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Home My WebLink About36. 15-90 FEBRUARY 24, 2015 15-90 ORDINANCE FIRST READING (CARRIED__7-0_____ LOST_______ LAID OVER________WITHDRAWN_______) PURPOSE: APPROVE EXTENSION OF AGREEMENT WITH TSG FOR LICENSING, SOFTWARE SUPPORT AND UPGRADE FOR TELEPHONE SYSTEM AND AUTHORIZE THE WAIVING OF BIDS TO PURCHASE TELEPHONE SYSTEM UPGRADES AND LICENSING, SOFTWARE SUPPORT AND UPGRADES FROM TSG INITIATED BY: PURCHASING DEPARTMENT A GENERAL ORDINANCE OF THE CITY OF OSHKOSH APPROVING AN EXTENSION OF AGREEMENT WITH TSG FOR LICENSING, SOFTWARE SUPPORT AND UPGRADE FOR TELEPHONE SYSTEM AND AUTHORIZE THE WAIVING OF BIDS TO PURCHASE TELEPHONE SYSTEM UPGRADES AND LICENSING, SOFTWARE SUPPORT AND UPGRADES FROM TSG WHEREAS, the City of Oshkosh currently utilizes the Avaya telephone system to support telephone needs for all city departments; and WHEREAS, the Avaya system will require upgrading in 2016 to maintain its functionality; and WHEREAS, TSG is currently contracted with the City for licensing and support for the Avaya system; and WHEREAS, the City’s current agreement with TSG expires on March 1, 2015; and WHEREAS, the current agreement with TSG provides significant savings to the City for licensing and support that will not be available after January 1, 2016; and WHEREAS, TSG is willing to extend the current Licensing, Software Support and Upgrade provided the City authorizes a current extension of the agreement through the end of this year and will commit to continuing its contractual relationship with TSG in 2016 so long as the City appropriates funds for such purpose in the 2016 budget; and WHEREAS, the City’s Municipal Code would require competitive bidding for the type of products and services provided by TSG in connection with the telephone system and because of the significant savings to be achieved through continuation of the currently existing agreement, city staff recommends that the Council authorize the waiving of bidding requirements to continue the contract with TSG for licensing, software support and FEBRUARY 24, 2015 15-90 ORDINANCE FIRST READING CONT'D system, if approved as part of the 2016 budget. The Common Council of the City of Oshkosh does ordain as follows: SECTION 1. An extension of the City's current agreement with TSG for licensing, software support and upgrading through January 4, 2016 is hereby approved. The proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same. Money for this purpose is hereby appropriated from: Acct. No. 100-0110-6426-00000 General Fund — IT, Maintenance Machinery/Equipment/Building 100-0110-6427-00000 General Fund — IT, Maintenance Computer SECTION 2 If the upgrades to the current Avaya Telephone System are approved as part of the 2016 budget, the bidding requirements as contained in the City Municipal Code are hereby waived and the proper City officials are hereby authorized and directed to negotiate an appropriate contract with TSG for licensing, software support and upgrades and for the purchase of telephone system upgrades to the Avaya telephone system. SECTION 3. This ordinance shall be in full force and effect from and after its passage and publication. SECTION 4. Publication Notice. Please take notice that the City of Oshkosh enacted ordinance #15-XXX A GENERAL ORDINANCE OF THE CITY OF OSHKOSH APPROVING AN EXTENSION OF AGREEMENT WITH TSG FOR LICENSING, SOFTWARE SUPPORT AND UPGRADE FOR TELEPHONE SYSTEM AND AUTHORIZE THE WAIVING OF BIDS TO PURCHASE TELEPHONE SYSTEM UPGRADES AND LICENSING, SOFTWARE SUPPORT AND UPGRADES FROM TSG, on February 24, 2015. The ordinance approves a temporary extension of the City's current agreement with TSG for licensing, software support and upgrades through January 4, 2016 and authorizes the waiving of bids and directs staff to negotiate an appropriate agreement for telephone systems upgrades and licensing, software and support and upgrades from TSG if upgrades to the City's current Avaya Telephone System are approved as a part of the 2016 budget. The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and through the City's website at www.ci.oshkosh.wi.us. Clerk's phone: 920/236-5011. CITY HALL 215 Church Avenue P.O.Box 1130 Oshkos 5 903-1130 City of Oshkosh � � QIHKQIH TO: Honorable Mayor and Members of the Common Council FROM: Jon G. Urben, General Services