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HomeMy WebLinkAbout2011 10 24 Informational 101 Telecom Efficiencies COMMISSION AGENDA Informational X ITEM 101 Consent Public Hearings Regular October 24, 2011 KS JD Regular Meeting Mgr. / Dept. Authorization REQUEST: The Information Services Department wishes to update Commission on telecom initiatives which have resulted in savings to the City. ______ SYNOPSIS: The Information Services Department has implemented several telecommunications changes and improvements which have resulted in savings to the City of approximately $1,232 per month. Staff is continuously looking at ways to improve efficiencies and save money. CONSIDERATIONS: In late 2009, the Information Services Department began conducting an internal telecom review. At that time we began the process of consolidating phone lines, converting phone lines to State Centrex lines, and converting phone lines to PBX lines where possible. We knew at that time that further consideration must be given to our main PRI (telephone service) and long distance service provider in order to obtain a more substantial savings; however, we had to wait until our current telecom services contract expired before moving to a different provider. Note: The PRI telephone service is separate from the VoIP telephone system that was just approved by Commission on October 10, 2011. The PRI is the telephone service pipeline that comes into the City and connects into our phone switch (PBX). All of our voice traffic rides over that PRI into and out of our phone switch, to and from the telephone company. We expedited our search for someone with telecom expertise who could assist us with this initiative and help us to evaluate the numerous vendor offerings available in the marketplace. We partnered with Florida League of Cities (FLC) to conduct a comprehensive telecom audit. REGULAR MEETING – October 24, 2011 AGENDA ITEM – INFORMATIONAL 101 PAGE 2 OF 3 The FLC consultants recommended Deltacom as our telephone service provider and Brighthouse as our Internet service provider. Deltacom’s package includes telephone service and 5,000 minutes of long distance and runs around $750 per month inclusive of mandatory taxes and fees. Our previous bills averaged around $1,702 for phone service and $229 for long distance service (average for January 2009 through September 2010). The move to Deltacom saved the City around $1,181 per month. The move to Brighthouse enabled us to increase our bandwidth from 3MB to 5MB for $650 per month; a savings of $51 per month. We began moving our services to the new vendors in the Fall of 2010. The move to Deltacom and Brighthouse saved the City approximately $1,232 per month. Old New Savings Cost Cost Phone Service $1,702 $750 $ 952 Long Distance Service $ 229 $ 0 $ 229 Internet $ 701 $650 $ 51 Totals $2,632 $1,400 $1,232 Additional cost saving moves included moving regular phone lines ($45 monthly recurring cost) to State Centrex lines ($18 monthly recurring cost) where possible, and moving regular or State Centrex lines to the PBX ($0 monthly recurring cost) where possible. This is an ongoing initiative as we must monitor the impact of these moves on the PRI which is our main pipeline into the City’s phone system. The process is that we move a few lines at a time and monitor the impact (traffic) for several weeks before moving additional lines. The one-time fee for the FLC consulting services was $4,093.25. So far, the telecom initiatives have resulted in savings to the City of approximately $1,232 per month ($14,784/year) and we anticipate future savings in the months to come as additional changes are made; specifically, changes moving phone lines on to the PBX. FISCAL IMPACT: There are one-time programming costs associated with moving lines to the PBX but there are no on-going costs. The phone system vendor who currently maintains our phone system charges $87 per hour for programming and the total fee charged is dependent upon how many lines are being moved at any given time. The City receives an ongoing monthly savings from all of these initiatives. To date, the recurring savings is approximately $1,232 per month. COMMUNICATION EFFORTS: This Agenda Item Has Been Electronically Forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, And Is REGULAR MEETING – October 24, 2011 AGENDA ITEM – INFORMATIONAL 101 PAGE 3 OF 3 Available on the City’s Website, LaserFiche, And The City’s Server. Additionally, Portions Of This Agenda Item Are Typed Verbatim On The Respective Meeting Agenda Which Has Also Been Electronically Forwarded To The Individuals Noted Above; And Which Is Also Available On The City’s Website, LaserFiche, And The City’s Server; Has Been Sent To Applicable City Staff, eAlert/eCitizen Recipients, Media/Press Representatives Who Have Requested Agendas/Agenda Item Information, Homeowner’s Associations/Representatives On File With The City, And All Individuals Who Have Requested Such Information; This Information Has Been Posted Outside City Hall, Posted Inside City Hall With Additional Copies Available For The General Public, And Posted At Five (5) Different Locations Around The City. Furthermore, This Information Is Also Available To Any Individual Requestors. City Staff Is Always Willing To Discuss This Agenda Item Or Any Agenda Item With Any Interested Individuals. RECOMMENDATION: Information Services is requesting that the Commission review and accept the information in this agenda item. ATTACHMENTS: None