HomeMy WebLinkAboutC-2381 - Consultant Agreement for Study of Existing Telephone SystemCOMMUNICATIONS ANALYSIS PLAN
PROPOSAL FOR
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' CITY OF NEWPORT BEACH
3300 NEWPORT BOULEVARD
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NEWPORT BEACH, CALIFORNIA
PRESENTED BY
COMMUNICATION RESOURCES COMPANY
1433 EAST BORCHARD AVENUE
SANTA ANA, CALIFORNIA
' FEBRUARY, 1983
' Proprietary Report for the Exclusive use of The City of Newport Beach
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' CONTENTS
PAGE
' OCOMMUNICATION RESOURCES COMPANY
1983
' All Rights Reserved. Printed in the United States of America. No
part of this document may be reproduced, stored in a retreival sys-
tem, or transmitted, in any form or by any means, electronic, mec-
' hanical, photocopying, recording, or otherwise, without the prior
written permission of
COMMUNICATION RESOURCES COMPANY
1433 East Borchard Avenue
Santa Ana, California
INTRODUCTION ................ ...............................
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PRESENT SERVICES ............ ...............................
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THE ANALYSIS PLAN ..........................................
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ANALYSIS AND PLANNING CRITERIA
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PHASE I - THE ANALYSIS ....................•.........
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PHASE II - COMPETITIVE BIDDING .......................
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PHASE III - FULL IMPLEMENTATION SERVICES ..............
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IMPLEMENTATION SUPERVISION ................
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TELECOMMUNICATION STUDY SCHEDULE ...........................
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SUMMARY ..................... ...............................
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CRC COMPANY BACKGROUND .....................................
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CLIENT REFERENCES ..........................................
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THE PROFESSIONAL TEAM •• ••• ••••.•••.......••••••.•••.•••••
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PERSONNEL 9UALIFICATIONS'AND EXPERIENCE ....................
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RESUMES ..................... ...............................
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WHYCRC ..................... ...............................
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AFFIDAVIT OF NON-AFFILIATION ...............................
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ARTICLE: WESTERN CITY MAGAZINE - AUGUST, 1982 .............
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' OCOMMUNICATION RESOURCES COMPANY
1983
' All Rights Reserved. Printed in the United States of America. No
part of this document may be reproduced, stored in a retreival sys-
tem, or transmitted, in any form or by any means, electronic, mec-
' hanical, photocopying, recording, or otherwise, without the prior
written permission of
COMMUNICATION RESOURCES COMPANY
1433 East Borchard Avenue
Santa Ana, California
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INTRODUCTION
The City of Newport Beach has been experiencing increasing costs
associated with their telephone related services. Additionally, the
growing complexity of telecommunications have brought new ideas and
considerations to the attention of the City management team. This
includes concerns about the pending deregulation and divesture of
Pacific Telephone Company and its effects on the City. These con-
siderations coupled with the budgetary pressures on all available
dollars, place particular importance on consideration of every ave-
nue of cost controls and reductions in spending. The City now rea-
lizes that it may be possible, through proper planning, to receive
improved telecommunication services with controlled, and possibly
lowered telephone costs. Consequently a Request for Proposals has
been sent to several Consulting firms specializing in telecommunica-
tions.
Communication Resources Company (CRC) has been given the opportunity
to present this planned program in response to the RFP, for complete
review of present services, development of requirements, presenta-
tion of alternatives for City consideration, assistance in competi-
tive bidding, and on -going coordination and supervision through pro-
ject completion and acceptance. The expressed desire of the City is
to determine what is the most effective and economical means of pro-
viding telephone communication services throughout the City and to
the citizens you serve.
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Representatives of Communication Resources Company and the City have
discussed how CRC could be of professional value to the City in this
complex area of planning communication services. CRC's expertise in
' working with several other municipal clients with similar services
and concerns provides CRC with a unique understanding of the objec-
ttives and goals of the City of Newport Beach in the areas of commu-
nication services.
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Preliminary discussions with the City and the subsequent RFP have
been used to develop this proposal Analysis Plan.
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COQC PRESENT SERVICES
' Present telecommunication services in use by the City of Newport
Beach consist of one principal switching system. This system is a
C.O. Centrex type electronic switching system. It is supplied to
the City by Pacific Telephone Company on a monthly rental basis.
Incoming calls are answered at the appropriate department, as cal-
, lers may direct dial desired parties individually. The primary
system in service today utilizes a combination of rotary and push-
' button type dialing and has approximately 425 Centrex stations. In
' addition, there are a limited number of outside business lines
throughout the City. The majority of these outside lines and Cen-
trex station lines appear on multi -line instruments at various
points throughout each of the City sites.
' In addition to the equipment detailed above there is an undetermined
quantity of telephones, trunk lines, equipment and accessories
tthroughout the City facilities.
' This initial CRC review of existing services and costs, indicates
1 that savings and improved service could be realized through imple-
mentation of recommendations made through the course of the propo-
sed Communication Analysis Plan. These study areas will fully
address the potential impacts of rate increases currently proposed,
' and the deregulation and divesture process, as well,
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Through the course of the planned program, CRC
will be able to more
clearly define and report to the City what may
reasonably be anti-
,
in
cipated the critical area of communication
service improvements
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and potential savings.
The primary objective of CRC, simply stated, is
to provide the City
of Newport Beach with least cost /best service
telecommunications,
both
now and throughout the foreseeable future.
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coec THE ANALYSIS PLAN
' Following an analysis of all available data, and under the direction
' Phase I will include a complete investigation of all present commu-
nication services within the City Offices to determine the degree to
which they are meeting the needs and requirements of the City. In
addition, CRC will establish the degree of cost effectiveness pre-
sent services are attaining as well as projecting and planning com-
plete communication services to meet the City's needs throughout the
foreseeable future.
This Phase is of key importance as it is where the basic determina-
tions are made in the areas of telephone traffic and system feature
' requirements. This is accomplished through equipment studies within
the present systems, personnel interviews, and projections of future
' requirements. At the completion of this initial study, a Phase I
Report will be presented to the City detailing initial findings,
' presenting recommendations, and outlining further action to be
' taken. Upon the completion of the study and report, and City
approval, CRC will proceed with Phase II, the complete planning, and
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of the City of Newport Beach, it has been concluded that
an
in -depth
analysis and study is in order. The complete plan will
be
divided
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into three (3) separate follow -on Phases and will require
approxi-
mately five (5) months to complete, excluding new system
implementa-
tion. It will be performed in the following sequence
for
all in-
cluded facilities.
' Phase I will include a complete investigation of all present commu-
nication services within the City Offices to determine the degree to
which they are meeting the needs and requirements of the City. In
addition, CRC will establish the degree of cost effectiveness pre-
sent services are attaining as well as projecting and planning com-
plete communication services to meet the City's needs throughout the
foreseeable future.
This Phase is of key importance as it is where the basic determina-
tions are made in the areas of telephone traffic and system feature
' requirements. This is accomplished through equipment studies within
the present systems, personnel interviews, and projections of future
' requirements. At the completion of this initial study, a Phase I
Report will be presented to the City detailing initial findings,
' presenting recommendations, and outlining further action to be
' taken. Upon the completion of the study and report, and City
approval, CRC will proceed with Phase II, the complete planning, and
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establishment of unbiased and uniform specifications for new tele-
phone services. This will ensure that all suppliers bid on the same
City requirements and, in the process, create an "apples -to- apples"
comparison upon which the City may make a sound business decision.
These specifications, will of course be in complete compliance with
Municipal Code and all standard bidding procedures established by
the City of Newport Beach.
The next step is the actual bidding process, including mailings and
advertising of bids, a bid conference and formal bid opening. This
is followed by a detailed analysis of each potential supplier, re-
view of all bid responses, contractual planning on behalf of the
City, year -by -year cost projections and equipment requirements, both
short and long term. Also, CRC will assist in complete contract
negotiations with the selected supplier to final acceptance by the
City of Newport Beach.
Additionally, CRC will provide complete details of equipment, space,
conduit, and the like for inclusion into the specifications of the
new system.
As Phase III, CRC will coordinate and supervise all installation de-
tails including scheduling, equipment and line ordering, training,
post cut -over equipment audit and so forth. The City will be given
periodic progress reports during the study, analysis and implementa-
tion phases.
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The following pages contain an itemized decription of the work areas
and for each phase, to be performed in approximately the order and
+ , time frames shown.
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ANALYSIS AND PLANNING CRITERIA
PHASE I - THE ANALYSIS
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I. TRAFFIC STUDIES: Three (3) separate and distinct studies will
be conducted within the existing system to determine current and
projected traffic volumes. Inward, outward, and internal calling
patterns are examined. Included are:
A. ANSWER POINT LOAD - As there is no switchboard, the main
departmental answer points and calls within the system will be
evaluated and timed to set exact quantitative figures on types
and duration of calls for determination of number of positions,
operators, and features required.
B. CENTREX EQUIPMENT - An equipment analysis of the primary
Centrex system will be performed to pinpoint precise switching
quantities on the basis of industry standard traffic ratings.
Included will be quantities of lines, paths, junctors, and
similar.
C. TRUNK USAGE - Each trunk group will be electro- mechanically
studied to establish precise call volumes with which to project
required quantities.
2. CALL- PATTERN ANALYSIS: All telephone company toll and message -
unit billing statements will be examined in detail using the opti-
cal -scan, computer read -out technique to analyze the extent to which
least cost /best line selections are being utilized. This study area
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will show in detail, where calls are being placed to, average call
duration, and costs of toll calling by area. The analysis will be
performed on all appropriate billing statements and trunk groups to
' assure that every area of possible savings and cost controls have
been investigated.
Included will be a complete review of alternatives in calling with
consideration given to special service, foreign exchange, and WATS
' lines. This is a very key study area as toll costs are increasing
dramatically and line usage is the only area, other than the equip-
, ment changes, were costs may be reduced through proper design and
usage. The impact of the area code splits will also be examined.
3. OPS /TIE LINE STUDY: Studies will be performed to determine the
feasibility and costs of continuing, expanding, or redesigning the
network of off- premises station lines to each of the City sites.
' 4. ESTABLISH OPERATIONAL PROCEDURES: Establishment of operational
'
procedures will
be performed
to assure that the
telephone system de-
sign blends with
the City's
desired methods of operation. Care
shall be taken
to ensure that
the City not be
required to change
procedures to
fit telephone
system functions.
Operational proce-
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dures are established which
utilize the most
effective blend of
communications
equipment and
City personnel.
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5. EQUIPMENT INVENTORY AND AUDIT: These two (2) activities will
be performed simultaneously and will include:
A. Physical inventory of telephone equipment and services
throughout City facilities to validate need, use and func-
' tionability.
' 7. DIRECTORY LISTING REVIEW: A complete review of all existing
listings and advertising in telephone company directories will be
performed to determine accuracy, billing appropriateness, and effec-
ttiveness. Determinations will also be made as to the effect, if
any, system changes may have on directory listings.
B. Audit of all current telephone charges and itemized equip-
,
ment records from Pacific Telephone Company for all service
and
equipment to ensure accuracy of billings. If necessary, ad-
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justments in equipment and charges will be coordinated
with the
serving telephone company.
