TO: Mayor and Commission AGENDA DATE: 3/25/2024
FROM: Interim City Manager AGENDA ITEM: 9 - B
SUBJECT:
Title
Request for approval of Resolution No. 2024-17 and a budget amendment for purchase of IP phone migration to Webex cloud - Robert Cordero, IT Department (386) 878-8807.
Strategic Goal: Effective Governance & Productive Government
Body
LOCATION:
Citywide
COST:
Current Fiscal Year: $170,000
3 year contract pricing totaling: $281,727.24
SOURCE OF FUNDS:
501-640100 - $70,000
401360 640100 - $100,000
ORIGINATING DEPARTMENT:
IT Department
STAFF RECOMMENDATION PRESENTED BY:
Robert Cordero, IT Director
POTENTIAL MOTION:
Recommendation
“I move to approve Resolution No. 2024-17 and the budget amendment of $70,000 to Deltona Water Capital Funds and the approval of the contract with Presidio for procurement of Cisco licenses and migration services for a cloud phone system in the amount $254,532.34 with the current fiscal year not to exceed a cost of $170,000 and additional cost being budgeted appropriately in future fiscal years.”
END
BACKGROUND:
Background
In 2022, our IT department identified the imminent need to upgrade our phone system, which is nearing its end-of-life and will soon no longer be supported by the vendor. Our current system not only provides IP phones for all city staff but also manages voicemail, facilitates our contact center, and serves as the IVR (Interactive Voice Response) system for our utility billing department, enabling water customers to check balances and make payments.
Historically, the City Commission has entered into a 3-year pricing agreement with Cisco for licenses, funded through our operating budget. As this agreement approaches its renewal this August, we have encountered a significant development. Our vendor has informed us of a delay in the product development for the next on-premise version. Given our imperative to upgrade this year, our most fiscally responsible choice is to transition to their cloud IP phone platform, Webex. Opting for an on-premise upgrade would necessitate consecutive upgrades this year and the next, incurring higher costs compared to a single migration to a cloud vendor.
The advantages of transitioning to a cloud-based provider for our IP phone system and contact center are multifold. This includes substantial infrastructure savings in the upcoming hardware refresh, annual savings on software licenses with the elimination of on-premise servers, a more stable platform resulting in less downtime, improved cost allocation of licenses, and reduced dependency on physical locations, enhancing disaster recovery recoverability and Emergency Operations Center (EOC) operations. Our thorough research into various IP phone providers, including Microsoft Teams and Spectrum, indicates that we stand to benefit the most by avoiding the procurement of new handsets and leveraging the expertise of our top-tier provider, Cisco.
We are currently leveraging the Florida NASPO ValuePoint Cisco AR3227 FL# 43220000-NASPO-19-ACS agreement with our authorized reseller, Presidio. Having been our trusted IP Phone reseller for several years, Presidio possesses a deep understanding of the intricacies of our contact center and holds the esteemed status of being a Cisco Gold partner with offices in Orlando, Florida.
The IT department has allocated funds for this crucial project in the capital budget for FY 2023/24 for City Hall and Deltona Water. While sufficient funding is available for City Hall, we have identified a shortfall of $70,000 for Deltona Water to cover the necessary expenses associated with Year 1 of this project. We, therefore, request a budget amendment and approval of this contract with Presidio to secure the essential funding and ensure the seamless progression of this imperative upgrade.
End