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ITEM: AUTHORIZATION TO UTILIZE A NATIONAL JOINT POWERS ALLIANCE (NJPA) CONTRACT, AS A BASIS FOR PRICING, FOR AN UPGRADE OF THE EXISTING TELEPHONE SYSTEM AT THE LAKE WELLINGTON PROFESSIONAL CENTER (LWPC)
REQUEST: Authorization to utilize NJPA contract #040 314-MBS, with Mitel Technologies, Inc., as a basis for pricing, to upgrade the existing phone system at the LWPC, at a cost of $28,901.16.
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EXPLANATION: Staff is seeking authorization to upgrade the existing LWPC phone system, utilizing Mitel Technologies, Inc., the original manufacturer and installer of the equipment. The phone service provided by this system is the primary receptionist, messaging, and fax service for the LWPC clients.
Mitel Technologies, Inc., is proposing a 36 month lease at a rate of $802.81 per month, utilizing NJPA contract #040-314-MBS, as a basis for pricing. The total cost of the lease is $28,901.16 over the three year term.
The Village currently pays $900 per month for the existing telephone equipment at LWPC, through an existing lease that was part of the purchase of LWPC.
By entering into a new lease, with upgraded equipment and full technical support, the Village will save approximately $97 per month ($900-$803) during the 36 month period, for a total savings of approximately $3,500 over that same period.
The existing phone system at the LWPC was originally installed in 1998. Due to the age and condition of the system, several phone system failures have been experienced during the past year. As of May 30, 2014, the existing phone manufacturer and installer Mitel Technologies, Inc., no longer provides active support, training and documentation for the existing system. Additionally, due to the age of the system, parts are no longer readily available.
After the lease commitment is fulfilled, the Village will have the option to purchase the equipment at fair market value or renew the lease agreement for an additional 36 months at 50% of the initial monthly cost ($401.40).
Staff recommends utilizing NJPA contract #040 314-MBS, with Mitel Technologies, Inc., effective through May 20, 2018, as a basis for pricing, for the lease of telephone equipment at LWPC through Mitel Leasing, Inc., at a cost of $802.81 per month for a period of 36 months.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Funds are budgeted in the FY 2015 Lake Wellington Professional Center's Rental and Lease Equipment budget. By entering into a new lease, with upgraded equipment and full technical support, the Village will save approximately $97 per month ($900-$803) during the 36 month period, for a total savings of approximately $3,500 over that same period.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to utilize NJPA contract #040 314-MBS, with Mitel Technologies, Inc., as a basis for pricing, to upgrade the existing phone system at the LWPC, at a cost of $28,901.16.