6. PERSONNEL /DEPARTMENTAL INTERVIEWS: Up to twenty -four
(24) de-
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partment heads or selected (designated) personnel including
each de-
partment will be interviewed to determine departmental
business
operation, communication problem areas and projected growth
plans as
they pertain to system capacities and planned changes.
Question-
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naires will be distributed through department heads to be
completed
by all telephone users to obtain information on overall
telephone
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activity and surface any unique problem areas.
' 7. DIRECTORY LISTING REVIEW: A complete review of all existing
listings and advertising in telephone company directories will be
performed to determine accuracy, billing appropriateness, and effec-
ttiveness. Determinations will also be made as to the effect, if
any, system changes may have on directory listings.
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B. CABLE, EQUIPMENT ROOM REQUIREMENTS: A complete review of
' existing facilities at each site, will be performed to assure that
the conduits, entrance facilities, switchgear area, and the like are
adequate for all necessary equipment installation and conversion to
new services with a minimum of transition delays or additional
' costs.
9. GROWTH PROJECTIONS: The telephone system design and equipment
' planning will include ample provision of service to meet all current
needs plus include the installed and maximum system capacities for
' all anticipated growth and changes throughout the foreseeable
' future.
' 10. CABLE TV /CABLE STUDY: In conjunction with these studies fur -
ther analysis will be performed to determine the feasibility of de-
' signing a multi channel port at each existing City facility for use
in conjunction with the new cable TV services.
' 11. BUILDING /FACILITIES REQUIREMENTS: As the initial step for
planning any new facilities, CRC will coordinate main telephone
trunking facilities with the appropriate utility and make determina-
tions and recommendations for building to the architect and general
contractor for these new buildings.
12. SYSTEM DESIGN: The results of all the previous study items
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' total system design will be developed. The design of services will
' first consider each appropriate system on an individual basis then
plan services on a overall concept with primary consideration given
' to the complex interfacility calling arrangements. Care will be
taken to insure that the individual system design blends, in the
' most effective way possible, with the overall City communications
' plan. The design will allow for competitive bidding and comparisons
and installation of selected services.
13. SYSTEM COMPARISONS: A comparison will be drawn between the
' newly established system design and the existing system to determine
' the degree to which current equipment is meeting the needs and de-
sires for the City. Further comparison will be made to other sys-
tems available in today's state -of- the -art for possible considera-
tion as new service.
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14. TELCO RATE CHANGES: System design and planning will include
and take into consideration pending Pacific Telephone Company rate
changes which affect the City's telephone services. This will in-
clude analysis of toll, long distance, and usage charge rate changes
as well as equipment, mileage, and service changes.
15. BUDGETARY PRICING: As an integral part of the system compari-
sons, tentative budgetary pricing will be developed for all consi-
dered alternatives. These price estimates will be based upon an
' accumulatiion of system design criteria and a polling of various
system suppliers.
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16. PHASE I REPORT: Upon completion of the above items, a detailed
! Phase I Report will be presented to the City for the entire project
to date. This report will include initial findings and recommenda-
tions as to ways to improve present system efficiencies and to reach
agreement and approval of the overall system design for new and /or
improved services.
17. INTERIM IMPLEMENTATION: CRC will serve as liaison between the
' City and the telephone utility in ordering and implementing all
accepted interim recommended changes of present equipment to assure
' prompt and accurate completion.
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C" PHASE II - COMPETITIVE BIDDING
Upon completion of the analysis and City approval of the new system
design, CRC will proceed with the development of design specifica-
tions for the new telephone services to be acquired through competi-
tive bidding. The bidding will proceed as follows:
1. BID SPECIFICATIONS: A uniform bid specification will be deve-
loped based upon the accumulation of facts from the completed stu-
dies and planning. This detailed bid package will include all
aspects of the City's communication requirements and complete terms,
for the provision of new services. The bid will be in compliance
with standard Municipal Code bidding procedures and the City of
Newport Beach requirements.
2. BID SOLICITATION: With City approval, the complete bid speci-
fication package will be mailed to selected qualified suppliers in-
cluding Pacific Telephone Company and American Bell and advertised
in the required manner.
3. BID CONFERENCE: A bid conference will be held at the City Hall
offices with all interested bidders to review the bid package,
answer questions. CRC will also conduct a "job -site walk through ".
4. BID OPENING: A formal bid opening will be conducted and bid
responses read aloud. All in accordance with the prescribed bid-
ding procedures. Two (2) copies of each bid response package will
be required from each bidder. The first (original) will be retained
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by the City and the second will be used by CRC to perform the com-
plete bid analysis.
' 5. BID EQUIPMENT ANALYSIS: All bid responses will be evaluated by
the CRC staff and comparisons drawn in categories such as Product
Offering, Added Equipment Costs, Service and Maintenance, and System
' Capabilities and Features. Also included will be an analysis of
each bidder's compliance with the complete bid package and it's
' terms. Each category is then weighed on relative value and
detailed.
' 6. BID COST ANALYSIS: All bid responses will be projected year-
, by -year over a ten (10) year period including all factors (i.e.,
rate increases, insurance, trunk and usage charges, maintenance,
installation charges, and the like). All bidders will provide cost
breakdowns reflecting any discounting or other inducement. CRC will
' break out costs reflecting both CRC Phase III options. (See follow-
ing section),
7. FINAL REPORT A PRESENTATION: A final report will be prepared
and presented including all aspects of the findings, including those
' explained above, along with CRC recommendations and comparisons to
present services in both cost and operational characteristics.
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B. CONTRACT NEGOTIATIONS: CRC will advise and assist in negotia-
tions to assure that any and all contracts that may result will be
in the best interest of the City of Newport Beach.
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C" IMPLEMENTATION PLAN
Communication Resources Company (CRC) has developed a unique program
with the major telephone system manufacturers and suppliers, to de-
sign and coordinate complex telephone system installations. As a
result, a majority of this data base can be developed by the CRC
operations staff (with first hand client knowledge) rather than by
the system vendor. This saves your telephone system supplier a
considerable amount of additional activities and associated labor.
In turn most suppliers will pass on direct price discounts of
between 5% to 20% in exchange for these CRC services.
This additional work provided by CRC is billed to our client at a
flat rate of 5% of our client's telephone system purchase price.
This normally leaves the client with a net discounted price of up to
15 %. Additionally, CRC deals directly with each firm's operations
and management staff, typically without the involvement of commis-
sioned salespersons. This, in itself, can provide our clients with
discounted telephone system pricing since no sales commissions are
involved. (Sales commissions in the telecommunications industry
generally run from 5 % -15%).
Total discounts (sales and system implementation) obtained through
the use of CRC services are as much as 25% and, of course, vary with
each project and each vendor. These discounts are, of course,
passed directly to our clients.
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This program, as detailed on the following pages should provide the
City with substantial cost savings in the system bids and complete
system implementation services from CRC.
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' PHASE III - FULL IMPLEMENTATION SERYICES
' Upon completion of system bidding, CRC will provide all system su-
pervision and inspection activities as Phase III, and include the
following activities:
1. KEY SYSTEM WORKSHEETS: Standard telephone instrumentation
schematics (key sheets) will be provided to your system supplier and
wiII include telephone instrument type, size, configuration and
color. With completion of the detailed instrumentation layout
throughout all included facilities CRC will obtain approval and
"sign -off" of each by the appropriate management personnel.
2. FLOOR PLANS: Complete floor plans, as provided by the City
will be used to indicate telephone instrument locations within
office areas. These floor plans will be completed in a format which
will correlate with the key system.
3. SYSTEM PROGRAMMING: CRC will, according to manufacturer's re-
quirements, develop the necessary data base which includes system
programming, station restriction and class -of- service arrangements,
trunk routing, and station numbering plan.
4. TELCO COORDINATION: Included will be all coordination and
ordering of all services for installation, removal, referral, and
billing by the serving telephone utility company.
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5. TRAINING: Switchboard operator and station user training
schedules will be planned and coordinated with the City and the
system supplier, to assure that complete system usage training is
provided both prior to and post system installation.
6. MEETINGS: CRC will attend or conduct all relevant telecommu-
nications staff meetings for the purpose of reporting, updating and
participating in discussions relating to the City's telephone ser-
vices. The purpose will be to answer questions, elaborate further,
and provide the necessary expertise to support the management staff
and provide all appropriate facts, documentation and the like.
7. INSTALLATION AND CUTOVER: Scheduling of equipment installa-
tions and system cutover will be performed in coordiantion with the
City and the supplier to assure minimum service disruptions and sys-
tem transition time.
8. POST CUTOVER AUDIT: Upon completion of the system installa-
tion, CRC will inventory and audit all contracted equipment and ser-
vices to assure that all activities have been completed in compli-
ance with the specifications contracts.
9. FOLLOW -UP INVOICE AUDIT: CRC will review and audit telco and
supplier invoices related to the new system installation for accu-
racy and approval.
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10. SYSTEM ACCEPTANCE: A letter will be provided to the City de-
tailing final CRC findings and conclusions toward final system
acceptance.
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PHASE III - IMPLEMENTATION SUPERVISION
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If, upon completion of system bidding the supplier's discount is
less than the cost for CRC's Full Implementation, CRC will provide
only basic planning and implementation supervision. Included will
be the following items:
1. KEY SYSTEM WORKSHEETS: Supplier developed telephone instrumen-
tation schematics (key sheets) will be reviewed by CRC to assure
completeness and accuracy.
2. SYSTEM PROGRAMMING: CRC will review supplier developed system
programming, routing, and numbering plan to assure accuracy.
3. INSTALLATION AND CUTOVER: Scheduling of equipment installation
and system cutover will be performed in coordination with the City
and the supplier to assure minimum service disruptions and system
transition time.
4. POST CUTOVER AUDIT: Upon completion of the system installa-
tion, CRC will inventory and audit all contracted equipment and ser-
vices to assure that all activities have been completed in compli-
ance with the specifications and contracts.
5. FOLLOW -UP INVOICE AUDIT: CRC will review and audit telco and
supplier invoices related to the new system installation for accu-
racy and approval.
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6. SYSTEM ACCEPTANCE: A letter will be provided to the City de-
tailing final CRC findings and conclusions toward final system ac-
ceptance.
The above activities assume that CRC will serve as the City's tele-
communication coordinators, wherein, we will supply all information
normally provided to the telephone utility company and the system
supplier for implementation of new telephone services. The decision
to proceed with full implementation or implementation supervision
services need net be made until after the bid prices have been re-
viewed.
The following page is the objective telecommunications schedule for
Phases I and II.
PROPOSED TELECOMMUNICATIONS STUDY SCHEDULE
CITY f1F NFWpnPT BEACH
Traffic
Studies
Call Analysis
Operational
Procedures
Interviec+s/
Audit
Listings
Cable /Equip.
