Panel backs new city-wide Salem phone system
By LARRY SHIELDSSALEM - With a 2-1 vote, Finance Committee members voted to move forward with a new citywide phone system despite committee member Dave Nestic's request to have an independent source review the quote.
The new system will be acquired through state procurement. if council approves it.
Committee members, Chairman Justin Palmer and Rita Joseph O'Leary voted for the purchase and in presenting the proposal Service Director Steve Andres said would save about $600 annually.
The equipment and software, purchased from AT&T Business Communications Services, totaled $31,092 for new phones for the entire city including the Utilities Department, which will contribute to 20 percent to pay for it.
Andres said they were hoping to get 15 years of service from the system which included three extra phones that could be "swapped out" as replacements.
Nestic asked, "Where's the savings?" and Andres said it was in the monthly user fee.
Palmer said a very itemized bill is issued and pointed out it included the entire city government system.
Auditor Jim Armeni said the current system was "old" in response to a question by Nestic about receiving a lesser rate on the current system, and Palmer said Centrix (what the city now uses) systems incorporated a "lot of added costs."
He added, "Maybe this is where some fees disappear."
Armeni noted the five- to six-year payback period adding, "I prefer to own it" compared to a lease program.
Nestic asked how many other systems were considered and Andres said Verizon was contacted and BizFon's Website was checked.
Nestic zeroed in on the $15,000 installation cost, asking if that was correct and Andres replied, "Yes."
Nestic said, "Wow" and asked how long installation would take. Andres didn't know but said the city electrician would and added an all new service panel was part of the equipment.
O'Leary said, "So, this is updating" and Andres said the cost may be different.
The quote expires on Friday.
Nestic said with installation costing $15,000, that amounted to $1,200 a day for two weeks work, adding he thought it "feels a little exorbitant."
He said in a year the city was not paving streets he wanted to feel a little better about it.
Nestic asked if he could review the quote with someone he knew "who works in this industry."
Palmer said it was public record and Nestic asked to table the issue and Andres said the city was losing money each month and Nestic replied, "That's one way to look at it."
O'Leary asked if there was "any bearing on 9-11?" That system, already installed in the police department, is set to go on line in September.
Andres said, "No."
Palmer noted there were quality issues with the old system and asked for a motion.
Nestic moved to table it for "one more meeting" but it died for lack of a second.
In other business, the committee discussed raises for non-bargaining employees but held off any action until finances received further review.
Five department directors including the tax, police, fire, service and parks directors are all hourly and the committee is studying converting them to salaried employees.
Non-bargaining employees include certain administrative staff, lifeguards, dispatchers, zoning office personnel and school crossing guards.
Palmer also said the pay for the fire chief was to be placed on par with the police chief and wanted to set another meeting to discuss all the issues. The wage package would be retroactive to July 1 if approved.
The committee also briefly discussed setting raises against a merit scale.
Also, the healthcare appropriations will meet a shortage in November and Palmer suggested having each department head deal with the issue inside their department.
Nestic said, "You're saying, 'work within your budget.'"
Andres also presented the committee with plans to repair concrete at the North Ellsworth Avenue entrance to the fire station where the pad sinks several inches.
Central Allied Enterprises submitted a proposal for $6,802 to remove and replace the existing concrete with eight-inch reinforced concrete with hook bolts.
A proposal to install sidewalks around the parking lot behind city hall for $2,988 was also discussed. Andres said his department would provide the labor.
Larry Shields can be reached at lshields@salemnews.net
