200 S. Anaheim Blvd.
Suite #643
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: APRIL 8, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: AUTHORIZATION TO APPROVE AN AGREEMENT WITH
ENTISYS SOLUTIONS, INC. TO IMPLEMENT AND SUPPORT
NEW PHONE SYSTEM
ATTACHMENT (Y/N): YES ITEM # 11
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
The City Council, by Motion:
1. Approve a Service Agreement (Agreement), with Entisys Solutions, Inc., dba e350 (e360) to implement a new phone system for a total not-to-exceed amount of $1,692,366 plus a 20% contingency, and provide support and licensing for a five-year initial term for $276,408 annually starting in year two plus a 5% contingency for a full contract amount of $2,797,998.93; and
2. Authorize the Finance Director/City Treasurer or designee, to execute the agreement and any related documents, and take any and all actions as are necessary to implement and administer the Agreement.
DISCUSSION:
The City’s current PBX phone system was first installed in 2001 and is now over 20- years old. Since that time, the City has added a VoIP system with limited capacity in select locations. Our current system is now beyond its end of life and is in critical need of a replacement.
To address this need, the City created a Request for Proposal (RFP) led by the Information Services Division along with extensive input from representatives from all City departments and an outside consultant experienced in telecommunications proposals and agreements. The scope was developed after a review of numerous other RFPs recently prepared by other cities and counties for similar services. The RFP sought a turnkey, cloud-hosted VoIP phone solution, inclusive of all necessary equipment and implementation services, along with comprehensive support and maintenance.
Approve an Agreement with Entisys Solutions, Inc to Implement and Support New Phone System April 8, 2025
More than 90 firms were notified of the RFP posting. The window for responses closed on July 18, 2024, and a total of 19 submissions were received. After preliminary screening, five (5) submissions were deemed non-responsive, leaving the City’s scoring committee to evaluate fourteen (14) responsive proposals.
Throughout the process, City staff have been committed to ensuring all bidders are evaluated thoroughly and fairly. Given the business criticality of the phone communications and complexity of the implementation, staff recognized the value of partnering with an outside consultant with demonstrated expertise in telecommunications. The proposal review was done by three (3) City staff and one external subject matter expert who independently reviewed and scored the proposals.
The RFP evaluation criteria focused on vendor project experience, alignment with functional and technical requirements, robustness of proposed solutions, implementation and training plans, adherence to RFP guidelines, the reliability of service level agreements, and the cost-effectiveness of pricing structures to ensure the selection delivers the best value and meets organizational needs effectively.
A comprehensive set of scoring criteria was used to rate the responses and included each company’s profile and experience, proposed staffing and project plan, reference strength, solution fit, proposed tools and technologies, pricing, and wide-ranging user training. Staff also performed three reference checks on the firms’ relevant projects with other agencies, with all positive findings in their project implementation, project management, and overall outcome of the project. e360 demonstrated a strong alignment with the project requirements, providing comprehensive responses that addressed both technical specifications and implementation plan. Their proposed solution exhibited a clear understanding of the project’s objectives and user needs, suggesting they have the expertise to meet key performance criteria with clear and specified support capabilities.
The final scores for each firm are included in the table below:
Firm Score (5pt. Scale)
e360 4.53
Burwood 4.44
8 x 8 3.90
Ring Central 3.61
The project implementation is estimated to be completed in twelve months, with a total contract value of approximately $2,800,000. The initial investment for the first year inclusive of equipment, software, and licenses is estimated at $2,030,000 with additional recurring costs for maintenance and support at $276,408 annually.
Approve an Agreement with Entisys Solutions, Inc to Implement and Support New Phone System April 8, 2025
Contract Pricing Year 1 Year 2 Year 3 Year 4 Year 5
Implementation $798,055 - - - -One
Time
Equipment $734,423 - - - -
Support - $116,520 $116,520 $116,520 $116,520Recurring
License $159,888 $159,888 $159,888 $159,888 $159,888
TOTAL $1,692,366 $276,408 $276,408 $276,408 $276,408
We request a contingency budget of 20% to account for significant uncertainties due to the aged 25- year-old phone system. The sparsity of documentation and historical information increases the risk of unforeseen technical challenges, and staff anticipate additional items that may materialize after the completion of the full assessment and discovery tasks for the project. As the system impacts the entire organization, there is a greater potential for scope and quantity variations, necessitating financial flexibility to mitigate risks effectively.
Additionally, recent volatile international tariff changes pose unpredictable cost fluctuations for telecommunications hardware and licensing. Given these factors, a 20% contingency is essential to ensure a smooth, timely, and cost-effective implementation while safeguarding unexpected costs and disruptions.
As a result of the project, the new system is expected to result in a general reduction of annual phone system expenditures for the City, mainly from the cancelation of traditional AT&T PRI circuits and lower equipment costs.
An overview and summary of the project, along with the RFP process, results, and recommendations was also presented to the Budget, Investment, and Technology Commission on February 26, 2025.
IMPACT ON BUDGET:
The cost for the implementation project was anticipated and already included in the Finance Department’s FY 2024/25 Communication Services Fund capital expenditures budget. Expenditures for subsequent years will be subject to available budget appropriations.
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer
Attachments:
1. e360 Service Agreement