Room
System
Design
Comparisons/
Projections
Preliminary
Report
Interim
Implementation
Bid
Specifications
Bid
Solicitation
Bid
Conference
Bid
Opening
Equipment
Analysis
Cost
Analysis
Final
Report
Contract
Negotiations
Implementation
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MONTH 1
MONTH 2
MONTH 3
MONTH 4
MONTH 5
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SUMMARY
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Based on the initial discussions with the City of Newport Beach's
personnel, CRC's understanding of present communication operations
and the City's desires in least cost /best service communications,
along with our knowledge of the legal requirements for bidding of
telecommunication services, we have determined the total charges for
CRC services, including completion of all areas to be as follows:
PHASE I - THE ANALYSIS ....................$8,850
and, if elected PHASE II - COMPETITIVE BIDDING .............$3,950
followed by PHASE III - FULL IMPLEMENTATION SERVICES..... 5% of
system purchase price
or IMPLEMENTATION SUPERVISION ...... $6,000
Maximum Net Fees ...............$19,400
CRC is the largest telecommunications consulting firm in the U.S.,
specializing in tax supported agencies and therefore possesses the
unequalled expertise and experience in the municipal government
business field necessary to conduct the needed analysis and planning
with complete knowledge of competitive bidding and legal require-
ments. Additionally, CRC's proposed Analysis Plan includes not only
the usage analysis, the design studies and system analysis, but also
complete final recommendations based on unequivocal facts.
Finally CRC will supervise and coordinate all installation details
including scheduling, training, post cutover equipment audit and so
forth to their completion and acceptance by the City of Newport
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' Beach. The City will also be given periodic progress reports
throughout the study analysis and implementation phases. CRC study
criteria, time frames and project costs are based on the basic
' equipment types and quantities as detailed earlier within this pro-
posal. Differences could, of course, effect the time frames and
' costs as quoted herein.
tIf additional information or work is required beyond that stipulated
' above, by the City, telephone utility or system supplier, CRC will
provide such additional activities at the rate of $85 per hour.
' This proposal is valid for a period of sixty (60) days.
' It is anticipated that the entire project, including system instal-
' lation, will be completed within approximately one (1) year or less.
If the project is delayed or extended beyond the anticipated time
' frame, for reasons over which CRC has no control, extra charges may
be incurred.
tAdditionally, it is understood that, during the period of CRC
studies, analysis, and the like, no other telephone related studies,
' reports, or similar will be authorized by the City or accepted from
any other party unless previously agreed to or requested by CRC.
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' Upon completion of the project, CRC will be available to the City of
Newport Beach for continuing telecommunications management services.
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Through our Continuing Services Agreement, CRC would become an ex-
tension of the City staff and under your direction handle, in total,
all of the ongoing telecommunication needs. This would include co-
ordination of order activity, review of telephone company billing
statements, periodic analysis of calling patterns and system usage,
and the like.
The text on the pages following contains CRC company background and
CRC tax supported client references. CRC is confident that the City
of Newport Beach will receive immediate and long range communica-
tions and economic benefits from this proposed CRC Analysis Plan.
The CRC Telecommunications Consulting Agreement is also separately
included for City review and approval. With your approval, a senior
project manager will immediately be assigned to the City of Newport
Beach and begin studies. We are ready to start the project now.
In order to begin the project, CRC requires the following materials:
- *Authorization letter to deal with Pacific Telephone Company
- Two representative months complete telephone billing statements
- *Complete list of all billing telephone numbers
- *List of all working extension numbers
- List of all involved facilities
- City map with site locations
- Floor plans of all facilities
- Organization chart
* - Format and form provided by CRC
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CRC COMPANY BACKGROUND
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Communication Resources Company (CRC) is a wholly owned subsidiary
of Americom Corporation, Americom is a California based Corpora-
tion providing a full spectrum of design, engineering, implemen-
tation and management services to the telecommunications industry,
government, commercial and tax supported businesses. Americom
through its subsidiaries and their affiliates, provides analysis,
planning, and management of telephone, data, microwave, fiber
optic, radio, and office -of- the - future communications.
Communication Resources Company is the subsidiary which is exclu-
sively engaged in business communication consulting, project man-
agement, and associated support services for business telephone
users. CRC specializes in developing and maintaining improved
services and cost reduction plans for telephone, data, and elec-
tronic office communication systems for each client.
k
Originally founded in 1975, CRC has experienced a steady growth
rate, expanding through client volume and acquisitions. CRC prides
itself on superior expertise in the communication industry,
thoroughness in all client assigned tasks, and the fullest integ-
rity in all relationships with clients, communication suppliers,
and the serving telephone utililty companies.
' CRC is fully independent in operation having no affiliation with
utility companies, equipment suppliers or manufacturers. This
' provides CRC clients with totally objective communication analyses
without bias and based completely on unequivocal facts.
M
0
The CRC management, support staff, and associate specialists typi-
cally have extensive backgrounds with telephone utility companies,
communication suppliers and with both public and private sector
management. This blend of diverse talent assures CRC clients of the
complete and professional management of their communication system
and requirements. Nothing is left to chance, nothing is assumed,
and everything is examined for accuracy and reasonable alternatives
in keeping with the operational requirements of each client.
CRC's record of success with every client has enabled them to repre-
sent a wide cross - section of the business community. From financial
corporations and retail businesses to municipal governments and
educational institutions, from single office companies to major
international corporations, CRC applies industry- standard, and when
applicable, innovative analytical techniques which maximize client
satisfaction and system effectiveness. Each project is assigned a
5
qualified project manager knowledgeable in both telephony and the
client's industry. This project manager is responsible for the
overall planning of the client's communication service.
Client use of CRC consulting services more than pays for itself
through savings in equipment, service arrangements, personnel costs,
telephone company billing refunds, alternate -use suppliers and so
forth. CRC's sole objective is to develop and maintain least cost/
best service communication arrangements for each client by becoming
an extension of the client management team in the complex and ex-
panding field of telecommunications.
29
CLIENT LIST
' GOVERNMENTAL AGENCIES
' CITIES
' CITY OF ALHAMBRA CITY OF LA MIRADA
Alhambra, California La Mirada, California
Andy Lazzaretto Joyce Ponso
1
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7
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CITY OF BELLFLOWER
Bellflower, California
Bill McConnell
CITY OF CARSON
Carson, California
Howard Homan
CITY OF COMMERCE CITY
Commerce City, Colorado
James Heck
CITY OF DOWNEY
Downey, California
Victor Max
CITY OF DUARTE
Duarte, California
Don Pruyn
CITY OF FOUNTAIN
Fountain Valley,
Howard Stephens
CITY OF HUNTINGT
Huntington Park,
Craig Robinson
VALLEY
California
ON PARK
California
CITY OF IRVINE
Irvine, California
Roger Davis
Rev. 10/82
CITY OF LOS ANGELES
DEPARTMENT OF AIRPORTS
Dennis Green
CITY OF MONTEBELLO
Monterey Park, California
Joe Goeden
CITY OF MONTEREY PARK
Monterey Park, California
Maynard Merkt
CITY OF PALM SPRINGS
Palm Springs, California
Jim Runge
CITY OF SAN CLEMENTE
San Clemente, California
Ron Coleman
CITY OF STANTON
Stanton, California
Jim Antoniono
CITY OF STOCKTON
Stockton, California
Gary Ingraham
CITY OF TORRANCE
Torrance, California
Bill White
COUNTIES
COUNTY OF SOLANO
Fairfield, California
John Tait
1
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coee
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ABC UNIFIED SCHOOL DISTRICT
' Cerritos, California
Virgil Hall
ALHAMBRA CITY SCHOOLS
t Alhambra, California
Tom Winters
91111
CLIENT LIST
EDUCATIONAL
SCHOOL DISTRICTS
' BASSETT UNIFIED SCHOOL DISTRICT
La Puente, California
Dr. John Miller
' BURBANK UNIFIED SCHOOL DISTRICT
Burbank, California
Dr. Lawrence Shoaf
' CHAFFEY HIGH SCHOOL DISTRICT
Ontario, California
' Jack Lundquist
COMPTON UNIFIED SCHOOL DISTRICT
' Compton, California
David Stewart
COVINA VALLEY SCHOOL DISTRICT
' Covina, California
Gene Thompson
' DOWNEY UNIFIED SCHOOL DISTRICT
Downey, California
Donald G. Hart
' LONG BEACH UNIFIED SCHOOL DIST.
Long Beach, California
Leon Taylor
' NORWALK -LA MIRADA SCHOOL DISTRICT
Norwalk, California
' Bruce B. Butler
' Rev. 10/82
OCEANVIEW SCHOOL DISTRICT
Huntington Beach, California
Mary Brady
PLACENTIA UNIFIED SCHOOL DISTRICT
Placentia, California
John M. Perry
RIVERSIDE UNIFIED SCHOOL DISTRICT
Riverside, California
Walt Parks
SAN DIEGUITO HIGH SCHOOL DISTRICT
Leucadia, California
John Daley
SANTA CLARA UNIFIED SCHOOL DISTRICT
Santa Clara, California
Donald Callejon
TORRANCE UNIFIED SCHOOL DISTRICT
Torrance, California
Dr. Bernard Garen
TRACY PUBLIC SCHOOLS
Tracy, California
William Keating
TUSTIN UNIFIED SCHOOL DISTRICT
Tustin, California
L.E. Sutherland
WALNUT VALLEY SCHOOL DISTRICT
Walnut, California
George Hartnett
FOUNTAIN VALLEY ELEM. SCHOOL
Fountain Valley, California
William Fisher
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CLIENT LIST
EDUCATIONAL
COMMUNITY COLLEGES
01
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' Rev. 10/82
1
CERRITOS COLLEGE
RIO HONDO COLLEGE DISTRICT
Norwalk, Califoria
RIO HONDO COMMUNITY COLLEGE
'
Bob Loeffler
Whittier, California
Paul Moreland
COAST COLLEGE DISTRICT
COASTLINE COMMUNITY COLLEGE
SAN BERNARDINO COLLEGE DISTRICT
'
ORANGE COAST COLLEGE
CRAFTON HILLS COLLEGE
GOLDEN WEST COLLEGE
Yucaipa, California
Costa Mesa, California
Dr. Moore
'
John Potter
MT. SAN ANTONIO COLLEGE
SAN JOAQUIN DELTA COLLEGE
'
Walnut, Califoria
Stockton, Califoria
Gene Curl
Tim Cox
LONG BEACH COMMUNITY COLLEGE
RANCHO SANTIAGO COLLEGE DISTRICT
'
PACIFIC COAST CAMPUS
SANTA ANA COLLEGE
LIBERAL ARTS CAMPUS
Santa Ana, California
Long Beach, Califoria
Bob Matthews
'
Jim Angell
SANTA MONICA COLLEGE
NORTH ORANGE COLLEGE DIST.
Santa Monica, California
'
FULLERTON COLLEGE
Dick Dominetta
CYPRESS COLLEGE
Fullerton, Califoria
VENTURA COUNTY COLLEGE DISTRICT
Betty McKinley
VENTURA COMMUNITY COLLEGE
Oxnard, California
Ruth Hemming
I
' Rev. 10/82
1
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CLIENT REFERENCES
32
Over the past eight (8) years, CRC has performed a variety of pro-
fessional services for equally varied local tax supported clients.
