HomeMy WebLinkAbout7. MANAGERS REPORT 05/06/2008
Mount Prospect
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
FROM:
MICHAEL JANONIS, VILLAGE MANAGER
MICHAEL DALLAS, ADMINISTRATIVE ANALYST
APRIL 17,2008
TELECOMMUNICATIONS SYSTEM RECOMMENDATION - CONCERNS
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SUBJECT:
PURPOSE
To obtain the Village Board's approval to accept Sound Incorporated's "best and final offer" for their Cisco Call
Manager (VoIP) telecommunications system.
BACKGROUND
On April 22, 2008, the Village Board reviewed staff's recommendation to accept Sound Incorporated's Cisco
Call Manager (VoIP) proposal. During the meeting, the Board identified the following concerns and directed
staff to address them:
1. Identify the system's mean time between failure;
2. Identify the cost to provide twenty-four (24) hour, seven (7) day a week maintenance support;
3. Identify the costs to replace all 15 minute uninterrupted power supplies (UPS) to 1 or 4 hours;
4. Determine whether the maintenance costs were negotiated from the initial to the final offer; and
5. Identify system leasing options.
DISCUSSION
During the week, staff examined the issues identified by the Board, contacted the system vendor and
manufacturer, and determined the following:
1. Svstem's mean time between failure (MTBF). After using an internal Cisco tool to analyze inputs
from the various Cisco Business Units and product vendors regarding their products and
solutions, Cisco Account Manager John Kelley stated that the mean time between failure for the
Cisco Call Manager (single server) is 12.3 years. Even though the MTBF is relatively long, Cisco
and Sound recommend a second server to provide call processing redundancy in the event of a
primary server failure. If the primary server fails, no call processing is lost and all of the VolP
phones re-register to the secondary server within minutes. A phone that is active on a call does
not re-register until the call is disconnected. In addition to the redundant call processing server,
each data router also uses Survivable Remote Site Telephony (SRST) to provide basic call
functionality which switches to the local cooper phone line in the event that both servers fail to
operate. The secondary server and routers were included in the original proposal.
2. Maintenance costs. In order to provide twenty-four (24) hour, seven (7) day a week maintenance
support, the Village would have to pay Sound an additional $1,200 per year ($1 ,200 for the first
year and $100 a month for each additional month). The Village has utilized four hour support for
maintenance for the data network now and has been satisfied with the support. Increasing this
component to 24/7 support would create a differential of support the remaining network. If the
24/7 support option is most desirable for the Village Board the support for the remaining
components of the network would be reviewed with a possible modification recommended in the
future.
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Telecommunications System Recommendation - Concerns
May 1, 2008
Page 2
3. Uninterrupted Power Supply (UPS). In order to replace all 15 minute uninterrupted power
supplies (UPS) to 1 or 4 hours, the Village would have to pay Sound Incorporated an additional
$9,843 (1 hour) or $31,999 (4 hours) respectively. Notably, UPSs should be replaced every 3 to 5
years to ensure their viability. The original proposal included a 15 minute UPS backup until
generator support came on line. Increasing to 1 hour would add significant insurance, but a 4 hour
back up would be quite an expensive upgrade and would require a future investment for
replacement at the end of life for the UPS.
4. Maintenance neQotiations. In its initial proposal, Sound only included Cisco's SMARTnet
maintenance for the data equipment. Cisco SMARTnet Service provides telephone and on-line
technical support, next-business-day hardware replacement, and operating system software
upgrades.1 In its "best and final offer," Sound's maintenance proposal was increased to address
staff's revised system configuration (upgraded switches), which increased its SMARTnet
maintenance cost ($13,000 annually). Additionally, Sound included their labor costs ($8979.50
annually) which were missing in its initial proposal.
5. Leasinq options. In consultation with Sound, staff identified the following leasing options:
a. Lease and uPQrade/return to vendor. Sound provides a program called TAMCO Shield which
permits the Village to obtain the new system for $6,675 per month for 60 months (total of
$400,500 over the lease period). The Village may do the following during or after the lease
period expires:
(1) The Village may terminate the lease at any time during the original lease period, buy all
new equipment to upgrade the system for the same or an increased monthly rate
(depending on the new system cost) as the original lease, and begin anew lease
agreement for a new five (5) year term;
(2) Like a traditional lease, the Village may return the equipment at the end of the lease; or
(3) Continue to lease the system at $5,006.25 per month (25% less) for the following three
years.
Sound claims that this program provides protection against rapidly changing technology.
b. Lease and buy system. The Village may also lease the system for $6,243.60 per month for
60 months (total of $374,616 over the lease period) and then purchase it for $1.
RECOMMENDATION
In response to the Board's concerns and the information noted above, staff recommends the following:
1. Continue with the system's proposed configuration. In light of the reported MTBF, as well as the
fact that the system is configured to provide call processing redundancy through a secondary call
processor server and the SRST routers, staff is confident that the system will be sufficiently reliable.
