Report to Mayor and City Council
Tuesday, July 17, 2018
Consent
SUBJECT:
Title
APPROVAL OF CONTRACT AGREEMENT WITH SPECTRUM FOR LOCAL, LONG DISTANCE, INTERNET AND POINT-TO-POINT DATA CIRCUIT SERVICES FOR THE CITY OF CARSON (CITY COUNCIL)
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I. SUMMARY
At the December 19, 2017 meeting, City Council approved the award of purchase contract from a RFP process to Spectrum for local, long distance, internet and point-to-point data circuit services subject to a contract. After the execution of the contract, Charter Communication (Spectrum) realized that the taxes & fees are under-estimated. Since the cost of taxes and fees exceed the amount that the City Manager may approve, the City Council is being asked to approve the amendment of service contract.
II. RECOMMENDATION
Recommendation
1. APPROVE a three year contract for a contract sum $260,899 per year, not to exceed a total contract sum of $782,697, for Long Distance phone service, Internet Services and Point-To-Point Data Circuits services.
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III. ALTERNATIVES
1. TAKE whatever action the City Council deems appropriate.
IV. BACKGROUND
This contract is coming back to the Council for consideration as the contract sum now includes charges for local and long distance fees for approximately $3,850 per month for all City facilities. The local and long distance fees were not included in the previous staff report, as well as other fees and taxes that are charged by the state and federal governments for these types of services, and which are passed on to the City. These charges were not reflected in the agreement reviewed by the City Council, but turned out to be significant enough that further approval is required. The taxes, fees, and charges, are estimated to add approximately 12% to the contract sum. These charges could be slightly less or slightly more. Taxes and fees would apply to the contract with any provider of such services, and they are calculated based on the amount of the monthly charges. I...
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