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HomeMy WebLinkAbout10/15/2003 - STAFF REPORTS (3) DATE: October 15, 2003 TO: City Council FROM: Director of Procurement and Contracting via Assistant City Manager PUBLIC TELECOMMUNICATIONS CONTRACT SERVICES AGREEMENT RECOMMENDATION: That City Council approve a contract services agreement between the City of Palm Springs and Q3 Telecom, Inc. for the installation, maintenance and operation of public telecommunication services for the City of Palm Springs, Palm Springs International Airport and the Convention Center. SUMMARY: To establish a contract service agreement between the City of Palm Springs and Q3 Telecom, Inc. for public telecommunication services for pay phones. located throughout the City of Palm Springs. BACKGROUND: City Council approved agreement No. A3662 on May 1, 1996 for a public telecommunication service agreement between the City of Palm Springs and AT&T, Inc. Renewal Amendment No. 1 was approved by the City Council on July 28, 1999 that extended the agreement until September 15, 2004. Both of which were standard form agreements provided by AT&T. On August 27, 2002, correspondence from AT&T was sent to the Director of Information Technology notifying the City that a decision had been made not to renew the agreement and that AT&T would no longer be the prime contractor providing telecommunication services. However, AT&T had made arrangements with their subcontractor (Q3 Telecom, Inc.) to continue to provide services until the agreement expired. Effective with this interim arrangement, all pay phone commissions were to be negotiated and coordinated directly with Q3 Telecom. Unfortunately, these negotiations did not occur and no commissions have been paid since this transition date. Due to the economic impacts of September 11, 2001 and with the ever-increasing use of individual cell phones, the public pay phone business is no longer the profitable venture it once was. For liability reasons and public service, pay phones are still very much a necessity, especially for 911 emergency calls. Q3 Telecom, Inc., while facing severe economic hardships, has continued to provide quality service to the City of Palm Springs. As you can imagine, the number of pay phone providers in the industry has drastically been reduced in the last few years. In fact, when the contract was originally bid, AT&T was the only contractor who submitted a bid to the City and AT&T is no longer involved in any pay phone business. �A City Council Meeting October 15, 2003 Public Telecommunications Page 2 Q3 Telecom, Inc. is a local contractor based in Palm Springs. They provide telecommunication services to San Francisco and Los Angeles International Airports and would like to continue providing service to the City of Palm Springs. Q3 Telecom, Inc. over the period of the contract has made substantial investments in providing new pay phone enclosures and updated telecommunication technology. Staff has negotiated a new agreement with Q3 Telecom, Inc. which will allow the City to have uninterrupted telecommunication services and will provide a commission on the gross revenues received from the pay phones located throughout the City. Presently, the City does not receive any revenue from the pay phones. With this new agreement, the City and Convention Center will receive a 3% commission on the gross revenues and the Airport will receive a 4% commission due to the higher volume of calls made. It is difficult to estimate exactly how much will be received in commissions with the declining use of pay phones. FY02/03 gross revenues were as follows: 1) City $9,433.00 2) Airport $9,280.00 and 3) Convention Center $1,446.00. The attached contract service agreement is for a five (5) year term commencing November 1, 2003 through November 1, 2008 with provisions for the City to have an automatic renewal option for five (5) one-year terms extending the contract to November 1, 2013.with five (5) one year automatic renewal periods. Due to the lack of telecommunication provider's left in the industry, and with the proven track record for quality service and airport experience from the current local contractor, staff recommends