EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: December 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Greg Henry, Senior Management Analyst
Jimmie Tulabing, Senior IT Analyst
SUBJECT: Transitioning the City to Voice Over Internet Protocol (VoIP) and Increase the Purchase Authority with the City’s Office 365 Vendor Trace3 Recommendation
Adopt resolutions:
1. Authorizing the City Manager to enter into an agreement with Lumen Technologies Group to provide Voice over Internet Protocol Services for a three-year term in an amount notto- exceed $18,650 annually and a total of $55,950; and waving the formal bid procedures under Section 2.84.070(D) of the Municipal Code.
2. Authorizing the City Manager to increase the not-to-exceed amount for the purchase of software licenses from Trace3 to $63,319.70, an increase of $23,371; and waving the formal bid procedures under Section 2.84.070(D) of the Municipal Code.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Background
The City’s Information Technology Division (IT), provided through a contract with Redwood City, handles all software license purchasing and manages all the City’s telecommunications functions, including landlines and cellphones.
IT has contracted for landline telephone services with AT&T through the California Network and Telecommunications (CalNet) Program. The CalNet Program provides oversight, statewide policy, and a suite of statewide, competitively bid telecommunications contracts used by both state and local agencies. The current AT&T contract is part of the CalNet3 program. All CalNet3 contracts are ending and transitioning to new contracts through a new program called CalNetNext, with new terms. As a result, it was an excellent opportunity for staff to review the City’s landline services.
Analysis
Staff proposes a transition to Voice Over Internet Protocol (VoIP) for the City’s phone service.
VoIP is a technology that allows voice calls using a broadband Internet connection instead of a regular (or analog) phone line. The VoIP service the City is proposing will allow staff to call anyone who has a telephone number - including local, long distance, mobile, and international numbers and will retain all current extensions for the public seeking to reach staff. For individuals outside the organization, no change will be noticeable.
While most costs are fixed, the City currently pays by the minute for landline service through AT&T. As a result, the monthly bills vary. On average, the City is paying $3,900 a month. The City is proposing a transition to VoIP services provided by Lumen for approximal $1,554 a month, under a CalNetNext agreement. There is an additional cost, discussed below, for the Teams integration. However, in total there are significant savings.
An additional benefit is that for each employee, IT staff will assign their current extension to their Office 365 account, meaning regardless of where they are working (remote or on site) they will be able to answer and make calls. This will improve the staffing flexibility and in particular unlock additional functionality for employees working from home.
During the pandemic, the City Manager authorized new cell phones in order to provide the remote calling capability. After implementing the Lumen system, the City will audit current cell phone users with an expected reduction.
In July, staff requested $28,920 in authority for the City’s Office 365 Licenses through Trace3.
At the time of the request, staff assumed all accounts would be at what Microsoft deems the “G3” level. Since that time, staff have audited how employees are using their accounts and determined that a mix of G1, G3 and G5 accounts would best fit the City. While G1 accounts have a lower monthly cost, G5 accounts are more expensive. For the G3 accounts, there is an $8 surcharge for the Teams/VoIP integration. This is because Microsoft is providing the final call routing services for the VoIP. If the City was paying for VoIP without the Teams integration, there would be an $18.50 charge per line for the service.
The transition of many staff accounts to G5 accounts represents the primary reason the cost is increasing. G5 accounts include the Teams/VoIP integration but have additional service elements, including security improvements which IT staff recommend.
Staff requests an increase in authority with Trace3 of $23,371 and to extend the term through November 30, 2023, which is the annual cycle for this purchase.
Fiscal Impact
The expected savings from the conversion to VoIP ($2,346 monthly) are more than the expected increase ($1,158) in software license costs. As a result, this action will reduce total expected spending and no budget adjustment is needed.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
Attachments
1. Resolution Agreement with Lumen
2. Resolution Increase Not to Exceed Trace3