TO:Andrew P. Powers, City Manager
FROM:Anthony Moore, Chief Technology Officer
DATE:April 14, 2026
SUBJECT: Phone System Replacement Agreement
RECOMMENDATION:
1. Approve agreement with Packet Fusion, Inc., (PFI) of San Francisco, CA, with the term of April 20, 2026, through October 20, 2032, including an initial 18-month complimentary licensing period followed by a five-year paid term, for an amount not to exceed $593,864.
2. Approve budget appropriation and authorize expenditure in an amount not to exceed $111,413 in FY 2025-26 from A/C #001-0000-311-1000 (General Fund – Fund Balance) to A/C #001-3410-612-3300 (General Fund – Equipment Less Than $5,000) for physical phone replacements and system related hardware.
3. Authorize expenditure in the amount of $37,240 in FY 2025-26 from A/C #001- 3410-612-5420 (General Fund, Consulting Services) for project implementation services and one year of additional support.
4. Find that this action is not a project as defined under section 15378(b)(5) of the California Environmental Quality Act Guidelines.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
Increase in the amount of $111,413 to Adopted FY 2025-26 General Fund Budget. Increase in the amount of $111,413 to the Adopted FY 2025-26 General Fund Budget for physical desk phones, headsets, and related telephony hardware required to support the transition to the new phone system. $37,240 is included in the Adopted FY 2025-26 General Fund Budget for implementation services and initial support. The remaining funds for the agreement term will be requested during the next biennial budget process.
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BACKGROUND:
The City’s current Mitel phone system was implemented in 2013 and supports day- to-day business operations by routing incoming calls from the public to the appropriate departments for information, service requests, and general assistance.
In addition to standard departmental calling, the system supports high-volume, customer-facing functions, including Thousand Oaks Transit and the Civic Arts Plaza Box Office, which rely on consistent call routing, queue management, and after-hours coverage to maintain service levels.
The Mitel system has reached the end of its useful life. Vendor support and security updates ended in December 2025, and the platform will not be supported beyond 2029. The City currently relies on extended third-party support for aging hardware which increases operational and cybersecurity risk and limits the system’s reliability and functionality over time. As technology and service expectations have evolved, the existing system lacks modern capabilities, including cloud-based administration, mobile and remote access, scalability, and enhanced contact center functionality. These limitations reduce operational efficiency and the City’s ability to provide responsive and flexible communication services to the public and staff.
To address these challenges and ensure continued reliable service delivery, the City initiated a procurement process to evaluate and select a modern, cloud-based phone and contact center solution.
DISCUSSION/ANALYSIS:
The City’s existing phone system no longer meets operational and technological needs due to end-of-life hardware, lack of vendor support, and limited functionality.
In response to the age and limitations of the current system, staff initiated a competitive procurement process for a solution better aligned with the City’s current and future needs.
In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, staff solicited a formal Request for Proposals/Qualifications (RFP/Q) for Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) system with Microsoft Teams integration. Unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than a satisfactory performance of the services solicited.
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On April 25, 2025, a formal RFP/Q was published in the Thousand Oaks Acorn newspaper and on the City’s e-procurement website. The RFP/Q was emailed to 2,958 users, received 1,878 views, and had 78 downloads. The RFP/Q closed on Wednesday, May 21, 2025, at 5:00 p.m. local time.
From this effort, the City received 26 proposals.
Company City, State
1. 8x8, Inc. Campbell, CA
2. AmeriTel Inc Northridge, CA
3. Avallation, LLC Oakland, CA
4. Bridgepointe Technologies San Mateo, CA
5. CLOUD REVOLUTION LLC Lafayette, CO
6. Communication Square LLC Stuart, FL
7. ConnX, Inc. Plainsboro, NJ
8. ConvergeOne Bloomington, MN
9. Customized Solutions Inc Sarasota, FL
10. Dialpad, Inc San Ramon, CA
11. Digital Telecommunications Corporation Santa Clarita, CA
12. Frontier Communications Thousand Oaks, CA
13. Inoria Inc. South Jordan, UT
14. Intelesys Ontario, CA
15. NICE Systems, Inc. Hoboken, NJ
16. Pacific Office Automation Beaverton, OR
17. Packet Fusion (PFI) Pleasanton, CA
18. Senderocloud Boerne, TX
19. Sonoran Integrations LLC Scottsdale, AZ
20. Symplicity Communications, Inc Grand Rapids, MI
21. Synoptek, LLC Irvine, CA
22. Total Communication Solutions (TCS) Manasquan, NJ
23. TTEC Government Solutions LLC Austin, TX
24. Vertical Communications Santa Clara, CA
25. Virtual Tech Gurus Dallas, TX
26. Vonage Holmdel, NJ
Information Technology Department staff evaluated the proposal based on the following criteria:
