HomeMy WebLinkAboutMINUTES - 02241987 - 2.3 TO BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator and Contra
Bart Gilbert, General Services Director Costa
DATE: February 24, 1987 Count/
SUBJECT: Telephone System Improvements
SPECIFIC REQUEST(S) OR RECOMMENDATION(.S) & BACKGROUND AND JUSTIFICATION
I . RECOMMENDATIONS
A. Approve the Countywide Enhanced Digital Centrex Service
as proposed by Pacific Bell with modifications and improvements
from the concept approved on September 16, 1986.
B. Direct the County Administrator to proceed with deferred
financing arrangements for prepayment of the proposed 10 year
service agreement with Pacific Bell.
C. Direct the General Services Director to proceed with
replacement of leased telephone instruments with County-owned
equipment.
D. Direct the General Services Director to proceed with all
necessary actions to implement the telephone system improvements
as soon as practical.
II . BACKGROUND
The Board of Supervisors on September 16 , 1986 approved a
proposal from Pacific Bell for telephone system improvements and
authorized the General Services Director to negotiate and sign an
agreement for the enhanced services subject to review and
approval by the County Administrator.
The negotiated agreement provides for revisions from the
September proposal. The new agreement offers added features with
additional savings.. The revised agreement has been reviewed by
and has the approval of the County Administrator and the County
Counsel.
CONTINUED ON ATTACHMENT: YES SIGNATURE;
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(SI:
ACTION OF BOARD ON February 24, 1987 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN. OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED P?41 19FI7
General Services Director PHIL BATCHELOR CLERK OF THE BOARD OF
County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
I
M382/7-8
BY ,DEPUTY
382/7-83
-2-
III . FINANCIAL IMPACTS
The County' s present cost for telephone service is
approximately $107 , 000 per month. The new proposal can be
obtained for approximately $73 , 500 per month through the use of
provisions which allow for prepayment to Pacific Bell of the 10
year fixed price agreement for a net savings annually of
$402,000. This arrangement protects the County from most rate
increases for the enhanced services during the entire term of the
agreement. In order to take advantage of the prepayment
benefits, it is necessary that the County proceed with a deferred
financing securities issue. The costs to amortize the issue are
included within the estimated net cost noted above for the new
proposal.
Further substantial cost reductions will be realized by
replacement of existing leased telephone instruments with
County-owned equipment to be purchased with funds already
available. The General Services Director is preparing
specifications for competitive bids for the purchase of the
replacement equipment.
There are many other advantages to the new system in
conjunction with replacement of the telephone instruments that
will result in improved service, future real cost reductions and
simplified telephone system management.