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MEMO TO: MAYOR AND CITY COUNC <br />FROM: CLERK-ADMINISTRAT'JR_ <br />DATE: MAY 8, 1986 <br />SUBJECT: TELEPHONE SYSTEM MAINTENANCE AGREEMENT <br />Enclosed please find a letter from Executone Systems of <br />Saint Paul along with a copy of the proposed Maintenance <br />.Agreement on the City's telephone system commencing May 1, <br />1986 which is the time the City's one year warranty for Cie <br />equipment expired. Unfortunately, this item was not <br />included in the 1986 budget, however, Staff feels that it is <br />of such importance that the Council should authorize this <br />contract with the cost, $1,116.00, coming from the <br />Contingency Account. <br />The Staff feels that having a Maintenance, Agreement on the <br />phone system is important due to the fact that service calls <br />are charged at a rate of $57.00 per hour plus travel <br />expenses and material. In the past six months, the City has <br />averaged at least one service call Per month on the <br />equipment with each service call beinq in excess of $80.00 <br />' with a high of $200, In other words, should we continue to <br />have service calls at this rate over the next year, even <br />though they were at a minimum charge of $75.00, we would be <br />spending $900 of the $1,116 cost for a maintenance <br />agreement. <br />Staff feels that due tc tie past history on repairs of this <br />system, the e5solute necessity for tr.e system to be well - <br />maintained, and the service call charges levied by Executone <br />that this Maintenance Agreement is a necessity. <br />RECOMMENDATION: itaff would recommend that Council <br />authorize Clerk-Acministratot to enter into a Maintenance <br />Agreement with Executone Systems of Saint Paul, Inc. in the <br />amount of $1,116 with the funds coming from the Contingency <br />Account. <br />DFP/mjs <br />4 <br />