We have projects in all phases of activity from initial investiga-
tion and analysis, to bidding and analysis of same, through imple-
mentation, and on -going management. Some typical examples are
illustrated below in historical perspective:
CITY OF CARSON: (1975- Present) - 300 lines - Investigatory analy-
sis, overall design and planning, competitive bidding, and imple-
mentation of ITT TE -400. Resultant savings have been in excess of
$100,000 annually. CRC has provided on -going management, contin-
uously updating and maintaining least cost /best service combina-
tions. This client was bid the same product by both Pacific
Telephone and ITT, providing for a direct comparison. Having again
completed competitive bidding for the City, Carson is currently in-
stalling a smaller switch to serve a new recreation center. The
project was so successful in 1975, that replacement of the City
switch has not been required.
CITY OF DOWNEY: (1976- Present) - 200 lines - Analysis performed,
reconfiguration to consolidate two systems into one and reduce
costs recommended. Currently competitive bidding for replacement
of existing services, within the construction schedule for the new
Civic Center.
33
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' CITY OF FOUNTAIN VALLEY: (1976) - 300 lines - Investigatory analy-
sis identified several areas of potential savings. Competitive
' bidding, implementation of ITT TE -400A. City estimates savings in
I
excess of $100,000 annually.
' CITY OF MONTEBELLO: (1976 -1977) - 300 lines - Investigatory analy-
sis, overall design and planning, competitive bidding, and imple-
mentation of Executone D -1000. Projected savings, according to
Montebello, are in excess of one (1) million dollars.
' CITY OF SAN CLEMENTE: (1977) - 150 lines - Contractual interpre-
tation of existing services, analysis, design, competitive bidding
' and implementation of Pacific Telephone Company Dimension PBX.
Identification of actual fiscal liabilities resulted in avoidance
tof charges of $300,000, and reduction in on -going costs of over
' $150,000.
' CITY OF STANTON: (1979) - 100 lines - Investigatory analysis, im-
plementation of Telink OKI Discovery through competitive bidding.
Cost savings have resulted. Negotiated new Maintenance Contracts
1981, 1982.
' CITY OF MONTEREY PARK: (1979 -1980) - 400 lines - Investigatory
analysis of present services, overall design for new Civic Center,
' competitive bidding, implementation of direct inward dialing, Com
Systems Focus II.
CITY OF ALHAMBRA:
34
(1979- Present) - 300 lines - Investigatory ana-
lysis identified areas of cost savings and service improvements.
Competitive bidding completed, implementation of Anaconda -
Ericsson's ASB 900 is now in progress.
'
CITY OF STOCKTON: (1980 - Present) - 1,000
lines - Present
services
PT & T Centrex, Analysis, overall design
and planning to
identify
'
cost savings and improve service. ComPath
providing
Rockwell
Wescom 580 through competitive bidding.
Implementation
now being
completed.
' CITY OF TORRANCE: (1981 -1982) - 600 lines - Analysis of overall
' City communication needs, overall design and planning including
considerations for new Police facility, competitive bidding just
' concluded. Implementation of Com System's NEAX -22 completed in
' 1982.
' CITY OF IRVINE: (Present) - 350 lines - Initial analysis recently
completed. Pacific Telephone Company currently provides Centrex
' services to the City. Competitive bidding to replace existing ser-
vices currently in progress.
CITY OF BELLFLOWER: (1981) - 40 lines - Recently completed initial
analysis and bidding. Facilities forecasting for construction of
' new Civic Center. Implementation of Com Systems Focus II
' completed.
35
rAXWE
CITY OF DUARTE: (1981) - 50 lines - Recently completed initial
analysis and competitive bidding. Facilities forecasting for con-
struction of new Civic Center. Implementation of Vista II (SD -192)
by Executone completed.
COUNTY OF SOLANO: (Present) - 1,500 lines - Analysis of present
services (similar to project herein) currently in progress. System
wide analysis will yield planned requirements for competitive
bidding for replacement of existing equipment and services.
As you can see, our expertise has actually saved millions of
dollars for our clients in all size ranges. CRC has successfully
completed contracted objectives for clients with from forty (40)
working station lines to over nine thousand (9,000) working station
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lines.
36
THE PROFESSIONAL TEAM
C"
The professional team of analysts assigned to the analysis, inven-
tory, installation, identification of features, usage, compatabili-
ties, portions of the study will identify as well as verify under
or over utilization of present services and other options feasible.
Other team member's expertise will provide for data and voice
requirements and microwave feasibility.
The CRC management and support staff, including associate special-
ists, have extensive backgrounds with not only telephone utility
companies, but also with private system suppliers. This blend of
diverse talent insures CRC clients of the complete and professional
management of their communications system. Nothing is left to
chance, nothing is assumed and everything is examined for accuracy
and reasonable alternatives. At any single point in the study
there could be as many as seven or more team members assigned to
this project.
ti
These team members have been highly successful in lowering and con-
trolling costs while improving services substantially for many of
Cities, School Districts, and Community Colleges within the State.
Our validated experience has enabled our tax supported clients to
proceed with their planned courses of action, without unnecessary
delays. We attribute our success to a solid background, intensive
study and analysis, and most of all, a commitment to excellence.
Specific personnel assignment details can only be determined when
contractual tasks are developed and time frames established more
specifically.
37
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PERSONNEL QUALIFICATIONS AND EXPERIENCE
Technical qualifications and experience of CRC personnel who, at
this point it is anticipated, will be assigned to perform the ma-
jority of the contracted work are as follows:
' Our staff members have been selected based on accumulated years of
education, experience, advancement, recognition and analytical abi-
lities. Because of this, many CRC staff members provide assistance
' to the telecommunication industry and have addressed seminars,
' workshops, and meetings of government and industry leaders, commu-
nity organizations and telecommunication professionals. Resumes of
' the primary team members who will be assigned to the City of New-
port Beach project are included in this document. All personnel
' listed are full time staff members of CRC. Although it is current-
' ly assumed that these individuals will perform the bulk of the
activities CRC reserves the right to change and add personnel as
tproject timing and specific services contracted for dictate.
' Communication Resources Company (CRC) is the telephone consulting
firm which, over the past few years, has provided our tax supported
clients with savings in excess of $20 million while improving and
1.
Larry Lichty -
Senior Project Director
t2.
Dick Bravinder
- Project Engineer
3.
Julie Curtis -
Communications Analyst
'
4.
Shirley Davis
- Communications Analyst
' Our staff members have been selected based on accumulated years of
education, experience, advancement, recognition and analytical abi-
lities. Because of this, many CRC staff members provide assistance
' to the telecommunication industry and have addressed seminars,
' workshops, and meetings of government and industry leaders, commu-
nity organizations and telecommunication professionals. Resumes of
' the primary team members who will be assigned to the City of New-
port Beach project are included in this document. All personnel
' listed are full time staff members of CRC. Although it is current-
' ly assumed that these individuals will perform the bulk of the
activities CRC reserves the right to change and add personnel as
tproject timing and specific services contracted for dictate.
' Communication Resources Company (CRC) is the telephone consulting
firm which, over the past few years, has provided our tax supported
clients with savings in excess of $20 million while improving and
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38
0
modernizing communication services. Our track record of success
with every governmental client is your guarantee that we can do the
same for the City of Newport Beach.
tHe began his career in telephony with General Telephone Company
where he spent ten (10) years in the capacity of cable construction
implementor, business service representative, business sales mana-
ger, major accounts manager, and interconnect specialist.
' As major accounts manager Mr. Lichty was responsible for overseeing
' many of the tax supported agencies in Southern California including
community colleges, school districts and cities.
' These telephone company job functions exposed him to the inner
workings of telephone company business administration, customer re-
tlations, tariff applications, and business telephone system design.
He was also assigned the task of researching the various telephone
' system strengths and weaknesses as applied to hospital operations.
1
' Additionally, he was trained to engineer and design complex paging
and intercom systems.
39
1
RESUME
LARRY
S. LICHTY
'
SENIOR PROJECT
DIRECTOR
As Senior Project Manager and
Operations Director, Larry
S. Lichty
is for
including
responsible the overall
client project
obtaining
i
traw
data and assembling this information
into a meaningful
founda-
tion for client reports. He
is also responsible for
generally
'
overseeing the management of
our on -going clients' communication
services to assure continuing
least cost /best service
communica-
tions.
tHe began his career in telephony with General Telephone Company
where he spent ten (10) years in the capacity of cable construction
implementor, business service representative, business sales mana-
ger, major accounts manager, and interconnect specialist.
' As major accounts manager Mr. Lichty was responsible for overseeing
' many of the tax supported agencies in Southern California including
community colleges, school districts and cities.
' These telephone company job functions exposed him to the inner
workings of telephone company business administration, customer re-
tlations, tariff applications, and business telephone system design.
He was also assigned the task of researching the various telephone
' system strengths and weaknesses as applied to hospital operations.
1
' Additionally, he was trained to engineer and design complex paging
and intercom systems.
i
40
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'
Mr.
Lichty left
the telephone company
to take a position with a
major
telephone
equipment manufacturer,
as a systems design con-
'
sultant.
While
in this capacity, he was
responsible for the design
and
implementation
of privately owned telephone systems and custo-
mer
relations.
He was also responsible
for updating and interpre-
tting
Bell System
and General tariffs.
After two years in this capacity Mr. Lichty joined CRC. He became
' actively involved in studies and development of cost reduction
systems for CRC clients. He developed and implemented a highly
successful program of on -going communications system management for
business clients on both telephone company and privately -owned
' systems, which includes computerized cost controls and service
analysis.
' Four years ago Mr. Lichty received extensive training in telephone
related Microwave Feasibility Studies and has successfully imple-
mented several complex telephone /microwave connected systems saving
clients several million dollars in toll charges.
Mr. Lichty is considered an expert in the field of state -of -the -art
communications and has had several articles published in communica-
tions and business publications. He has (with 19 years experience)
continuously and successfully advanced his career in business com-
munications, engineering, communication research and management, to
' a point of outstanding expertise.
' 41
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RESUME
RICHARD W. BRAYINDER
PROJECT ENGINEER
' As a project manager, Mr. Bravinder is responsible for "turn -
around" management of client support requirements.
' Mr. Bravinder came to CRC with over 20 years experience upon re-
tirement as a U.S. Air Force Major and Liaison Officer to the
Secretary of the Air Force in telecommunications and electronics.
His formal communications education began in the United States Air
' Force with designing, engineering and overseeing the installation
of high speed data communication facilities.
' After receiving his Bachelor of Science (B.S.) degree in Management
from Indiana University, and his M.B.A. from Webster University,
' Mr. Bravinder was assigned the task of complete management of the
Department of Defenses' automatic digital communications systems.
During this time he was credited with the initial application of
' integrated optical scanners and video communications. He imple-
mented several voice -data -video systems in sizes ranging from 250
to 10,000 line networks.
' Mr. Bravinder's expertise includes supporting NATO communications
' ranging from low speed narrative to high speed, multi -media satel-
lite and microwave systems. While functioning as the U.S. govern-
' ment communication representative, he planned and implemented a
1
42
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major system realignment which saved the Government of Canada over
$6 million per year.
