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Finance Committee

Meeting Date:	01/08/2019
FROM:	Bill Gallardo

Subject:

Purchase of the Telephone and Voicemail System

RECOMMENDATION

Approve the agreement with IntelesysOne to furnish and install a Mitel telephone and voicemail system in an amount of $313,005.36; and
Authorize the Purchasing Agent to execute renewal of support services agreements for the life of the telephone and voicemail system.

BACKGROUND/DISCUSSION

The City of Brea currently utilizes the Avaya Phone System for its telephone and voicemail system. The core components were originally installed about 30 years ago and while there have been some hardware and software updates, it is approaching its end of support (EOS) in June of 2019. Without continued support, any system failures could leave the City without a functioning telephone system. The replacement of the phone system was presented to City management during a January 2018 Brea Leadership Team (BLT) meeting. It was suggested that the City’s Strategic Plan on Technology (SPOT) Committee be engaged to solicit feedback from each department’s direct stakeholders.

SPOT Committee members reached out to their respective departments to gather input regarding current and future telecommunication needs. This input was used to identify some of the features and functionality being sought in a new phone system. Combined with the minimum system requirements, these identified needs became part of a request for information (RFI) that was distributed at the end of January 2018, resulting in four vendor responses.

After meeting with each vendor and viewing product demonstrations, a Mitel MiVoice solution was identified as the optimal system. As part of the FY2018-19 budget process, a $320,000 decision package was submitted and subsequently approved with the Annual City Operating Budget.

Shortly after the beginning of the new fiscal year, the City initiated a Request for Proposal (RFP) to select a vendor for the purchase and implementation of the new phone system. An RFP was posted on the City of Brea’s procurement site in July of 2018 soliciting proposals from a number of companies that expressed interest in this project. Only one company, IntelesysOne, attended the mandatory pre-proposal conference and site job-walk, making them the only vendor qualified to submit a proposal. The Purchasing Division contacted the remaining vendors regarding their reasons for non-attendance. Responses included lack of the required license, not having resources available to attend, or pricing not being competitive enough.

City staff selected IntelesysOne as the vendor for the phone system replacement project based on their qualifications and competitive pricing for a Mitel System. There would be no additional benefit to the City in reissuing the RFP. Reissuing the RFP would delay the project, require that the City remain unsupported on the current system beyond the EOS date, and prices would likely be higher due to increases in wages, manufacturing costs and tariffs.

SUMMARY/FISCAL IMPACT

Hardware and software that is no longer supported becomes a potential risk to the organization both in terms of operational reliability and system security. Replacing the phone system will allow the organization to take advantage of existing infrastructure upgrades and advances in technology. Voice over internet protocol (VoIP) systems allow for better flexibility and lower overall costs including maintenance support and wiring costs. This type of system is an upgradable software solution that can be regularly updated with new downloadable features rather than the traditional replacement of hardware, creating a much simpler environment for IT staff to maintain.

As an added benefit, a new intercom feature will allow notifications to be broadcast through phone handsets and through several IP based speakers that will be installed in key locations, resolving our existing paging system’s deficiencies in coverage. This saves the City from having to upgrade or replace the paging system, which would be a significant financial investment in itself.

The proposed pricing from IntelesysOne was assessed to be fair, reasonable and competitive as it is based on the State of California Multiple Award Schedules (CMAS), which is in accordance with the federal General Services Administration (GSA) contracts and the National Association of State Procurement Officials (NASPO), which is a nationally procured contract. The combined discounts equaled $107,552.26 off the costs of hardware, software, telephones, and professional services.

As identified in the decision package presented to City Council, the replacement of this equipment will be funded by the Fixed Asset Replacement Program (FARP) (Fund 182) as part of the FY2018-19 budget. There will be no additional impact to the General Fund. The phone system replacement project allows for reduced maintenance and support costs, which is an ongoing annual savings of about $24,000 (based on $40,000 of current annual support compared to $16,000 for annual support of the new phone system).

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Neil Groom, Procurement and Contracts Administrator
Concurrence: Cindy Russell, Administrative Services Director and
Randy Hornsby, Information Technology Manager

Attachments
Decision Package
Agreement