT SHALL BE THE
OBLIGATIONS OF SBCAS SET FORTH IN THIS AGREEMENT.
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7. New Features or Enhancements
As new features or enhancements are made available to SBC from the switch manufacturer, Customer and
SBC may meet to discuss their content and impending availability. New features or enhancements shall be
made available to Customer subject to the following terms: (1)activation of such features and/or
enhancements shall not be detrimental to the public network; (2)such new features are part of a software
release which the manufacturer makes available to SBC for all of its central offices equipped to handle such
changes; and(3)Customer agrees to pay the rates quoted by SBC for such feature or enhancement.
8. Termination For Convenience
In the event Customer terminates this Agreement for reasons not excused under the terms of this
Agreement prior to expiration of the Term, in addition to any unpaid special construction or nonrecurring
charges(excluding any waived charges), Customer shall be liable to SBC twenty-five percent(25%)of the
Monthly Charge for each month remaining in the Term of this Agreement from the effective date of
termination. Such sum is immediately due and payable.
9. Breach
Either party may terminate this Agreement immediately following written notice in the event the other party
is in default as to any of its material obligations hereunder provided that(a)the defaulting party receives
notice of termination containing a reasonably complete description of the default and(b)the defaulting party
fails to cure such default within thirty(30)days of receiving such notice or ten(10)days of such notice if the
default is nonpayment. Except as expressly provided in this Agreement, in the event of a breach of this
Agreement by either SBC or Customer,the other party will be entitled to pursue any and all remedies
available to it at law or in equity including court costs and reasonable attorneys'fees.
10. Applicable Tariff Regulations
The general regulations of SBC under III.C.C. No. 19 and No. 20 applicable to communications services
apply to the services provided pursuant to this Agreement.The regulations of III.C.C. No. 19, Part 5,
Sections 2 and 1 are applicable to the STF and Centrex provided pursuant to this Agreement, unless they
are expressly inconsistent with the terms and conditions of this Agreement. In the event of an express
inconsistency between the regulations in III.C.C. No. 19, Part 5, Sections 2 and 1 and the terms of this
Agreement,the terms of this Agreement shall control.
Each reference to a tariff provision in this Agreement shall be deemed to mean or include any and all
similar tariff provisions or other regulations changed or established from time to time in lieu of said tariff
provision.
11. Filing of Contract
Subject to the provisions of Section 13-509 of the Illinois Public Utilities Act,this Agreement shall be filed
with the Illinois Commerce Commission.
12. Excused Performance
SBC shall not be liable in any way for any delay or any failure of performance of the Centrex Service
provided pursuant to this Agreement or for any delay, loss, damage or expenses due to any of the following:
(a) Any causes beyond SBC Illinois's reasonable control including, but not limited to,fires,floods,
epidemics,quarantine restrictions, unusually sever weather, manufacturer's delay, strikes,
embargoes, explosions, power blackouts,wars, labor disputes,acts of civil disobedience,acts of
civil or military authorities,acts stemming from governmental bodies(including courts and
regulatory bodies),acts of nature,acts of public enemies,acts or omissions of carriers, provided
SBC has exercised reasonable measures, if feasible,to mitigate such delay or failure;or
(b) Any wrongful or negligent act or omission of Customer or its employees, agents, subcontractors or
affiliates;or
(c) Customer's failure to provide access to Customer's premises as reasonably requested by SBC
Illinois.
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13. Indemnification
Each party shall indemnify and hold harmless the other party and its employees,agents,subcontractors
and affiliates against all injury, loss,damage or expense(including court costs and reasonable attorneys'
fees)which they may sustain or become liable for on account of injury to or death of persons,or on account
of damage to or destruction of property resulting in whole or substantial part from the performance of this
Agreement by either party or its employees, agents,subcontractors or affiliates,to the extent such loss or
damage is due to or arising in any manner from a willful or negligent act or omission of the indemnifying
party or its employees,agents, subcontractors or affiliates.