1. Project understanding and approach in completing the work.
2. Quality, clarity, responsiveness, conformance with the terms of the RFP/Q, and overall impression of proposal.
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3. Phone and Contact Center’s ability to serve the City’s needs.
4. Integration with the City’s communication platforms.
5. Qualifications and availability of key persons.
6. Number of years of experience the Proposer has in this type of business and with accounts of this size.
7. Demonstrated competence.
8. Relevant Experience (past similar scope and size projects).
9. Reasonableness of completion schedule and hours dedicated to completion of each task.
10. Reasonableness of time schedule responding to as-needed services.
11. Reasonableness of Cost and Compensation submittal.
12. Maximum guaranteed response time for standard and emergency/urgent service calls.
Three vendors were invited to participate in product demonstrations. Members of the Information Technology Department, Finance Department, Public Works Department, City Manager’s Office, Strategic Communications and Public Affairs, and Cultural and Community Services Department participated in product demonstrations. After two rounds of demonstrations, reference checks, and comprehensive review, staff determined PFI, in partnership with Zoom Phone and Contact Center platform, best meets the City’s operational and technical requirements. PFI demonstrated a strong understanding of the City’s needs and experience implementing similar solutions for public sector agencies. The proposed solution replaces the City’s existing on-premises phone system with a cloud-based platform that provides enhanced reliability, scalability, and administrative functionality. The system supports both standard departmental calling and high-volume customer service operations, including Customer Services, Thousand Oaks Transit, and the Civic Arts Plaza Box Office. Existing public-facing phone numbers will remain unchanged.
The transition will be implemented through a phased approach designed to minimize disruption to City operations. Departments will participate in validating call routing configurations and operational needs, and staff will receive training to support adoption of the new system. The project includes user acceptance testing, coordinated cutover, and a stabilization period with vendor support. The Phone System Replacement Agreement
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implementation is expected to be completed over an approximately four-to-six- month period following contract execution, including system configuration, testing, staff training, and final cutover.
Migration to a cloud-based communications system will eliminate reliance on aging on-premises hardware and reduce cybersecurity risks associated with unsupported systems. The platform includes modern security features, centralized administration, and ongoing vendor-managed updates. In addition, the transition supports increased use of soft-phone technology with headsets, reducing reliance on physical desk phones while maintaining devices where operationally necessary.
Overall, the proposed system will improve service delivery, enhance system reliability, and provide the City with a modern, scalable communications platform to support current and future operational needs. This recommendation directly implements Initiative 1.1.B [Voice over Internet Protocol (VoIP) Phone System] of the City’s Information Technology Strategic Plan. Staff recommends approval of the agreement (Attachment #1) with PFI. Per Attachment #1, licensing is complimentary for the first 18 months of the agreement, with the five- year licensing term beginning in October 2027. The Zoom End User License Agreement is included as Attachment #2 and governs the end user terms and conditions associated with the Zoom software.
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to California Public Resource Code 21084 Article 19, Section 15302, Class (2) Replacement or Reconstruction. Replacement or reconstruction of existing utility systems and/or facilities involving negligible, or no expansion of capacity is exempt from CEQA.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 Phone System Replacement Agreement
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(aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The signed Levine Act form is included in Attachment #1.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Daniel Lopez, Information Technology Analyst III Attachments:
Attachment #1 – Packet Fusion, Inc. Agreement
Attachment #2 – Zoom End User License Agreement
ITD: 190-10\djl\H:\COMMON\ITFLR\Council\2026 Staff Reports\04 14 26 Phone System Replacement Agreement Staff Report.docx