07-13-11 Council Agenda - Laserfiche WebLink

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?ir 51S *nada 51.5 Little Canada Road. Little Canada, MN 55117 -1600 (0511 766 -4029 / FAX: (651) 766 -4048 www.ci.little-canada.mn.us MEMORANDUM MAYOR 13111 nlcscncr COUNCIL Rick Montour John Reis Michael McGraw Shelly Boas ADMINISTRATOR .Joel R. Hanson TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: July 8, 2011 RE: Purchase of IP Telephony System In our capital budget, we planned for the replacement of the City's phone system. We have been on the State of Minnesota's Centrex system for almost 11 years. We went to that system to achieve operational savings over our previous system. However, in the past couple of years, those costs have crept up and made another option more viable. The new option is to utilize an Internet Protocol (IP) Telephony System through the City of Roseville. This system utilized our I -net between the cities and has the additional advantage of Roseville hosting the equipment, providing redundancy, and sharing it with multiple jurisdictions thereby reducing costs to participating jurisdictions. This system has been deployed for a number of years now and has proven very reliable. The equipment itself has a useful life of eight to ten years. Roseville has had these phones since 2004 and reported excellent satisfaction. The costs for equipment for the new system at City I -Iall will run $4,810.45 plus one -time licensing costs of $3,068.18 fora total of $7,878.63. We will achieve monthly operational savings of $387 resulting in a payback on the investment of 1.7 years. We also evaluated the inclusion of the Parks Shop and Public Works, but the support equipment needed for each location negates any potential savings. The disadvantages created are the inability to transfer calls between these locations (that occurs minimally at this time) and those locations would not gain the new features such as caller ID and an improved voice mail system. We do have the ability to add these facilities at any time in the future should conditions warrant. We are also evaluating the potential of including the fire station, but that study is not yet complete. I also believe we need to get fiber run to that building to make it more feasible. (That should occur in the not too distant future based on Roseville's Plans.) Again, not including them at this time does not create any disadvantages to us. The budget for this item if more than adequate to handle this expenditure and staff recommends proceeding at this time.