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Home My WebLink About10- Facilities Management CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James Sharer, Facilities Manager Subject: Resolution to increase a purchase 'rrrr/�A1t' I Order to Orchard Telecom. for Dept: Facilities Management ORI�f 1 YAL Consulting services to reduce Telephone operating costs. Date: February 10, 2000 Synopsis of Previous Council Action None Recommended Motion: I. Adopt Resolution. 2. Authorize the Director of Finance to amend the FY 1999/00 Telephone Support Fund budget and transfer $75,000 from savings in the telephone charge line item (630-262-5157)to the professional contractual line item (630-262-5502). 14� James W.-Sharer .Contact person: James Sharer Phone: 384-5244 Supporting data attached: Staff Report Ward(s): All FUNDING REQUIREMENTS: Amount: $75,000.00 Source: 630-262-5502 Finance Council Notes: This purchase order is to provide consulting services for telephone systems at City Facilities. Agenda Item No._/� 3/aD1dW6 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT Resolution to increase purchase order to Orchard Telecom for consulting services to reduce telephone operating costs. BACKGROUND The Telephone Support section of Facilities Management provides telephone service to all City facilities. This network is comprised of over 1,600 ports at over 100 locations throughout the City. Networks as large as the City s experience heavy volume and changes so it is important to periodically audit the network to not only verify and map each port, but to also ensure that the City is receiving the best routing and tariff rates possible. Although staff does handle and correct problems as they arise, a comprehensive and proactive audit of the system has never been done. Because of the complex and technical nature of the City's telephone network and staffing shortages within the Telephone Support Division, it was determined that a firm specializing in telephone systems should perform the audit. Staff prepared specifications and sent out a Rgwst for Qual#Luiem to provide professional telecommunications consulting services. One hundred eighty-five proposals were e-mailed out based on a list of potential consultants provided by the Society of Telecommunications Consultants. There were no local firms able to provide this type of specialized service. On February 11, 1999, eleven proposals were received. The proposals were reviewed by a team that consisted of James Sharer, Director of Facilities Management, Doug Robertson, Administrative Analyst in Facilities Management, and Dave Batson, Purchasing Manager. The proposals were reviewed for approach, staff credentials, and cost. Selection was also based upon the vendors understanding of essential services (911) and their ability to ensure the continuity of service. The top three vendors were brought in for interviews by the evaluation team. The firm of Orchard Telecom was selected based upon their rank in the above areas. Bids were received from the following vendors: VENDOR LOCATION Orchard Telecom Los Angeles,CA Gazos Creek Group Saratoga,CA DPRC Glendale,CA Com Consultants Diamond Bar,CA Lynch,Young Orange CA Elert&Associates St Paul,MN Pacific Netcom Portland,OR Telecom Solutions Pasadena,CA Inteliant Venice,CA Herbst&Associates Houston TX Tech Knowledge Pasadena,CA The review panel was unanimous in its selection of Orchard Telecom as the most complete comprehensive and cost effective proposal. On May 13, 1999, a purchase order was issued to Orchard Telecommunications for $20,000 to verify and map out every telephone port in the City's network. Orchard Telecom has provided these services and has now come back to make recommendations to the City on ways to reduce its operating costs (see attached spreadsheet). In their original proposal,Orchard proposed providing these cost reducing services to the City for a fee of fifty percent of the savings realized during one year. Each firm that bid on the original mapping contract included this provision for cost reduction recommendations, and the provision is standard in the industry. The city has reviewed the recommendations of the vendor and concurs that these changes should be made, and that they would not have been realized without the specialized assistance of a consultant. Orchard Telecom has now completed the mapping of the system and has determined areas where the City Of San Bernardino can gain one-time and ongoing savings. The attached spreadsheet itemizes the potential areas for savings. The savings will be used in this fiscal year to offset the costs of the consultant. It is estimated that the ongoing savings after the first year of implementation will be in the range of $50,000 to $70,000 annually. However, expansion of service and related increased cost will offset some of the anticipated ongoing savings. The ongoing savings will be used to reduce the Telephone Fund deficit and to create an ongoing fund balance for equipment replacement. FINANCIAL IMPACT It is projected that implementation of the consultant's recommendations will result in savings of$150,000 during the first twelve (12) months of implementation. These savings will offset the estimated consultant fee of$75,000 (50% of the estimated savings generated by consultant recommendations) for net savings to the City of $75,000 for the first year of implementation. A budget amendment transferring $75,000 from savings in the telephone charges line item (630-262-5157)to the professional/contractual line item (630-262-5502)will be required. Ongoing anticipated savings after the first twelve (12) months of implementation will be used to eliminate the deficit in the Telephone Support Fund and also to create an equipment replacement reserve. RECOMMENDATION (S): 1. Adopt Resolution 2. Authorize the Director of Finance to amend the FY 1999-00 Telephone Support Fund budget and transfer $75,000 from savings in the telephone charges line item (630-262-5157) to the professional/contractual line item(630-262-5502). O O O (O S C S O (bV N M N b N m N 2° O S Q v N U N m N M MOO .0 �i°o i°n Si m° O°°°oro i°nNMN�°nn 'm °°m1 °OS $8� 8Mm °Om °m _ e4ipn eineeNr-Nemin einb mobooe pm � e �yyyN»$»oob, mm °'rvppb ^^`m ENN p �p N S S N M g M O .0 S WY S b 01 W�rr O O O S N N N M N N A 10 S 1O n O S N S N S b m S 01 °N gyp. Q. gyp. p.a. 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( i §laj a:§ ®■§§°„; \ ___, Rif !kHIH! § COPY 1 Resolution No. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF SAN BERNARDINO AUTHORIZING THE PURCHASING MANAGER TO INCREASE 3 PURCHASE ORDER NO. 992987 TO ORCHARD TELECOM FOR CONSULTING 4 StRVICES TO REDUCE TELEPHONE OPERATING COSTS FOR CITY FACILITIES 5 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE 7 CITY OF SAN BERNARDINO AS FOLLOWS: 8 9 SECTION 1. The Purchasing Manager is hereby authorized and directed to increase 10 Purchase Order No. 992987 by $75,000.00 making the total contract amount $95,000.00 for 11 the purchase of consulting services to reduce telephone operating costs for City facilities. 12 13 SECTION 2. The authorization to execute the above referenced purchase order 14 15 increase is rescinded if it is not issued within sixty (60) days of the passage of this resolution. 16 17 19 20 21 22 23 24 25 26 27 28 .3�z0�V I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF SAN 2 BERNARDINO AUTHORIZING THE PURCHASING MANAGER TO INCREASE PURCHASE ORDER NO. 992987 TO ORCHARD TELCOM FOR THE PURCHASE 3 OF CONSULTING SERVICES TO REDUCE TELEPHONE OPERATING COSTS FOR CITY FACILITIES 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor 6 and Common Council of the City of San Bernardino at a meeting thereof, 7 held on the day of . 2000, by the following vote, to wit. 8 Council Members, Ares —Nap Abstain Absent 9 10 ESTRADA _ LIEN I1 - 12 MCGINNIS 13 SCHNETZ 14 SUAREZ 15 ANDERSON 16 MILLER _ 17 18 19 City Clerk 20 The foregoing resolution is hereby approved this day of 2000. 21 22 23 Judith Valles, Mayor City of San Bernardino 24 Approved as to form and Legal content; James F. Penman, City Attorney 26 BY: o 27 28