City Council approve the attached minute order authorizing the contract service agreement. r r HAROLD GOOD T TZLAFF Director of Procurement & Contracting Assista it Manager APPROVE Z ;; --� City Manager Attachments: (1) Minute Order (1) Contract Service Agreement REVIEWED BY DEPT.OF FINANCE .zRz CITY OF PALM SPRINGS CONTRACT SERVICES AGREEMENT FOR PUBLIC TELECOMMUNICATIONS THIS CONTRACT SERVICES AGREEMENT (herein "Agreement"), is made and entered into this day of , 2003, by and between the CITY OF PALM SPRINGS, a municipal corporation, (herein "City") and Q3 Telecom, Inc. (herein "Contractor"). (The term Contractor includes professionals performing in a consulting capacity.) The parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, which services may be referred to herein as the "services" or "work" hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contractor's Proposal; The Scope of Service shall include the Contractor's proposal or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement,the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 1.4 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or imposed against City hereunder. 1.5 Familiarity with Work. By executing this Contract, Contractor warrants that Contractor(a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate P52/26/09 9 9 99d000/2160684 2 6/14/96 Revised 09/01/99 1 �� 3 EXHIBIT "A" SCOPE OF SERVICES USE AND OPERATIONAL REQUIREMENTS GENERAL REQUIREMENTS The following operational requirements apply to all aspects of the Turn-Key Public Communications Concession as described in this Lease. Contractor's complete turn-key public communications system includes: public pay telephone equipment, enclosures, hardware, cabling, software, maintenance, provisioning of local, intraLATA, interLATA and international operator services, data ports, TDDs,volume control handsets, required signage, debit/pre-paid calling card vending, public facsimile services, coin changers, public internet access, and Calling/Business Centers in such locations and in such quantities as shall be designated by the Contract Officer. Tenant shall provide high quality service to the City and the public via the installed public communications devices and services listed above. Contractor shall,without cost to the City, provide all improvements necessary for the customary operation of the Public Pay Communications Concession in a first class manner. Contractor is required to perform moves, adds, changes and improvements in any area of the City at the Contract Officer's request within five (5) days of written or verbal notice. All Public telephone equipment, enclosures, directory holders, handsets, TDDs, data ports, facsimile machines, debit/prepaid vending machines, internet kiosks, and coin changers to be installed in the City shall be in new condition and be of first quality to the satisfaction of the Contract Officer. Should a conflict arise between the Contractor and other service operators at the City regarding the scope of service privileges, the City shall resolve the conflict. Contractor agrees to abide by City's decision. If there is any conflict or inconsistency between the terms of this Lease and such response,the terms of this Lease shall prevail. Hours of Operation Public Telecommunication Concession will be operated twenty-four (24) hours per day, seven (7) days per week. Passenger Complaints Consumer questions or complaints regarding the Contractor's services that come to the City's attention shall be forwarded to the Contractor. Contractor shall reply to the consumer inquiry, in writing,within 48 hours of receipt of an inquiry from either the City or the consumer. Contractor shall provide a copy of such replies to the City, as well as include a status report of each question or complaint during monthly status meetings to the City. F92/276/099999-3000/2160684 2 6/14/96 Revised;09/01/98 13 Fraud and Non-collectibles Contractor shall be responsible for collections and shall assume all financial responsibility for dishonored credit cards and loss of uncollected funds. DBE Requirements Contractor agrees to take necessary measures to ensure meaningful and equitable participation in