SBC shall be indemnified and saved harmless(including court costs and reasonable attorneys'fees) by
Customer against claims for libel, slander,or the infringement of copyright arising directly or indirectly from
the material transmitted over the facilities furnished by SBC or the use thereof and against claims for
infringement of United States patents arising from Customer's use of equipment not supplied or authorized
by SBC in combination or connection with the facilities furnished by SBC Illinois.
14. Limitation of Damages
No liability shall in any case attach to SBC for any indirect, incidental,or consequential damages, including
lost profits,sustained or incurred in connection with this Agreement and the performance or
nonperformance of the Centrex Service and features provided pursuant to this Agreement regardless of the
form of action,whether in contract,tort, strict liability,or otherwise,and whether or not such damages,
injuries, losses or expenses are foreseeable. It is understood and agreed that SBC is not an insurer and
that the rates for service provided hereunder are based solely on their value and on the scope of the
liabilities set forth in this Agreement and that said rates are unrelated to the potential for indirect, incidental,
consequential or other damages. SBC and Customer agree that this allocation of risk and liability is fair and
reasonable.
15. Insurance
SBC is self-insured for commercial general liability for exposures under ten million dollars and Worker's
Compensation(including occupational disease)according to statutory limits. The parties understand and
agree that this Section is a statement of fact and does not expand or contract the scope of SBC Illinois's
liabilities or obligations to Customer or to third parties pursuant to this Agreement.
16. Assignment
Customer shall not assign or otherwise transfer any rights or obligations under this Agreement without the
prior written consent of SBC which shall not be unreasonably withheld or delayed. Any such assignment
without prior written consent of SBC shall be void.
17. Severability
If any provision of this Agreement shall be held invalid or unenforceable, such provision shall be deemed
deleted from this Agreement and shall be replaced by a valid and enforceable provision which so far as
possible achieves the same economic and other benefits for the parties as the severed provision was
intended to achieve,and the remaining provisions of this Agreement shall continue in full force and effect.
18. Choice of Law
The construction and interpretation of this Agreement and any claims arising hereunder or related hereto,
whether in contract or tort,shall be governed by the laws(except those provisions relating to conflict of
laws)of the State of Illinois.
19. Waiver
Failure of either party to insist on performance of any term or condition of this Agreement or to exercise any
right or privilege hereunder shall not be construed as a waiver of such term,condition, right or privilege in
the future.
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20. Publicity
Neither party shall advertise or market any information relating to the service provided under this
Agreement, including mentioning or implying the name of Customer or SBC Illinois, or its affiliates,without
the prior written consent of the other party.
21. Notices
Any notice which under the terms of this Agreement must or may be given or made by either party
hereunder shall be in writing and shall be delivered personally or sent by express delivery service or by
certified mail, return receipt requested, addressed to the respective parties as follows:
If intended for SBC:
SBC Business Communications Services
225 West Randolph HQ9C
Chicago, IL 60606-1824
Attn. Director Contract Information Management
If intended for Customer:
City of Elgin
150 Cexter Ct.
Elgin, IL
Attn.
or to such other address as either party shall designate by proper notice. Notices shall be deemed to have
been received as of the earlier of the date of actual receipt or, in case of notices sent via US. mail,three(3)
days after mailing. A signed receipt shall be obtained where a notice is delivered in person.
22. Joint Work Product
This Agreement is the joint work product of the parties, and in the event of any ambiguities, no inferences
shall be drawn against either party.
23. Entire Agreement
The terms contained in this Agreement and the attachments and tariffs referred to herein,which are
incorporated herein by this reference, constitute the entire agreement between the parties with respect to
the subject matter hereof,superseding all prior understandings and communications,oral or written. This is
the entire and exclusive agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements, proposals or understandings,whether written or oral.This Agreement may
not be modified except by a writing signed by both parties.
