Approve Amendment #2 to Contract B - Nortel Networks:

Staff recommends that the Board approve a proposed amendment to its Ongoing Service Support Contract with Nortel Networks.

This ten year service agreement was initially executed in May 2001 and became effective in June 2003 when the Nortel switch was activated to provide telephone service. This agreement covers annual maintenance support for the Nortel DMS-500 switch and ancillary equipment, including the Glenayre Voice Mail unit.

Because of our recent acquisition of a newer technology voice mail unit, Staff no longer feels an annual maintenance agreement on the legacy Glenayre voice mail unit is required. Nortel has agreed to drop the Glenayre maintenance from our Ongoing Service Support Contract and staff will arrange for maintenance of the Glenayre voice mail unit on an as-needed basis only going forward.

The total contract savings to the Frankfort Plant Board from this change over the seven and one half years remaining in our Nortel agreement is approximately $95,000 (from a contract total of $595,190 to the new contract total of $500,257).