HomeMy WebLinkAboutC27490A New Phone System 4 City FacilitiesCITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: AWARD OF CONTRACT NO. C27490A TO GLOBAL CTI
GROUP IN THE AMOUNT NOT TO EXCEED $365,207 FOR
INSTALLATION OF NEW PHONE SYSTEM
BY: PAUL S. GIBSON, DIRECTOR OF FINANCE
DATE: November 20, 2008
CONTENTS: CONTRACT NO. C 27490A
TELECOM SYSTEMS SELECTION PROJECT PRESENTATION
Recommendation:
By Minute Motion, that the City Council:
1. Award a contract to Global CTI Group in the amount of $358,407 plus
an amount of $6,800 for additional backup telephones, with a total not
to exceed $365,207 to install the new phone system in City Hall,
Visitor Center, Energy Management and Corporation Yard Buildings;
2. Authorize Finance Director to approve a 10% contingency in the
amount of $36,500;
3. Authorize the Mayor to execute same. Funds are available in Fund
400, Capital Projects.
Background:
The current phone system, Fujitsu 9600, was installed in 1992 at both City Hall and the
Corporation Yard. After 16 years of use the system's life expectancy is nearing its end.
Fujitsu announced in 2001 that they were exiting the telecommunication business in
North America, and the company that took over declared Fujitsu 9600 existing parts
would only be available for seven to ten more years. The City is approaching the
seven-year mark where maintenance and parts are increasingly hard to come by.
One reason staff chose to keep the Fujitsu system was because of an upcoming
breakthrough in telephone technology regarding Voice over Internet Protocol (VolP),
but features were not fully developed and support was unreliable. It was in the City's
best interest to keep the installed system and wait for further developments in
technology.
Staff Report
Award of Contract to Global CTI Group
November 20, 2008
Page 2 of 3
Although there have been many advancements in telecommunication equipment over
the last five to seven years, the City's existing equipment is unable to take advantage
of these improvements due to several reasons. The system has reached capacity, and
there are no additional options available to expand. The current system has been well -
maintained and various elements have been repaired and replaced over the years;
however, the product as a whole has reached its limit for repairs, and is subject to
failure with no alternate system in place. Therefore, purchasing a new phone system is
necessary and beneficial to the City's overall performance.
The City's current policies of personal interaction with our citizens will continue;
however, they will be greatly enhanced. Improvements will include the ability of
inspectors to receive calls directly, opportunities to use the advancements of current
telecommunication systems to increase performance, and increased City employee
efficiency. VolP is now a viable choice and well supported, and increased flexibility in
communications systems allows for a smooth transition between systems.
A consulting firm was chosen to conduct independent research, gather information
from City departments, and review how phone calls are currently handled. ClientFirst
Consulting Group was retained to provide a three-phase approach. In Phase 1, current
systems were reviewed, system users were interviewed, and requirements were
determined.
Phase 2 involved issuing a Request for Proposals which took place on May 2, 2008, to
solicit responses from interested and qualified vendors to provide installation and
product for a new phone system for the City of Palm Desert and its related buildings. A
committee was formed to review the proposals, and an evaluation of responses was
conducted based on the following criteria: purchase price; life span cost; telecom
functions; quality of proposal; network upgrade by product; service and support quote;
manufacturer stability; and system demonstration evaluations by City staff.
Seven vendors submitted bids for the specified needs of the City of Palm Desert. The
evaluation matrix proved to be a worthwhile method as it allowed for companies to be
compared from many aspects. The results from the bid opening are as follows:
Vendors Bid Amount Evaluation Matrix Ratings
Altura $231,464.80 7.7
Quintron Systems Inc. Non -responsive -
Blue Violet Networks $298,761.59 8.55
Global CTI Group $358,407.03 8.7
Digital Telecom Group $378,538.19 7.6
ISMS, Inc. $437,486.76
Integrated Technology $742,434.76
G:IFINANCEWIAMH ORTEGAISTAFF REPORTSIAWARD OF CONTRACT TO GLOBAL CTI GROUP 103108.DOCX
Staff Report
Award of Contract to Global CTI Group
November 20, 2008
Page 3 of 3
Of these seven vendors, Quintron Systems, ISMS, and Integrated Technologies were
eliminated due to incomplete RFP or high proposed cost. The bid provided by Altura
did not include the network upgrade or taxes on the equipment. Once those
infrastructural costs were added, the Altura bid was then comparable to other bids
received, and totaled $339,956. Of the remaining vendors, 100% of the committee
agreed that Global CTI group's proposal met all needs identified by Staff and chose
this company as their First Choice.
Staff believes that a new phone system will position the City for the future from a
technological point of view, and increase efficiency and customer service to the public.
If a new phone system is not installed, the City runs the risk of the current system
experiencing unsolvable issues that would disrupt phone service at City Hall and its
related buildings.
Staff recommends based on the rating of the Committee that the City Council award
the contract to Global CTI Group. Funds are available in Fund 400, Capital Projects.
Submitted By:
aul S. Gibson, Finance Director
PSG:cat:nmo
Approval:
Carlos L. irtega, City Manager
CITY COUNCIL ACTION:
APPROVED � DENIED
RECEIVED OTHER
MEETING D A'13
AYES: 4fricee
NOES: , E
ABSENT.
ABSTAIN �j / t
VERIFIED BY: A°f, /(liyL�
Original on File withAgty Clerk's Office
Recommendations were approved in addition to: 4) establish a Telephone System
Replacement Reserve at a rate of 3.5Z - 4Z annually in order to set aside funds
that will be required for future replacement of the system.
G IFINANCEINIAMH ORTEGAISTAFF REPORTSIAWARD OF CONTRACT TO GLOBAL CTI GROUP 103108 DOCX
Contract No. C 27490A
CONTRACT SERVICES AGREEMENT FOR TELEPHONE SYSTEM
INSTALLATION
CONTRACT NO. C-
City of Palm Desert
73-510 Fred Waring Drive, Palm Desert, CA. 92260
THIS CONTRACT SERVICES AGREEMENT (herein "Agreement") is made and
entered into this day of , 2008, by and befinreen the CITY OF
PALM DESERT, a municipal corporation (herein "City") and Global CTI Group, (herein
"Contractor").
NOW, THEREFORE, the parties hereto agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all of the terms and conditions of this
Agreement, the Contractor shall perform the work or services set forth in the "Scope of
Services" attached hereto as Exhibit "A" and incorporated herein by reference.
Contractor warrants that all work and services set forth in the Scope of Services will be
performed in a competent, professional and satisfactory manner.
1.2 Compliance With Law. All work and services rendered hereunder shall be provided
in accordance with all ordinances, resolutions, statutes, rules, and regulations of the
City and any federal, state or local governmental agency of competent jurisdiction.
1.3 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost
and expense such licenses, permits and approvals as may be required by law for the
performance of the services required by this Agreement.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contractor
shall be compensated in accordance with the "Exhibit A" attached hereto and
incorporated herein by this reference, but not exceeding the maximum contract amount
of Three Hundred Sixty Five Thousand Two Hundred and Seven Dollars ($365,207.00)
("Contract Sum").
2.2 Method of Payment. Provided that Contractor is not in default under the terms of
this Agreement, Contractor shall be paid an amount not to exceed $365,207.00.
3.0 COORDINATION OF WORK
3.1 Representative. Representative of Contractor is hereby designated as being the
principal and representative of Contractor authorized to act on its behalf with respect to
the work and services specified herein and make all decisions in connection therewith.
Contract No. C 27490A
3.2 Contract Officer. Contract Officer is hereby designated as being the representative
the City authorized to act in its behalf with respect to the work and services specified
herein and to make all decisions in connection therewith ("Contract Officer"). The City
Manager of City shall have the right to designate another Contract Officer by providing
written notice to Contractor.
3.3 Prohibition Against Subcontracting or Assignment. Contractor shall not contract
with any entity to perform in whole or in part the work or services required hereunder
without the express written approval of the City. Neither this Agreement nor any interest
herein may be assigned or transferred, voluntarily or by operation of law, without the
prior written approval of City. Any such prohibited assignment or transfer shall be void.
3.4 Independent Contractor. Neither the City nor any of its employees shall have any
control over the manner, mode or means by which Contractor, its agents or employees,
perform the services required herein, except as otherwise set forth. Contractor shall
perform all services required herein as an independent contractor of City and shall
remain under only such obligations as are consistent with that role. Contractor shall not
at any time or in any manner represent that it or any of its agents or employees are
agents or employees of City.