IN WITNESS WHEREOF,the parties have caused this Agreement to be executed by their duly authorized
representatives as of the day and year set forth above.
City of Elgin SBC Global Servi es, Inc.
Signature Signature: 54 4_
Printed Name;diry2/__7 /)? c614if/ Printed Name: 7 c f'l k
Title: C-777 7 �/4 4/
A ' , 7 Title: s
Date: ///"/ Of'' Date: .5/2z/04
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ATTACHMENT I
STANDARD CENTREX FEATURES
CALL DIVERTING
Outgoing calls may be screened so that completion of calls to preselected areas is denied. The following
arrangements are standard: a)intercom only(fully restricted), b) intercom and local calls(semi-restricted),and c)
intercom, local and toll calls(unrestricted).
CALL FORWARDING OF CALL WAITING CALLS
Allows station users that have Call Forwarding and Call Waiting assigned to their lines to forward Call Waiting calls
that are not answered within a set period of time automatically to a predetermined destination.
CALL FORWARDING-BUSY
Allows incoming calls to a busy station to be routed to a preselected station line or attendant within the same system
or outside the system.
CALL FORWARDING-DON'T ANSWER
Allows incoming calls to automatically route to a preselected Centrex station line,attendant or to a line outside the
Centrex group when the called station in not answered after a preset number of rings.
CALL FORWARDING-VARIABLE
Permits a station user to activate routing of incoming calls,to a preselected station line,attendant,or to a line
outside of the system.
CALL HOLD
Allows a station user to hold a call in progress by dialing an access code.
CALL PICKUP
Allows station user to answer calls directed to another station line within the same pickup group by dialing a special
code.
CALL TRANSFER(INTRA-SYSTEM)-ALL
Incoming, outgoing,and intercom calls may be transferred to other Centrex station numbers.
CALL TRANSFER(INTER-SYSTEM)-DELUXE
Incoming, outgoing and intercom calls may be transferred to other Centrex station numbers or other lines outside the
Centrex group. (Customer is responsible for any local or toll charges on transferred calls).
CALL WAITING/CANCEL CALL WAITING
Provides station user with an audible tone to indicate that an incoming call is waiting.
CONFERENCE CALLING 3 WAY
Allows a station user to add a third party to an existing call.
CONSULTATION HOLD
Allows a station user to hold a call in progress(incoming or outgoing)and originate another call with privacy.
DIRECT INWARD DIALING (DID)
Calls from outside the Centrex group may be dialed directly to each Centrex number.
DIRECT OUTWARD DIALING(DOD)
Calls may be placed outside the Centrex group without the aid of a system attendant.
DIRECTORY LISTINGS
The Company will furnish without charge one main listing for each system in the local exchange directory.
DISTINCTIVE RINGING AND CALL WAITING TONE
Calls coming from within the Centrex system are distinguished from calls coming from outside the Centrex system by
different ringing and call waiting patterns.
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END TO END SIGNALING
Allows a station user,while in the talking state,to send Dual Tone Multi-Frequency(DTMF)digits to the other end by
using a dial pad.
EQUAL ACCESS FOR INTER MSA CALLING
Allows each station line to use a predetermined Interexchange Carrier without dialing any special codes.
GROUP INTERCOM
Centrex users may be members of an intercom group of up to 99 members. Each member is assigned a unique 2
digit number.This intercom is separate and distinct from station to station Intercom Calling
HUNTING ARRANGEMENTS
Incoming calls to a busy Centrex line are redirected to a predetermined number(s)to search for an idle line on which
to complete the call.
INTERCOM CALLING
Centrex users may dial each other's telephone number using 3,4, or 5 digits without the aid of the system attendant.
MESSAGE WAITING INDICATOR-AUDIBLE
This feature provides an audible tone signal,e.g. stutter dial tone, on a Centrex line to indicate a message waiting
condition.
NIGHT ANSWER(ALL VERSIONS)
Allows an incoming night call to be indicated by the ringing of a customer provided night bell or a predesignated
SBCCentrex line.
SPEED CALLING-SHORT
Allows a station user having access to place calls to a list of 6 or 10 numbers by dialing an access code.
TOUCH TONE
Provides for dialing a telephone number using Dual Tone Multi-Frequency(DTMF)signaling.
TRANSFER CALLS TO RESTRICTED STATION
Allows incoming calls, initiated from outside the Centrex system to be transferred by a designated station user to a
Centrex line that is restricted from receiving incoming calls.
USAGE BILLING BY LINE NUMBER
Calls outside the Centrex system which incur message units or toll charges are billed by individual telephone number
when the Company is the billing entity.
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ATTACHMENT 2
ADDITIONAL/OPTIONAL SERVICES
Additional/Optional Services Nonrecurring Monthly
Charges Charges
Centrex Basic Line $0.00 $5.90 *
Centrex ISDN Line $42.00 $7.00
ISDN Circuit Switched Voice per"B"Channel $12.00 $3.25
Premium Feature Package, per line $0.00 $0.75
Secondary Directory Telephone Number $0.00 $0.25
Speed Calling-Expanded Number Group $0.00 $0.40
ISDN Attendant Console(requires 1 ISDN line) $1,500.00 $128.00
Attendant DSS and Busy Lamp Field, per 100 Stations $35.00 $2.00
ARS Basic: $0.00 $0.00
Initial Pattern $250.00 $7.50
Additional Pattern $100.00 $3.00
Six Port Conference Circuit, each $35.00 $50.00
Analog 2-Wire Termination $50.00 $25.00
DS1 Connection $1,200.00 $250.00
Uniform Call Distribution with Queuing, per Group $100.00 $6.00
Uniform Call Distribution with Queuing, per Basic line equipped $4.00 $2.50
*This rate includes EUCL but does not include STF.
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ATTACHMENT 3
SERVICE TRANSPORT FACILITIES DETAIL
STF Cable or
Access Serving Lines PAAT
Address Area Central Ofc. Req'd Provided
150 Dexter Ct., Elgin C Elgin 46 50 Pair Cable
1151 Lillian, Elgin C Elgin 9 9 Pair-at-a-Time
31 S. Grove Ave., Elgin C Elgin 1 1 Pair-at-a-Time
1010 Wing, Elgin C Elgin 1 1 Pair-at-a-Time
384 S. McClean Blvd., Elgin C Elgin 2 2 Pair-at-a-Time
200 E. Chicago, Elgin C Elgin 17 17 Pair-at-a-Time
375 West River Rd., Elgin C Elgin 3 3 Pair-at-a-Time
74 N. Airlite, Elgin C Elgin 4 4 Pair-at-a-Time
1155 N. Lyle Ave., Elgin C Elgin 1 1 Pair-at-a-Time
533 St. Charles, Elgin C Elgin 1 1 Pair-at-a-Time
225 Grand Blvd., Elgin C Elgin 1 1 Pair-at-a-Time
1360 Corley Ct., Elgin C Elgin 1 1 Pair-at-a-Time
360 Park, Elgin C Elgin 4 4 Pair-at-a-Time
1080 E. Chicago, Elgin C Elgin 1 1 Pair-at-a-Time
151 Douglas Ave., Elgin C Elgin 22 50 Pair Cable
120 S. State, Elgin C Elgin 1 1 Pair-at-a-Time
1551 Dundee Ave., Elgin C Elgin 1 1 Pair-at-a-Time
151 National, Elgin C Elgin 1 1 Pair-at-a-Time
246 Wing Park Blvd., Elgin C Elgin 1 1 Pair-at-a-Time
355 Jefferson Ave., Elgin C Elgin 1 1 Pair-at-a-Time
2 Slade Ave., Elgin C Elgin 3 3 Pair-at-a-Time
1000 Wing Dr., Elgin C Elgin 1 1 Pair-at-a-Time
120 E. Highland, Elgin C Elgin 1 1 Pair-at-a-Time
45 Symphony Way, Elgin C Elgin 3 3 Pair-at-a-Time
251 1/2 Douglas Ave., Elgin C Elgin 1 1 Pair-at-a-Time
10N459 Nestler Rd., Elgin C Elgin 1 1 Pair-at-a-Time
100 Symphony Way, Elgin C Elgin 3 3 Pair-at-a-Time
208 1/2 Lawrence, Elgin C Elgin 1 1 Pair-at-a-Time
875 Sports Way, Elgin C Elgin 1 1 Pair-at-a-Time
25 N. State, Elgin C Elgin 1 1 Pair-at-a-Time
1320 E. Chicago, Elgin C Elgin 1 1 Pair-at-a-Time
715 S. McClean Blvd., Elgin C Elgin 8 8 Pair-at-a-Time
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oG. g
ti§ Agenda Item No.
