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FY2008-20 Telecommunication Services for the Kodiak Island Borough ~...;............,... .. ..., .., ml Gel's Local Service GUARANTEED VALUE AGREEMENT Kodiak - Business Savings for Analog Kodiak - Digital Trunking PRI Statewide Everywhere Long Distance The Guaranteed Value program is our guarantee that we will always give you equal or better value than any competitive offer you receive. It's simple. We ask for your commitment to stay with GCI for a number of years, We designed the Guaranteed Value program because we want to make sure that you are totally satisfied with the value you are receiving from us. The length of your commitment is your choice. The total savings is your choice. The savings will increase with the number of years of the agreement. Here's how it works: · Choose the level of savings and sign the agreement. · If you receive a written proposal from another telecommunications provider offering you better overall value or savings over your current GCI program, when compared using equal evaluation criteria, and; · You contact GCI and request a comparison of the proposed program against GCI programs; · GCI will offer you a program of equal or better value within 60 days of your request for comparison. · If GCI does not provide you with a program of equal or better value - you may terminate the Guaranteed Value program with GCI without penalty. Just send me a letter stating the details and I will make sure that we fulfill our commitment. Choose your savings by checking the box - That's Guaranteed Value! ~~ Brad Sees, Vice President, GCI Sales 1&1 3- Year Term - 20% Discount on Kodiak Analog Service with $100 credit caw 1&13-Year Term - 20% Discount on Kodiak Full PRI with $160 credit caw 1&1 3- Year Term - Everywhere Long Distance Plan: 7 cent calling inter& instate. 1&1 3- Year Term - Tl Data Service $287 monthly, $853 nonrecurring install. Because of these added savings, if your business switches its local services to another carrier without following the Guaranteed Value process before the end of the contract term GCI may charge a termination fee equal to the credit applied during the last 12 months. If the termination occurs before the end of 12 months, the termination fee will equal the total credits applied under this contract. I have thoroughly read, understand and choose to participate in this Guaranteed Value Plus Business Savings Plan. I have signed a letter of authorization to switch these services to GCI. This agreement does not include non-recu ing charges; r ulatory surcharges and taxes. Rick Gifford Printed Name Brian Phillips Gel Representative January 16,2008 Date , I I l ii I ,- /Hhf.. -fl~,~ o Required for all orders Gel eOMMUNICATION, CORP. LOCAL AND LONG DISTANCE SERVICE LETTER OF AGENCY Cf~tv~8-~D CUSTOMER NAME(S): Kodiak Island Borough MAILING ADDRESS: 710 Mill Bav Road CITY, STATE, ZIP: Kodiak, Alaska 99615 I designate GCI as my agent to initiate a change in my local exchange carrier and/or my long distance carrier to GCI (by checking the appropriate category below) on the telephone/account number(s) listed below. I understand that my local telephone company may charge up to $10 to change my long distance carrier and that I will be reimbursed by GCI if that occ urs. In any area that GCI serves, you can choose one carrier for in-state long distance service and a different carrier for out-of- state long distance service. Please mark the appropriate selections below. If you want GCl for both in-state and out-of-state, mark both selections. If you want GCI for local service, also mark that selection. _x_ GCI FOR IN-STATE LONG DISTANCE AND _x_ GCI FOR OUT -OF-STATE LONG DISTANCE AND _x_ GCIFORLOCALEXCHANGESERV~E X Rick Gifford (Printed Name) X Januar 16 2008 (Date) !11J;i , ~ CjuuWv Please list all applicable telephone/account numbers: Telephone Number(s): (907) 486-9300-99 (907) 486-9200-99 Account Number(s): Existing Local Phone Company: ACS Please fax back to Brian Phillips, Gel at 907 -868-9580 Account Rep Initials:BPHillips i I l iii I ,. -1.:. INTERNET SERVICE AGREEMENT . · 2550 Denali St., Suite 1000 . Anchora e AK 99503 . Business Business Name: Kodiak Island Borough Address: PO Box 1397 City/State/Zip: Phone #: Kokiak, Ak 99615 486-8668 Customer Name: Customer Kenan #: Paul Van Dyke, IS Administrator PLDB 001001822 Cable Data #: Fax #: Term of Service: 5- Yr. Install Address or Latitude/Longitude: Upgrade to InetKODKIB CPE-1 Internet POP Termination Point: GCI Internet POP at KDC Customer Equipment Room Location: KodlslandBoro Bldg Server Room Describe any issues bringing service to termination point: This is a shared City and Borough Internet with two separate PLDB accounts and two separate tail circuits, one serving City of Kodiak and one serving the Kodiak Island Borough Requested Due Date: 12/03/2007 Cable Install Date: Description Qty Monthly Recurring Non Recurring Extended MRC Extended NRC Circuit DD4107 GCN 256k Internet 1 ($1,312.67) $0.00 1 Upgrade to 1.5M MC DIAS 1 $864.50 $0.00 Install new T1 Circuit 1 $360.14 $853.00 ($88.03) $853.00 TOTAL CHARGES: