New Phone Systemsate?
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SUBJECT
04Y
.4W
INTER-OFFICE MEMO
TO William P. Craig, City Manager
FROM Jim Genellie, Administrative Intern
New Phone System
CITY OF HOPKINS
1010 FIRST STREET SOUTH PHONEt 99641474
HOPKINS, MINNESOTA 55343
DA'T'E May 14,
The City of Hopkins is presently in the position of being able to acquire a
new phone system while reducing monthly telephone costs. The City received
seven bids for a phone system. The lowest was from the firm of Hauenstein
and Burmeister. Their bid was $34,063. A cost comparison of this bid with
our present system indicates that the new system would pay for itself in
approximately three years.
There are three components included in the City's telephone bills:
1) Equipment charges phones, switching equipment and
attendant console.
2) Circuit and line charges charges for the use of
Northwestern Bell's lines which lead into City Hall.
I98
3) Long Distance charges
The monthly equipment charges would be eliminated with a new phone system,
unless the City remains with Bell. The line charges would increase slightly
while the long distance charges would remain the same. The following table
indicates the savings possible with a new phone system. Comparisons are made
using Northwestern Bell's present line charges as well as the increased charges
they are presently proposing.
Existing line charges
Iltisting phone system $1,810 /month (1)
New H B System 830 /month (2)
New Bell system $1,809 /month (3)
Proposed line
$2,003
$1,076
$2,034
charges
(1)
(2)
(3)
The equipment charges for the present system will continue to rise in the
future thus increasing this amount.
This price includes five years of service. The City may be able to do some
service using in -house personnel which would reduce this amount.
This does not include an installation charge of $3,259, by the Bell System.
I have checked with several school districts who have the same phone system which
Hauenstein and Burmeister is proposing for Hopkins. The unanimous opinion was
that the system itself and Havenstein and Burmeister's service of the system
were excellent.