Manager DATE: February 17, 2015 RE: Request to Waive Bidding Requirements of Municipal Code Section 12-10 for the purpose of upgrading telephone system. BACKGROUND The Avaya telephone system within City Hall supports telephone needs for all ciTy functions including public safety. While the system went through a full modernization in 2009 it must be updated with each Avaya software upgrade to keep it fully functional (in this case upgrading Avaya Communication Manager 5.1 to 6.3 and replacing Avaya Modular Messaging 4.0 with Avaya Aura Messaging 6.0). Failure to update the system with software upgrades will lead to a decline in the system's performance and capabilities that will result in an inevitable full replacement at a significant cost in excess of$250,000. ANALYSIS As our Information Technology (IT) staff began researching these software upgrades with our contracted Avaya service provider (TSG), IT was made aware that the system's hardware platform would also require updating to facilitate the new software. In addition, because of an Avaya licensing model change, IT also learned our current software support and upgrade (SSU) for the system would expire March 1, 2015 and could not be renewed under the new license model. In other words, if the City does not upgrade the software at this opportunity we would be forced to purchase the full software platform in 2016, at an estimated increased cost of$50,000. IT and Purchasing reviewed options with TSG for these necessary system software and hardware upgrades. Regardless of the Avaya service provider the software/hardware upgrades for our system will cost $76,100 and our annual Avaya software/hardware maintenance costs will reduce from $46,400 to $40,300. The new software/hardware upgrade cost($76,100)would be included for consideration in future IT Operating Budgets beginning in 2016. However, in order to allow the City to take advantage of the current package for licensing and software support and upgrade, TSG has offered to extend our SSU license model timeframe to January 4, 2016, provided we can commit to the extension by March 1, 2015 and continue with them as our contracted service provider. TSG would only seek that the City commit to accepting the extension to our current license model timeframe with TSG, understanding all costs for the upgrades would be contingent on the Council approving such costs within the 2016 budget. While these services would normally be put out to bid it is the consensus of City staff that we consider waiving the bidding requirements given the unique circumstances of this project. Doing so would allow the City to save approximately $50,000 in the software upgrade costs, in addition to possible re-licensing h C� fees. Our IT staff is very� pleased with the service and response of TSG which is also enhanced by TSG's extensive knowledge of our phone system and related infrastructure. FISCAL IMPACT If we continue with TSG as our contracted Avaya service provider they will extend the license model timeframe which will result in a net cost of $76,100 for required software/hardware upgrades and $40,300 annually for software/hardware maintenance, with both costs effective 2016. Not renewing with TSG at this time will result in a projected fiscal impact of the costs above plus an additional $50,000 for the full license model software effective in 2016. RECOMMENDATION Given the considerations above and that bidding the telephone software/hardware upgrades would incur an additional $50,000 for the proper license model software, it is City staffls recommendation that the Common Council accept TSG's current license model timeframe extension through the end of 2015, and authorize the waiving of bidding requirements of Chapter 12-10 of the Oshkosh Municipal Code to purchase the telephone system upgrades via TSG, our contracted Avaya service provider. Staff will budget $76,100 in software upgrade costs and $40,300 in software/maintenance costs beginning in the 2016 operating budget. If the costs are approved as part of the budget, staff will proceed with the software upgrade and maintenance costs with our current provider TSG. If the costs are not approved, staff will have to identify other options for phone service at that time. Respectfully Submitted, Approved: � � Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager