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<br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />~ <br />~ <br /> <br />81TY COUNCIL MEETING DATE: <br /> <br />MAY 17, 2004 <br />TITLE: <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />AMENDMENT OF AGREEMENT <br />NEC BUSINESS NETWORK <br />SOLUTIONS, INC. <br /> <br />WITH <br /> <br />APPROVED <br />0 As Recommended <br />0 As Amended <br />0 Ordinance on 1" Reading <br />0 Ordinance on 2nd Reading <br />0 Implementing Resolution <br />0 Set Public Hearing For <br /> <br />~(2tr;)'(2~-- <br /> <br />CITY MANAGER' <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Direct the City Attorney to prepare, and authorize the City Manager and <br />Clerk of the Council to execute an amendment to the agreement with NEC <br />Business Network Solutions, Inc. to exercise an option for the first one- <br />year extension in an amount not to exceed $200,000 for telephone <br />maintenance and additional related equipment. <br /> <br />DISCUSSION <br />_he <br /> <br />City's extensive voice communications network system provides <br />telephone service to City Hall and to all off-site locations. In June of <br />2001, the City Council approved a three-year agreement with NEC, with a <br />provision for three 12-month renewals, to provide telephone maintenance, <br />repairs and the installation of replacement systems and services for the <br />City's private telecommunications system network. The term of this <br />agreement commenced on June 26, 2001 and will expire on June 25, 2004. The <br />City twice previously amended the agreement to change the scope of <br />services and related compensation. This will be the third amendment to <br />the agreement. <br /> <br />The City's Telecommunications Services staff recommends that the City <br />exercise its option under the original agreement to extend the term for a <br />one-year period. Compensation under the agreement for service and <br />maintenance will decrease approximately $26,000 from the past annual term <br />due to the warranty coverage for upgraded telephone systems installed <br />during this past year. <br /> <br />Further, staff recommends that authorization be provided to acquire <br />additional telephone equipment and related services for this vendor in an <br />amount not to exceed $50,000. Requirements for such equipment regularly <br />emerge in the course of normal City operations and, at times, under <br />.critical circumstances. Since the City telephone system is standardized <br />nd exclusively provided by this vendor under the terms of the existing <br /> <br />251-1 <br />