I ,4City of Elgin
L 011
0
July 9, 2004 ' � .
441 01
Pia LT 4, 11
TO: Mayor and Members of the City Council *„: '
FINANCIALLY STABLE CITYGOVERNMENT
EFFICIENT SERVICES,
AND QUALITY INFRASTRUCTURE
FROM: David M. Dorgan, City Manager
Jeffery D. Massey, MIS Director
SUBJECT: Renewal of Centrex Service Agreement between the City and SBC
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to approve the renewal the Centrex Service Agreement between the City and SBC
for a term of five years.
RECOMMENDATION
It is recommended that the City Council approve the five year renewal of the Centrex Service
Agreement with SBC at a monthly charge of$1,728.00 plus monthly usage and taxes.
BACKGROUND
During 2003 the City implemented a voice over IP phone system, converting over 700 phone
lines from SBC Centrex Service to the City's voice over IP system. At that time is was
anticipated that the City would save approximately $150,000 annually on phone service. The
City is actually now realizing a savings of more than $160,000 per year in phone service and
usage costs as a result of the new phone system.
However, not all phone lines can be converted to the voice over IP system. Traffic signal control
lines, alarm lines, panic button and elevator emergency lines must remain as regular analog
phone lines. These lines, totaling 144, are still with SBC as part of the Centrex Service
Agreement between the City and SBC.
The current Centrex service agreement between the City and SBC establishing the standard
service features and monthly cost of analog phone service to the City has now expired.
Proposals were requested from each local exchange carrier that provides local dial-tone service
in the Elgin area. Carriers providing proposals were SBC, McLeodUSA; and AT&T. SBC
provided the best overall per proposal. SBC's monthly line charges are $12 per line per month,
plus usage charges and taxes. AT&T also came in at $12 per line, but requires all new phone
numbers for the 144 lines which would be a very difficult and extremely burdensome change to
1'
Renewal of Centrex Service Agreement between the City and SBC
rJune 18, 2004
Page 2
implement. McLeodUSA was $20 per line with unlimited usage. However, these lines get very
little outgoing usage so the unlimited usage does not provide a very large savings. The City can
expect total savings of nearly $1,000 per month from the new Centrex Service Agreement.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
gfrA---FINANCIAL IMPACT
There are sufficient funds budgeted and available in the General Fund, account number
010-6902-719.38-01 and the various departmental telephone utility accounts (line item 38-01) to
pay the $1,728 monthly service charge plus usage and taxes, approximately $10,365 for FY 2004
and $20,736 annually for the next five years of the agreement. As a result of the proposed
_ agreement with SBC, it is estimated that the City will save approximately $12,000 annually in
telephone charges.
vod,EGAL IMPACT
The proposed agreement is being reviewed by the legal department.
ALTERNATIVES
1. Approve the Centrex Service Agreement with SBC as recommended.
2. Move the non-Voice over IP Lines to a competing local exchange carrier.
Respectfully submitted for Council consideration.
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