03-23-87 Finance Comm MinutesFinance & Administration Committee March 23, 1987
• The meeting was attended by Mayor Kennedy, Committee Chairman Palmer,
Councilmen Ruiz and Nystul, C/T Halver and representatives of Northwestern
Telephone and All-tel Communications. i
Telephone System Bids
C/T Halver reported he had reviewed the bids for compliance with all parts of
the request for proposals and found the following discrepancies:
All-tel bid a system for which they did not provide hardware
references for the equipment proposed. They did not provide the FCC
registration number and the "comfort letter" from the manufacturer
has not been received.
Northwestern telephone proposed to sell us all our existing used
telephones, console and miscellaneous components.
Halver reported the All-tel bid for the basic system totaled about $700.00
less for an all new system than the bid from Northwestern Telephone for a
mixed new and used system.
He also reported he was not satisfied with .the price information ptoyided,
for example there were no prices for the different model phones if we wanted
to change to fancier phones at some work locations.
The committee reviewed numerous aspects of the sytems bid.
. Both bidders reported the new system could be expected to last 15 to 20
years.
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Both bids included a maintenance contract for three years. Both companies
would provide two hour response for emergency repairs.
The big difference in price of the battery backup systems seemed to be in the
number of batteries and the type proposed. Both battery backup units would
run the system for 4 hours.
The difference in price for the pay phones was alleged to be in the quality
of the unit bid.
Both vendors stated they have all parts in stock and the manufacturers
reported they would guaranty to provide parts for 7 and 10 years after
discontinuance of the equipment.
Either new switch would provide additional features the present system does
not provide.
Councilmen Nystul and Palmer agreed it made sense to buy a system instead of
renting. Nystul requested more time to investigate the bids. Councilman
Ruiz asked if we could lease a system instead of purchasing and both vendors
could provide bids for leasing.
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Finance & Administration Committee March 23, 1987
• Both vendors said the systems proposed fully met the needs of the city and
were of current technology.
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Both vendors said their maintenance contracts included maintenance of all the
proposed options.
Both vendors assured continuing maintenance contracts would be available for
a minimal increase each year. (one said 3-5% based on C.P.I. And the other
was negotiable at renewal)
Councilman Palmer didn't see any need to recall for bids but he and
Councilman Ruiz wanted to get a cost estimate on a straight lease.
Councilman Nystul again asked for more time to review the information.
Councilman Ruiz was still concerned about the big difference in size of the
battery backup system proposed. Northwestern Telephone reported their
system used "Gel Cell" batteries which last longer and are a deep -charge
battery.
Both vendors stated their systems would provide 4rhour backup.
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