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$5,500 for five. He requested the purchase of five with the funding to be supplied from <br />the drug forfeiture funds. <br /> <br />Motion by Councilmember Haas Steffen and seconded by Councilmember Zimmerman <br />to recommend City Council adopt the resolution authorizing the purchase of five, semi- <br />automatic police shotguns. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Haas Steffen, <br />Zimmerman, Beahen and Beyer. Voting No: None. <br /> <br />Case #4: <br /> <br />Authorize Entering into a Contract with McLeod USA for Phone <br />Services <br /> <br />Acting Finance Officer Lund reported that two phone companies have approached the <br />City about entering into a five-year contract with their organization. One of the <br />companies is US West Centrex and the other is McLeod USA. The City's current carder <br />is US West. She explained that the contract period would be July 1, 1998, to June 30, <br />2003, and each company offers an extended contract as they are able to offer the City <br />better rates. Ms. Lund noted that in comparing the companies, US West Centrex looks <br />like the better plan per dollar. However, any additional lines that are added, (e.g. <br />warming house) would be at a higher rate. US West Centrex also charges a significant <br />penalty if the City would decide to break their five-year contract to go with another <br />carrier. McLeod USA does not have that stipulation. With McLeod, the City could get <br />out of the contract at any time if lower rates are found and McLeod cannot match them. <br />Another difference between the carders is that McLeod USA offers the City a fixed rate. <br />If this rate were to go down, then we would receive the lower rate, but if it were to go up, <br />our rate would remain at what we were locked in at. She continued that long distance <br />charges are offered at a much reduced rate through McLeod USA. The City's current <br />carriers for long distance are AT&T and US West and the City could save as much as 23 <br />cents per minute by switching to McLeod USA. <br /> <br />Councilmember Haas Steffen inquired if the City Attorney has reviewed this information. <br />She expressed concern about a five-year contract. <br /> <br />Mayor Gamec expressed concern about being able to get out of the contract based only on <br />cost - what if the service is poor? <br /> <br />Motion by Councilmember Haas Steffen and seconded by Councilmember Beyer to <br />recommend that Council authorize the City Administrator and the Finance Officer to <br />enter into a five-year contract with McLeod USA for local and long-distance phone <br />services contingent upon favorable review by the City Attorney. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Haas Steffen, Beyer, <br />Beahen and Zimmerman. Voting No: None. <br /> <br />Finance Committee/June 23, 1998 <br /> Page 3 of 7 <br /> <br /> <br />