With his successful record, Mr. Bravinder offers a level of exper-
ttise CRC is pleased to include on apppropri ate client projects.
t
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RESUME
JULIE CURTIS
COMMUNICATIONS ANALYST
43
As a Communication Analyst, Julie Curtis is responsible for obtain-
ing and assembling all of the raw data which is required for the
analysis of the client's present telephone services. This process
includes the inventory of present equipment, staff interviews, the
auditing and analysis of telephone billing statements. She is also
responsible for scheduling of new system coordination and implemen-
tation with the system supplier. Through Ms. Curtis the clients
are kept updated as to the ongoing project status through comple-
tion.
Ms. Curtis received her formal education at California State
University, Long Beach in the field of Communications and Market-
ing. Following her graduation, Ms. Curtis joined the advertising
department of a major Southern California publication, where she
was responsible for all inhouse telecommunications.
Three years later, Ms. Curtis was recruited by another firm to
assist in the development, preparation and coordination of tele-
phone planning for new homes in the field of residential real
estate development.
Ms. Curtis' experience in the field of telecommunications has
prepared her to work with many different types of clients, remain-
ing acutely tuned to their varied needs.
44
MAIP
After almost two years Ms. Curtis joined the Communications
Resources Company Operations team in 1981, where she has been
throughly trained as a Communications Analyst. In her current
capacity she is in constant contact with the client and all other
involved parties, such as the telephone company, system supplier,
builder, architect, etc. to assure all activities are performed
accurately and timely throughout the process of fact gathering and
system installation to the completion of the project.
I L�
RESUME
SHIRLEY J. DAVIS
COMMUNICATIONS ANALYST
45
As a Communication Analyst, Shirley Davis is responsible for
obtaining and assembling all of the raw data which is required for
the analysis of the client's present telephone services. She is
also responsible for coordinating the on- premises visits with the
client and keeping the client updated as to the project status.
Mrs. Davis received her formal education at the University of
' Wisconsin- Madison in Business Administration - Marketing and
Management.
She began her career in telephony with the responsibility for
marketing and consumer research of peripheral communications
equipment for a nation wide distributor of telephone equipment.
Included within her A ties was the task of ordering and coordi-
nation with the telephone utility company the proper and timely
installation of equipment along with follow -up cost analysis, to
assure proper billings and credits.
These job functions exposed her to the various manufacturer's
products and to the inner working of telephone company business
administration, customer relations, tariff applications, and
business telephone system design.
After two years she joined CRC as a Communication Analyst and
Account Manager in 1979. In her current capacity of Communication
46
0
Analyst, Shirley is in constant contact with the client and all
other involved parties, such as the telephone company, private
supplier, builder, architect, etc., to assure that all activities
are performed accurately and timely throughout the process of fact
gathering.
N
WHY CRC
47
You have now had the opportunity to review the scope of our ser-
vices and costs. In conclusion to our proposal, Communication
Resources Company (CRC) would like you to consider the most im-
portant factor in choosing the consulting firm for your City's
very important telecommunication project.
The advantages of utilizing Communication Resources Company are
well founded in the successful track record we have with our
past clients. Our reputation for the highest integrity, honesty
expertise and service to our clients is your guarantee that our
firm is the very best suited to your needs. We have included a
partial listing of our qualifications for your review.
1. CRC is a fully independent firm having no affiliations with
manufacturers, suppliers or any other industry participants.
We consider all options available to give the most cost
effective, state -of- the -art telecommunication services to
fit your specific needs.
2. CRC staff includes recognized experts in given areas of the
industry employed on a full time basis. Our senior consult-
ing staff has an average of twenty (20) years direct exper-
ience in the telecommunication field, including the design,
engineering and implementation of systems ranging from ten
(10) phones to ten thousand (10,000) line systems, with
emphasis on 30 -1,500 line sizes.
48
5,
3. Our firm has had eight (8) years of consistancy in the field
with an excellent track record of proven savings and
improved services for our clients. Our tasks are performed
expertly, professionally and effectively. We do it right
the first time, for the fees originally agreed to.
4. CRC incorporates a diverse blend of talent, knowledge and
direct hands -on experience, using a team approach that
assures our clients of the most qualified telecommunication
consulting available anywhere. Our operations department is
trained on every type of equipment and telecommunication
service your project may entail. There is never a danger of
your project being used as a training ground for our staff
or a "guinea pig" for untried products and companies.
5. Our superior engineering abilities and working relationships
with the telephone utility companies and private suppliers
has prompted many of them to offer direct pricing discounts
to our clients. As a result our clients receive better ser-
vice and individual systems engineering tailored for your
unique needs and, at a substantially lower price.
6. A review of our specifications has been conducted by the
legal staffs of both Pacific and General Telephone
Companies. The conclusion of each review was that our
specifications are legal, competitive and that both
companies' products are available to our clients through
competitive bidding; a guarantee not easily given.
49
runs.
7. A CRC senior project manager will monitor your needs from
the beginning studies through the final acceptance audit.
We are personally accountable to the City of Newport Beach
to protect and serve your interests.
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411
C" AFFIDAVIT OF NON- AFFILIATION
"CRC hereby attests that, as a company policy, we have not and do
not accept any remuneration for recommending or otherwise desig-
nating a contractual relationship with a telephone utility com-
pany or private telephone equipment supplier. Further, CRC is
totally independent with no affiliation with any firm involved in
the provision of telephonic communications equipment."
Communication Resources Company is a subsidiary of Americom Corp.
Dated
JE�RY L. SUUPERNAW
PRESIDENT
Dated ► -51 - 9�3
LARRY S. LICHTY
SECRETARY - TREASURER
ti
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
On January 31, 1983, before me, the undersigned, a Notary Public
in and for said State, personnally appeared Jerry L. Supernaw,
known to me to be the President, and Larry S. Lichty, known to me
to be the Secretary- Treasurer of the corporation that executed
the within instrument, and known to me to be the persons who
executed the within instrument on behalf of the corporation
therein named, and acknowledged to me that such corporation
executed the within instrument pursuant to its by -laws or a reso-
lution of its board of directors.
WITNESS my hand and official seal.
' Signature yj
1 OT9 >lrl:'.i SEA„
S!1 \'I', 'DU71ERREZ
caaec�. ca.rmr
�' ' My COMM.. eyplrzi OCT 14, 119K
CITY COPY
TELECOMMUNICATIONS CONSULTING AGREEMENT
THIS AGREEMENT, made and entered into this day of
RESOURCES COMPANY, (hereinafter referred to as "CONSULTANT "), with
principal offices at 1433 East Borchard Avenue, Santa Ana, Calif-
ornia, 92705.
The CONSULTANT is to fully investigate the CLIENT's telephone
system and usage for the purpose of providing the CLIENT with
appropriate recommendations to assure that satisfactory telecorr--
munication services are provided for all CLIENT'S operations and
facilities. The CONSULTANT will perform all functions necessary
to determine which communication system or systems offer the CLIENT
maximum cost effectiveness and best service arrangements. The scope
of such services will include all services, studies, planning, and
analysis as detailed within the Communication Analysis Plan Proposal,
dated February, 1983
A preliminary report, covering initial findings, will be
submitted by the CONSULTANT approximately 10 weeks after the date
this AGREEMENT becomes effective. Following CLIENT APPROVAL OF
THIS REPORT, THE CONSULTANT shall proceed as directed by CLIENT. If
determined appropriate by CLIENT, the CONSULTANT shall solicit
competitive proposals from selected, qualified suppliers. The
CONSULTANT will then present a Final Report to CLIENT. Final
decision making shall, at all times, remain with the CLIENT.
CONSULTANT shall act upon decisions as made by and in behalf of
the CLIENT.
The periodic observation of system installation, by the
CONSULTANT, will endeavor to guard the CLIENT against defects and
deficiencies in the work of system supplier, but does not constitute
other guarantees of performance of the contracts.
- Page 1 -
1983, by and
between the
City
of Newport
Beach ,
(hereinafter referred
to as "CLIENT "),
and
COMMUNICATION
RESOURCES COMPANY, (hereinafter referred to as "CONSULTANT "), with
principal offices at 1433 East Borchard Avenue, Santa Ana, Calif-
ornia, 92705.
The CONSULTANT is to fully investigate the CLIENT's telephone
system and usage for the purpose of providing the CLIENT with
appropriate recommendations to assure that satisfactory telecorr--
munication services are provided for all CLIENT'S operations and
facilities. The CONSULTANT will perform all functions necessary
to determine which communication system or systems offer the CLIENT
maximum cost effectiveness and best service arrangements. The scope
of such services will include all services, studies, planning, and
analysis as detailed within the Communication Analysis Plan Proposal,
dated February, 1983
A preliminary report, covering initial findings, will be
submitted by the CONSULTANT approximately 10 weeks after the date
this AGREEMENT becomes effective. Following CLIENT APPROVAL OF
THIS REPORT, THE CONSULTANT shall proceed as directed by CLIENT. If
determined appropriate by CLIENT, the CONSULTANT shall solicit
competitive proposals from selected, qualified suppliers. The
CONSULTANT will then present a Final Report to CLIENT. Final
decision making shall, at all times, remain with the CLIENT.
CONSULTANT shall act upon decisions as made by and in behalf of
the CLIENT.
The periodic observation of system installation, by the
CONSULTANT, will endeavor to guard the CLIENT against defects and
deficiencies in the work of system supplier, but does not constitute
other guarantees of performance of the contracts.
- Page 1 -
The CLIENT agrees to pay the CONSULTANT a fee for his
services, as provided for herein and described in detail in the
Communication Analysis Plan Proposal, in the amount of:
A. PHASE I - THE ANALYSIS . . . . . . . . $8,850
B. PHASE II - COMPETITIVE BIDDING . . . . $3,950
C. PHASE III - FULL IMPLEMENTATION SERVICES. 5% of
system purchase price
or IMPLEMENTATION SUPERVISION $6,000
Bottom Line Net Fees . . . . $19,400
D. CONSULTANT shall not be required to perform services
required by Phase II and Phase III, nor shall CLIENT
be obligated to pay for those services, unless and
until specific authorization is granted by the City
Council of the City of Newport Beach, subsequent to
the date of this AGREEMENT, and in no way shall CLIENT
pay more than $19,400 for performance of services
required by this AGREEMENT.
Upon execution of the AGREEMENT, $885.00 shall be paid to
the CONSULTANT and subsequently deducted from the first monthly
billing. The remaining amount shall be billed and paid monthly
as time is expended. Payments are due upon presentation of invoice
and become delinquent 30 days thereafter. Penalties will be
assessed on late payments at the rate of 1 -1/28 per month.
Should the CLIENT desire to expand the study, cover other
locations, or require additional activities beyond that stipulated,
such activity will be considered an addition to this AGREEMENT and
billed at the rate of $85.00 per hour , subject to prior CLIENT
approval.
It is anticipated that the entire project, including system
implementation, will be completed within approximately one (I) year.