this concession by Disadvantaged Business Enterprises (DBE) as required the Department of Transportation Programs (49 CFR 26). DBE percentages shall be reported to the City on a annual basis in a format specified by the Contract Officer. Maintenance Contractor agrees to provide 7/24 maintenance coverage of the Turn-Key Public Communications Concession. Such maintenance and routine cleaning shall be affirmatively reported to the Contract Officer on a quarterly basis. Contractor shall, at the request of the Contract Officer, conduct informational training sessions on its equipment functions to City personnel charged with assisting customers. TechnologV Enhancements Contractor shall research all new public communications equipment and services and report findings to the City. Contractor shall implement such new public telecommunications equipment and services at the sole discretion of the Contract Officer. Reporting and QuarterlV Meetings Contractor shall affirmatively report on any Turn-Key Public Communications Concession activity, on a quarterly basis, including but not limited to: moves, adds and changes;ADA compliance; revenue reporting; trouble reporting; and equipment and usage reporting. SPECIFIC EQUIPMENT AND SERVICE REQUIREMENTS Contractor shall provide the following equipment and services, in such quantities determined by the Contract Officer as to operate the Turn-Key Public Telecommunications Concession: Public Telephones ITS-Universal Public Telephone/Smarter Solution: Eclipse or Equivalent System. Handsets shall be capable of mounting into a standard acoustical coupler. A minimum of 75%of public telephones shall be universal sets, capable of accepting nickels, dimes and quarters, as well as credit card swipe/insert. Each public telephone shall utilize at least one public pay telephone line per set. FS2/276/099999-3000/2160684 2 6/14/96 Revised 09/01/98 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 14 aim Public telephone aggregation and/or line concentration is prohibited underthe Permitted Use. Dual tone multi-frequency technology shall be utilized in all public telephone stations. TDD's Contractor shall install Ultratec Motorized Public TTYs and Ultratec Shelf Top Public TTYs or equivalent in the quantity and locations specified by the Contract Officer. Rates Public telephone service charges shall conform to all applicable state and federal regulations and tariffs. Public telephone rates charged shall not exceed the tariffed rates of Pacific Bell for local and intraLATA calls, and shall not exceed AT&T tariffed rates for interLATA and international calls. Contractor shall give City thirty (30) day notice of any rate increases. Contractor shall not charge end users for incomplete calls. Calling Cards Contractor shall accept all major credit cards and calling cards for payment of intraLATA and/or interLATA telephone calls. FS V276/099999-300012160684 2 6/14/96 Revised 09/01/99 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 15 In-Language Operator Assistance Contractor's long distance operators shall make in-language operator assistance available via operator assisted services twenty four (24) hours a day, seven (7) days a week, at no additional charge to the caller. Directories Contractor shall place, and replace missing damaged or outdated telephone directories as needed or as specified by the Contract Officer within five (5) days of written or verbal request. Contractor shall supply quality telephone directory holders of standard industry type and quantity or as specified by the Contract Officer. Data Ports A minimum of 50% of public pay phones shall be equipped with data ports. Volume Control Handsets A minimum of 75% of public telephones shall be equipped with volume control handsets that reset to normal upon return to an on-hook condition. Services Provided at No Charge to the Caller Contractor shall provide at no additional charge to the users 0+, 0-, 1+, 911, 1-800, and other such toll-free call calling from each public telephone. Callers must be able to dial 911 without inserting coins. Contractor shall provide all requested number identification and information to enable the City of Palm Springs Police