2. Obtain twenty-four (24) hour, seven (7) day a week maintenance support for an additional
$1,200 per year. Based on the system's critical value to Village operations, as well as the system's
initial capital investment, the additional maintenance cost of $1200 is justified.
1 http://www.cisco.com/en/US/products/svcs/ps3034/ps2827/ps2978/serv_group_home.html.
Telecommunications System Recommendation - Concerns
May 1, 2008
Page 3
3. Upgrade all 15 minute UPSs to 1 hour UPSs for an additional $9,843. All of the proposed 15
minute UPSs provide protection for data equipment currently served by a facility generator. Since a
generator is never completely reliable (as was the case last fall), staff believes that upgrading all 15
minute UPSs to 1 hour UPSs is a relatively inexpensive alternative to improve total system
survivability.
4. Purchase the system for cash. In light of the leasing options noted above, staff believes the system
should be purchased for cash for the following reasons:
a. The Village already budgeted $500,000 for the system in its General Fund;
b. The TAMCO Shield lease alternative locks the Village into a long-term, expensive
relationship;
c. In the lease-buy alternative, the interest rate charged by the leasing company (5%) is more
than the Village's investment rate of return (currently 3%);
d. Unlike a personal computer or copy machine, the Village plans on keeping the new telephone
system for 12-15 years;
e. In light of the fragile state of the economy, staff does not want to add an estimated $75-
80,000/year operating expense to the General Fund;
Staff is not recommending leasing the phone system due to the additional cost for interest and the Village
does not have any cash flow concerns by utilizing existing funds that are currently available.
The following table represents the additional costs for each option:
TOTAL COST
Option Cost Addt'1 Maint (4 Years) 5 Year Cost
$5,895 $5,462 $11,357
$8,400 $0 $8,400
--------------------Included in base system--------------------
$21,741 $16,692 $38,433
$1,000 $0 $1,000
TBD* TBD* TBD*
$37,036 $22,154 $59,190
System Options
1. Call Accounting
2.a. Panic Button (hard-wired button)
2.b. Panic Button (phone)
2.c. Panic Button (software)
3. Unified Messaging (50 licenses)
4. Fiber Line*
* Since pricing is incomplete, a formal request to purchase and install a new fiber line will be brought
to the Board at a later date.
In summary, staff is requesting Village Board approval for the following:
1. Purchase a new telecommunications system from Sound Incorporated in the amount of $295,767.
2. Purchase the additional telephone system options outlined above for $37,036.
3. Purchase 24/7 maintenance contract for an additional $1200 per year.
4. Purchase 4 hour UPS systems for an additional $9843.
5. Due to nature of the project, allocate an additional $7,000 for contingency expenses that may arise
during the course of the project.
Telecommunications System Recommendation - Concerns
May 1, 2008
Page 4
The first-year project total for the recommendations is $351,846.
c: Dave Strahl, Assistant Village Manager
Dave Erb, Finance Director
Joan Middleton, Information Technology Director
Michael Dallas
Administrative Analyst
H:\VILM\MDallas\Telephone Equipment Upgrade\Project Installation\Phase 2\Board Recommendation\Telecommunications System
Recommendation Concerns Revised.doc
Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
FROM:
PROJECT ENGINEER
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TO:
VILLAGE MANAGER MICHAEL E. JANONIS
DATE:
APRIL 29,2008
SUBJECT: 2008 SIDEWALK IMPROVEMENTS PROGRAM
(CONTRACT AWARD NOT TO EXCEED $140,000.00)
Backqround
This project combines two programs: the Shared Cost Sidewalk Program and the Sidewalk
Construction Program. The Shared Cost Sidewalk Program is a cooperative effort between the
residents and the Village to share in the cost of replacing sidewalk throughout the Village.
Information about the Shared Cost Program was published in the Village Newsletter, giving
residents an opportunity to have sidewalk replaced at a discounted cost. This year's cost to the
resident is $48.00 per sidewalk square, approximately half of the total cost of one square. This
program is dependent upon resident participation. The Sidewalk Construction Program includes
the installation of new sidewalk at various locations throughout the Village where sidewalk is
missing.
Bid Results
Sealed bids for the 2008 Sidewalk Improvements Program were publicly opened and read aloud
on April 28, 2008 at 10:00 A.M. A Notice to Bidders was published in a local newspaper as
required and invitations were sent to ten contractors familiar with this program.
Seven contractors submitted bids for this project. The bids ranged from a low of $145,752.50 by
M&A Cement Work, Inc. to a high of $279,397.50 by Alliance Contractors, Inc. The Engineer's
estimate for the project was $139,395.00
Each of the bidders submitted a bid bond in the amount of 5% of the total bid as required in the bid
proposal packet. All bids were checked for their accuracy. No errors were found. All bidders
correctly signed their bids and bid bonds. Below is a summary of the bids:
Bidders
Engineer's Estimate
$145,752.50
$154,125.00
$154,180.50
$156,175.00
$168,311.00
$198,173.25
$279,397.50
$139,395.00
M & A Cement Work, Inc.