I£ the project is delayed or extended beyond the anticipated time
frames, for reasons over which the CONSULTANT has no control, extra
charges may be incurred. Further, in the event the CONSULTANT'S
work should be indefinitely delayed or entirely stopped through
causes over which the CONSULTANT has no control, he shall receive
- Page 2 -
►•
• 0
from the CLIENT an amount commensurate with the work and time
expended by the CONSULTANT, to be billed at the rate of $85.00
per hour
It is agreed that, during the period of this AGREEMENT, no
other telephone related studies, reports, or similar studies will
be authorized by the CLIENT or accepted from any other party unless
previously agreed to or requested by both the CLIENT and CONSULTANT.
CLIENT shall pay CONSULTANT all costs and expenses (including
reasonable attorney's fees to the extent permitted by law) incurred
by CONSULTANT in enforcing the provisions hereof or in exercising
any of the rights and remedies hereunder.
The CLIENT agrees to provide the CONSULTANT with a letter
of authorization to contact the serving telephone company on the
CLIENT'S behalf, access to telephone company statements, personnel
and present telephone equipment during normal business hours. This
instrument represents the entire AGREEMENT between the two parties.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT
as of the day and year first above written.
ATTEST:
i
City Clerk
APPROVED AS TO FORM:
ity Attorney
CITY OF NEWPORT BEACH, a
Municipal Corporation.
�i.
a..��
.
.
CLIENT
COMMUNICATION RESOURCES COMPANY
By
- Page 3 -
CONSULTANT
TO:
FROM:
SUBJECT:
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
March 28, 1983
MAYOR AND CITY COUNCIL
City Manager
0
TELEPHONE SYSTEMS CONSULTING STUDY
Background - The Divestiture of A,T & T
CITY COUNCIL
AGENDA NO, F -3(c)
APPROVED
During the mid 1970's, an antitrust suit was initiated by the
United States Department of Justice against American Telephone and
Telegraph ( A,T &T). The case was not settled until 1982 with the
promulgation of a decree requiring A,T &T to divest itself of 22 out
of 24 local telephone companies. Implementation of the decree
commenced on January 1, 1983.
General Effect of the Divestiture Process
Prior to the divestiture decision, Pacific Telephone, which currently
services Newport Beach, had been a subsidiary of A,T &T. With the
divestiture, Pacific Telephone was completely separated from A,T &T
and became subject to regulation of the State Public Utilities Commis-
sion (PUC). In its new role as an independent utility, Pacific
Telephone will continue to supply lines and access to toll networks
with rates for these services being subject to PUC approval. Addi-
tionally, Pacific Telephone continues to offer for lease, subject
to PUC rate approval, Centrex telephone systems. Leasing this type
of on -site telephone system is, however, relatively expensive and
Centrex, according to those knowledgable on the subject, does not
represent the state of the art.
With the exception of Centrex, rates for new end -user telephone
equipment (on -site telephone equipment) will for the most part be
deregulated. The division of Pacific Telephone which had previously
offered end -user equipment will now function separately from, and
independent of, Pacific Telephone. This new company, American Bell,
will function in a competitive marketplace as one of over 200 inde-
pendent telephone and telephone- related equipment vendors. Hence,
to put it simply, with respect to the provision of new end -to -end
telephone system services, Pacific Telephone will supply the lines
and related equipment, while independent vendors will offer user
telephone equipment at competitive prices and under alternative acqui-
sition arrangements. The systems and equipment offered by these
0
TO: MAYOR AND CITY COUNCIL - Page Two
0
independent vendors (including American Bell) is not subject to
regulation and hence is offered in a "buyers' market."
The City's Current Telephone System
As noted previously, the City of Newport Beach is currently served
by Pacific Telephone. This service consists of both telephone lines
and equipment. In terms of equipment, the City leases an approximately
8- year old Centrex system which provides separate service to the
Police and Fire Departments on the one hand and all remaining depart-
ments on the other. The system requires access codes and "tie trunks"
for exchange between the two non - integrated systems. As referenced
earlier, the City's vintage Centrex arrangement is a relatively
expensive type of system. Additionally, future rate increases for
the leased equipment can be expected. Currently monthly City tele-
phone bills are approximately $18,000.
The Need for a Telephone System Study
It is staff's position that a combination of factors including the
cost and obsolesence of the existing leased Centrex system and the
highly competitive market conditions which exist following the A,T &T
divestiture, make this an excellent time for the City to carefully
evaluate its present and future telephone system needs. Obvious
alternatives which exist in this regard range from continuing to
lease the existing Centrex system to purchasing a new telephone system
from a private vendor. Various intermediate alternatives, including
"lease - purchase" and a Centrex upgrade, also demand study.
Attachment 1 is an excerpt from Western Cities Magazine which dis-
cusses the timeliness of municipal telephone studies in light of
the A,T &T divestiture.
The Need for a Consultant
It is believed that the retention of a professional consultant to
conduct the above- referenced study is justified for the following
reasons:
A. Technical Expertise - The comprehensive study of a telephone
system the size of the City's requires a high level of specialized
technical knowledge and expertise.
B. Time Involved and Staffing Constraints - In addition to the lack
of specific staff technical expertise in this area, significant
constraints upon the use of City staff for a project of this
magnitude are readily apparent.
0
0
TO: MAYOR AND CITY COUNCIL - Page Three
C. Objectivity - Use of a consulting firm which is independent of
the telephone company and any vendor interests will help insure
the objectivity of findings and recommendations.
D. Cost Recovery - The cost of a consultant study of this type should
eventually be recovered through savings achieved as a result of
the implementation of recommendations.
Consultant Solicitation and Evaluation Process
Based upon the preliminary findings and conclusions referenced in
the preceding section, staff solicited proposals from several
reputable telecommunications consulting firms. Attachment 2 is a
copy of the information sheet which was provided to each prospective
consultant. It can be seen that the following were to be included
in the consulting proposals as areas for study:
1. Complete review and analysis of the existing telephone system
and user patterns.
2. Identification and review of present and future system require-
ments.
3. Presentation and analysis of available alternatives for upgrading
and improving the system including the alternative of upgrading
or enhancing the City's Centrex system.
4. Development of uniform bid specifications for release to system
equipment vendors, should the City decide to proceed with a
system upgrade.
5. Participation and assistance throughout the bidding process,
including a recommendation as to the most responsive, cost -
effective bidder.
6. Possible system implementation assistance.
Upon receipt of the proposals submitted, staff conducted an extensive
comparative evaluation and reference check process. Based upon its
review, staff has selected Communication Resources Company for
recommendation to the City Council as the most responsive and competi-
tive (low) bidder.
Communication Resources Company Proposal (CRC)
Included with each Councilmember's agenda packet is a complete copy
of the proposal submitted by CRC. Attachment 3 to this staff report
is a summary of the proposal which was prepared by staff.
0
TO: MAYOR AND CITY COUNCIL - Paae Four
0
It can be seen that CRC proposes a three - phased study with specific
costs applied to each phase. It should be noted that specific
City authorization would be required before the consultant would
proceed from one phase to the next.
Phase I, "Analysis ", which is covered on Pages 8 -13 of the proposal
would involve a comprehensive review of all present telecommunication
services to determine the degree to which they are meeting the needs
and requirements of the City. In addition, the consultant would
establish the degree of cost effectiveness present services are attaininq
as well as projecting complete communication services to meet the
City's needs throughout the foreseeable future. Upon completion of
Phase I, a "Phase I Report" would be Presented to the City detailing
initial findings, presenting recommendations and outlining further
recommended actions to be taken. Upon completion of the Phase I
study and report, and pursuant to City Council authorization, CRC
would proceed to Phase II, "Competitive Bidding." The cost for
Phase I is $8,850 and the projected time frame is 2.5 months.
Phase II, "Competitive Bidding" which is covered on Pages 14 -15 of
the proposal would involve the complete planning and establishment
of unbiased and uniform bid specifications for a telephone system,
should the City decide to proceed with such a bidding process.
The solicitation of bids from vendors, the detailed analysis of all
bids received, the development of a recommendation as to lowest
responsible bidder, and contract negotiation assistance would all be
part of this phase. Upon selection of a vendor by the City and pur-
suant to authorization to proceed, CRC would commence Phase III,
"Implementation." The cost of Phase II is $3,950 with a projected
time frame of 2.5 months.
Phase III, "Implementation" which is covered on Pages 16 -22 of the
proposal would involve supervision assistance, telephone company
coordination and compliance auditing by CRC on the City's behalf to
insure the adequacy and performance of the system installed.
Two alternative approaches to funding implementation are offered; one
involving 58 of the system purchase price (full implementation) and
one involving a flat payment of $6,000 (implementation supervision).
As in the case of each phase of the study, the option as to which
approach to take would be the City's following an evaluation of the
information received as a result of the previous phase.
As noted in the proposal, the bottom line net fees (the maximum the
City would be required to pay for required consultant services, i.e.,
Phases I -III) is $19,400. By way of comparison, the high bid
received for this consulting study was $28,350.
0 0
TO: MAYOR AND CITY COUNCIL - Page Five
In summary, the CRC proposal would involve three logical phases;
analysis, competitive bidding and implementation. The total project
cost (Phases I -III) would be $19,400 maximum and the total project
time frame would be 12 months.
CRC, which is located in Santa Ana, has eight years of telecommunica-
tions consulting experience serving a wide variety of clients --
many of them municipalities. The municipal references checked by
staff all rated CRC's performance on similar studies as excellent.
Proposed Consulting Agreement
Attachment 4 is a copy, of the proposed consulting agreement. The
agreement provides for specific City Council review and approval of
the results of each phase prior to proceeding to the next phase.
Funds would be appropriated for each successive phase by the Council
following its review of the preceding phase.
Proposed Course of Action
It is proposed that the City Council take the following actions this
evening:
1. Authorize execution of a consulting agreement with
Communication Resources Company;
AND
2. Approve Budget Amendment No. appropriating $8,850 for
Phase I of the study.
The Assistant to the City Manager and the Purchasing Agent will
jointly serve as project coordinators on the City's behalf.
j( " ,7� D V V f,-
ROBERT L. WYNN
City Manager
RLW:GJB:jmb
Attachments
AT&T DI'Vestitdire
k D i
`~� S L e � a r f cs Cities
A4, 1'
As Users Of Premises -Based Exchange Equipment,
Cities Must Do Some Important Shopping Soon
By Janine Asai
Divesture is a word which
will be heard frequently
throughout the telephone in-
dustry over the next couple of
-years. What does it mean?
And how will it affect the
municipal telephone user?
The divesture process pro-...,
vides many opportunities for
business telephone users to
save money in areas of tele-
phone service previously not
considered for cost savings. It
also provides customers with
clear separations of accounta-
bility between different ser-
vice providers, thus helping
customers determine which
company is responsible for
each aspect of phone service.
AT &T will change its historical role
when it divests 22 of its 24 local operat-
ing utility companies. In California, i
Pacific Telephone Company will be
i divested. California cities will be af-
fected whether or not Pacific Telephone
Company provides the local utility
service.
Background
Earlier this year, the Justice Depart-
ment and AT &T announced the settle-
ment of the longstanding antitrust suit
filed by the government. Initially, the
provisions detailed within the settlement
caused tremendous confusion. However,
it is clear that there is much money to be
saved because of the advantages of ac-
quisition of telephone equipment rather
than rental. There are also over 200
different vendors and sources. Most
importantly, decisions about existing
equipment and services must be made
within the next 12 -18 months because
Pacific Telephone is leaving the business
of providing end user equipment.
For many years, telephone utility
companies have provided end -to -end
services. The electric utilities supply the
electrical power, for example, and the
gas utilities the natural gas. The ap-
pliances and other facilities which their
customers use in their homes or busi-
nesses have historically been purchased
in the open market.
Telephone utility subscribers have felt
a degree of security in using telephone
utility equipment. even when overall
costs were somewhat higher than with
private suppliers. Due primarily to their
regulated status, subscribers felt there
was long-term safety in using telephone
utility provided equipment.
However, between now and
July 1, 1983 the telephone utility
companies will begin functioning
in the some manner as other util-
ity companies. Pacific Telephone
will provide its business clients
t with telephone numbers, lines
and access to various types of
long distance services. It will not /
provide, install, or maintain on- /
premise PBX (Premises -Based
Exchange) business telephone
equipment. It vvill bill its subscri-
bars for local lines and usage and
perhaps access charges to long
distance, service. It will also bill
its subscribers for hook -up to out -
side lines and service, It will
begin and terminate service
'10 responsibilities at a demarcation
Z-- point.
The new role of AT &T will shift from
that of a parent corporation to an individ-
ual supplier. By July 1, 1983, AT&T will
acquire from each of the 22 pre - divested
local operating companies, including
Pacific Telephone, contracts for existing
terminal equipment (PBX's) and assume
equipment related activities and respon-
sibilities.
New Rules
The state regulatory agencies in
several states have taken action in antici-
(Janine A.sai is a customer represenra-
rive specializing in public sector clients
for Cononunication Resources Com-
pany. a communications consa( ring and
engineering f+rar.)
/g 6 Western ChylAugusr 1982
ration of this. In California, the Pu*(C
Utilities Commission has required Paci-
fic Telephone to provide a plan whereby
PBX customers could purchase their
PBX telephone system at the same terms
and pricing Pacific would offer to AT &T.
By allowing the customer to compete
with AT &T for the purchase of existing
equipment, the P.U.C. hopes to avoid a
possible situation where Pacific Tele-
phone could sell equipment at a loss, thus
benefiting the parent AT &T, with the
loss being made up through a Pacific
Telephone rate increase.
Now new problems must be ad-
dressed. If a city has an interest in
purchasing its system from either Pacific
Telephone or AMT, it must determine
the most effective product for the best
price possible.
Further, AT &T is not in favor of custo-
mers purchasing this equipment. The
company has indicated it will not recom.
mend either the direct purchase or the
prolonged utilization of customer on-
premise "vintage" equipment (anything
not state -of -the -art), should the subscrib-
er elect to stay with AT &T. In the wordW "se Ives into existing customer premises
of one AT &T executive, "The forced equipment."
sale of customer premises equipment is
inappropriate.' Keep Equipment?
"Installation and maintenance of ex- There are other indications that Pacific
isting technology are extremely labor in- Telephone is less than enthusiastic to sell
tensive, wrote AT &T's National Director its equipment to customers. With much
of Business Sales Robert J. Casale in a fanfare, AT &T companies introduced
recent letter to the International Corn- "Centrex" systems featuring individual
munications Association. "Inflation in- coming direct lines, instead of re-
continues to drive up labor costs and ex- quiring callers to go through the tradi-
,sting products are becoming ever more tional central switchboard. There are
costly to maintain. As these costs rise, currently two types of Centrex services:
we (Pacific Telephone) are required by C.U. Centrex is the older, mechanical
law and good business practice to adjust type with machinery on a customer's pre -
prices to reflect costs." noses; C.O. (Central Office) Centrex
provides a similar service from the util-
ity's who purchase in -place ity's central office, without the need for
vehicles will lock themselves into these on- premises equipment.
rising maintenance costs. On the other Only C.O. Centrex service will be of-
hand, new technology is rapidly emerg- fered in (lie future by Pacific Telephone,
ing which provides dramatically im- leaving some unanswered questions for
proved price and performance. This owners of the C.U. "on-'premises" sys-
technology is also significantly less labor tems:WhathappenswhenPacificTele-
intensive and will thus be less costly (o phone eliminates its business repair:
maintain. Given this environment, it is centers, staff, and activities? This would
not logical for customers to lock them- /corttirtue 1 oil next p. z e
g ))
Recent Acfzons Affecteg
-ph-one Serpice
Computer Inquiry I Decision (Federal Communica-
lions Commission) 1972 — This decision precluded tele-
phone utilities from providing computer/data services via
theircentral offices. To provide such services, the formation
of a wholly separate subsidiary was required.
Computer Inquiry II Decision (FCC Docket No.
20828 -1980) This investigation began in 1972 vvith a look at
specific data capabilities of AT &T utility company provided
terminal equipment. The AT &T utilities maintained they
were not competing in the data industry in violation of the
Computer Inquiry I decision. The FCC determined it was
nearly impossible to darken that fine line between voice and
data. Therefore, the conclusion was reached that AT &T
would have to "deregulate" through formation of separate -.
subsidiaries to engage in the competitive data marketplace:
This decision has become known as •`Deregulation and is-
scheduled for implementation January 1, 1983_.
This deregulation action applies to AT &T only. However
General Telephone and Electric has voluntarily proceeded to
comply, and take full marketing advantage of the more at-
tractive aspects of this decision. Some state public utility
commissions have regulated or encouraged compliance on
all operating utilities under their jurisdiction. There remain
many unresolved questions, the most significant being the
consent decree ending a long standing anti -trust suit against
AT &T
Divestiture Consent Decree — U.S. Department of
Justice 1982 Two months before the "deregulation" was
scheduled to take effect, the Department of Justice and
j tt'estr.. Ciry/August 1982
AT &T announced a proposed settlement to the long- standing
anti -trust suit leveled against AT &T in 1974. This action
created several conflicts with the Computer Inquiry li Deci-
sion. It has been accepted that where redundancy exists, the
Consent Dcerec would take precedent. The settlement ,:e-
quires:
The divesture of 22 of the 24 Bell (AT&T) kcal tele-
phone wili(y companies, which become utility cempa-
nies.under state regulminn.
0 AT &T or a new subsidiary to take -over all in- place,
on- premises customer equipment and related services.
C Western Electric (Bell Labs) to remain with AT &T.
Y AT &T long distance lines also to be retained.
This settlement is scheduled to take effect on or.before July
1, 1983:
House of Representatives JIM 5158 ffheTelecominuni-
cations Act of 1981) is a current project to amend the Con
munications Act of 1934. It relates primarily to voice and
data transmission utilizing prior is well as future state -of -
the -art media. Also addressed are (he future responsibilities
of the FCC and state commissions. Further, it sets forth pro-
visions governing the AT &T divesture. H.R. 5158 has
passed the Telecommunications subcommittee and has been
forwarded to (he full Energy and Commerce committee.
Senate Bill 898 Is also an attempt to rewrite the Telecom-.
municiltions Act of 1934, with a major difference from HR
.5158. The Senate.would require "unregulation" as opposed
to "deregulation." Simply stated, this bill would provide
a much more liberal relationship between AT &T regulated
and non - regulated entities. Currently this bill is still at
subcommittee level. a
— Janine Arai
to
AT&T
(continued)
not be unreasonable to expect, since the
utility would only offer C.O. Centrex
service. Would city maintenance staff
perform required service? These uncer-
tainties are leading many users of vintage
PBX and Centrex users to abandon their
equipment in favor of new products with
a better cost to benefit ratio.
Thus, regardless of whether your city
is planning a voluntary review of your
existing telephone services and require-
ments, or has no plans whatsoever, deci-
sions must be made about telephone
services after mid -1983.
Divesture could also have other fiscal
impacts.
According to AT &T, Pacific Tele-
phone has not been a profitable subsi-
diary in recent years and has been
subsidized by other AT &T revenues. If
in fact true, Pacific Telephone, as an
independent utility, will undoubtedly
be forced to-charge higher rates for their
offerings. This will include both
usage costs for local calling and any
"embedded" equipment and telephone
systems which they are required to main-
tain, such as C.O. Centrex. Toll and long
distance calling will be taken away from
the utility companies and remain the sole
Province of AT &T.
Higher Costs
Recent telephone utility company rate
increases and rate increase applications
indicate that increases of 20 to 50 percent
annually appear to be likely for the fore-
, seeable future. California, it should be
noted, currently has the lowest overall
telephone utility rates in the nation. In
the last year, both General and Pacific
Telephone Companies have experienced
rate increases of approximately 20 per-
cent each. Once conversion to divesture
is completed, independent studies indi-
cate that telephone utility costs will
peak out and level off, or possibly even
decrease.
How can a city best plan for telephone
services in the future? Cities must estab-
lish their requirements, their long term
(7- 12years) baseline, and theiravailable
funds, and then go out to competitive
bidding, treasuring the responses against
their present situation. It is important to
include the serving utility company in the
campc6tion, as their responses should be
the yardstick by which all other vendors
should be measured.
If a city has a staff member currently
abreast of the market and the potential
J
feimpact of legislative actions, this person
could be helpful in cohesive planning. In
any case, an evaluation of present ser-
vices and requirements is essential. This
can be accomplished either through the
services ofvendors, or with the help of
an outside consultant.
With vendor provided services, either
free or for a fee, it is reasonable to as-
sume that such studies would tend to
favor contract proposals fora system fur-
nished by that individual supplier, pos-
sibly limiting the participation of other
suppliers in the competitive bidding.
Further, since divesture will mean no
one provider can provide "all things to
all people," A city's- plan- should.cover.
other areas of service, such as WATS,
Foreign Exchange, or private common
carriers such as MCI's Execunet or
Cflties Tackk
]Phone' Needs
Alhambra (300 Imes) After im-
plementing a Centrex (PT &T),
which cost substantially more than
indicated initially, the city chose to
review thesystem in its entirety. The
results led the city managec'ro pro-
pose replacement of the telephone
system through competitive bid-
ding. Action was delayed, pending
approval, for two years- The city
estimates costs of over 560,000 due
to the delay. Competitive bidding is
now in progress. 1.
Carson (300 lines) In 1975 Car-
son acquired an "interconnect" tele-
phone7 system through competitive
bidding..This is one of the oldest tax
supported private system installa-
tions in the state. This project was
initiated in conjunction with the-con-
struction of a new civic center- ITT
and Pacif _Telephone bid the same
Product; providing fora direct com -
parison._The city estimates actual
savings in excess of $100,000 with
the ITT product. .
Duarte(50 tines) Constru ction of
a new ctviccenter necessitated re-
Placement of telephone equipment.
Competitive bidding indicated
potentia[ s5i i-nngrwith substantial
/. service improvements. -
Irvine (350 lines) Irvine is
examining: alternatives *prior to
`construction of a new civic center.
