Agenda Packets - 2003/01/27 - Laserfiche WebLink

Home Browse Search

Item No. 8C Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Resolution 5909 Authorizing a Contract with Sprint for Long Distance Telephone Services Date of Meeting: January 27, 2003 As some of the City Council Members are aware, the city has had a contract with MCI Worldcom for long distance telephone services for many years and has had billing problems with the contract since last spring. MCI is supposed to bill the City directly for long distance calls at rates of 14.65 cents to 16.5 cents per minute. However, the charges have been billed through the Qwest bill for local phone service at rates of up to $5.00 per minute. James Ericson, Desaree Crane, and now Mary Tatarek have each, in succession, worked to try to resolve the problem. It has been exasperating and time consuming because they typically have been put on hold for up to 45 minutes before reaching a human being, who then is unwilling or unable to fix the problem. The problem occurred from April through July of 2002, seemed to be resolved during August and September, and then reoccurred from October onward. The total disputed charges for April through December 2002 are $4,034.99. I estimate that what we actually owe for long distance calls billed at the correct rates is less than 10% of the disputed charges. We have reached the point of concluding that the problem with MCI may not be solved and Mary Tatarek has gotten a proposal from Sprint for their long distance telephone service. It features a $50.00 per month minimum total charges for the city and rates of 6.4 cents to 9.0 cents per minute. It seems that due to mergers and bankruptcies, MCI and Sprint are the only two remaining providers of long distance telephone services. While I am recommending the change, I want the City Council to be aware of the risks. There are certain risks if we change to Sprint, and other risks if we remain with MCI.