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03-31-2003 CC MIN - SPECIAL-ANNUAL REPORTMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, PIARCH 31, 2003 Members Present: Members Absent: Staff Present: Mayor K2inzing, Councilmembers Dietz, Kuester, Mot_in, and Tveite (7:05 p.m.) None City Administrator Pat I~daers, Finance Director Lori Johnson, Director of Planning Michele McPherson, City Attorney Chris Johnson, Legal Assistant Jennifer Snyder, Economic Development Director Catherine Mehelich, Liquor Store Manager Dave Potvin, Recreation Manager Michele Bergh, Librarian Nfick Stoffers, Ice Arena Manager Rich Czech, Senior Center Director Sue Kostanshek, Fire Chief Bruce West, Ambulance Coordinator Steve Dittbenner, Assistant Police Chief Jeff Beahen, Building and Environmental Administrator Steve Rohlf, Street/Park Superintendent Phil Hals, Utilities General Manager Bryan Adams, Wastewater Treatment Plant Chief Operator Gary Leirmoe, IT Coordinator Bob Pearson, and Recording Secretary Tina ~A21ard Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:30 p.m. by Mayor Klinzing. Consider A~vard of Telephone System Bids Finance Director Lori Johnson stated that the city solicited bids for a Voice Over Internet Protocol (VoIP) telephone system for the new Public Safety facility and City Hall building. She stated that after receiving the bids staff completed an analysis of the benefits versus the costs and risks of a VoIP and a traditional PBX system. Based on that analysis, staff is recommending that the city reject all bids for Voice Over Internet Protocol systems. She stated she had spoken to Peter Beck, City Attorney, who agreed that it was within the city's legal right to reject all bids. Staff further recommends that a PBX system would fit the city's needs better and recommends that the city purchase off the University of Minnesota contract which eliminates the need to request for bids for a PBX system. The contract holder is Inter-Tel, which is the PBX system chosen by staff. IT Coordinator Bob Pearson presented an overview of phone technology and discussed the bids received in the Request for Proposals. He reviewed research data regarding the pros and cons of a VolP system versus a PBX system. He stated that the Inter-Tel PBX system offered the opdon of upgrading to a VoIP system if the city decided to switch over at some point in the future. COUNCILMEMBER MOTIN MOVED TO REJECT ALL BIDS RECEIVED ON MARCH 13, 2003 BECAUSE THE ADDITIONAL COST OF A VOIP SYSTEM EXCEEDS THE ADDITIONAL SYSTEM BENEFITS. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. City Council Nfi.nutes March 31, 2003 Page 2 COUNCILMEMBER DIETZ MOVED TO APPROVE THE PURCHASE OF AN INTER-TEL TELEPHONE SYSTEM THROUGH THE MINNESOTA STATE COOPERATIVE PURCHASING VENTURE CONTRACT #428806 AT A COST OF APPROXIMATELY $94,845.59. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Annual Reports The 2002 Annual Reports were presented. The presentation included a written copy of each report, a video presentation, along with each department presenting some of their 2002 accomplishments and 2003 goals. The Council had a question and answer session regarding any issues of concern and interest. 4. Adjournment There being no further business, Mayor Ia-dinzing adjourned the meeting of the Elk River City Council at 10:05 p.m. Tina Allard Recording Secretary