Town of Penetanguishene

Section Committee Report

TO COMMITTEE: Finance & General Government Section

COMMITTEE CHAIR: Dan La Rose

SUBJECT: Telecommunications Review

RECOMMENDATION

That the proposal for VoIP telephone system from ______at a price of ______be accepted.

INTRODUCTION

Compass Telecom Consulting has completed its review of the Town’s telephone system and is recommending voice over IP technology with unified messaging. The total bid is within the combined telephone capital budgets for the Town Hall, Arena, and voicemail (carried forward from 2006). Annual savings from VoIP is calculated at $8,500.

ANALYSIS

The Town requested Compass Telecom Consulting to review telephone systems in preparation for moving to the new Town Hall. Council at the time had expressed concern over the rising cost of telephone services across the organization. As changes to phone systems at the Arena were budgeted for 2007 and had been reviewed by Recreation Section, there was urgency to identify any general strategies for improving efficiency of the overall system in order to get full value from any changes before completion of the Town Hall project.

Compass identified two areas which would improve service and reduce cost:

·  Voice over IP – uses internet connection to make telephone systems of all Town operations run off one telephone line, reducing monthly line charges. In addition, all departments would share voicemail and messaging capabilities.

·  Unified messaging – increased capability to distribute messages by email or voice, on an urgent or non urgent basis. This would improve ability to reach employees who are constantly in transit (eg works or water), allow short broadcast messages to groups of users (especially fire, possibly council), and ability to retrieve email or voicemail messages remotely by computer, cell phone or land line.

BUDGETARY IMPLICATIONS

Compass has secured the following quotations from 3 local suppliers representing 3 different technologies:

MTN Communication Systems, Midland, Ontario

Equipment upgrade to Town Hall, Museum, Arena and Library $32,431.50

Unified Messaging Voicemail System $7,163.75

TOTAL (excluding applicable taxes) $39,595.25

Horizon Networks Group, Barrie, Ontario

Equipment upgrade to Town Hall, Museum, Arena, Library

and Works Building $35,344.00

Unified Messaging Voicemail System $3,139.20

TOTAL (excluding applicable taxes) $38,483.20

Phone Improvements Inc., Barrie, Ontario

Equipment upgrade to Town Hall, Museum, Arena, Library

and Works Building $56,603.60

Unified Messaging Voicemail System $7,911.00

TOTAL (excluding applicable taxes) $64,514.60

Annual savings from line reductions is $8,500 per year. Payback is 4.6 years.

Budgets covering the cost are:

·  Administration voicemail (2006) $ 5,000

·  Recreation Arena phone system $ 5,400

·  Town Hall telephone cash allowance $35,000

·  Total $45,400

RISK MANAGEMENT

There are no risk management considerations.

Prepared by: Jim Schaefer

Meeting Date: April 3, 2007