4.0 INSURANCE AND INDEMNIFICATION
4.1 Insurance. The Contractor shall procure and maintain, at its sole cost and expense,
in a form and content satisfactory to City, during the entire term of this Agreement
including any extension thereof, the following policies of insurance:
(a) Commercial General Liability Insurance. A policy of commercial general liability
insurance written on a per occurrence basis with a combined single limit of at least
$1,000,000 bodily injury and property damage including coverage's for contractual
liability, personal injury, independent contractors, broad form property damage, products
and completed operations The General Liability Policy shall name the City of Palm
Desert as an additional insured in accordance with standard ISO additional insured
endorsement form CG2010(1185) or equivalent language.
(b) Worker's Compensation Insurance. A policy of worker's compensation insurance in
such amount as will fully comply with the laws of the State of California and which will
include $1,000,000 employer's liability.
(c) Business Automobile Insurance. A policy of business automobile liability insurance
written on a per occurrence basis with a single limit liability in the amount of $1,000,000
bodily injury and property damage, Said policy shall include coverage for owned, non-
owned, leased and hired cars.
(d) Additional Insurance. Policies of such other insurance, including professional liability
Contract No. C 27490A
insurance in a minimal amount of $1,000,000 if contract has professional liability
exposure, as may be required in the Special Requirements. All of the above policies of
insurance shall be primary insurance and shall name the City, its officers, employees
and agents as additional insured. The insurer shall waive all rights of subrogation and
contribution it may have against the City, its officers, employees and agents, and their
respective insurers. In the event any of said policies of insurance are canceled, the
Contractor shall, prior to the cancellation date, submit new evidence of insurance in
conformance with this Section 4.1 to the Contract Officer. No work or services under
this Agreement shall commence until the Contractor has provided the City with
Certificates of Insurance or appropriate insurance binders evidencing the above
insurance coverage's and said Certificates of Insurance or binders are approved by the
City.
The contractor agrees that the provisions of this Section 4.1 shall not be construed as
limiting in any way the extent to which the Contractor may be held responsible for the
payment of damages to any persons or property resulting from the Contractor's
activities or the activities of any person or person for which the Contractor is otherwise
responsible.
In the event the Contractor subcontracts any portion of the work in compliance with
Section 3.3 of this Agreement the contract between the Contractor and such
subcontractor shall require the subcontractor to maintain the same polices of insurance
that the Contractor is required to maintain pursuant to this Section.
4.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and
employees against, and will hold and save them and each of them harmless from, any
and all actions, suits, claims, damages to persons or property, losses, costs, penalties,
obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be
asserted or claimed by any person, firm or entity arising out of or in connection with the
negligent performance of the work, operations or activities of Contractor, its agents,
employees, subcontractors, or invitees, provided for herein, or arising from the negligent
acts or omissions of Contractor hereunder, or arising from Contractor's negligent
performance of or failure to perform any term, provision, covenant or condition of this
Agreement, whether or not there is concurrent passive or active negligence on the part
of the City, its officers, agents or employees but excluding such claims or liabilities
arising from the sole negligence or willful misconduct of the City, its officers, agents or
employees, who are directly responsible to the City, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of
said claims or liabilities and will pay all costs and expenses, including legal costs and
attorneys' fees incurred in connection therewith;
(b) Contractor will promptly pay any judgment rendered against the City, its
officers, agents or employees for any such claims or liabilities arising out of or in
connection with the negligent performance of or failure to perform such work, operations
or activities of Contractor hereunder; and Contractor agrees to save and hold the City,
its officers, agents, and employees harmless there from;
(c) In the event the City, its officers, agents or employees is made a party to any
action or proceeding filed or prosecuted against Contractor for such damages or other
claims arising out of or in connection with the negligent performance of or failure to
Contract No. C27490A
perform the work, operation or activities of Contractor hereunder, Contractor agrees to
pay to the City, its officers, agents or employees, any and all costs and expenses
incurred by the City, its officers, agents or employees in such action or proceeding,
including but not limited to, legal costs and attorneys' fees.
5.0 TERM
5.1 Term. Unless earlier terminated in accordance with Section 5.2 below, this
Agreement shall continue in full force until the completion of work. 5.2 Termination Prior
to Expiration of Term. Either party may terminate this Agreement at any time, with or
without cause, upon thirty, (30) days' written notice to the other party. Upon receipt of
the notice of termination, the Contractor shall immediately cease all work or services
hereunder except as may be specifically approved by the Contract Officer. In the event
of termination by the City, Contractor shall be entitled to compensation for all services
rendered prior to the effectiveness of the notice of termination and for such additional
services specifically authorized by the Contract Officer and City shall be entitled to
reimbursement for any compensation paid in excess of the services rendered.
