SARATOGA CITY COUNCIL
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1 SARATOGA CITY COUNCIL MEETING DATE: December 2, 2009 AGENDA ITEM: DEPARTMENT: Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Leo Salindong DIRECTOR: Mary Furey IT Analyst Finance & Administrative Services Director SUBJECT: Telecommunications Upgrade Project RECOMMENDED ACTION: Review report and direct staff to issue a Request for Proposals to replace the existing PBX telecommunication system with a Voice over Internet Protocol (VoIP) telecommunication system for the main City Hall buildings, the Joan Pisani Community Center, the Corporation Yard, the Saratoga Area Senior Coordinating Council and the North Campus. Staff further recommends including electronic fax integration in the system. REPORT SUMMARY: During the June 3, 2009 City Council Meeting, staff was directed by Council to bring the IT Telecommunications System Upgrade Project back with additional analysis and information. BACKGROUND: The City houses a Toshiba Strata DK 280 private branch exchange (PBX) system, which provides telephone communication throughout the main City Hall administration buildings, the Joan Pisani Community Center, Corporation Yard, and Saratoga Area Senior Coordinating Council (SASCC). This system was installed prior to 1996 and is at the end of its technological life cycle. Since May 2009, the City s telephone system failed multiple times over a five month period. From these recent incidents, continued use of the current telephone system clearly presents potential issues with staff s ability to communicate with the public, and resources for the system are becoming very difficult to obtain. Over time, parts will become harder to acquire and service technicians with knowledge of the inner workings of legacy PBX systems are becoming less available. Performing necessary maintenance has become an added challenge. In September 2009, staff performed a full backup of the City s telephone and voice data. However, it took several attempts to do so, and required the assistance of our telephone contractor to properly back up the essential data. The root cause was due to compatibility issues with the latest Windows Operating System which required a complete shutdown and reboot of the entire phone system. Considering the age and unpredictable reliability of the City s telephone system, staff recommends replacement. For this discussion, some useful Communication System Infrastructure terminology includes the following: 1
2 Public Switched Telephone Network (PSTN) - PSTN refers to the network of the world s telephone communication systems business, home, cellular, international, etc. Private Branch Exchange (PBX) - A traditional PBX system is a box (like a computer) that switches and connects phone lines in the office to each other and to the PSTN. Each telephone on a PBX is connected with dedicated cabling. Phone systems can be programmed with unique or multiple extensions and with features such as the ability to hold, transfer, or conference calls. VoIP - A VoIP telephone system (or IP PBX) operates over existing network infrastructure rather than using dedicated cabling in the office. VoIP communication is achieved by digitizing a voice signal into small packets of information. These packets of information are transmitted from a user s phone over the local network to the IP PBX then converted back to voice signals and sent out through the PSTN. Each telephone can be plugged into any network connection and the programming for that phone (user, extension, assigned features) goes with it, much like a laptop as it is moved from one location to another. OPTIONS: To research available options, staff looked into current applications using VoIP systems and PBX systems. Supplementing the research process, staff worked with consultants to develop accurate telephone upgrade options. Two proposed options for the Telecommunications Systems Project affecting the City Hall buildings, the Joan Pisani Community Center and SASCC, the Corporation Yard, and if desired, the North Campus are included below. Currently there are only two phone lines installed at North Campus. One line is located in the Sheriff s Office and the other line is located at the receptionist desk in the administrative building. 1) Upgrade the legacy PBX telephone system with a new PBX telephone system. 2) Replace the existing PBX telephone system with a VoIP telephone system. For the Telecommunication Project, there are two Options with alternative scenarios. These options are discussed below: Option 1 PBX Upgrade Upgrading to a new PBX system will replace the current PBX system. Below are two options for upgrading to a new PBX system. Alternative 1A City Hall Campus This alternative will apply the PBX upgrade specifically to the main City Hall administration buildings, the Joan Pisani Community Center, Corporation Yard, and SASCC (excludes North Campus). To help reduce setup costs, the new system will be installed using the existing voice network architecture used by the current PBX system. New desktop phones incorporating up-to-date industry features will be deployed to each of the 67 phone locations currently in use at each of the facilities listed above. Alternative 1B City Hall Campus + North Campus This alternative will apply the PBX upgrade as mentioned in PBX upgrade Alternative 1A with the addition of North Campus. 2
