The action before the council is the adoption of a resolution accepting a proposal from RingCentral, Inc., to replace the existing Voice over Internet Protocol (VoIP) phone system.

The IT Department released an RFP June 29, 2017 requesting proposals to replace our internal VoIP phone system.  Thirteen vendors submitted proposals representing six different brands. Eleven of the proposals were within the budget allocation.  The IT staff evaluated the proposals based on cost, usability, ease of management and the ability to meet over 200 features listed in the request.

RingCentral, Inc., submitted the proposal judged to be in the best interest of the City through a combination of price, product, usability, requirements met and other factors as listed in the request.

The budget for the VoIP project was authorized up to $175,000.00 in fiscal year 2018 for start up, licensing, conversion and new equipment costs. (This amount was not proposed to include annual maintenance or monthly service fees.) The bid proposals ranged from $69,897.96 to $216,609.35 as first year initial costs. Some bid proposals included monthly service costs and some didn't due to their system designs.

After selecting RingCentral's proposal, the final itemized costs have been determined through detailed inventory review and looking at usage of the phone system with staff. The final purchase agreement will be for:

  $40,031.00 - Equipment replacement (phones, headsets, analog adapters)

  $37,500.00 - Installation, pre-configuration and deployment services

  $77,531.00 - Subtotal for one-time initial costs

  $52,640.28 - Annual service, support and licensing (on-going costs)

$121,171.28 - Total first year costs (includes annual fees)

The proposal, including the 1st year's service fees, is 69% of the pre-bid estimate in the budget for initial installation costs this year (121,171.28 vs 175,000.00).

The proposed annual ongoing cost, $52,640.28, is approximately 21% less than the current old phone system.

The fiscal impact is below the budget estimate for this year and an on-going reduction from our previous costs.