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Home My WebLink About25A - AMEND AGMT WITH NEC CORPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 16, 2020 TITLE APPROVE FOURTH AMENDMENT TO AGREEMENT WITH NEC CORPORATION OF AMERICA, INC. FOR TELEPHONE SYSTEM MAINTENANCE IN AN AMOUNT NOT TO EXCEED $79,497 (NON -GENERAL FUND) /s/ Kristine Ridge CITY MANAGER CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sf Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO 1�1��►1�1�1:3q:7 RECOMMENDED ACTION Authorize the City Manager to execute a fourth amendment with NEC Corporation of America, Inc. to provide maintenance and support services for the City's telephone system for a six-month period, from July 1, 2020 through December 31, 2020, for an amount not to exceed $79,497, which is composed of the sum of $72,270 for on -site labor and support services and a 10% contingency of $7,227, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On March 6, 2018, the City Council approved an agreement to migrate the City from its legacy phone system to a new, modern Voice over Internet Protocol (VoIP) phone system in every city facility. It was expected to take approximately two -years to complete the migration to all departments and facilities to the new system. To continue supporting the existing system during the conversion, on June 5, 2018 the City Council approved an agreement with NEC Corporation of America, the vendor of the existing system to provide continued support for a two-year period, ending June 30, 2020. The City has made considerable progress with the phased project to fully implement the new phone system and has converted all departments, with the exception of the Police Department. The Police department's headquarters, including the jail facility, consists of 655 phones and was scheduled to begin implementation in February 2020. Due to the COVID-19 pandemic, the project was put on hold while staff was redeployed to other priorities or were required to stay at home. The project is expected to pick back up now that staff is returning to work. In order to ensure a safe migration and the continued proper support of this critical system for the Police Department, staff recommends an extension of the reduced maintenance services with NEC Corporation of America, Inc. until the migration is complete. NEC telephone maintenance and 25A-1 Fourth Amendment to Agreement for Telephone System Maintenance June 16, 2020 Page 2 services include the following: 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 six-month period beginning July 1, 2020, to ensure continued operation of the City's telephone system. This will be the fourth amendment to the agreement. This new agreement reflects an increase of $9,770 from the previous semi-annual rate due to price increases since the last agreement was enacted two years ago. 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 $79,497 are budgeted and available in the FY20-21 Information Technology Network and Telecommunications account for contractual services (account no. 10920140-62300). Exhibit: 1. Fourth Amendment to Agreement 25A-2 DocuSign Envelope ID: 2EDD2309-1 DAA-4C93-8A68-0AF9531 C061`3 FOURTH AMENDMENT TO AGREEMENT WITH NEC CORPORATION OF AMERICA, INC. THIS FOURTH AMENDMENT to the above -referenced agreement is entered into on June 16, 2020, by and between NEC 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 executed Third Amendment No. A-2018-145 dated June 5, 2018, by which the term was further extended to June 30, 2019, the scope of services was amended, and the amount to be expended under the Agreement was increased. G. By letter No. A-2011-164-03, dated May 16, 2019, the parties extended the term of the Agreement for an additional one-year period through June 30, 2020. H. 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, Page 1 of 3 25A-3 DocuSign Envelope ID: 2EDD2309-1 DAA-4C93-8A68-OAF9531 C061`3 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 five (5) days during this extended term. 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. 2. Section 2, Term, is amended to extend the Agreement for an additional six-month period beginning July 1, 2020, and ending December 31, 2020. 3. Section 3, Compensation, is amended to include, for the additional six-month period, an additional $79,497 for on -site labor and support services to be performed by the Vendor. This sum is comprised of (1) the base fee of $72,270 and (2) a 10% contingency of $7,227. 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 Fourth Amendment, and all prior Amendments and extensions, all terms and conditions of the Agreement shall remain in full force and effect. {Signatures on following page} Page 2 of 3 25A-4 DocuSign Envelope ID: 2EDD2309-1 DAA-4C93-8A68-OAF9531 C061`3 IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: QIVL— RY-11 O. ODGE AssisYant ity Attorney I: 11/1/1 UI 1 I":I JACK CIULLA Chief Technology Innovations Officer CITY OF SANTA ANA KRISTINE RIDGE City Manager NEC CORPORATION OF AMERICA, INC. IN OocuSigned by: Lt, vwn nu u( 4MEA 6043D646E Name: rvn Ke ve=J cep Title: Director of Operations Pace 3 of 3 25A-5