Dispatch Center to accurately identify the location of each public telephone covered under this lease. Services Provided to the Caller 411 (local directory assistance) at$.35 per call to the user. Enclosures Enclosures for the New IT shall include, but are not limited to, the equivalent or greater quality, functionality, physical specification and appearance as ADCO 800 series sit-down (37"wall divider), ADCO 90Ls, ADCO Capsule 80s and ADCO Series 20. Enclosures shall include any options necessary to fulfill the requirements of this agreement as determined by the Contract Officer. Options include, but are not limited to, TDD shelves, adapter brackets and or kits, divider walls, duplex outlet, end phone housing, console back cover kit, directory holders, and modified shelving No. 130-632. Enclosures designated by the Contract Officer within other areas of the City shall be of quality, functionality, physical specification and appearance as ADCO 90Ls,ADCO Capsule 80s, ADCO Series 20 or, alternative enclosures as specified by the Contract Officer. PS2/296/0999 9 9-9 0 0 021606 84.2 6/14/96 Revised 09/01/98 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 16 Pre-Paid Telephone Card Contractor shall sell Pre-Paid Telephone Cards. Contractor shall at all times perform its obligations under such license agreement and keep said license agreement in full force and effect. Rates charged to the end-user shall not exceed $.50 per domestic minute, and the prevailing market rate as determined by the Contract Officer, per international minute. All taxes and per call compensation payments shall be the sole responsibility of the Contractor. Rates charged to end-user to recover these payments shall not exceed the per-minute rate. Contractor shall provide "live" customer service to Pre-Paid Telephone Card users twenty-four(24) hours per day, seven (7)days perweek. Contractor shall install and maintain Pre-Paid Telephone Card vending equipment of the quality, functionality, physical specification, and appearance as specified by the Contract Officer. Pre-Paid Telephone Cards may be used in public pay telephone enclosures of the type ADCO 90L, or equivalent, in quantities as specified by the Contract Officer. Cost of fraudulent usage and non- collectible revenues shall be borne by the Contractor. Pre-Paid Card shall not expire prior to the use of all minutes or units designated on the card. Contractor shall not charge caller for busy signals, or ring-no-answer calls. Contractor shall vend every Pre-Paid Telephone Card Machine daily. Internet Access and Automated Facsimile Service Contractor shall install and maintain internet access and automated facsimile equipment and services of the quality, functionality, physical specification, and appearance as approved by the Contract Officer, into public pay telephone enclosures of the type ADCO 90L in quantities or as specified by the Contract Officer. Contractor shall provide the following services: send/receive e- mail, internet access, print and copy functions, dataports, send/receive facsimile service, and public pay telephone functionality. Prices charged to the end user shall be no more than: Internet Access to include a one-time connection charge of$6.95, and $3,95 for each ten (10) minute block of time. The equipment shall prompt the user to affirmatively acknowledge the cost of utilizing the service prior to incurring any charges. Contractor shall not charge the user for failed attempts. Facsimile Service - $3.95 per minute for local, $6.95 per minute for long distance, and $9.95 per minute for international. Contractor shall charge the end user for actual facsimile transmission time rounded to the nearest minute. The equipment shall prompt the user to affirmatively acknowledge the cost of utilizing the service prior to incurring any charges. Contractor shall not charge the user for failed attempts. Public Telephone Calls—Rates charged to an end user for utilizing the public telephone function shall not exceed the tariffed rates of Pacific Bell for local and intraLATA calls, and shall not exceed AT&T tariffed rates for interLATA and international calls. Contractor shall not charge the user for failed