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APPROVAL TO AWARD BID FOR TELEPHONE <br />SYSTEM - RAYCOMM BUSINESS TELEPHONE SYSTEMS <br />Hundley related to Council the reason for <br />obtaining bids for a new telephone system. The <br />present system is outdated and very costly to <br />repair (approximately $1800 annually). With the <br />inclusion of the new City Shops into the system <br />and a reduction in staff, bids were obtained to <br />replace the City's present system. <br />Hioco described the details of the proposal and <br />the companies who responded. On the basis of the <br />bids received, Hioco recommended Raycomm Business <br />Telephone System, Strata XII 20 Key ED+ system for <br />City Hall and City Shop at a cost of $20,023, with <br />a 60 month lease payment of $452.52/month for the <br />system with a $1.00 buy-out at the end of the <br />lease period. Raycomm is crediting the City's <br />present system in the amount of $1200. <br />Anderson stated that he had recently gone thru <br />this same process in obtaining bids for a phone <br />system at his place of business and asked several <br />questions regarding expandability, installation, <br />maintenance and warranty (a one year warranty is <br />written into the contract; an extended maintenance <br />agreement is available at $1,162 annually). <br />Training is included in the lease. <br />Hundley explained that the system was not <br />budgeted in this year's budget. It is going to <br />be a net increase of: approximately $3,000 for this <br />year absorbed into each department's budget as it <br />will provide better efficiency in light of <br />employee reductions this past year. <br />Sackett asked what the interest rate was on the <br />lease agreement. Staff wasn't sure as Raycomm is <br />obtaining the financing. Total financing charges <br />are approximately $7,000. <br />Mohr moved that Raycomm Business Telephone System <br />be awarded the bid for $20,023 with a 60 month <br />lease payment of $452.52. Sackett seconded. <br />Unanimous. <br />PUBLIC COMMENTS None. <br />COUNCIL COMMENTS AND <br />COMMITTEE REPORTS Carnival thanked and commended Anderson for his <br />participation in coordinating National Teacher <br />Day and the events honoring Louisville's teachers. <br />7 <br />