3 Three Centrex lines will be installed in the administrative building and Fellowship Hall. The telephone lines will provide phone service separate from City Hall and will be managed by our telephone company. Option 2 VoIP Upgrade Upgrading to a VoIP system will restructure the entire voice and data network infrastructure. This will include, but is not limited to: * Removal of the current PBX system. * Removal of all essential hardware connected to the current PBX. * Installation of the new VoIP system over the network infrastructure. * Installation of network switches and Internet Protocol (IP) client licenses over the network. * Deployment of compatible components to be used with the new system such as new IP desktop phones and telephone accessories as required. Below are three options for upgrading to a new VoIP system. Alternative 2A City Hall Campus This alternative will apply the VoIP upgrade specifically to the main City Hall administration buildings, the Joan Pisani Community Center, Corporation Yard, and SASCC (excludes North Campus). During the installation and configuration process, the VoIP system will be integrated with system components connecting to the City network. IP phones accompanied by IP client licenses will be deployed to each of the 67 phone locations currently in use at each of the facilities listed. Configurable security levels will segregate SASCC from the City network. Phone and network connectivity will be facilitated by a routed, firewalled connection. Alternative 2B City Hall Campus + North Campus This alternative will apply the VoIP upgrade as mentioned in VoIP upgrade Alternative 2A with the addition of North Campus. At the moment, no network data infrastructure is installed in the North Campus administrative building and Fellowship Hall. In order to incorporate a VoIP system, network data cables will need to be installed in both buildings and a DSL or cable internet connection will also be required. In addition, a secured virtual private network (VPN) connection will be created through a firewall switch at North Campus to connect the two locations together. Alternative 2C Electronic Fax Integration This alternative will apply the VoIP upgrade for City Hall and North Campuses, and will incorporate a fax server with a VoIP system to enable staff to receive faxes electronically through ed PDF attachments. Additionally, staff will be able to print-to-fax or -to-fax for outgoing faxes. DISCUSSION: Although cost comparisons between a new PBX system and a VoIP system are relatively similar, staff recommends a VoIP system based on its additional features, benefits, and ease of administration. A VoIP system requires no re-patching or configuration if line extensions are changed or moved. Therefore, ongoing vendor maintenance and servicing costs will be reduced. In addition, VoIP PC/Phone integration interfaces with desktop and electronic fax applications. With telephone systems generally lasting for ten years, staff believes a VoIP system best meets the City s telecommunication needs. Staff recommends pursuing alternative 2C, which will include a VoIP upgrade for City Hall and North Campuses, and will incorporate a fax server with a VoIP system. 3
4 FISCAL IMPACTS: Below are matrices describing estimated fixed costs for upgrading to a new telephone system. On-going costs are included. Additional costs for this project may be incurred for undetermined hardware or installation as determined by the request for proposal. Funds are available in the IT Services Fund to transfer to the Capital Program for this system upgrade. Option 1 PBX Upgrade Fixed Costs 1A City Hall Campus PBX System 1 $14,843 $14,843 -Hardware and Bundled Software -Voic mailbox -Installation Kit Phones 67 $159 $10,653 T1/PRI card 1 $945 $945 PC/Phone Integration N/A N/A N/A Total for 1A $26,441 1B North Campus Phones 3 $159 $477 Centrex Phone Lines Installation $70 Total for 1B $547 Overall Cost Summary Option 1: A $26,441 Option 1: A + B $26,988 On-going Annual Costs Centrex Lines at North Campus 3 $420/annual $1,260 cost per phone line PRI Line from Telephone Company 1 $400 $4,800 Maintenance Support/Software Service $4,700 4
5 Option 2 VoIP Upgrade Fixed Costs 2A City Hall Campus VoIP System 1 $5,066 $5,066 -Hardware and Bundled Software -T1/PRI Interface (included) IP Phones 67 $202 $13,534 IP Voic Mailbox License and Extension 67 $156 $10,452 PC/Phone Integration Included Included Included Total for 2A $29,052 2B North Campus IP Phones 3 $202 $606 IP Voic Mailbox License and Extension 3 $156 $468 Network Cabling Installation $1,500 Total for 2B $2,574 2C Fax Server Integration Fax Server 1 $1,200 $1,200 Overall Cost Summary Option 2: A $29,052 Option 2: A + B $31,626 Option 2: A + B + C $32,826 On-Going Annual Costs DSL/Cable Internet at North Campus 1 $50/ month $600 PRI Line from Telephone Company 1 $400 $4,800 Maintenance Support/Software Service $4,553 5
6 CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: Current telecommunications conditions will remain as is; the City s telephone system will continue to have unstable communications and unpredictable failures. If no action is taken, in the event of a major failure to the system, catastrophic failure may occur, causing the City to be without telecommunications (including: phone, fax, modem, credit card terminals). ALTERNATIVE ACTION(S): Council could direct staff to move forward with a new PBX telephone system. FOLLOW UP ACTION(S): None ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: A. Comparable benefits of each telephone system B. Telephone system features list 6
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