09-271 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
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CITY OF ELGIN AGREEMENT
WITH PAETEC COMMUNICATIONS,INC.
FOR RFP Number: 09-023 for: ISDN PRI Circuits for Local& Long Distance Services
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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
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Agenda Item
Cityof Elgin
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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
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'°"1111 / / _,
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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
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w„u,. Memorandum
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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