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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 6, 2018 <br />TITLE: <br />APPROVE AGREEMENTS WITH PACKET <br />FUSION, INC AND TPX COMMUNICATIONS <br />FOR VOICE COMMUNICATION SERVICES <br />AND APPROVE AN APPROPRIATION <br />ADJUSTMENT <br />{STRATEGIC PLAN NO. 7,5a, 5e} <br />E_ 0_� __ <br />I MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />F_177;Ci��/�I• <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 16' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Approve and authorize the City Manager and Clerk of the Council to execute the attached <br />Agreement with Packet Fusion, Inc., for the implementation, support, and maintenance of a <br />citywide phone system for a three-year period beginning March 6, 2018 through March 5, 2021 <br />with an option for one two-year renewal for an amount not to exceed $1,119,500 which is <br />comprised of the sum of $757,000 for one-time costs, a 15% contingency of $112,500, and five <br />years of annual support totaling $250,000 over the life of the agreement including any extension <br />periods, subject to non -substantive changes and approved by the City Manager and City <br />Attorney. <br />2. Approve and authorize the City Manager and Clerk of the Council to execute the attached <br />Agreement with TPX Communications, Inc., for PRI lines for a three-year period beginning <br />March 6, 2018 through March 5, 2021 for an amount not to exceed $80,000 over the life of the <br />agreement, subject to non -substantive changes and approved by the City Manager and City <br />Attorney. <br />Approve an Appropriation Adjustment recognizing $152,000 from prior year fund balance in the <br />Public Works Administration & Planning revenue account, and appropriating the same into the <br />Public Works Administrative Services expenditure account. <br />DISCUSSION <br />The City currently has a legacy PBX telephone system, based on older technology, that supports <br />22 City locations. The existing system has become obsolete and cost -prohibitive to use and <br />expand. It was last upgraded in 2005; support for the system ended in September 2010. <br />Over the past 20 years, the telecommunications industry has migrated to a newer technology called <br />Voice over Internet Protocol (VOIP). This newer technology routes voice communication over an <br />organization's data network and the internet cVff yn using analog lines and the public switched <br />