HomeMy WebLinkAboutContract No. 2014-2586Client: CITY OF COLUMBIA HEIGHTS
Jeff Hanson
590 NE 40TH AVE
COLUMBIA HEIGHTS, MN 55421
USA
Phone: 763 706 3600
Email: jeff.hanson @ci.columbia- heights.mn.us
Our records indicate the Mite[ Software Assurance support is due
to renew on 11/15/2014. This support is required to maintain
the appropriate version of software from Mitel. It allows us to
best service your account in the unfortunate event that
something would happen to your phone system.
Investment details are listed below to extend this support from
Mitel. Please contact me if you would like to proceed with your
renewal or if you have any questions.
The City of Columbia Heights will be billed annually $1,700.75 for four years for a total of $6,803.00
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$843.00 $3,372.00
$1,150.00 $4,600.00
- $1,169.00 - $1,169.00
$6,803.00
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The Mitel Software Assurance Program focuses on delivering excellence in software support, providing comprehensive access to
software updates, new functionality, and region specific technical support arrangements.
Designed for life -cycle cost certainty, the Mitel Software Assurance Program delivers long -term customer investment protection for
Unified Communications solutions and complements Mitel warranty and regional service agreements.
This quote can be processed with your approval and an invoice will be sent for payment after the renewal is processed.
* ** THIS IS NOT AN INVOICE * **
Serving customers throughout the Upper Midwest and nationally with offices in
Minnesota, Wisconsin, North Dakota, South Dakota, and Iowa.
CITY COUNCIL LETTER
Background
In 2009, the City entered into a $59,000 contract with Elert and Associates, to both perform an extensive
analysis of the City's long term needs for telephone systems, and to prepare and conduct a formal request for
proposal (RFP) process to replace the Mitel phone system existing at that time. As a result of that process, the
City chose a path of a phased upgrade over time of the existing Mitel phone system. This path ultimately gets
the City to a Mitel system based on new VOIP technology, while continuing to use existing Mitel components
to the extent feasible. This was judged a better value for the City than the alternative of replacing the entire
phone system in 2009 with a system from another manufacturer /developer. Marco, Inc. is a regional service
company that sells and installs Mitel systems. The proposal from Marco was the proposal accepted by the City
in the 2009 RFP process.
Just like almost every other tool used in business today, the telephone system is by and large, a computer -based
system. The software used on the phone system's central computer (also called the server) is periodically
updated and revised by Mitel. Most of the City's existing end -user telephone devices (also called handsets)
will not be compatible with the software versions that Mitel will support after mid -2016. Over the last couple
of years, the City has purchased about 25 new VOIP handsets on a case -by -case basis, as the need for
replacement handsets has occurred. These 25 VOIP telephones will be compatible with the Mitel software
supported after mid -2016. To complete the change out, the City will need to purchase another 150 VOIP
telephones by mid -2016. On the one hand, this is being forced by Mitel's choice to end support of the older
hardware. At the same time however, this change is also the last phase of the upgrade path the City chose in its
2009 RFP process.
The City is a member of a cooperative purchasing group called the National Joint Powers Alliance (NJPA),
which establishes competitively bid and negotiated prices, similar to the state purchasing contract. The NJPA
nationally- established price for these Mitel phones is $244.90 per phone, plus a software license of $111.60 per
phone. To encourage customers to not all wait until the last minute to replace their phones, Mitel is offering a
two - for -one deal for purchases made in 2014, in other words, half -off the nationally- established price.
Analysis
Staff had originally planned to include the purchase of 150 phones in the 2016 budget at a cost of $53,475 based
on the nationally- established price. The 2014 two - for -one offer can save the City $26,737 ; but will require
amending the 2014 budget for the capital equipment fund 431. In addition, to receive the two- for -one pricing,
the City must have a Mitel support agreement in place. The current support agreement expires in November.
Staff recommends renewing the support agreement for a four -year period to receive a 10 % -14% multi -year
discount. The annual payments of $4,800 under the support agreement are shared by the operating budget for
each department using the phone system.
RESOLUTION NO. 2014-58
APPROPRIATE $29,000 FROM THE FUND BALANCE OF THE GENERAL GOVERNMENT
CAPITAL EQUIPMENT REPLACEMENT FUND 431 TO THE 2014 BUDGET, AND AWARD
RELATED AGREEMENTS FOR THE PURCHASE OF TELEPHONES AND PHONE SYSTEM
SUPPORT
WHEREAS, the City Council of the City of Columbia Heights has adopted a 2014 budget as required by the
City charter and Minnesota statute, including a budget for the City's general government capital equipment
replacement fund 431; and
WHEREAS, the City of Columbia Heights has identified a 2014 opportunity to obtain certain necessary
telephone equipment at a significant cost savings relative to the expected future cost of this equipment; and
WHEREAS, this 2014 savings opportunity was not available at the time the 2014 budget was originally
adopted; and
WHEREAS, the City of Columbia Heights, through a formal request for proposal process, has selected Marco
Inc. as the vendor for the purchase of such equipment and for the related support agreement;
NOW, THEREFORE, BE IT RESOLVED that the 2014 City of Columbia Heights' budget is amended to
appropriate $29,000 from the fund balance of the general government capital equipment replacement fund 431,
and the city manager is authorized to enter into the related agreements for the purchase of telephones and phone
system support from Marco Inc.
Roll Call: All Ayes
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a r Gary Y,9 terson
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Katie Bruno, City Clerk/Council Secretary