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HomeMy WebLinkAboutRes2005-100 Failed Sponsored by: Corbridge '- CITY OF SEWARD, ALASKA RESOLUTION 2005-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A PBXNOIP PHONE AND MANAGEMENT SYSTEM FROM CALENCE CORPORATION TO REPLACE ALL OF THE CITY PHONES FOR AN AMOUNT NOT TO EXCEED SIXTY EIGHT THOUSAND TWO HUNDRED DOLLARS ($68,200.00) WHEREAS, the City's current phone system is limited to (8) eight incoming calls at one point in time; and WHEREAS, it has become critical that the City has more phone lines available in the time of an emergency; and WHEREAS, the City has recognized that the current phone system is not suiting the needs for the City and is limiting the demands of our daily business activities; and WHEREAS, the City seeks to centralize and simplifY telephone services; and ... WHEREAS, the City deems it prudent to invest in the predominant telephone technology by utilizing the existing data network infrastructure for voice traffic; and WHEREAS, the City needs to upgrade the data network and telephone infrastructure; and WHEREAS, the City has solisicited and received three quotes for this purchase; and WHEREAS, the bids received were reviewed to ensure that all specifications are met and the low bid was submitted by Calence Corporation; and WHEREAS, the Kenai Peninsula Borough researched and purchased the same PBXNOIP phone and management system in late 2001 after extensive research; and WHEREAS, the Kenai Peninsula Borough has saved the Borough thousands of dollars each year with the new phone system; and WHEREAS, the Kenai Peninsula Borough has streamlined the training and offered support to the City of Seward; and WHEREAS, obtaining the same system as the Kenai Peninsula Borough will allow the City to work in conjuction with the Kenai Peninsula Borough with mutual service calls and ongoing ... support; and CITY OF SEWARD, ALASKA RESOLUTION 2005-100 j WHEREAS, Seward City Code 6.10.120 (9) specifically exempts the purchase of electronic data processing software and hardware systems from competitive procurement requirements; and WHEREAS, the annual maintenance fees will be Two Thousand Five Hundred Dollars ($2,500.00) per year; and WHEREAS, the total cost of the Cisco phones, routers, switches, software, licenses and training will not exceed Sixty Eight Thousand Two Hundred Dollars ($68,200.00). NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to purchase a PBX/VOIP phone and management system and related professional services from Calence Corporation not to exceed Sixty Eight Thousand Two Hundred Dollars ($68,200.00). Section 2. The City Manager is hereby authorized to approve annual software maintenance support services for an amount not to exceed Two Thousand Five Hundred Dollars ($2,500.00), on a year-to-year basis, subject to annual appropriation, as mutually agreed by both parties'j ..... Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of October, 2005. THE CITY OF SEWARD, ALASKA / /7/./ + ~j ~ It-Ia1.Ja---kL 'L-- Vanta Shafer, Mayor AYES: NOES: Lorenz, Amberg, Branson, Valdatta, Clark, Dunham, Shafer ABSENT: ABSTAIN: ATTEST: \~tUII"", .;.\..... Of SE:k/",,, ~...}- ~~ ......... ".~J,"\ {. ,/ r~ ,"o",:?-POftq,':..':-~) ..... ... v.~ C I',:\~' < "" .~....J '0'. :::; :~ -- . \ ;~ : S"'1"'""!'~ T . ; 6 : 1;!~':;V-J '. . '~I. --w- ";. f'" V":i "':,~' -:. t,,';}.,"'"f.(,v~ 1 '\~" '" ".. I. ".,. ...~ ..~,. Air. ...,...... ~, S' 0-" . 4:,., I'" "I:Ql<: ; ....,J (City Seal) Council Agenda Statement Meeting Date: October 10, 2005 To: Seward City Council From: Kirsten Vesel, Assistant City Manager Thru: Clark Corbridge, City Manager Agenda Item: Purchase of PBX/VOIP Phone and Management System BACKGROUND & JUSTIFICATION: In 2004 the City of Seward spent approximately Ninety Six Thousand Dollars ($96,000) for phone service. The current phone system is at its maximum capacity and has many problems. The current system is limited to a maximum of eight (8) incoming calls. The ninth call is either dropped or lost, or the caller experiences the phone ringing and ringing, with no access to voice mail and no busy signal. When the system is at its maximum capacity, voicemail recordings are sometimes corrupt and unclear with static. The City of Seward manages thousands of phone calls each month, and our current system does not provide an appropriate level of customer service. In addition to the known problems, it is not known how many additional calls are lost, dropped or voicemails not followed up. The Administration and the Systems Manager have been researching a possible PBX/VOIP solution since 2002: PBX (Private Branch Exchange); VOIP (Voice over Internet Protocol). In late 2001, the Kenai Peninsula Borough researched a system to meet their needs. They had growing concerns over higher phone line fees, service fees, upgrade fees, hidden fees and maintenance fees costing the Borough up to Forty