Loading...
HomeMy WebLinkAboutReg 2010-09-07 Item 5B - Purchase - IT Purchases of VoIP Telephone System, Microsoft Enterprise License and Hardware / Software1 CAS NUMBER: 10-096 CATEGORY SPONSOR SPONSOR'S SUMMARY MTG. DATE 8/23/10 9/7/10 Meeting Date 08/23/10 09/07/10 Discussion Motion Resolution Mtg Date 08/23/10 Mtg Date 09/07/10 Mtg Date Council Mayor IT DCD COUNCIL AGENDA SYNOPSIS Initials Prepared by Mavzew MM MM 1 Council review 19:) J' /c' I `SLR ITEM INFORMATION 1 ORIGINAL AGENDA DATE: AUGUST 18, 2010 AGENDA ITEM TITLE VoIP Phone System Microsoft Enterprise Licensing ITEM No. 5 Ordinance Bid Award Public Hearing n Other Mtg Date Mtg Date Mtg Date Mtg Date Finance Fire Legal P&R Police PW/ Staff is seeking Council approval to utilize funds associated with the recent issuance of limited tax general obligation bonds for the purchase of emergency response capital equipment (see Council minutes dated July 19, 2010), specifically for the procurement of a Voice over Internet Protocol (VoIP) Telephone System and a City -wide Microsoft Enterprise license. REVIEWED BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DA'L'E: 08/17/10 RECOMMENDATIONS: SPONSOR /ADMIN. IT Department COMMIfl'LE Unanimous Approval; Forward to Committee of the Whole COST IMPACT /;FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $932,622 $935,454 Fund Source: BOND INITIATIVE FOR EMERGENCY MANAGEMENT Comments: All items included in this funding request are within the total amount approved in the limited tax general obligation bond approved by Council on July 19, 2010. ,MTG. DATE RECORD OF COUNCIL ACTION 8/23/10 Forward to next Regular Meeting ATTACHMENTS Informational Memorandum dated 8/16/10 Minutes from the Finance and Safety Committee meeting of 8/17/10 Informational Memorandum dated 8/31/10 49 50 City of Tukwila Mayor Haggerton Finance and Safety Committee FROM: Mary Miotke, IT Director DATE: August 31, 2010 TO: INFORMATIONAL MEMORANDUM SUBJECT: City -wide Microsoft Enterprise Licensing and VoIP phone system (amended after 8/23/10 Committee of the Whole) ISSUE The City Council directed staff to research and present information on Microsoft Enterprise Licensing (EA) and Voice over Internet Protocol (VoIP) phone systems for approval prior to procurement. BACKGROUND On July 19, 2010 the City Council approved an ordinance providing the issuance of a Limited Tax General Obligation Bond. The bond includes provision of funding for emergency response capital equipment. Included in this bond request were funds allocated specifically to IT enhancements that will improve the City's ability to respond and react to emergencies. The Council directed staff to research and present additional information regarding the pricing, purchasing and procurement of these items. IT is not asking for additional funding; the funding has been provided for through the recent bond sale. Decision points to consider for implementation of IT component of Tukwila Bond Ordinance #2296 1. VoIP system process considerations 2. Enterprise Licensing purchase consideration 3. Hardware /Software purchase consideration Discussion of Decision points Jim Haggerton, Mayor 1. VoIP system considerations Staff is asking for direction on the purchasing process for replacing our current phone system. The phone system the City currently utilizes is archaic and is becoming difficult to support. It is hard to obtain parts and service. In 2008 the City hired a consultant to study the current phone system. During the study the consultant diagramed our current structure and interviewed employees The study recommended we upgrade the system to a digital VoIP system. A VoIP phone system would facilitate necessary Emergency Management communication in the event of an emergency. VoIP systems currently on the market are redundant, versatile, and would allow off -site communication portability when necessary. By moving to a VoIP system the City will realize a savings in both the ongoing management and maintenance costs as well as the system and service provider costs. There are many vendors that sell, implement, and support VoIP systems. We have researched ShoreTel, Avaya, Mite!, Cisco, and Microsoft. All have strengths in areas of implementation, support and user friendly interfaces. There are differences between the products with relation to redundancy options and the ability to integrate with our current systems. We have seen demos on several of these products. Several local jurisdictions are moving to VoIP, or have recently completed an RFP process to select a VoIP vendor. We are sharing and collaborating with the City of Renton (and potentially SCORE Jail) in their 51 INFORMATIONAL MEMO Page 2 procurement process to ensure we research all possible avenues. RFP's have been reviewed from the City of Lynnwood (selected Cisco at approximately $800 per phone, 500 users), City of Bellingham (selected ShoreTel at approximately $888 per phone, 900 users), and Bellevue College (selected Mitel at approximately $500 per phone, 1000 users using NJPA pricing). The consultant's study estimated the City of Tukwila would need to purchase for approximately 300 users. There are several ways to complete the process for selecting a vendor. We can continue sharing and collaborating with the City of Renton and SCORE jail for possible economy of scale in pricing. From the systems reviewed, the City of Renton would select several top candidates to move on to an RFP process. Using an interlocal agreement, the participating jurisdictions would collaborate on questions and criteria for the RFP. Going through the traditional RFP process will take