Comment: Promotions: This is a shared Internet DIAS router/ City and Borough sharing same Cisco edge router. Total PORT speed is 3M. Rate limit City to 205M and rage limit Borough to 205M. Coordinate with Paul at Boro and Kris at the City any service affecting outages in the course of this upgrade. New router will be deployed. GCI Account Manager: Brian Phillips 868-6918 Date: 12.03.07 Support Representative: Lea David I hereby acknowledge that I have read and accept GCI's posted terms and conditions found at www.Qci.net/tnc <httD://www.aci.net/tnc>. I agree to pay all of the itemized charges. I understand that all LEC pricing is subject to tariff changes and that billing will commence immediately following service turn-up and acceptance. Name: Sign ~re Title: t : For additional information regarding technical suppo SUDDort@aci.net or call 265-5454 I Palre I of2 111805cb YES NO Is this currently an existing GCI line? .........Does customer require any inside wiring? Is this a new local line install? Is this a conversion of existing ACS line? o o o o o o o o If next answer is yes, a I&R premise visit is needed. If yes, a I&R premise visit is needed. A I&R premise visit is always needed. A I&R premise visit is always needed. Notes: YES NO Does customer want to be listed in Anchorage Does customer want foreign listing? Does customer want a Toll Free # ? Does customer want to be able to call LD? Does customer want any features? Does customer want free voicemail? Does customer need Static IP? (Fee is Waived) o o o o o o o o o o o o o o As: In what city? Destination # Coverage Area? If yes, what LD plan? Included at no additional charge Static IP is required if customer wants VPN Notes from Sales Rep: Below for PM: MetaSolv Order #: Metasolv Account #: GCI Direct Phone # Assi ned: 1. 2. Pa!:!e 2 of2 11180Scb Kodiak Island Borough MEMORANDUM FROM: Honorable Mayor and Assembly Members of the Kodiak Island Borough Rick Gifford, Borough Manager (Otl Karleton Short, Finance Director1(i CuYlt: \ O.e V\ 17 JrL LAVTT I L ~rRAtf lS A-W/YRVe-lI TO: THROUGH: SUBJECT: DATE: Telecommunication Services RFP Dee 7, 2007 On July 10, 2007 the Borough issued a Request for Proposal for Telecommunication Services. The proposal deadline was extended from August 1 to August 8,2007. We received five proposals: one each from Alaska Communications Systems (ACS), GCI Communication Corp (GCI), Pacific Software, Tekmate and Ukpikj Avaya. These proposals were all received on time and all five proposals contained all of the required information. A team of four people evaluated the proposals. These were Karleton Short, Finance Director; Paul VanDyke, Network Administrator; Andrew Carmichael, Network Technician and Meagan Christiansen, Finance Secretary. This proposal had six components and proposers were allowed to propose on any or all of the components. The six components included in the RFP are: 1.) Local telephone service 2.) Long distance telephone service 3.) Remote data connections 4.) Internet connection 5.) Cellular phone service 6.) Replacement or upgrade of the Borough telephone system, which is 10 years old and is no longer supported by the manufacturer. Both ACS and GCI responded to components 1 through 5 above. ACS, Pacific Software, Tekmate and Ukpikj Avaya responded to component 6 above. All proposals were evaluated based on the level of service, cost and overall best value to the Kodiak Island Borough. Evaluation: Item 1: This item represents our local dial-tone. As shown in table 1, Gel's proposed costs for these services are lower than ACS. Item 2: Our current long distance provider is AT&T. They did not respond to our RFP. The prices shown in Table 1 are based on actual phone bills that were priced by each company's proposed offering. GCl's long distance plan priced the bills lower than ACS. Item 3. The Borough has two remote locations that require dedicated data connections, the Baler facility and the Kodiak Fisheries Research Center. These are the monthly costs to connect those facilities to the Borough's network for sharing information. GCI's proposal provides that connectivity at a lower cost to ACS. Item 4: The Borough currently uses GCI for internet services. The connection that GCI has provided allows the Borough and City to share services, reducing the overall coststo each entity. The proposal that GCI has provided continues this sharing ability and allows the Borough to increase its usage to 166% of the proposed speeds in time of need without any' increased costs. ACS's proposal did not allow for any such measures. Item 5: The proposed prices in Table 1 for Cellular phone service are based on an estimated usage ' of 3 smart phones and 7 regular phones. Another reason for choosing GCI over ACS was the availability ofthe Blackberry phones. These will allow our employees to send and receive email from the Borough'sema'il system while in the field. ' \ Item 6: We received several proposals for this item. Both ACS and Tekmate proposed to upgrade our current phone system. Pacific Software and Ukpikj Avaya proposed new telephone systems. The costs for the new phone systems were in line with the upgrade proposals. However, when studied in more detail the new phone systems would require the Boroughto spend an estimated $10,000 - 15,000 in upgrading the data network. These proposals were discounted and we focused on the upgrade proposals. ACS also proposed Centrex service, which requires no upfront expenses, but has a higher monthly service fee. Items 1 through 5 are the estimated monthly costs. 