Title
Staff Report for a City Council Resolution to Approve a 3-Year Maintenance Agreement with ConvergeOne for Cisco Network and Phone Equipment for the Total Amount of $175,892.30
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution authorizing the City Manager to approve a payment to ConvergeOne of $175,892.30 to provide maintenance and support of Cisco Network and Phone Equipment for a 3 Year Period from 11/30/2020 - 11/30/2023. Staff also recommends that the City Council approve an appropriation from the 688 Fund Balance.
BACKGROUND
The City of San Leandro utilizes Cisco equipment for data center services, including Networking, Phone systems, and Firewalls. The City has until now paid an annual support and maintenance fee to keep critical equipment under warranty and support. The current 3 year agreement would result in a $30,547.84 savings over making annual payments in that period.
Analysis
The City of San Leandro is required to make an annual payment to maintain its Cisco infrastructure. This includes all the City’s networking equipment, such as switches and routers that connect all desktop computers, Wi-Fi, servers, and computer equipment. It also includes the City’s firewalls and related security devices that protect the City network from cyber-attacks and intrusion. In addition, this includes the City’s telephony system, which has hundreds of desk phones and a Unified Communications System that manages all incoming/outgoing phone calls and voice mails on City phone lines.
This maintenance contract provides a warranty for all devices under support, 24/7 technical support from Cisco, and free replacements for defective devices. The 2020-2021 annual contract is estimated to be $68,813.38. Staff negotiated a 3-year proposal, valued at $175,892.30, a $30,547.84 savings over making annual payments during that same period. In addition, the City will realize savings from the elimination of Consumer Price Indexed increases that will not happen because of a locked-in 3 year contract.
Previous City Council Actions
• On April 1, 2019, the City Council approved a Consulting Services Agreement with ConvergeOne for Cisco Next-Generation Firewall Installation (Adds $5,301.61 to the Original Agreement Amount of $104,000.00 for a New Total Amount of $109,301.61), Reso 2019-067;
• On July 16, 2018, the City Council approved a Consulting Services Agreement with ConvergeOne for Cisco Next-Generation Firewall Installation (not to exceed $104,000.00), Reso 2018-088;
• On July 17, 2017, the City Council approved a Consulting Services Agreement with Strategic Products and Services, LLC to Upgrade the Cisco Telephony System for an Amount Not to Exceed of $295,835.61, Reso 2017-102.
Legal Analysis
The City Attorney’s office has reviewed and approved the purchase agreements.
Fiscal Impacts
The total cost for Fiscal Year 2020-2021 is $175,892.30, and the savings are estimated at $30,547.84 for entering into a three year contract.
Budget Authority
The Finance Director has verified there are sufficient funds in the 688 Fund Balance.
PREPARED BY: Tony Batalla, Chief Technology Officer, City Manager’s Office