Thousand Dollars ($40,000.00) per year. Calence Corporation was awarded the project for the Borough, and the Borough learned that establishing a new PBX/VOIP System saved tens of thousands of dollars each year. The issues that faced the Kenai Peninsula Borough and have since been resolved are now facing the City of Seward. In 2003, the Assistant City Manager and Systems Manager participated in a half day training session with Cisco Corporation in Anchorage, and also visited TelAlaska Corporation in Anchorage that afternoon. Following these meetings, calls were made to other companies such as ACS and GCI. However, at the time, PBX/VOIP was new to Alaska and companies were preparing to train and find help for these types of services. During the last two years, Administration and the Systems Manager have examined the possibility of establishing a PBX/VOIP System for the City of Seward. The City needs a Network infrastructure, servers, equipment and a viable way to facilitate networking communications. Due to the existence of remote sites for various City departments, the MIS Department began a wireless network plan that would bring our networks together to achieve cost savings. This project was completed in August, 2005. During the course of planning a City Wide PBX/VOIP System, various companies stated that the City could save approximately 50% to 75% of our current budget every year if we moved to a PBX/VOIP System, thus paying for itself in the first year of implementation. Other benefits of this system include: Managing and tracking calls; preventing unauthorized use and other security features; ease of use; opportunities for immediate phone upgrades; ease of changing locations of phones; and new phone installations not requiring external assistance. This Resolution requests Council approval to purchase a PBX/VOIP System for the City of Seward in the 2005 Budget year. The immediate savings to the City of Seward will benefit our local taxpayers, as will the improved telephone service. The Systems Manager, with assistance from other staff, framed a plan based on the current City wide network infrastructure. Over the past few months several well known companies were contacted, and the MIS staff worked with network engineers to form a plan for a City wide PBX/VOIP System. This plan was shared with all interested parties and each was asked to determine the City’s needs. The City requested cost information to be provided for the System Manager’s review and analysis of integrating the system into the City’s infrastructure. Cisco Corporation has recognized Calence Corporation as one of the premier companies in PBX/VOIP solutions and the development of IP phone services. Although all of the parties that were involved have business with Cisco, it was noted that Calence stood out from all of the rest. While other companies wanted to start from scratch, Calence realized the necessity of working with us within our current network infrastructure to provide a highly optimized system. Calence also provided us with the most cost-effective bid. This project needs to be a high priority for the City of Seward as a whole, to allow for effective communications for everyone, as well as generating significant cost saving compared to the current system. This system will also help the City to better respond in the case of a natural disaster or City emergency. INTENT: To incorporate a PBX/VOIP Phone System within the City’s current network system, in order to improve the reliability of communications, while achieving significant long-term cost savings. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: Would eventually establish a network plan for the management of phones and records in the future. FISCAL NOTE: The initial cost of the system is estimated to be between Sixty Two Thousand Dollars ($62,000.00) and Sixty Eight Thousand Two Hundred Dollars ($68,200.00) (see attached estimate), not to exceed Sixty Eight Thousand Two Hundred Dollars ($68,200.00). The annual operating and maintenance costs will run approximately Two Thousand Five Hundred Dollars ($2,500.00) per year for the assurance plans and maintenance support. There will be a cost savings that will be immediately noticed as local phone lines are eliminated and replaced with networking lines. By purchasing before the end of October 2005, Calence can have our new system up and running prior to January 1. It has been estimated that the savings of this system may pay for the system within the first year, and will save the City tens of thousands of dollars each year thereafter. Approved by Finance Department: ________________________ RECOMMENDATION: The City Council approve Resolution 2005-100, authorizing the City Manager to enter into an agreement with Calence Corporation to purchase a PBX/VOIP Phone and management system from the City in an amount not-to- exceed Sixty Eight Thousand Two Hundred Dollars ($68,200.00).