6.0 MISCELLANEOUS
6.1 Covenant Against Discrimination. Contractor covenants that, by and for itself, its
heirs, executors, assigns and all persons claiming under or through them, that there
shall be no discrimination against or segregation of any person or group of persons on
account of race, color, creed, religion, sex, marital status, national origin, or ancestry in
the perFormance of this Agreement. Contractor shall take affirmative action to ensure
that applicants are employed and that employees are treated during employment
without regard to their race, color, creed, religion, sex, marital status, national origin or
ancestry.
6.2 Non-liability of City Officers and Employees. No officer or employee of the City
shall be personally liable to the Contractor, or any successor in interest, in the event of
any default or breach by the City or for any amount, which may become due to the
contractor or to its successor, or for breach of any obligation of the terms of this
Agreement.
6.3 Conflict of Interest. No officer or employee of the City shall have any financial
interest, direct or indirect, in this Agreement nor shall any such officer or employee
participate in any decision relating to the Agreement which effects his financial interest
or the financial interest of any corporation, partnership or association in which he is,
directly or indirectly, interested, in violation of any State statute or regulation. The
Contractor warrants that it has not paid or given and will not pay or give any third party
any money or other consideration for obtaining this Agreement.
6.4 Notice. Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the other party or any other
Contract No. C 27490A
person shall be in writing and either served personally or sent by prepaid, first-class
mail, in the case of the City, to the City Manager and to the attention of the Contract
Officer, CITY OF PALM DESERT, 73-510 Fred Waring Drive, Palm Desert, California
92260, and in the case of the Contractor, to the person at the address designated on
the execution page of this Agreement.
6.5 Interpretation. The terms of this Agreement shall be construed in accordance with
the meaning of the language used and shall not be construed for or against either party
by reason of the authorship of this Agreement or any other rule of construction which
might otherwise apply.
6.6 Integration Amendment. It is understood that there are no oral agreements
between the parties hereto affecting this Agreement and this Agreement supersedes
and cancels any and all previous negotiations, arrangements, agreements and
understandings, if any, between the parties, and none shall be used to interpret this
Agreement. This Agreement may be amended at any time by the mutual consent of the
parties by an instrument in writing.
6.7 Severability. In the event that part of this Agreement shall be declared invalid or
unenforceable by a valid judgment or decree of a court of competent jurisdiction, such
invalidity or unenforceability shall not affect any of the remaining portions of this
agreement which are hereby declared as severable and shatl be interpreted to carry out
the intent of the parties hereunder unless the invalid provision is so material that its
invalidity deprives either party of the basic benefit of their bargain or renders this
Agreement meaningless.
6.8 Waiver. No delay or omission in the exercise of any right or remedy by a non-
defaulting party on any default shall impair such right or remedy or be construed as a
waiver. A party's consent to or approval of any act by the other party requiring the
party's consent or approval shall not be deemed to waive or render unnecessary the
other party's consent to or approval of any subsequent act. Any waiver by either party of
any default must be in writing and shall not be a waiver of any other default concerning
the same or any other provision of this Agreement.
6.9 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or
made a party to any action or proceeding in any way connected with this Agreement,
the prevailing party in such action or proceeding, in addition to any other relief which
may be granted, whether legal or equitable, shall be entitled to reasonable attorney's
fees, whether or not the matter proceeds to judgment.
6.10 Corporate Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Agreement on behalf of said party, (iii) by so
executing this Agreement, such party is formally bound to the provisions of this
Agreement, and (iv) the entering into this Agreement does not violate any provision of
Contract No. C27490A
any other Agreement to which said party is bound.
IN WITNESS WHEREOF, the parties have executed and entered into this Agreement
as of the date first written above.
CITY:
CITY OF PALM DESERT,
a municipal corporation
Robert A. Spiegel, Mayor
ATTEST:
Rachelle D. Klassen, City Clerk
APPROVED AS TO FORM:
Dave Erwin, City Attorney
CONTRACTOR:
By:
Name:
Title:
By:
Name:
Title:
Address:
CONTRACT ATTACHMENT:
EXHIBIT "A"; SCOPE OF WORK AND COMPENSATION
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