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City of San Leandro <br />Meeting Date: July 17, 2017 <br />Staff Report <br />Agenda Section:File Number:17-422 CONSENT CALENDAR <br />Agenda Number:8.D. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Jeff Kay <br />Assistant City Manager <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for a Resolution Approving a Consulting Services Agreement with <br />Strategic Products and Services, LLC for Cisco Telephony System Upgrade <br />for an Amount Not to Exceed $295,853.61, and City Council Approval to <br />Appropriate $295,853.61 from the Information Technology Fund Balance to <br />the 2017-18 Operating Expenditure <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council approve a resolution authorizing the City Manager to <br />execute an agreement with Strategic Products and Services, LLC to install and configure <br />upgraded telephony infrastructure and software. The contract is for a not to exceed amount of <br />$295,853.61. Staff also recommends City Council approval to appropriate $295,853.61 from <br />the Information Technology fund balance to the 2017-18 operating expenditure <br />688-13-121-7410. <br />BACKGROUND <br />The City of San Leandro’s telephony infrastructure reached “end-of-life” status from the <br />manufacturer, Cisco Systems, meaning it will no longer be updated or protected under <br />warranty. This project will install a new telephony system from Cisco Systems that is under <br />manufacturer support. <br />Analysis <br />While modern cloud computing products have firmly established themselves as superior <br />alternatives for many IT applications, telephony systems remain strong candidates to remain <br />on-premise. This is because while the capital costs of enterprise-level telephony systems are <br />high, the useful life of the equipment is ten years or more, meaning those capital costs are <br />spread over a longer period, which yields higher cost to value. <br />The City’s current telephony system is Cisco’s flagship telephony system, Unified <br />Page 1 City of San Leandro Printed on 7/11/2017 <br />275