ACTION REQUESTED:
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Approve the award of Change Order #2 to Contract 17-057, Telecommunication Services, to AT&T for an amount not to exceed $51,000 and a total award of $373,073.60
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DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BACKGROUND:
City Council awarded Contract 17-057 to AT&T in March 2017 for a three-year term from May 1, 2017 through April 30, 2020. The purpose of this contract is to provide telephony services for both the City’s Voice over Internet Protocol (VoIP) phone system as well as traditional analog phone lines. The analog lines include emergency phones at two of the City parking decks, the public-safety answering point (PSAP) to Fire Station tie lines, and phones at remote locations such as traffic signals throughout the City. The locations are not able to use the City’s VoIP due to their locations. The dedicated telephony circuit for City Dispatch was also included in Contract 17-057 to consolidate billing and budgeting.
Change order #1 was approved by the City Manager on March 21, 2019 to add $2,073.60 due to changes in the pricing schedule for the City’s analog lines.
DISCUSSION:
The contract included upgrading the City’s five PRIs, which have been in place since 2007, to two digital Session Initiation Protocol (SIP) trunks. The conversion from PRIs to SIP entailed porting over 1100 phone numbers. The upgrade and conversion took longer than anticipated, thus incurring an additional expenses due to running concurrent systems until the work was completed. The migration was planned to minimize any disruption to the residents and city customers. A small test group of telephone numbers for each SIP trunk were migrated to ensure there was minimal downtime to the phone numbers. The remaining telephone numbers were then divided between the two SIP trunks, based on location, and then migrated. (Estimated additional cost: $6,000)
The usage rates for SIP trunks are based on concurrent calls, not call duration and distance bands allowing for a lower and more consistent month-to-month bill. While the monthly bills have been more consistent in cost, the concurrent usage was an estimate based on past history and the actual usage has been higher. (Estimated additional cost: $19,800)
The excise taxes and fees for the concurrent usage were also higher than what was estimated, averaging over 20% of the total bill. (Estimated additional cost: $23,400) The usage on the analog lines was also higher than expected and the cost for the analog lines increased in year three of the contract.
This change order is requested to add $51,000 to the contract to offset the additional work and increase in analog line costs through the end of the contract.
An award for a one year contract with AT & T will be on the next City Council agenda to align a number services under a single contract moving forward.
FISCAL IMPACT:
CIP#: N/A
The cost of telephone services (local and long distance), is expensed to the telephone account listed below. A total of $65,000 has been budgeted in 2020. The requested change order of $51,000 is within budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
16101100-542415 |
General Fund |
$483,500 |