Agenda

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Finance Committee

Meeting Date:	04/09/2019
FROM:	Bill Gallardo

Subject:

Replacement of Current AT&T Copper Wire Phone Circuit Lines to a Virtual Connection, Incorporating a Redundant Internet Connection for Disaster Recovery Internet Connectivity

RECOMMENDATION

Authorize the City’s Procurement and Contracts Administrator to sign the agreement and any subsequent renewals for AT&T to add Session Initiation Protocol (SIP) telephone trunk lines to replace our current Primary Rate Interface (PRI) physical line.

BACKGROUND/DISCUSSION

The installation of SIP trunks will provide more flexibility with our new phone system and our Internet connectivity. Because our new phone system uses Voice over Internet Protocol (VoIP) to communicate, installing SIP trunks here at the Brea Civic & Cultural Center and at the City Maintenance Yard (our offsite disaster recovery location) would allow us to leverage the SIP line at the Maintenance Yard as a secondary internet connection which will serve as a backup for business continuity and disaster recovery (DR) purposes.

In the event of a phone system failure or the loss of our primary SIP trunk, calls can be routed through the second SIP trunk, reducing downtime and allowing us to maintain phone system communication. In addition, the SIP trunks would also provide redundancy for the City’s Internet service. In the event of a network outage due to loss of connectivity, Internet traffic can be routed through the secondary connection and allow us to maintain online access.

SUMMARY/FISCAL IMPACT

This 3 year agreement with AT&T is using CALNET 3 pricing which is a competitively bid contract that provides a comprehensive array of telecommunications and network services to public entities throughout the state.

SIP trunking will cost $19,824 per year. The current annual AT&T phone circuit rate is $13,200. SIP trunks will replace the existing phone lines, eliminating this expense from the IT operating budget.

The difference between the annual SIP trunk expense and this offset represents a net cost of $6,624 per year as follows:

	SIP Cost	Offset	Net Cost
Year 1	$19,824	($13,200)	$6,624
Year 2	$19,824	($13,200)	$6,624
Year 3	$19,824	($13,200)	$6,624
Total	$59,472	($39,600)	$19,872

As a result of the upgrade to our new phone system, the budgeted annual maintenance costs have been reduced from $40,000 to $15,000 per year. This ongoing savings will offset the additional $6,624 per year while further reducing annual IT budget expenditures by $18,376.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Anthony Godoy, Management Analyst II
Concurrence: Cindy Russell, Administrative Services Director and
Randy Hornsby, IT Manager

Attachments
Internet & Voice Proposal