attempts. Contractor's software shall actively scan for viruses. Contractor shall provide internet and facsimile services in the following languages: English, Spanish, French, German, Russian, Chinese, Japanese, and Korean. In the event the end user requests a full refund, Contractor shall refund the full amount of the transaction to the end user within five (5) business days. In the event additional features and functionality of the public Internet access and facsimile equipment become available by the manufacturer,such features and functions shall be added to the equipment at the sole discretion of the Contract Officer. FS2/276/099999-3000/2160664 2 6/14/96 Revised.09/01/93 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 17 02 PROHIBITED USES Completion of calls utilizing the 976 prefix. Completion of 1-900 calls. Access to obscene material via Tenant's Internet Service. Use of store and forward technology of any kind. Sale of any merchandise or other service not expressly permitted by this Lease. ACTIVE CITY OF PALM SPRINGS PUBLIC PAY PHONES PALM SPRINGS INTERNATIONAL AIRPORT 3400 East Tahquitz Canyon Way, Suite OFC Palm Springs, CA 92262 Listed below are the Active ANI's at the Palm Springs International Airport. All ANI's are located in the 760 Area Code. Includes: 23 Data Ports, 3 TDD Units, 32 Card Readers, 8 ADA Compliant Pay Phones. ANI LOCATION 760-416-7655 Gate 6 760-416-7545 Gate 6 760-416-7265 Gates 10/11 760-416-7365 Gates 10/11 760-416-6375 Gates 10/11 760-327-4316 Gates 10/11 760-416-7645 Next to Men's Room 760-416-7945 Next to Men's Room 760-416-8835 Next to Men's Room 760-416-7985 Next to Men's Room 760-416-7575 Next to Men's Room 760-416-3975 Next to Men's Room 760-318-3709 (TDD) Main Entrance 760-416-5925 Main Entrance 760-416-2037 Main Entrance 760-416-9357 Main Entrance 760-416-9356 Main Entrance 760-320-8245 Main Entrance 760-416-0795 Main Entrance 760-416-9385 Northeast Corner/Baggage Claim 760-416-4398 Northeast Corner/Baggage Claim 760-416-0857 Outside Gates 9/11 760-416-5927 Ground Transportation Taxi Building 760-416-8946 Inside Gates 9/11 760-327-9079 Inside Gates 9/11 760-325-0175 Baggage Claim FS2/296/099999-3000/2160604 2 6/14/96 Rcviscd 09/01/99 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 18 760-325-1275 Baggage Claim 760-416-9346 W. Baggage Claim 760-327-9089 (TDD) W. Baggage Claim 760-322-9086 W. Baggage Claim 760-322-9426 (TDD) Breezeway 760-416-9246 (TDD) Breezeway 760-320-1260 (ADA Compliant) Continental Ticketing 760-320-1870 (Relocate to Customs) Continental Ticketing PALM SPRINGS CONVENTION CENTER Listed below are the Active ANI's at the Palm Springs Convention Center. All ANI's are located in the 760 Area Code. 760-416-0981 Convention Center 760-416-0984 Convention Center 760-416-5921 Convention Center 760-416-5952 Convention Center 760-416-8861 Convention Center 760-416-8871 Convention Center 760-416-8941 Convention Center 760-416-8963 Convention Center 760-416-8974 Convention Center 760-416-9241 Convention Center 760-416-9251 Convention Center 760-416-9341 Convention Center 760-416-9451 Convention Center 760-416-9471 Convention Center 760-416-9643 Convention Center 760-416-9715 Convention Center 760-416-9821 Convention Center CITY OF PALM SPRINGS PAY PHONES Listed below are the Active ANI's in the City of Palm Springs. All ANI's are located in the 760 Area Code 760-416-0198 Hair of the Dog Saloon, 240 N. Palm Canyon Drive 760-416-8570 Hair of the Dog Saloon, 240 N. Palm Canyon Drive 760-416-8960 Hair of the Dog Saloon, 240 N. Palm Canyon Drive 760-416-9248 Ruth Hardy Park, 700 Tamarisk Road 760-416-9289 Ruth Hardy Park, 700 Tamarisk Road 760-309-1456 Las Casuelas Parking Lot, corner of Indian Canyon and Arenas 760-320-3807 Las Casuelas Parking Lot, corner of Indian Canyon and Arenas 760-320-1346 Francis Stevens Park, 538 N. Palm Canyon Drive PS2/275/099999-1000/2160684 2 6/14/96 Revised'09/01/92 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 19 VA �� 760-416-5949 Pavillion, 401 Pavillion Way 760-416-8760 Pavillion, 401 Pavillion Way *760-327-093Ox8792 City Council, 3200 E. Tahquitz Canyon Way *760-327-093Ox8793 City Council, 3200 E. Tahquitz Canyon Way *760-327-0872x8794 City Council, 3200 E. 