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HomeMy WebLinkAbout5.F.4. Renewal of I-Net Maintenance Contract • City of Shakopee r ~ ~ ~ Memorandum ~Y TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Renewal of I-Net Maintenance Contract UPDATED DATE: March 14, 2008 Introduction The current maintenance contract for the joint City/County/School District I-Net is set to expire this spring. The Telecommunications Advisory Commission (TAC) is recommending that the Council authorize renewal of the contract. Background.. The City of Shakopee, Scott County and Independent School District #720 formed a Joint Powers Association to manage the institutional fiber network that serves all three jurisdictions. The Joint Powers has a maintenance contract with Access Communications, which provides any necessary maintenance and repairs, as well as locates required when property owners call Gopher State One-Call. This five-year contract is set to expire on May 31, 2008. We are required to give 60-days notice if we do not intend to renew, which means a decision needs to be made prior to March 31. The Board of the Joint Powers Association met on February 15 and discussed renewal of the contract with Access. The consensus of the three-member board was to recommend to our respective jurisdictions that the contract be renewed. Recent customer service from Access has been good and their knowledge of our network is valuable in resolving problems. The renewal with Access would retain all existing terms and conditions, and would run from June 1, 2008 to December 31, 2012. This four and a half year contract will allow the contract to be brought in line with the company's calendar year billing cycle and the City and County's calendar year budgeting. The contract provides for a maximum annual increase of 4% per year, plus increases for additional lengths of fiber installed (when a new school is built and connected to the network, for example). The bill is divided up amongst the City, County and school district based on our individual shares of the overall length of fiber. Budget Impact For 2008, the total cost of the contract with Access Communications would be $36,955. The City's share will be approximately 11% or $4,065. Funding for this cost was included in the 2008 Telecommunications Fund budget. r. Recommendation The Telecommunications Advisory Commission recommends renewal of the contract for a period of four and a half years. Requested Action If it concurs, Council is asked to offer a motion to authorize the appropriate officials to enter into a contract renewal with Access Communications, for maintenance and locate services on the joint City-County-School District I-Net.