longer, but can provide additional assurance that our selection was the best for the City. An alternative option in order to save time and get the system implemented as soon as possible is to select Mitel, a company with a local branch in Tukwila. Mitel was recently awarded the contract for National Joint Powers Alliance (NJPA) through an RFP process, which gives them rights to offer government entities pre negotiated and favorable pricing structures. The NJPA contract has been reviewed and approved for purchasing use by the City Attorney's office. The Mitel system would work well with our current systems. It is scalable, includes the features we require, compares well with the other systems reviewed, and the company can provide local support. Purchasing Decision 1: At this time we do not have a firm quote but require guidance on the process. Continue with the RFP process with the City of Renton and SCORE Jail, or purchase through the NJPA contract with Mitel? Staff Recommendation: In order to have the system operational during the first part of the flood season, the IT Department recommends pursuing a firm quote from Mitel utilizing the NJPA contract pricing in procuring a VoIP system. Pricing is expected to be less than the approved bonding fund allocation amount and Mitel has a local Tukwila branch. Research to date supports that Mitel would be the most cost effective solution. The Council is being asked to consider this purchase, not to exceed the bond funding amount of $534,200.00. 2. Microsoft Enterprise Licensing Funding has been provided for through the recent bond sale; however, Council approval is required to proceed. The City of Tukwila currently utilizes Microsoft Open Agreement Government pricing for purchasing Microsoft Licenses, purchasing ONLY enough licenses each year to install on the new PCs purchased. The current rotation allows for of the City's PCs to be upgraded every year, resulting in the potential for City staff to be working on 4 different versions of software at any given time. Collaboration is difficult when using different versions of the software. Maintaining the ability to share documents when working with internal and external agencies is critical, especially when the outside agencies are on the latest versions. The ability to collaborate becomes even more essential during emergencies. Buying into an EA contract has numerous advantages. The contract you are being asked to consider would include the Operating System and Office Pro for all PCs in the City, the purchase of Exchange Server for e- mail, SharePoint, and all of the associated Client Access Licensing (CALs) for the software. It would also include Software Assurance, which is the assurance that within the contract time frame, the City has the ability to stay current with software programs. Any new releases of software purchased with the contract are available to the City for all PCs. Exchange Server would allow the City to utilize Microsoft Exchange and the Outlook interface instead of GroupWise. A SharePoint web -based portal would be used for collaboration and document sharing, offering a single integrated location where employees can use and organize resources. SharePoint could also be used to manage the Council's citizen response tracking system allowing multiple 51 &EA.doc INFORMATIONAL MEMO Page 3 staff to view, respond and track responses, based upon pre -set security levels, with both onsite and secure remote access. Additional benefits include technical management tools for IT staff, training vouchers for IT staff technical training classes, TechNet support subscriptions, E- Learning access for all City staff, and a home -use software program for all employees at a nominal charge. It is important to note that while not currently allocated in the budget, GroupWise is at an older version with limited features and will need an upgrade. The cost of this upgrade could potentially be upwards of $20,000. At the very least an investment is needed to stay in compliance with GroupWise user licensing. The cost to buy into the EA would be at a higher cost for the first 3 years ($103K per year) as compared to what we are purchasing and budgeted for now. The yearly cost after the first 3 years is substantially lower than what it would cost to buy Licensing with Open Licensing if we were purchasing for 100% of the City's PCs. For the cost of ensuring all PCs have current versions of software, the City would be able to take advantage of all of the benefits of Enterprise licensing. DIS State Contract Enterprise Licensing Annual Enterorise Licensing 3 years $103,378 Additional Products,, WinSvr5td ALNG LicSAPk MVL InfoMemo_VolP &EA.doc PRODUCTS INCLUDED IN EA`,' WinPro ALNG UpgrdSAPk MVL Pltfrm wMDOP OfficeProPlus ALNG ":LicSAPk MVL Pltfrrre EntCAL ALNG LicSAPk MVL Pltfrm UsrCAL wSrvcs years 4,5,6 $65,692 WiinSvrDataCtrALNGLicSAPk MVL 1Proc 275 ExchgSvrStd ALNG LicSAPk MVL 275 Office5harePointSvrALNG-LicSAPk MVL. 350 SysCtrCnfgMgrSvr ALNG LicSAPk MVL OfficeCommsSvrStd ALNG LicSAPk MVL 2 FrFrntSecSvrMgmtCnsl ALNG SubsVL MVL Srvcs I. FrFrntatSecMgmtCnst ALNG SubsVLMVL WSQL Purchasing Decision 2: Proceed with purchase of Microsoft Enterprise Licensing using DIS State contract pricing? Staff Recommendation: It is the recommendation of the IT Department to move forward with the purchase of Microsoft Enterprise Licensing in the amount of $103,378.00 per year for 3 years in the total amount of $310,134.00. 