Okaloosa County BOCC — April 19, 2016 — Mackay Communications - Past Due Payments — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 19, 2016 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Mackay Communications - Past Due Payments DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Okaloosa County Water & Sewer (OCWS) staff request Board of County Commissioners (BCC) approval to pay all outstanding and past due invoices to Mackay Communications for the provision of services for Water & Sewer’s emergency satellite phones. The total cost of the outstanding and past due invoices is $5,840.92. BACKGROUND: On 9/15/15 a Return Payment Request Notification was issued by the Clerk of Courts Finance Department for Mackay Communications’ invoice SB023347 dated 7/28/15 for (“pricing/rates are not contracted values”). This was due to the ‘per minute’ charges included on the invoice for annual testing done on the phones. This testing is done once a year to confirm the phones are in working order. When researching the ‘per minute’ rates not being included in the contract, it was discovered by OCWS staff that the contract itself (C07-1531-PS) did not include the 15 satellite phones held by Water and Sewer. The contract for Water and Sewer (C07-1555- WS) had been made inactive and was removed from the Purchasing database. The only active contract for monthly satellite phone service was the Emergency Management contract (C07-1531- PS); which was the contract Water and Sewer had been paying monthly invoices under for several years. This contract is only for Emergency Management’s 25 satellite phones. Also during this research, OCWS staff discovered that the April 2015 invoice, SB021107, had been unintentionally missed and remained unpaid. Due to the discovery that the contract C07-1531-PS did not include the Water and Sewer phones, no further payment requests could be processed, per Purchasing, until a resolution and new contract could be established. This lead to additional unpaid invoices from November 2015 (SB026329), December 2015 (SB027055), January 2016 (SB027815), February 2016 (SB028552) and March 2016 (SB029300). (NOTE: October 2015’s invoice was paid on an OCWS credit card). Discussions between Water & Sewer, Purchasing and Legal began in early October 2015 on the need to re-establish a separate contract for the Water & Sewer satellite phones and service. A meeting was held in early November 2015 with representatives from the three departments and a directive was given on what was needed to be achieved in order to move forward with a new contract. The complete package as requested was provided by Water & Sewer in early December 2015. Delays due to many factors caused the approval of the new contract not to occur until March 18, 2016. The total for unpaid invoices for Mackay Communications is currently $5,978.62. This includes 7/28/15 invoice SB023347 for $855.82; 4/23/15 invoice SB01107 for $853.80; 11/24/15 invoice SB026329 for $853.80; 12/18/15 invoice SB027055 for $853.80; 1/19/16 invoice SB027815 for $853.80; 2/22/16 invoice SB028552 for $853.80 and 3/22/16 invoice SB029300 for $853.80. There is also an outstanding account credit for ($137.70) that stems from as far back as April of 2013. This credit was included on the original payment request that included the July 2015 invoice. The total currently due and payable to Mackay Communications, $5,840.92. OPTIONS: Approve or deny. RECOMMENDATION: Water & Sewer staff recommends BCC approval of payment to Mackay Communications in the amount of $5,840.92, as outlined in the attached payment requests and invoices. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator