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Home My WebLink About25H - AGMT PHONE SYSTEM MAINTENANCEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 5, 2018 TITLE THIRD AMENDMENT TO AGREEMENT WITH NEC CORPORATION OF AMERICA, INC. FOR TELEPHONE SYSTEM MAINTENANCE (STRATEGIC PLAN NO. 7,213) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the City Council to execute a third amendment with NEC Corporation of America, Inc. to provide maintenance and support services for the City's telephone system for a one-year extension, beginning July 1, 2018, through June 30, 2019 with an optional one-year renewal, for an amount not to exceed $287,500, which is comprised of the sum of $250,000 for on-site labor and support services and 15% contingency of $37,500, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The City uses an NEC telephone system to allow voice and facsimile communication with the public and City staff. The system consists of a network of 15 telecommunication systems that support every Department in the City. These systems are located at all City facilities. The systems are linked internally through the main City Hall telephone system and include over 2,000 telephones and approximately 2,220 voice, fax and modem extensions. In June of 2011, the City Council approved an agreement with NEC Corporation of America, Inc. to provide telephone maintenance, repairs and installation of replacement systems and services for City Hall and all off-site locations. The term of this agreement and its renewals will expire on June 30, 2018. The Information Technology Department is currently migrating the NEC system to a newer technology called Voice over Internet Protocol (VOIP) approved by Council March 6, 2018. This new technology routes voice communication over an organization's data network and the internet rather than using analog lines and the public switched telephone network (PSTN). The City is planning a phased migration from the old system to the new system over the course of several 25H-1 Third Amendment to Agreement for Telephone System Maintenance June 5, 2018 Page 2 years. The new system will be integrated with the NEC telephone system so that both systems can co -exist until all lines have moved completely off of the older system. In order to ensure a safe migration and proper function of this extensive system, it is recommended to contract for reduced maintenance services with NEC Corporation of America, Inc. until final phase over and migration is complete. NEC telephone maintenance and services include: on-site dedicated service technician to perform repairs, moves, additions and changes; 24-hour system monitoring and service response; replacement of defective telephone system equipment; providing engineering support; and providing new telephone equipment NEC Corporation of America, Inc. has provided excellent maintenance and service during the term of its agreement with the City. Staff recommends extending the current agreement for a one-year period beginning July 1, 2018, to ensure continued operation of the City's telephone system. This will be the third amendment to the agreement. This new agreement reflects a $46,250 annual reduction from the previous amount. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #7 — Team Santa Ana, Objective #2 (establish communications plans to engage and inform employees and the community about City Activities), Strategy D (Invest in software/resources that will help streamline the flow of information to City staff and the public). FISCAL IMPACT Funds in the amount of $287,500 are budgeted and available in the FY18-19 Information Technology Network and Telecommunications account for contractual services (account no. 10920140-62300). Jackffiulla Chie echnology Innovations Officer Info ation Technology Department Exhibit: 1. Third Amendment to Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez po Executive Director Finance and Management Services Agency 25H-2 Exhibit 1 THIRD AMENDMENT TO AGREEMENT WITH NEC CORPORATION OF AMERICA, INC. THIS THIRD AMENDMENT to the above -referenced agreement is entered into on June 5, 2018, by and between. NBC --Corporation of America, Inc. ("Vendor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into Agreement No. A-2011-164, effective July 1, 2011 ("Agreement"), by which Vendor agreed to provide telephone system maintenance and equipment for the City's telecommunications systems. The term of the Agreement was for three years, from July 1, 2011 through June 30, 2014, with three additional one-year options exercisable by the City. B. The parties executed First Amendment No. A-2014-162 to exercise the first option and extend the term of the Agreement for an additional one-year period, from July 1, 2014 through June 30, 2015. C. The parties executed Exercise of Second Option No. A-2011-164-01, to extend the term of the Agreement for a second additional one-year period through June 30, 2016. D. By letter No. A-2011-164-02, dated June 1, 2016, the parties extended the term of the Agreement for a final one year period through June 30, 2017. E. The parties executed Second Amendment No. A-2017-138 dated June 6, 2017, by which the term was further extended to June 30, 2018, the scope of services was amended, and the amount to be expended under the Agreement was increased. F. The parties now wish to again extend the term of the Agreement, amend the scope of services, and to adjust the amount to be expended under the Agreement. The Parties therefore agree: 1. Section 1, Scope of Services, is amended to read in its entirety: Vendor shall provide on-site labor and support services under the same terms and conditions of the original Agreement in the amount of 32 hours per week, (Monday through Thursday, 8 a.m. through 5 p.m., excluding Fridays). City reserves the right to unilaterally reduce or eliminate services on 30 days' written notice, provided that if City reduces the number of weekly hours below 24, services shall be provided on an as -needed, time and billing basis. Any reduction or elimination of services by City shall result in a proportionate reduction of the payment to the Vendor. Vendor shall be required to provide credit for any sick days only in excess of 10 amorally. In the event of an annual holiday by Vendor, emergency call -out service shall be provided. Hardware replacement shall not be included, but hardware may be purchased from Vendor on an as -available basis. Page 1 of 2 25H-3 2. Section 2, Term, is amended to extend the Agreement for an additional one-year period beginning July 1, 2018, and ending,June-30, 2019. The term may be further extended for one (l) year upon a writing executed by the City Attorney and City Manager. 3. Section 3, Compensation, is amended to include, for both the additional one-year period and the optional one-year period, an additional $143,750 for on-site labor and support services to be performed by the Vendor. This sum is comprised of (1) the base fee of $125,000 and (2) a 15% contingency of $18,750. For any services provided on a time and billing basis, the cost shall be $105 per hour, with a trip charge of $75. 4. Except as modified by this Third Amendment, and all prior Amendments and extensions, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to the Agreement on the date and year first written above. ATTEST MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: V JgA& M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL JACK CIULLA Chief Technology Innovations Officer CITY OF SANTA ANA RAUL GODINEZ II City Manager NEC CORPORATION OF AMERICA, INC. Name: Title: Page 2 of 2 25H-4