HomeMy WebLinkAbout32- Facilities Management CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: James Sharer Subject: INTRA LATA AND LONG DISTANCE TELEPHONE
SERVICE CONTRACT
Dept: Facilities Management
Date: Sept. 22, 1997 C ��
Synopsis of Previous Council action:
94-326 Resolution to award long distance service contract to MCI .
97 -25 Resolution to award Intra Lata and Long Distance Service Contract to AT&T.
Recommended motion:
Adopt Resolution
Signature
Contact person: James Sharer Phone: 5244
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount: 48,000.
Source: (Acct. No.) 630-262-5156
(Acct. Description) Long Distance Service
Finance:
Council Notes:
. Res 97-
75-0262 Agenda Item No. ��
CJTY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
On February 3, 1997, the Common Council of the City of San
Bernardino issued Resolution 97-25, authorizing the
Purchasing Manager to issue a purchase order to AT&T for
Intra Lata and Long Distance Telephone Service . The
resolution gave him 60 days to issue this purchase order.
Part of the bid specification required AT&T to comply with
Chapter 3 . 44 of the San Bernardino Municipal Code, and the
City' s UUT Administrative Rules contained in the bid
package. These Code Sections and Rules contain the duties
and responsibilities of providers for collecting and
remitting taxes, and allow the City to audit the providers
records . AT&T had not been able to let the City access these
records, and the purchase order was not signed in the 60 day
window.
The Facilities Manager and the Purchasing Manager went back
to see if it would be feasible to award the bid to the
second lowest vendor, MCI . A review of the bid indicated
that the second lowest bid came in at $0 . 06 per minute,
which is 100% higher than the bid received from AT&T, at
$0 . 03 per minute . Staff determined that it would be in the
best interest of the City to work with AT&T to resolve the
problems they were having with opening up their records to
the City.
On August 15, 1997, AT&T sent the attached letters notifying
the City that they could now meet the contract requirements .
Facilities Management and Purchasing both concur that the
AT&T bid was the lowest bid to best meet the City' s Intra
Lata and Long Distance needs . It is therefore recommended
that the Purchasing Manager be re-authorized to issue a
purchase order based on the bid proposal from AT&T .
75-0264
ANT
412 Mt.Kemble Avenue
August 15, 1997 Morristown, NJ 07962
Mr. John Murphy, Purchasing Manager
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Re: Municipal Resource Consultants (MRC) Utility Users Tax Review
Dear Mr. Murphy:
AT&T has always been ready and willing to allow San Bernardino to audit our books and
records as they pertain to the Utility Users Tax. However, the use of independent
contractors (MRC)to perform the audit raises some serious concerns for AT&T. Not
withstanding these concerns, AT&T is willing to work with(MRC) provided that all our
concerns are adequately addressed. Enclosed is a letter to Donald Maynor dated June 23,
1997, addressing some of our concerns.
If you care to speak with me I may be reached at(201) 644-1595.
Sincerely,
Mario A. Verri
Assistant Tax Director
States & Local Sales Tax Audit
Recvcled Paper
- AUT
C.Stephen Rosander Room S247
Attorney 4112 Mt Kemble Avenue
Morristown, NJ 07960
201 644-8465
FAX 201 644-8548
June 23, 1997
Donald H. Maynor, Esq.
3220 Alpine Road, Suite A
Portola Valley, CA 94028
Re: MRC UUT Compliance Review in Califomia
AT&T
Dear Mr. Maynor:
I have received and reviewed your letter of May 16, 1997 to Mario Verri of AT&T
related to the above issue. Your letter sets forth several points with respect to the
proposed audit which clarify the situation and the facts surrounding the audit
request.
Presently, and at all times in the past, AT&T stands ready and willing to cooperate
with any audit of the subject taxes that is performed by a municipality's employee
who is subject to appropriate confidentiality restrictions. However, when a
municipality seeks to have an audit performed by an independent contractor, who is
not subject to the same statutory restrictions, confidentiality concems become
substantially magnified and need to be satisfactorily addressed.
In that regard, if we can be assured that the following restrictions will be complied
with, AT&T will arrange for the requested audits to take place and to be performed
by Municipal Resource Consultants (MRC).
First, MRC and any consultant of that firm who performs any part of the audit or
comes in contact in any way with any information of AT'&T will be required to sign a
confidentiality agreement which will prohibit the dissemination or use of any of
AT&T's information for any purpose other than the subject audit and will subject the
parties to the statutory penalties that would apply if such individual were an
employee of the State of Califomia or its municipalities.
Second, MRC and any consultant of that firm who performs any part of the audit or
comes in contact in any way with any information of AT&T will be required to sign
an agreement that any other audit performed by MRC or that individual related to
any Califomia tax will similarly be restricted to a prospective basis only.
GD
�& Recycled Paper
Donald H. Maynor, Esq.
June 23, 1997
Page 2
The purpose of the first restriction is obviously to limit the use of any of AT&T's
information which is obtained in the audit. I am sure you can appreciate the
extensive damage that could potentially result from the misuse of this confidential
information.
The second restriction is to reinforce what appears to be the intent of the UUT
Compliance Review as an assist to utilities with prospective effect on tax application
issues which appear in Article IG. AT&T would like the further reassurance that
such restrictions continue to apply to employees who leave MRC.
Please let me know your thoughts on the above so that the agreements can be
prepared and the audits can begin.
Thank you again for your letter and your assistance in this matter.
Very truly yours,
S�t uc_. NU-A d.
C. Stephen Rosander
cc: Mr. Jim Thompson, MRC