2 Table 1 ACS GCI ACS ACS Tekmate (Services) (Services) (Centrex) (Mitel PBX) (Mitel PBX) 1.) Local telephone service 624.00 539.76 2.) Long distance telephone service 156.92 135.66 3.) Remote data . - connections 1,131.53 587.12 4.) Internet connection 1,116.36 1,224.64 5.) Cellular phone service 299.51 270.00 6.) Telephone system a. Cost after 1st Year 21,458.28 50,175.56 41,086;83 b. Cost after 5th Year 107,291.40 116,127.60 87,587.31 Based on this evaluation, it is recommended that contracts be awarded to Gel for 1.) Local telephone service 2.) Long distance telephone service 3.) Remote data connections 4.) Intern~t connection 5.) Cellular phone service It is recommended that contracts be awarded to TekMate and Mitel for 6.) upgrade of the Borough telephone system to a Mitel3300 ICP. These contracts will begin upon successful installation and are for 3 years and may be extended for 2 years. Benefits/Cost Savings: By implementing the proposed contracts, the Borough will be able to provide caller-id information to and from the Borough. It will also save on the number of phone lines required to handle the Borough's business as the new lines can be used to make calls and receive calls simultaneously. The long distance plan that the Borough is currently using is very outdated and inefficient. We estimate that we will be saving half on our long distance bill each month when we implement this contract. The Borough currently uses both ACS and GCI for our data connections. When we switch to GCI for both data connections, we will be saving approximately 33% on the connection that is switched. As stated above, the Borough shares part of its existing Internet services with the city. With GCI, we are able to get an additional increase of 66% more bandwidth when needed, based on the type of connection that the Borough and city presently share. With new technology available to the island, the new contract provides the Borough with a six-fold increase in speed at a monthly price that is slightly less than the previous contract. 3 Currently, the Borough has a few cell phones assigned to specific employees. The new plan will provide cell phones to more employees and allow us to bundle our minutes between phones. This will allow us to pick a plan with a lower cost/minute rate. The Blackberry smart phones will provide a rich experience for those employees who carry them out ofthe office. They will be able to efficiently conduct Borough business while in the field as they are able to access their email, calendar and contacts. This proposal will upgrade the existing phone system with a modern phone system with cost saving features. The current phone system has reached an end of life status with the manufacturer and is no longer serviceable thru a maintenance contract. This can lead to unexpected, costly repairs. New features available with the phone system will help employees be more efficient at their desk and away. Because the new system is more network centric, the current MIS staff will be able to better support it and make required changes without involving additional resources. This will save money by reducing costly support calls. The maintenance costs on the new phone system are also reduced from what the Borough has historically paid for the current phone system. 4 KODIAK ISLAND BOROUGH AGENDA STATEMENT DECEMBER 20, 2007 REGULAR MEETING f2~t tJ.06/f- ~O ITEM NO. 13.A.3 TITLE: Contract No. FY2008-20 for Telecommunication Services for the Kodiak Island Borough. SUMMARY: The Kodiak Island Borough MIS Department issued a Request for Proposal for Telecommunication Services. This proposal had six components and proposers were allowed to propose on any or all of the components. The six components included in the RFP are: 1.) Local telephone service 2.) Long distance telephone service 3.) Remote data connections 4.) Internet connection 5.) Cellular phone service 6.) Replacement or upgrade of the Borough telephone system, which is 10 years old and is no longer supported by the manufacturer. Several companies have submitted proposals. Per KIBC 3.16.110 Competitive sealed proposals--negotiated procurement. D. Proposals shall be received at the time and place designated in the request for proposals and shall be opened so as to avoid disclosing their contents to competing proponents during the process of negotiation. Proposals and tabulations thereof shall be open to public inspection onlv after the contract award. Complete section of KIBC 3.16.110 is attached. FISCAL NOTES: Account No.: Amount Budgeted: Expenditure Required: APPROVALFORAGENDA:~~ RECOMMENDED MOTION: Move to authorize the manager to negotiate Contract No. FY2008-20 with in the amount not to exceed