3. Hardware /Software required to implement referenced systems. To ensure success of these projects we need to enhance our existing infrastructure to support emergency planning, phone systems and Exchange e -mail (included with the EA agreement). $91,320 of the bond was allocated for system upgrades. Several items are partially attributed to the VolP phone system project and will be paid for with the approved phone system funding. A total of $69,971 is required for Hardware /Software items from the bond funds, leaving a remaining $21,349 unallocated. This amount could then be applied to purchase an e -mail archive appliance for Exchange with 3 years support and maintenance at $19,651 to remain in compliance with legal requirements for record archival. The balance of the hardware /software purchases would come out of the bond funds allocated for purchase of the phone system ($33,044). The table below outlines equipment necessary to the success of these projects. 53 INFORMATIONAL MEMO Page 4 ITEM Cisco 3560 24 Port Switch Cisco GBIC for 3560 Watchguard 1250e Firewall *FalconStor SAN *HP Proliant Servers *VMWare vSphere w /site recovery manager Equipment Maintenance and Installation indicates that 50% will be paid for by phone system ($33,044) I E -Mail archive application 5 A,foMemo_VolP &EA.doc Approved Total Quote Purchase Bond Amount Amount HW /SW w/ DESCRIPTION QTY for HW /SW w/Tax Bond Amt 6 1 $19,800.00 1. $19,936.00 1 $19,936.00 Network Switches for infrastructure connectivity 8 I $7,200.00 1 $6,300.00 $6,300.00 Needed to connect switches via fiber 1 $2,520.00 1 $3,591.00 1 $3,591.00 1 Firewall for security and VPN access 1 1 $36,000.00 1 $39,200.00 $19,600.00 1 Storage for data and virtualization of servers Robust servers to run redundant virtual 2 I $14,700 00 $12,188.00 $6,094.00 environment 4 $11,100.00 1 $91,320.00 Savings: I Cost: Total Savings: Purchasing Decision 3: Proceed with purchase to support these referenced projects. $14,700.00 $7,350.00 Virtualization software $7,100 00 $7,100.00 Equipment Maintenance and Installation $103,01 $69,971.00 $21,349.00 Remaining bond funds allocated for HW /SW Required to be in legal compliance for $19,651.00 I Exchange e-mail program Total Remaining bond funds allocated for HW /SW after purchase of E -mail archive $1,698.00 application Staff Recommendation: It is the recommendation of the IT Department to move forward with hardware /software purchases to implement the IT component of City of Tukwila Bond Ordinance #2296 in an amount not to exceed $91,320.00. ALTERNATIVES Continue jointly with the City of Renton and SCORE Jail on RFP Process for procuring VoIP system. Continue current practice of purchasing Microsoft Open Agreement Government Licensing RECOMMENDATION The Council is being asked to consider providing purchasing direction on decision points 1, 2 and 3 at the August 23, 2010 Committee of the Whole meeting and subsequent September 7, 2010 Regular meeting. ATTACHMENTS A. 2008 Consultant Recommendations for VoIP Attachment A. 2008 Consultant Recommendations for VoIP System Pricing Estimate Estimated System Pricing During the initial stages of the City of Tukwila's phone replacement project, Tellink was asked as part of the scope of work to provide estimated budgetary pricing for this project. As you can imagine this can be a difficult task to estimate a system price when the system vendor nor manufacture has been established. There are many factors that can impact the price of an enterprise system. Issues like survivability requirements, VoIP or TDM system transport, quality and condition of the data switching hardware are just a few of the primary issues. In addition, feature options like IVR (Integrated Voice Response), ACD (Automatic Call Distribution), or wireless telephony have a price impact but also vary greatly between manufactures. Tellink reviewed pricing for a number of different phone systems that we implemented in the last year. These were all multisite system with varying levels of redundancy and features. We broke down the cost per station which averaged about $1400.00 per station, Based on our count of 273 stations at the City of Tukwila the estimated total investment for the system would be $382,200.00. Project Management Pricing Much like estimating the cost of a phone system, estimating project management time prior to knowing the type of system is difficult. Some of the items that impact project management time is the level of detail required on a per user bases, the amount of redundancy and failover testing and the types of features and call routing selected. Similar to how we determined the system cost, for project management cost, we reviewed a number of our previous implementations. Based on the recommended project plan we have estimated the price to be approximately $32,000. Once a winning vendor has been selected Tellink would be happy to provide a fixed quote to the City for our project management services. Cable Pricing Please see Attachment A for the breakdown on cabling. E911 Whether using a TDM or VoIP transport system, if the City decides to consolidate dial tone to one or more locations then it will be required by state law to have an E911 database in place. This will provide locations specific information to the PSAP so that 911 responders arrive at the correct address rather than the address where the dial tone service is delivered. Tellink can provide this database development service for $2,500.00. Network Upgrade See System Engineering LAN /WAN Network Infrastructure Components of Purchase Telephone System Cabling VoIP Cabling TDM 1 Project Management E911 Network Upgrades for VoIP Total for TDM Total for VoIP Estimated Cost $382,200.00 $17,500.00 $10,000,00 $32,000.00 $2,500.00 $100,000,00 $526,700.00 $534,200.00 55 56