Schroeder and Schroeder, Inc.
Strada Construction Company
Kings Point General Cement, Inc.
Globe Construction, Inc.
Meridian Construction Company, Inc.
Alliance Contractors, Inc.
Page 2
April 29, 2008
2008 Sidewalk Improvements Program
Discussion
The low bidder, M & A Cement Work, Inc., is prequalified by the Illinois Department of
Transportation for concrete construction projects. They successfully completed the 2007 Sidewalk
Improvements Program for the Village of Mount Prospect. Their workmanship was acceptable.
The 2008 Sidewalk Improvements Program combines funds available in two accounts: Shared
Cost Sidewalk account and Sidewalk Construction account. The Shared Cost Sidewalk budget
amount is $125,000.00. This year, $15,000.00 will be set aside for reimbursements to residents for
the Village's share for work completed by their own contractors replacing public sidewalk in front of
their homes in conjunction with driveway replacements. Therefore, the total amount available for
the Shared Cost Sidewalk Project is $110,000.00. The budget for the Sidewalk Construction
account is $30,000.00. The total budget for the 2008 Sidewalk Improvements Program is therefore
$140,000.00. The low bid is 4% over the budget limit. Since the low bid exceeds the budget limit,
we must reduce the contract to the budget limit.
Recommendation
The Contractor's bid is based on estimated quantities. We recommend the contract for the 2008
Sidewalk Improvements Program to be awarded to the low bidder, M & A Cement Work, Inc. in an
amount not to exceed $140,000.00 to cover the full amount budgeted for the program. There are
sufficient funds in the 2008 Budget to cover this proposed contract.
Please include this item on the May 6th Village Board Meeting Agenda.
~~~U.6~
Donna M. Brown, P.E.
I concur with the above recommendation.
cc: Village Clerk Lisa Angell
H :\Engineering\Sidewalk\2008\Shared Cost\rec_memo.doc
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Fire Department
DATE:
MICHAEL E. JANONIS, VILLAGE MANAGER
MICHAEL J. FIGOLAH, FIRE CHIEF ~
APRIL 17, 2008
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TO:
FROM:
SUBJECT: REPLACEMENT OF FIRE DEPARTMENT VEHICLES 504 AND 508
Background
Fire Department vehicles 504 and 508 were scheduled for replacement in 2006.
Replacement of both vehicles was deferred, however, as a result of both vehicles' overall
good condition and low mileage. This year I recommend that both vehicles be replaced.
Vehicle 504
Vehicle 504 is a 1996 Chevrolet Lumina currently used by the Fire Prevention Bureau field
inspectors. In addition to its daily use for fire and life safety inspections, the department
also utilizes the vehicle for fire investigations and storm related standby events. The
vehicle's age and overall condition warrant its replacement.
I recommend vehicle 504 be replaced with a 2008 Ford Explorer, which will become the
Fire Chief's vehicle. The Chief's current Chevrolet Impala would then be moved to the Fire
Prevention Bureau for field inspector use. The Chief's car currently has a considerable
number of miles so moving it to the Bureau would likely extend its service life in the
Department. Additionally, the Chief's Impala is inadequate in size to transport the
necessary equipment including mobile and portable radios, a self-contained breathing
apparatus, turn-out gear, and other supplies.
Vehicle 508
Vehicle 508 is a 1995 Ford Van currently used by the Fire Prevention Bureau for field
inspections and public education activities. The van is equipped with fire investigation
equipment and numerous pubic education supplies. Additionally, the van has a 10
passenger carrying capacity, which has served many Village departments well in
transporting people and goods. Vehicle 508 has over 70,000 miles and its current
mechanical condition warrants replacement.
I recommend replacing Vehicle 508 with a 2008 Ford E150 Passenger Van as the current
van has served the Department well.
Replacement of Fire Department Vehicles 504 and 508
April 17, 2008
Page 2
Recommendation
I recommend the purchase of one (1) 2008 Ford Explorer utility vehicle from the Suburban
Purchasing Cooperative Contract award winner Currie Motors in Frankfort, Illinois at a cost
not to exceed $24,925. I also recommend the purchase of one (1) 2008 Ford E150 Van
from the State of Illinois Contract award winner Landmark Ford in Springfield, Illinois at a
cost not to exceed $19,795. The vehicles being replaced will be sold at the Northwest
Municipal Conference auction later this year.
Budget Authorization
Funding for the replacement of these vehicles is reflected in the 2008 Vehicle Replacement
Fund on page 289 of the budget in account (6707709-660120).
Michael J. Figolah
MF/jm