'Tahquitz Canyon Way *760-416-0459x8657 Police Station Lobby, 200 S. Civic Drive *760-325-2412x8658 Police Station Jail, 200 S. Civic Drive 760-416-0579 Police Station Holding (Non-coin phone, O+Calls Only), 200 S. Civic Drive 760-416-0668 Police Station Holding (Non-coin phone, O+Calls Only), 200 S. Civic Drive 760-416-9239 Visitors Center, 2781 N. Palm Canyon Drive 760-325-5239 Demuth Park Youth Center, 4363 Mesquite Avenue 760-321-6195 Golf Club Drive, 1885 Golf Club Drive 760-416-9978 Chamber of Commerce, 190 Amado Drive 760-323-9086 Lobster Company, 369 N. Palm Canyon Drive 760-322-9903 Lobster Company, 369 N. Palm Canyon Drive 760-320-5836 Desert Highland Park, 480 Tramview Road 760-325-4353 Library/Stadium, 1901 Baristo Road 760-325-4245 Library/Stadium, 1901 Baristo Road *760-320-7856x8799 Doggie Park, 222 Civic Drive 760-323-0449 Amtrack (Non-Coin/Credit Card Only), 63950 Palm Springs Station Road * Phones placed on the City of Palm Springs Centrex System (PBX). Q3 to provide technical service and shall pay any associated cost to accommodate dial tone services. PS2/276/099999-3000/2 160684 2 6/14/96 Revised 09/01/98 EXHIBIT"A" TO CONTRACT SERVICES AGREEMENT 20 07040 EXHIBIT "B" SPECIAL REQUIREMENTS The City of Palm Springs will provide dial tone to select pay phones where capacity allows through the Airport, City Hall, Convention Center and Police Department PBX systems. Q3 Telecom to provide PBX expansion cards necessary to accommodate dial tone. Carrier service for all local and long distance calls will be provided by Q3 Telecom and all expenses for such services to be paid for by Q3 Telecom. Carrier cost for all local and long distance cost to be paid for by Q3 Telecom. Q3 Telecom will provide additional expansion to the Airport's PBX system in order to accommodate existing pay phone capacity. Q3 Telecom will leave additional space on the Airport's PBX system for future use by the Department of Aviation. Handling of 911 calls from public pay phones will be directed through the PBX system when applicable. For Public Telecommunication purposes related to this agreement, Q3 Telecom may provide wireless communication systems upon receiving written acceptance of such services from the Contract Officer. Upon receiving written approval from the Contract Officer, Q3 Telecom shall have the right to install and operate wireless equipment for public telecommunication services in all locations covered under this agreement. Such public telecommunication equipment shall be provided by Q3 Telecom and shall be deployed to the assigned locations for access to users on a pay-per-use and/or subscription basis. FS2/276/09 9 9 993 000/2160 604 2 6/1419 6 EXHIBIT"B" Revised 09/01/98 TO CONTRACT SERVICES AGREEMENT 21 EXHIBIT "C" SCHEDULE OF COMPENSATION AIRPORT PASSENGER BASED FEE: 4% of gross revenue received from the Palm Springs International Airport pay phones as reported per agreement year. CONVENTION CENTER % OF GROSS REVENUE: 3% of gross revenue received from Convention Center pay phones as reported per agreement year. CITY OF PALM SPRINGS % OF GROSS REVENUE: 3% of gross revenue received from the City of Palm Springs pay phones as reported per agreement year. F92/276/099999-3000/216068426/14/96 EXHIBIT "Cn Re,,wd 09/01/98 TO CONTRACT SERVICES AGREEMENT 22 �ft 13 MINUTE ORDER NO. APPROVING A CONTRACT SERVICE AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND Q3 TELECOM, INC. FOR A FIVE (5) YEAR TERM WITH FIVE (5) ONE-YEAR AUTOMATIC RENEWAL OPTIONS FOR THE INSTALLATION, OPERATION AND MAINTENANCE OF PUBLIC TELECOMMUNICATION SERVICES FOR THE CITY OF PALM SPRINGS, PALM SPRINGS INTERNATIONAL AIRPORT AND THE CONVENTION CENTER. I HEREBY CERTIFY that this Minute Order, approving a contract service agreement between the City of Palm Springs and Q3 Telecom, Inc. for a five (5) year term with five (5) one-year automatic renewal options for the installation, operation and maintenance of public telecommunication services for the City of Palm Springs, Palm Springs International Airport and the Convention Center adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 15th day of October, 2003. PATRICIA A SANDERS City Clerk P