Initial analysis indicates installation
P1
Southern Pacific Communication's
Sprint. Ample growth should be in-
eluded in the design of a city's require-
ments to avoid a repetition of this process
in the near future.
Through the changes brought about by
divesture and utilizing a prudent selection
Process and intelligent management, city
managers and administrative staffs will
now be in a position tocontrol theirequip-
ment and usage costs. Telephone com-
munications can no longer be taken for
granted, nor can the basis on which tele-
communications are designed. Telecom-
munications are a resource which must be
managed to economically enhance an or-
ganization's operation. Divesture offers
an opportunity to do just that. a
of new services in the existing civic
centerand future re- installation (3 -4
years later) in the new buildings
could be cost beneficial.
Monterey Park (400 lines)
Again, a Sew civic center required
Projection of requirements and com-
petitive bidding for new services
in 1979 -1980. A savings of over
$18,50.') with new and im proved ef-
ficiencies was realized in the second ..
year of service of a new system.
San Clernente (150 lines) An
evaluation of existing contractual
obligations identified actual fis-
cal liabilities and avoidance of.
$300,000 of "engineering" charges
from PT &T. A PT &T system was
installed following competitive
bidding.
Stanton(100 lines) Aftercompc i-
five bidding, this city implemented
an altcmative system in 1979. The
maintenance contract has been re -bid
twice since. Cost savings have
resulted. - __-
- Stockton (1,000 lines) Presently -
PT &T Centrex is being replaced
after competitive bidding. Substan-
tial savings will be realized over
existing costs.
Torrance (600 lines) — New
Police facility required examination
of telephone requirements city-wide.
Competitive bidding resulted in a _
new system with anticipated savings
of $1.9 million. is
Jartirsr.•tSai '_
i
E
CITY OF NEWPORT BEACH
TELEPHONE SYSTEM STUDY PROJECT
r r r
INFORMATION
FOR
PROSPECTIVE PROJECT CONSULTANTS
A ti' . 2,
DECEMBER 1982
Background
The City of Newport Beach is currently serviced by two non-
integrated Centrex systems. Approximately 425 stations at
16 separate locations comprise the City's Centrex system. The
current system is expensive to operate and maintain and, given
recent developments in the telephone industry, will no doubt
prove to become even less cost - effective in the future.
General Project Scope
The City is considering the possibility of retaining the
services of a professional consultant to completely analyze
the City's telephone operations and to present alternatives
and recommendations relative to improving services and pro-
viding for ongoing cost - effective telephone system services.
General Areas of Analysis
The City would anticipate that the following would be among
the general areas of analysis incorporated or included as
part of the consulting services provided:
1. Complete review and analysis of the existing
telephone system and user patterns.
2. Identification and review of present and future
system requirements.
3. Presentation and analysis of available alternatives
for upgrading and improving the system including
the alternative of upgrading or enhancing the City's
Centrex system.
4. Development of uniform bid specifications for
release to system equipment vendors,should the
City decide to proceed with a system upgrade.
5. Participation and assistance throughout the bidding
process, including a recommendation as to the most -
responsive, cost - effective bidder.
6. Possible implementation assistance.
Proposal for Services
The consultant's proposal for consulting services should
include the following information:
10 -1-
1. Detailed study approach and work plan, including
project task areas or areas of analysis and data -
gathering techniques /procedures.
2. Project time frame, including individual task
scheduling and /or phasing as well as an estimate
of the number of consultant hours per task or phase.
3. Plan /Schedule for providing project status reports
to the City.
4. Overall fee for consulting services along with a
breakdown of fees by individual project task or phase.
5. Hourly pay rate for project consultants.
6. Information on the consulting firm and its officers.
7. List and background information on specific officers
or employees who will work on the consulting project.
8. List of client references.
Proposals should be delivered to:
Gerald J. Bolint
Assistant to the City Manager
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, CA 92663 -3884
Proposals should be delivered by:
Tuesday, February 1, 1983
NOTE:
The City reserves the right to reject any and all proposals
submitted and to waive any procedural irregularity or formal
requirement of the proposal process. Additionally, the City
is under no obligation to select the "low bidder" to perform
this work and may accept any proposal or portion thereof.
The cost of any proposal submitted will be borne entirely by
the consultant submitting the proposal.
I
II -2-
J
Proposal Summary
Telephone System Study Project
City of Newport Beach
Firm Name: Communication Resources Company
Firm Address: 1433 E. Borchard Avenue
Santa Ana, CA 92705
Firm Telephone: (714) 558 -2844
Individual Task Areas:
A tK 3
Time Frame: Cost:
Phase One - Analysis 2.5 months
a. Traffic Studies
b. Call Pattern Analysis
c. OPS /Tie Line Study
d. Establish Operational Procedures
e. Inventory and Audit
f. Personnel /Departmental Interviews .
g. Directory Listing Review
h. Cable, Equipment & Room Requirements
i. Growth Projections
j. Cable Tv Study
k. Building /Facilities Requirements
1. System Design
m. System Comparisons
n. Telco Rate Changes
o. Budgetary Pricing
p. Phase I Report
q. Interim Implementation
Phase Two - Competitive Bidding
a. Bid Specifications
b. Bid Solicitation
C. Bid Conference
d. Bid opening
e. Bid Equipment Analysis
f. Bid Cost Analysis
g. Final Report
h. Contract Negotiations
Phase Three - Implementation (Full)
a. Key System Worksheets
b. Floor Plans
C. System Programming
d. Telco Coordination
e. Training
f. Meetings
g. Install & Cutover
h. Post Cutover Audit
i. Follow -Up Invoice Audit
j. System Acceptance
- OR -
I0�1 -1-
2.5 months
$8,850
$3,950
6 months(max)5% of system
Purchase Price
V
Individual Task Areas:
•
Time Frame: Cost:
Phase Three- Implementation(Supervision)
a. Key System worksheets
b. System Programming
C. Installation & Cutover
d. Post Cutover Audit
e. Follow -Up Invoice Audit
f. System Acceptance
Total Project Time Frame:
Total Project Cost:
6 months(max) $6,000
12 months (maximum)
$19,400 (maximum)
Methodology: Collection of records and statistics,
technical analyses and inventory,
interviews, questionnaires, surveys.
Status Reporting Schedule:
1. Phase I Report (End of Phase I)
2. Final Report (End of Phase II)
3. Periodic (Throughout Phase I and II)
Project Team: 4 member Team
Total Years Corporate Experience: 8 Years
Client References: Total Listed - 50
Governmental Institutions - 19
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0
TELECOMMUNICATIONS CONSULTING AGREEMENT
lq t� ,t
THIS AGREEMENT, made and entered into this day of
, 1983, by and between the City of Newport
Beach , (hereinafter referred to as "CLIENT "), and COMMUNICATION
RESOURCES COMPANY, (hereinafter referred to as "CONSULTANT "), with
principal offices at 1433 East Borchard Avenue, Santa Ana, Calif-
ornia, 92705.
The CONSULTANT is to fully investigate the CLIENT's telephone
system and usage for the purpose of providing the CLIENT with
appropriate recommendations to assure that satisfactory telecolr-
munication services are provided for all CLIENT'S operations and
facilities. The CONSULTANT will perform all functions necessary
to determine which communication system or systems offer the CLIENT
maximum cost effectiveness and best service arrangements. The scope
of such services will include all services, studies, planning, and
analysis as detailed within the Communication Analysis Plan Proposal,
dated February, 1983
A preliminary report, covering initial findings, will be
submitted by the CONSULTANT approximately 10 weeks after the date
this AGREEMENT becomes effective. Following CLIENT APPROVAL OF
THIS REPORT, THE CONSULTANT shall proceed as directed by CLIENT. If
determined appropriate by CLIENT, the CONSULTANT shall solicit
competitive proposals from selected, qualified suppliers. The
CONSULTANT will then present a Final Report to CLIENT. Final
decision making shall, at all times, remain with the CLIENT.
CONSULTANT shall act upon decisions as made by and in behalf of
the CLIENT.
The periodic observation of system installation, by the
CONSULTANT, will endeavor to guard the CLIENT against defects and
deficiencies in the work of system supplier, but does not constitute
other guarantees of performance of the contracts.
, - Page 1 -
0
The CLIENT agrees to pay the CONSULTANT a fee for his
services, as provided for herein and described in detail in the
Communication Analysis Plan Proposal, in the amount of:
A. PHASE I - THE ANALYSIS . . . . . . . . $8,850
B. PHASE II - COMPETITIVE BIDDING . . . . $3,950
C. PHASE III - FULL IMPLEMENTATION SERVICES. 58 of
system purchase price
or IMPLEMENTATION SUPERVISION . . $6,000
Bottom Line Net Fees . . . . $19,400
D. CONSULTANT shall not be required to perform services
required by Phase II and Phase III, nor shall CLIENT
be obligated to pay for those services, unless and
until specific authorization is granted by the City
Council of the City of Newport Beach, subsequent to
the date of this AGREEMENT, and in no way shall CLIENT
pay more than $19,400 for performance of services
required by this AGREEMENT.
Upon execution of the AGREEMENT, $885.00 shall be paid to
the CONSULTANT and subsequently deducted from the first monthly
billing. The remaining amount shall be billed and paid monthly
as time is expended. Payments are due upon presentation of invoice
and become delinquent 30 days thereafter. Penalties will be
assessed on late payments at the rate of 1 -1/28 per month.
Should the CLIENT desire to expand the study, cover other
locations, or require additional activities beyond that stipulated,
such activity will be considered an addition to this AGREEMENT and
billed at the rate of $85.00 per hour , subject to prior CLIENT
i
approval.
1 It is anticipated that the entire project, including system
i
implementation, will be completed within approximately one (1) year .
If the project is delayed or extended beyond the anticipated time
frames, for reasons over which the CONSULTANT has no control, extra
charges may be incurred. Further, in the event the CONSULTANT'S
work should be indefinitely delayed or entirely stopped through
causes over which the CONSULTANT has no control, he shall receive
'� - Page 2 -
from the CLIENT an amount commensurate with the work and time
expended by the CONSULTANT, to be billed at the rate of $85.00
per hour
It is agreed that, during the period of this AGREEMENT, no
other telephone related studies, reports, or similar studies will
be authorized by the CLIENT or accepted from any other party unless
previously agreed to or requested by both the CLIENT and CONSULTANT.
CLIENT shall pay CONSULTANT all costs and expenses (including
reasonable attorney's fees to the extent permitted by law) incurred
by CONSULTANT in enforcing the provisions hereof or in exercising
any of the rights and remedies hereunder.
.The CLIENT agrees to provide the CONSULTANT with a letter
of authorization to contact the serving telephone company on the
CLIENT`S behalf, access to telephone company statements, personnel
and present telephone equipment during normal business hours. This
instrument represents the entire AGREEMENT between the two parties.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT
as of the day and year first above written.
CITY OF NEWPORT BEACH, a
Municipal Corporation.
By
Mayor
CLIENT
COMMUNICATION RESOURCES COMPANY
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
J'A&6-4�
ity Attorney
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CONSULTANT