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File #: 20-125    Version: 1 Name:
Type: Resolution Status: Second Reading
File created: 10/8/2020 In control: City Council
On agenda: 11/17/2020 Final action: 11/17/2020
Title: A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND AN EXISTING CONTRACT WITH MOMENTUM TELECOM, INC. FOR WHOLESALE VOICE OVER INTERNET PROTOCOL SERVICES. Brief Description: Council authorization is required to amend the existing contract for wholesale VoIP (phone) services, with the cost of the services borne by subscribing Velocity Broadband customers. Staff has renegotiated more competitive pricing and modified terms to ensure the highest level of service can continue to be provided to Velocity Broadband customers.
Sponsors: Craig Shubert
Indexes: Innovation & Technology
Attachments: 1. Resolution No. 20-125
Related files: 19-5, 18-87, 17-181, 15-101

Title

A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND AN EXISTING CONTRACT WITH MOMENTUM TELECOM, INC. FOR WHOLESALE VOICE OVER INTERNET PROTOCOL SERVICES.

Brief Description:  Council authorization is required to amend the existing contract for wholesale VoIP (phone) services, with the cost of the services borne by subscribing Velocity Broadband customers.  Staff has renegotiated more competitive pricing and modified terms to ensure the highest level of service can continue to be provided to Velocity Broadband customers.

Body

Legislative History

Resolution No. 15-101 authorizing the City Manager to enter into a contract with an initial term of 36-months for wholesale voice over internet protocol service in an amount not to exceed the City Manager’s maximum spending authority of $25,000, pursuant to Charter Section 6.04, passed July 14, 2015.

Resolution No. 17-181 authorizing the City Manager to spend an additional $10,000 above the City Manager’s maximum spending authority of $25,000 on wholesale voice over internet protocol services, passed November 21, 2017.

Resolution No. 18-87 authorizing the City Manager to spend an additional $70,000 above the previously approved maximum spending authority of $35,000 on wholesale voice over internet protocol services, passed July 24, 2018

Resolution 19-5 authorizing the City Manager to spend an additional $95,000 above the previously approved maximum spending authority of $105,000 on wholesale voice over internet protocol services, passed January 8, 2019

Purpose & Explanation

As this contract service is directly related to customer base and voice service package purchases, this “pass-through” expense has also grown over the last four years.

2019

$ 85,505.44

2018

$ 58,167.71

2017

$ 30,973.38

2016

$ 7,153.98

Total

$ 244,692.05

The initial contract had become no longer representative of what customers are looking for in VoIP (phone) services.  Staff negotiated terms that better suited the customer needs of today and agreed upon pricing options that are far more competitive.

Therefore, staff seeks City Council approval to execute the amended contract agreement accordingly.

Legal Authority for Proposed Legislation

Pursuant to Charter Section 6.04, Contracts & Purchasing:

                       Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])

                       Joint or Cooperative Purchase Program

                       Professional Services

X                       Other (This is an amendment to an existing contract)

 

Fiscal Impact

X                       Currently Budgeted

                       Supplemental Appropriation Required

                       Appropriation Not Required

Does this legislation require use of an emergency clause?

                       Yes [if so, explain why]

X                       No

 

Recommendation

Suggested Action

Staff recommends City Council approve this Resolution authorizing the City Manager to enter into an amended contract with Momentum Telecommunications, 222 Chastain Meadows Ct., Suite 100, Kennesaw, GA 30144, for a contract term of thirty-six (36) months.

Submitted by,

Jane Howington, City Manager

Paul Leedham, Chief Innovation Officer - IT Director

Will Ersing, Broadband Manager