CITY COUNCIL STAFF REPORT
Meeting Date: August 18, 2025
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: Adopt Resolution No. ___ - 25 Authorizing the City Manager to Execute an Agreement with RingCentral, Inc. for Hosted Voice over Internet Protocol Services
SYNOPSIS
The City currently utilizes the ShoreTel Voice over Internet Protocol (VoIP) Phone system that was implemented 10 years ago. In September 2017, Mitel Networks Corp. acquired ShoreTel and in July 2024 have decided they will no longer be supporting the system as of December 2029. Staff requests that the City Council adopt the proposed resolution authorizing the City Manager to execute an agreement with RingCentral, Inc. for their hosted VoIP services. This will allow the City to benefit from cost savings, provide staff with updated phone features, while still enabling the continued use of existing desktop phones.
DISCUSSION
Background
A phone system typically consists of phones, a management software application to control the features and integration of the phones, and a voicemail system that allows users to manage, store, and retrieve voicemail.
The City purchased the VoIP ShoreTel phone system in July 2015. Since then, Mitel Networks Corp. acquired ShoreTel, Inc. in September 2017. After acquiring ShoreTel, Mitel initially aimed to expand into the cloud market with ShoreTel's cloud offerings. Mitel's cloud efforts with ShoreTel's platform did not gain the expected market share, leading them to prioritize their core strengths in on-premise systems and other cloud solutions. In July 2024, Mitel decided to sunset the ShoreTel product by December 2029.
City staff recommends migrating away from ShoreTel at this juncture, as Mitel will invariably shift resources away from ShoreTel customer support leading to degraded quality of customer care and longer wait times for support. Moreover, Mitel has also significantly increased its maintenance and support rates, thus further incentivizing the City to migrate to another system sooner rather than later.
ShoreTel is an on-premise based VoIP system, which means the City houses and maintains the ShoreTel hardware. At present, ShoreTel VoIP is installed at City Hall, the police department and the Pleasant Hill library. Each site must be maintained and administered separately. RingCentral is a hosted VoIP system, which means no on-premise hardware is needed, and its remote cloudbased system provides all the necessary functionality. By switching to a hosted VoIP solution, the City will be able to consolidate and simplify phone administration throughout the organization.
In addition, on-premise VoIP systems require organizations to purchase telecommunication lines via AT&T or other telecommunications carriers to enable their operation. Hosted VoIP solutions include the telecommunication connections within their service offering and pricing.
More organizations today are opting for hosted VoIP services because they generally have lower costs, less maintenance, and increased flexibility. Hosted VoIP eliminates the need for initial hardware purchases, installation, and ongoing update replacements, which reduces overall costs.
Hosted VoIP solutions are also more scalable, allowing the City to quickly expand services and functionality, as needed.
Analysis
Currently, the City utilizes Microsoft Teams for video teleconferencing and instant messaging.
RingCentral is one of the few vendors that can integrate seamlessly with Microsoft Teams. Thus, with the deployment of RingCentral, the City will be able to use Microsoft Teams’ built-in telephony features without having to purchase the telephony services from Microsoft.
Staff evaluated three of the top hosted VoIP vendors in the industry, including Zoom, RingCentral, and Microsoft Teams. Of the three, only RingCentral’s service is compatible with the City’s existing desktop phones. Not only were Zoom and Microsoft’s rates higher than RingCentral’s, but the City would also incur the additional cost of replacing all desktop phones throughout the organization.
RingCentral is trusted by over 400,000 organizations worldwide, such as the Golden State Warriors, Office Depot, and Salesforce. Many municipalities, including the cities of Los Altos, San Carlos, and the Santa Clara Valley Water District have also adopted RingCentral.
RingCentral’s proposal is based on the NASPO (National Association of State Procurement Officials) ValuePoint cooperative agreement, which satisfies the City’s purchasing policy to obtain competitive bids. NASPO is a public cooperative purchasing program that allows state, local, and educational institutions to access pre-negotiated contracts for goods and services. These agreements are formed through a competitive bidding process led by a "lead state" and are designed to simplify procurement, reduce costs, and increase efficiency for participating entities.
FISCAL IMPACT
At present, the City pays AT&T $26,730 annually for telecommunication lines. RingCentral’s three-year proposal, which includes support, maintenance, and telecommunication lines, totals $80,136, which equates to $26,712 annually. Switching telephony services from AT&T to RingCentral will basically be cost neutral. The cost for RingCentral’s service will be paid monthly and will be funded from the General Fund Technology Budget Fiscal Year 2025-2026. The Finance Division has confirmed that adequate funds are available to fund this request.
PUBLIC CONTACT
Public Contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution authorizing the City Manager to execute an agreement with RingCentral, Inc. for hosted Voice over Internet Protocol (VoIP) Services.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council could reject the proposed action and provide direction to staff.
ATTACHMENT(S)
Proposed Resolution
Exhibit A - Agreement with RingCentral, Inc.
NASPO Master Agreement
Prepared by: Ling King, Chief Technology Officer
Approved by: Ethan Bindernagel, City Manager