4.5. SR 12-15-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent December 15, 2014 Bob Pearson, IT Manager
Item Description Reviewed by
Phone System Replacement Tim Simon, Finance Director
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve,by motion,a contract with Marco, Inc. for the phone system replacement.
Background/Discussion
This project is a complete replacement of our current Inter-Tel (Inter-Tel has merged with Mitel) phone
system. The replacement is included in the 2015 Capital Improvement Plan (CIP). The project was
expedited to January 2015 to accommodate Elk River Municipal Utilities (ERMU) software upgrades.
The new system interfaces with the new ERMU software and migrating to the new Cisco phone will save
ERMU at least$5,000. The existing phone system was purchased in early 2003 and has been showing its
age and more frequent service work. Cisco phone systems are leaders in the traditional phone system and
in the newer area of unified communications.
Unified communications (UC) products (equipment, software, and services) are those that facilitate the
interactive use of multiple enterprise communications methods. UC products integrate communications
channels (media),networks, and systems, as well as IT business applications. For example, one can
receive a voicemail message and choose to access it through e-mail or a cell phone. The new phone
system also facilitates the use of a softphone which is a software program for making telephone calls
using a general purpose computer,rather than using dedicated hardware.
Over the past few months in anticipation of the ERMU software conversion,we established a phone
committee to review various phone systems and models to make a recommendation. Using the State
Cooperative Purchasing Contract,the committee recommended Marco,Inc.,which has a long history of
successful implementations.
Financial Impact
The 2015 CIP for IT technology identified $170,000 for the project. The budget breakout is $125,000
city and$45,000 ERMU. The Cisco equipment and labor costs are from the state contract with Marco
being the low cost supplier at $157,504.97,which includes three years of software upgrades. State
contract pricing saves over 52% off the list price. The request includes up to $10,000 for additional
software and supplies not yet identified that may be necessary during the implementation process.
Attachments
■ 2015-2019 CIP sheet
P a w E A E U s r
Template Updated 4/14 INIM UREI
Capital Improvement Plan 2015 thru 2019
City of Elk River, Minnesota
Project# TC-01
Project Warne Annual Technology Upgrades
Type Equipment Department Technology/Communications
Useful Life Unassigned Contact IT Coordinator
Category Technology/Communiciations Priority a/a
Description
2015-phone system replacement,fiber optic enhancements,council computer replacements,microsoft office refresh,HRIS software
2016-SQL server upgrades,hardware and enterprise switch/UPS,fiber network enhancements
2017-None
2018-hardware and enterprise switch upgrade/virtual desktop implementation
2019-Security Camera replacement
Justification
Annual replacement and upgrade of information technology software/hardware.
Expenditures 2015 2016 2017 2018 2019 Total
Equipment 309,300 72,000 175,000 20,000 576,300
Software/Hardware 53,000 53,000
Total 362,300 72,000 175,000 20,000 629,300
Funding Sources 2015 2016 2017 2018 2019 Total
Capital Outlay Reserve 317,300 72,000 175,000 20,000 584,300
E R M U 45,000 45:000
Total 362,300 72,000 175,000 20,000 629,300
2015-2019 CAPITAL IMPROVEMENT PLAN Page 58