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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />September 21, 2015 <br />SUBJECT <br />Award of Contract to Packet Fusion for a telephone system replacement <br /> <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute an Implementation <br />Agreement with Packet Fusion, Inc. of San Mateo, for a new Telephone System in an <br />amount not to exceed $600,000. <br /> <br />BACKGROUND <br />The City’s current, 25 plus year old NEC phone system, comprised of handsets at each <br />desk, and equipment located at City Hall, the Main Library, Fire Station No. 9, the Police <br />Department, Fair Oaks Community Center, Red Morton Center, and Sandpiper <br />Community Center, is in need of replacement. <br /> <br />Over the last several years, parts of the phone system have failed, most recently the fax <br />server in 2014. Companies able to support the existing system are becoming <br />increasingly hard to find. Replacement parts, no longer manufactured by NEC, are only <br />available as refurbished or on the used marked, making timely repair more difficult. <br /> <br />The phone system replacement is the final phase of upgrading the City’s <br />telecommunications system started more than five years ago. The first phase, <br />completed in 2010, connected all facilities with Fiber, replacing slower, more costly T1 <br />circuits. The second phase, completed in 2013, replaced the network infrastructure <br />throughout the City. <br /> <br />The new, state-of-the-art, feature-rich phone system will be a fully redundant system <br />capable of meeting the telephone needs of the City for at least ten years. <br /> <br />ANALYSIS <br />In 2009, Council approved a telephone switch replacement Agreement with NEC for <br />$324,088. The telephone switches are the key pieces of equipment responsible for <br />routing and managing telephone calls. The switches replaced were more than 15 years <br />old at the time. They were failing on a regular basis. At that time, it was decided to <br />replace just the switches due to the large investment in existing, working handsets <br />(telephones), Voice Over Internet Protocol (VoIP) systems just maturing, and the <br />inability of our network infrastructure to support a full VoIP system. <br /> <br />Between 2010 and 2013, the network infrastructure was upgraded in preparation of a <br />6.1.G. - Page 1