Title/Name/Summary
Local and Long Distance Phone Rates
History
The Village’s contract for local and long distance call rates expired in 2005 and AT&T has submitted a three-year renewal agreement. In addition, there is currently no agreement in place for local and long distances calling for the police department. With the proposed AT&T agreement, the rates are contingent upon the Village spending an annual minimum revenue commitment of $150,000 with AT&T for each year in the term of the agreement, and a minimum annual revenue commitment of $6,000 for long distance calling. There are fees associated with an early termination of the agreement or if the minimum revenue commitment is not met. Staff was directed to research the market for competitive offering and rates. The Suburban Purchasing Cooperative (SPC), comprised of the South Suburban Mayors & Managers Association, and four other municipal conference organizations, prepared a request for proposal and solicited for telecommunications services for its member communities. Call One was found to have the best rates with no minimum revenue commitment and was awarded the contract. There was also a provision in the contract for SPC to extend the term for up to three additional one-year terms. In January 2008, the SPC extended that agreement for the 2008 calendar year.
Call-One is a reseller of AT&T services and currently serves over 90 municipalities and governmental entities in the Chicago area. Call One and AT&T submitted proposals for the Village’s business lines, digital circuits, local calls and long distance charges. Both proposals excluded charges associated with the E-911 system. Based on our analysis of their proposals of the discounted rates and fees for monthly line and circuitry charges, the Call One proposal would save the Village approximately $24,168 annually compared to the rates submitted by AT&T, and $80,000 from today's charges.
As a reseller of AT&T services, Call One would assume the Village’s AT&T
accounts and the billing of the local and long distance calling and circuitry. The bills would come directly from Call One as opposed to AT&T. All of our
telecommunication infrastructure would remain as-is on the AT&T network and no changes in providers will be made.
The Village currently receives 38 bills from AT&T each month, all of which require coding, processing and payment. Call One will issue one invoice with all our services and provide an internal general ledger account number on the bill for each service.
Staff contacted several of Call One’s municipal clients for reference checks and
each indicated a high level of customer service and billing satisfaction.
Staff is recommending the Village enter into a one year agreement with Call One
based on their competitive rates and the cost savings that it would provide the
Village. Cost analysis, list of clients and 90-day guarantee attached.
On August 25, 2008 this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Financial Impact
Estimated annual savings of $24,168 over the current carrier's proposal, and over $80,000 savings from current rates.
Recommended Action/Motion
I move to approve a one year contract with Call One.