Item 289/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Anand Rao
Dept:
City Manager Dept: Information Technology
Date: 7/9/2024
Subject: Award a contract to Carahsoft Technology Corporation to provide a cloud-based telephone system. (Cost: $511,670.70) (Action Item)
OBJECTIVE
For the City Council to approve the use of a NASPO ValuePoint Cooperative agreement and award a contract to Carahsoft Technology Corporation for Zoom Video Communications, Inc. to provide a cloud-based telephone system for a total of six (6) years.
BACKGROUND
The Information Technology (IT) Department is responsible for managing the City’s telephone system. The City has been using Cisco branded desk phones and the Cisco Unified Communications phone system since 2017. This system went end -of-life late last year. Replacement would require the purchase of hardware and software which is costly and would require significant staff time to purchase, manage, and maintain. The features and functions offered by the current system no longer match the needs for the City an d have components that are no longer supported. Staff has completed a detailed review of the existing system and evaluated alternatives and options to replace it with a cloud -based telephone system.
DISCUSSION
The new cloud -based telephone service will be an all -in-one system that will enhance the user experience and productivity to better serve our residents and customers. Unlike the on- premises hardware the City currently has, Zoom’s phone system is cloud -based, which has many advantages including simplified maintenance, improved technology, better security and is more robust. Aside from phone services, Zoom also provides video conferencing service that the City currently utilizes. This service provides variou s solutions like chat, mail, calendar, whiteboard, and a scheduler.
In the new contract, the City will continue using Zoom’s video conferencing service that will result in overall cost saving s, as the new contract will absorb the current costs. No new hardware is required to be purchased as the City will continue to use the current desk phones.
Item 289/2024
Based on the many features provided by Zoom, it will position the City to benefit from current technology and the future of telecommunication.
Staff recommends to contract with Carahsoft Technology Corporation as the distributor and cooperative purchasing contract with NASPO ValuePoint for the use of Zoom Video Communications, Inc. NASPO ValuePoint solicits, evaluates and awards contracts through a competitive bid process. The City is able to utilize these bid awards for cooperative purchasing agreements. Staff recommends piggybacking on the results of an award to Carahsoft Technology Corporation, in place of a formal bid process, to purchase a cloud-based telephone system. The NASPO ValuePoint Master Agreement number is AR2472 which was approved on October 14, 2016.
FINANCIAL IMPACT
This agreement is for six years with a total amount of $511,670. The first year is provided at no cost to the City, and the remaining five years are $102,334.14 annually. Funding for year two through six will be programmed as part of the normal budget process. The funding level for a citywide phone system will not increase from the existing budget allocation.
Specifically, in fiscal years 2023-25 biennial budget, the City Council has already approved a one-time appropriation in the amount of $70,000 to replace the City’s phone system, and thereafter an ongoing amount of $84,000 per year. In addition, an annual amount of $25,000 was allocated for Zoom video conferencing, which will be covered under the new agreement with Carahsoft Technology Corporation.
RECOMMENDATION
It is recommended that the City Council:
• Approve dispensing with bidding requirement pursuant to Garden Grove Municipal Code 2.50.060 (E); which allows the City to use coopera tive purchasing agreements that have gone through a competitive process.
• Award a contract with Carahsoft Technology Corporation in the amount of $511,670.70, to provide a cloud-based telephone system; and
• Authorize the City Manager, or designee(s), to execute the contract on behalf of the City, and make minor modifications as appropriate thereto.
By: Maria Veronica M. Enciso, Sr. Administrative Analyst
ATTACHMENTS
1. California – NASPO Contract
2. Carasoft Quote