HomeMy WebLinkAboutItem 06.m Date: Item No.
Five Year Contract with Vonage Business, Inc. for New Phone System
Proposed Action
Staff recommends adoption of the following motion: Move to approve a 5-year contract with
Vonage Business, Inc. for the lease of a new City phone system and authorize Ralph Vetter, IT
Manager, to digitally sign the contract.
Overview
IT staff reviewed the City’s current phone system and is requesting replacement with a 5-year lease
contract with Vonage Business, Inc. This request is based upon several factors including:
• Additional phone services requested by City departments and staff are cost prohibitive
• The addition of current/modern service features not in current system
• Phones and services are always up to date
The proposed Vonage phone system is a fully leased system that addresses department needs and
services that would have required additional servers and licensing for the current system such as
the management of call queues and advanced call reporting. In addition to these services the City
gains phone services such as computer integration for voice communication, texting, digital fax,
video conferencing, and mobile phone integration. Leasing of the system ensures that components
are always current, and no capital investment is required in localized phone network components.
Five-year cost comparison of the new phone system to the City’s existing system:
• Current System: $335,283
• Vonage leased system: $334,195
Primary Issues to Consider
• Does this new phone system benefit the City of Lakeville?
Yes. City staff will gain a cost neutral system that provides additional functionality and
features that were cost prohibitive to add to the current phone system
Supporting Information
• Vonage Business, Inc. 5-Year Lease Contract
Financial Impact: $ Budgeted: Y☒ N☐
Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Ralph Vetter, IT Manager
December 16, 2019
66,839 (Annually)
General, Water Operating, Sanitary Sewer, Liquor, and Communications Funds
City of Lakeville
Attn:Trevor Stewart
Tel:9529852642
Quote Date:Dec 12, 2019
Quote Expiration:Dec 27, 2019 at 11:59 pm ET
Agreement Term:60 Months
Quote #Q1046361
Account Executive
Anna Chang
anna.chang@vonage.com
Contact your Account Executive with any
questions
Included at no extra cost:
Amazon Chime! All-in-one video and audio conferencing, chat and screen sharing. Visit vonage.com/amazonchime
The "Vonage Business Cloud" Mobile app! Call and text using your personal business number on-the-go, check voicemails, access paid add-ons and
more. Available on the App Store and Google Play. Mobile data charges may apply.
Name Address One time Monthly price ^✫
Main Location Primary
20195 HOLYOKE AVE
LAKEVILLE, MN
55044 US
$ 0.00 $ 5,599.69
Main Location
20195 HOLYOKE AVE, LAKEVILLE, MN 55044 US Purchase order:
One time set up charge*^
Monthly charge (upon activation)^
Product Quantity Unit price Subtotal
Implementation Support $ 2,500.00
Implementation Support Discount ($ 2,500.00)
SmartWAN Mono - 400 Mbps
Installation 1 $ 250.00 $ 250.00
SmartWAN Mono - 400 Mbps Installation Discount ($ 250.00)
Product total $ 0.00
Standard Shipping 247 $ 15.00 $ 3,705.00
Standard Shipping Discount ($ 3,705.00)
Subtotal (excludes taxes)$ 0.00
Product Quantity Unit price Subtotal
Amazon Chime 286 $ 15.00 $ 4,290.00
Amazon Chime Discount ($ 4,290.00)
^Taxes and other surcharges not included.
Description of Taxes and Fees
Universal Service Fee (USF) - This a federal tax designed to ensure affordable access to telecommunications services for telephone customers with low incomes, telephone customers who live in areas where the cost of
providing telephone service is extremely high, (e.g., libraries, schools, and rural healthcare providers). The Federal Communications Commission (FCC) adjusts this tax rate quarterly. our monthly bill may increase or
decrease as a result.
Recovery Fee/Regulatory, Compliance and Intellectual Property Fee (RCIP) - A fee of $3.50 will be charged monthly to offset costs incurred by Vonage Business in complying with inquiries and obligations imposed by
federal, state and municipal regulatory bodies/governments and the related legal and billing expenses. This fee is not a tax or charge required or assessed by any government. This Fee will apply to every phone number
assigned, including toll free and virtual numbers.
Emergency 911 Fee (E911) - The Federal Communications Commission (FCC), and other regulatory authorities that may govern rules outside the U.S., requires that Vonage Business provide Emergency 911 services and
allows us to charge a recurring monthly fee that is used for next generation costs required by regulatory authorities for supporting computer software and hardware upgrades to all public safety answering points (PSAP) to
send assistance to the registered location of the 911 caller. The $0.99 e911 fee will be charged for each Unlimited and Metered Extension and for each Secondary Line Appearance.
Other Taxes - Prices for the monthly services and one-time fees do not include any customs duties, sales, use, value added, excise, federal, state, local, public utility, universal or other similar taxes. All such taxes will be
added to any amounts otherwise charged to you unless you provide Vonage Business Solutions with an appropriate exemption certificate. If any amounts paid for the monthly services or one-time fees are refunded by
Vonage Business, applicable taxes may not be refundable.
^ Taxes and other surcharges not included.
Usage at $0.03 per minute*1
Total (all locations)One time Monthly price ^
$ 0.00 $ 5,599.69
Business Number Inbox 15 $ 0.00 $ 0.00
Call Group 15 $ 0.00 $ 0.00
Local Company Number 15 $ 0.00 $ 0.00
Metered Extension 136 $ 7.99 $ 1,086.64 *1
Mobile Unlimited Extension 40 $ 12.99 $ 519.60
Personal Fax 286 $ 0.00 $ 0.00
Receptionist Console 1 $ 14.99 $ 14.99
SmartWAN Mono - 400 Mbps
Service 1 $ 708.00 $ 708.00
Unlimited Extension 110 $ 16.99 $ 1,868.90
US Fax Number 1 $ 9.99 $ 9.99
Vonage for Office 365 286 $ 0.00 $ 0.00
Yealink CP920 w/ Power
Supply - Rental 4 $ 9.99 $ 39.96
Yealink DECT IP Phone W60
Package - Rental 3 $ 4.99 $ 14.97
Yealink T42S w/Power Supply
- Rental 122 $ 0.00 $ 0.00
Yealink T46S w/Power Supply
- Rental 117 $ 0.00 $ 0.00
Fees
E911 Fee $ 283.14
Recovery Fee $ 1,053.50
Subtotal ^$ 5,599.69