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11 Staff Report - Telephone System UpgradeN Up M os DATE: TO: FROM: SUBJECT: COUNCIL AGENDA REPORT DECEMBER 13, 2006 MEETING DATE: 12/18/06 ITEM NO: I l MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER PROJECT 400-0702:-- (PPW JOB NO.-06-34) TELEPHONE SYSTEM UPGRADE ADOPT RESOLUTION AUTHORIZING TOWN MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH VERIZON BUSINESS FOR THE PURCHASE AND INSTALLATION OF THE TELEPHONE SYSTEM UPGRADE IN THE AMOUNT OF $34,284.99. RECOMMENDATION: Adopt Resolution authorizing Town Manager to negotiate and execute an agreement with Verizon Business for the purchase and installation of the Telephone System Upgrade in the amount of $34,284.99. BACKGROUND: The current telephone switching system has two serious inadequacies: the older portion of the PBX switch is not supported with factory components anymore, so if a failure of a component in this part of the system occurred it would bring the telephone communications down for an unacceptable period of time. The second issue is the lack of capability in the switch to provide for reliable telephone communications for the Town's Emergency Operations Center located at the Neighborhood Center. These two issues will be addressed by this project. DISCUSSION: This project will complete the integration to upgrade the PBX telephone switch, upgrade software, and add 25 telephone lines that will support the Emergency Operations Center phone system. PREPARED BY: HN E. CURTIS pi or of Parks and Public Works rect NAB&E\COUNCIL REPORTS\06-34.telephone.system.upgrade.doc Reviewed by: _Assistant Town Manager. Town Attorney Clerk Administrator _l~Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: PROJECT 400-0702 - (PPW JOB NO. 06-34) - TELEPHONE SYSTEM UPGRADE DECEMBER 13, 2006 For projects under $100,000 construction costs, the Town's informal bid process does not require public advertising and the preparation of a set of complete plans and specifications for a project. This informal bid process allows staff to prepare a scope of work, solicit bids from three (3) contractors and award the contract to the lowest bidder. The Town uses this process for small and uncomplicated projects. Bids for the Telephone System Upgrade were received by the Town Engineer on November 20, 2006. The following contractors submitted bids for this project: Verizon Business $34,284.99 Vox Network Solutions NO BID Advantel NO BID It is recommended that the Council adopt the attached resolution that would declare Verizon Business to be the lowest responsible bidder on the project and to authorize the Town Manager to negotiate and execute an agreement with this company in the amount of $34,284.99. Staff has checked all of the bids received and has determined that Verizon Business is responsible and that its bid is responsive to the Town's informal bid process. The installation of this project is anticipated to take place in approximately two months. CONCLUSION: Staff recommends that the Town Manager negotiate and execute an agreement with Verizon Business for the purchase and installation of the Telephone System Upgrade. ENVIRONMENTAL ASSESSMENT: This is a project as defined under CEQA but is Categorically Exempt (Section 15301©). A Notice of Exemption will not be filed. FISCAL IMPACT: The adopted Capital Improvement Program designates funding for the Telephone System Upgrade from Project 400-0702. This project is funded through a transfer to GFAR from accumulated replacement funds set aside in the Management Information System fund. Attachments: Adopt Resolution authorizing Town Manager to negotiate and execute an agreement with Verizon Business for the purchase and installation of the Telephone System RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH VERIZON BUSINESS FOR THE PURCHASE AND IINSTALLATION PPW JOB NO. 06-34 - TELEPHONE SYSTEM UPGRADE - PROJECT 0702 WHEREAS, bids were sought in conformance with State and Town law for PPW - Job No. 06-34 - Telephone System Upgrade -Project 0702, and - - - WHEREAS, Verizon Business submitted the lowest bid which the Town Council deems to be responsive to the Town's solicitation. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that Verizon Business is declared to be the lowest responsible bidder for PPW Job No. 06-34 - Telephone System Upgrade Project 0702. BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and directed to negotiate and execute an agreement for said project on behalf of the Town in the amount of $34,284.99. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 181h day of December, 2006, by the following vote: COUNCIL MEMBERS: AYES: NAYS ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA