|
Agreements for Service for Voice Communication Services
<br />March 6, 2018
<br />Page 2
<br />telephone network (PSTN). By converging voice and data, telecommunication vendors have been
<br />able to provide additional functionality, while also reducing costs. Examples of the new functionality
<br />that will be available with a new system include Unified Communication (tying together instant
<br />messaging, presence, video calls, and voicemail), soft phone clients on computers, smartphone
<br />apps that control your work extension, and advanced conferencing. The newer phone systems
<br />focus more on software and less on the hardware, allowing for upgrades without replacing
<br />hardware. In addition, the built-in administration capabilities make the system easier to manage
<br />than the legacy PBX system.
<br />The City is planning a phased migration from the old system to the new system over the course of
<br />several years. The initial phase will include the Public Works Agency, the Work Center, and some
<br />select areas in City Hall. The system will be integrated with the older system so that both systems
<br />can co -exist until all lines have moved completely off of the older system. Future phases will occur
<br />as funding becomes available within individual departments and through cost savings.
<br />In order to utilize the new phone system, the City needs to upgrade from legacy copper Plain Old
<br />Telephone Service (POTS) trunks to newer Primary -Rate Interface (PRI) lines. The City currently
<br />has PRI trunks at the Police building but not in City Hall or at the Work Center. PRI trunks, which
<br />have been around since the 1990s, provide good call quality of service, can provide information
<br />such as caller ID, and will cost less than the current trunks.
<br />Cost and Savings
<br />In addition to providing the City with new telephone functionality, migrating to the newer technology
<br />will not only help the City avoid the increasing costs of maintaining an obsolete system, but the City
<br />will actually reduce costs in several areas. Once the new system has been rolled out completely,
<br />the cost of licensing and support will be reduced by more than 66%, or approximately $115,000
<br />annually. Also, replacing the City's existing phone trunks with PRI trunks will reduce telecom costs
<br />by 43%, or approximately $14,700 annually. Finally, the City will be able to eliminate 10 AT&T T1
<br />lines altogether, saving another $20,240 annually. Overall, the annual operating cost of the new
<br />system will be approximately $149,115 less than the cost of the current system.
<br />The total one-time, non-recurring costs to fully implement the entire system will be approximately
<br />$757,000 with a total payback in approximately five years. The requested authorized amount of
<br />$1,119,500 includes $757,000 for one-time costs, a 15% contingency of $112,500, and five years
<br />of annual support totaling $250,000. The Cost for the first phase will be $320,208.25.
<br />Request for Proposals
<br />On October 11, 2017, a Request for Proposals (RFP No. 17-119) for a VOIP Telecommunications
<br />System and Professional Services was released. The RFP requested respondents to propose
<br />solutions to: upgrade or replace the City's antiquated phone system, replace the City's voicemail
<br />system, replace existing POTS trunks with PRI trunks, and integrate the new systems with the
<br />existing system so that the City can implement the new systems using a multi-year, phased
<br />implementation approach.
<br />20B-2
<br />
|