HomeMy WebLinkAboutResolutions - 2019.03.14 - 30989REPORT (MISC. #19037)- March 14, 2019
BY: Helaine Zack, Chairperson, Finance Committee
IN RE: DEPARTMENT OF INFORMATION TECHNOLOGY - UNIVERSAL COMMUNICATIONS AND
COLLABORATION PROGRAM, PHASE II VOICE OVER IP PHONE SYSTEM PROJECT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Finance Committee, having reviewed the above-referenced resolution on February 27, 2019, reports
with the recommendation that the resolution be adopted.
Chairperson, on behalf of the Finance Committee, I move the acceptance of the foregoing report.
Commissioner Helaine Zack, District #18
Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
MISCELLANEOUS RESOLUTION .#19037 March 14, 2019
BY: Commissioner William Miller, Chairperson, Economic Growth and Infrastructure Committee
IN RE: DEPARTMENT OF INFORMATION TECHNOLOGY — UNIVERSAL COMMUNICATIONS AND
COLLABORATION PROGRAM, PHASE Ii VOICE OVER IP PHONE SYSTEM PROJECT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Department of Information Technology provides telephone and voice mail service for all
County departments; and
WHEREAS the current systems that provide telephone and voice mail systems are considered outdated
and have reached the useful end of life; and
WHEREAS the Voice Over IP Phone System Project will implement state of the art technologies that
provide increased performance and capabilities including cutting edge telephony, mobility, conferencing
including web and video, and simplified administration; and
WHEREAS the Department of Information Technology and Purchasing conducted an extensive Request
for Proposal (REP) process to identify the most cost effective and appropriate system replacement; and
WHEREAS CBTS Technology Solutions LLC, a wholly owned subsidiary of Cincinnati Bell Inc, (CBB),
responded to the REP for the Voice Over IP Phone System Project at the lowest cost and with a
comprehensive technical solution that met the RFP requirements and was selected by the RFP Team;
and
WHEREAS the Voice Over IP Phone System Project will further the stated mission of the Oakland County
Information Technology Department to be a leader in providing government services through innovative,
reliable, and responsive information technology solutions; and
WHEREAS the Universal Communications and Collaboration (UCC) Program has been planned as an IT
Major Project and funds have been assigned as part of the General Fund Technology
Replacement/Hardware fund balance assignment (GL Account #383448); and
WHEREAS the total estimated cost for the purchase and implementation of the Universal Communications
and Collaboration Program is $10,727,322, which includes IT and professional services labor, hardware,
software and support and maintenance; and
WHEREAS the Department of Information Technology plans to deliver the UCC Program in three phases:
• Network Equipment Replacement and Program Management
• Voice Over IP Phone System Project
• Wireless Network and Remote Access; and
WHEREAS the Universal Communications and Collaboration Program Phase I Project was unanimously
approved by Miscellaneous Resolution #17310, with an appropriation of $5,488,646 and is currently in
progress; and
WHEREAS the Department of Information Technology is seeking approval for Phase II of the UCC Program
which includes implementation of the Voice Over IP Phone System Project; and
WHEREAS the Department of Information Technology will return by the end of this Fiscal Year 2019 to
seek approval for Phase III of the UCC Program which includes implementation of the Wireless Network
and Remote Access Project; and
WHEREAS the total estimated cost for the Voice Over IP Phone System Project system implementation
and licensing as service subscription is $3,620,258, which includes IT and professional services labor; and
WHEREAS the project implementation costs of $2,000,000 is available from the Telephone
Communications Fund (#67500); and
WHEREAS the project implementation costs of $1,620,258 is available from the General Fund Technology
Replacement/Hardware fund balance assignment (GL Account #383448); and
WHEREAS it is anticipated the Voice Over IP Phone System Project will take one year to implement with
no estimated return on investment expected; and
WHEREAS the use of the Major Departmental Support Projects Funds is typically used to account for
projects with estimated aggregated expenditures over $5.0 million and funded by current available
resources rather than bonds issues; and
WHEREAS the costs of the project will be tracked under the Major Departmental Support Projects Funds
as part of the existing UCC Project Fund #42090 that was established with Phase I of the program, but will
ECONOMIC GROWTH AND INFRASTRUCTURE COMMITTEE VOTE
Motion carried unanimously on a roll call vote with Spisz and Weipert absent.
Commissioner William Miller, District #14
Chairperson, Economic Growth and
Infrastructure Committee
have a separate project number established to track Phase II related costs (Project #100000002936); and
WHEREAS on-going estimated increased operational costs for the Voice Over IP Phone System of
$673,993 are expected to start in FY 2021 and will be incorporated into future operating budgets.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners authorizes the Information
Technology Voice Over IP Phone System Project (#100000002936) in the amount of $3,620,258.
BE IT FURTHER RESOLVED that the Voice Over IP Phone System Project will be tracked under the
existing UCC Project Fund #42090 under separate Project 100000002936 to track the Phase II component
of the UCC project.
BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the transfer of $2,000,000 from
the Telephone Communications Fund (#67500) to the UCC Project Fund #42090 Voice Over IP Phone
System Project 100000002936.
BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the appropriation and transfer
of $1,620,258 from the General Fund Assigned Fund Balance (GL# Account #383448) to the UCC Project
Fund #42090 Voice Over IP Phone System Project 100000002936.
BE IT FURTHER RESOLVED that the FY 2019 Budget is amended as follows:
GENERAL FUND (#10100) FY 2019
Revenue:
9010101-196030-665882 Planned Use of Balance $1,620,258
Total Revenue U==
Expenditures:
9010101-152130-788001-42090 Transfer Out
Total Expenditures
$1 620,258
$1,620,258
TELEPHONE FUND (#67500)
Revenue:
1080601-152000-665882 Planned Use of Balance
Total Revenue
$2,000,000
$2,000,000
Expenditures:
1080601-152000-788001-42090 Transfer Out
Total Expenditures
$2,000,000
$2,000,000
UNIVERSAL COMM COLLABRATN PRJ FUND (#420901
Proj Business Unit MAJOR, Project #100000002936, Activity MAJOR PROJ
Revenue:
9016001-152130-695500-10100 Transfer In — General Fund
9016001-152130-695500-67500 Transfer In — Telephone Fund
Total Revenue
$1,620,258
$2,000,000
$3,620,258
Expenses:
9016001-152130-750170
9016001-152130-773630
9016001-152130-730373
Expendable Equipment
IT Development
Contracted Services
Total Expenses
$ 825,000
$ 800,910
$1,994,348
$3,620,258
Chairperson, on behalf of the Economic Growth and Infrastructure Committee, I move the adoption of the
foregoing resolution.
Oakland County
UCC Program — Phase 11, Voice Over Internet Protocol Phone System
Executive Summary
Background
Oakland County Information Technology is currently executing an initiative to significantly upgrade the
County's technology infrastructure and communications capabilities through the Universal
Communications and Collaboration (UCC) Program. This program is being delivered in three phases:
• Phase 1 - Network Equipment Replacement and Program Management
• Phase 2 - Voice Communications
• Phase 3 - Wireless Network and Remote Access
As planned, the Universal Communications and Collaboration program funding was estimated at
$10,727,322 with the funding designated as outlined below:
Building Authority (Bond Funding) $ 1,277,322
Telephone Communications Fund $ 2,000,000
General Fund Designation $ 7,450,000
Total $ 10,727,322
Phase I of the program, Network Equipment Replacement and Program Management was previously
approved by Miscellaneous Resolution #17310 at a cost of $5,488,646 and is currently in progress. This
project will utilize $1,277,322 from the building authority fund and $4,211,324 from the General Fund.
The project is moving well, and the required replacements will be completed to support this next phase of
the project by the end of this fiscal year.
Oakland County Information Technology is now requesting approval for the funding to deliver Phase II
of the program, Voice Communications. Phase II is seeking approval for $3,620,258 and utilize
$2,000,000 from the Telephone Communications Fund and $1,620,258 from the General Fund. The
$1,618,417 balance of the General Fund Designation will be utilized for Phase III of the program and
expect to seek approval in Q4 of FY 2019.
Industry Trends
Phone systems have historically been delivered on a legacy copper infrastructure that is aging. The major
telecommunication companies are no longer investing to maintain this infrastructure but are investing
only in the delivery of services over fiber or cellular media. Most home use has migrated from copper
based phone service to phone service provided with internet or cellular delivery. This same trend is
replicated in the private and public sectors.
In response, technologies supporting enterprise voice communications have evolved dramatically with the
rapid adoption of Voice over Internet Protocol (VOIP) solutions. These solutions have changed the
model for voice communications from one in which separate voice networks needed to be implemented
and maintained, to a new model where voice communications are carried over data networks. This shift
has essentially made voice another data application on existing networks. This consolidation on the data
network allows for the integration of telephony services with other related technologies while providing
the opportunity to consolidate administration.
VOW technologies also provide significantly improved functionality for end users as it relates to
productivity and accessibility of information including unified communications where all messaging is
Page 1 of 4
2/11/2019
Oakland County
UCC Program — Phase II, Voice Over Internet Protocol Phone System
Executive Summary
delivered to a single inbox, and mobility including features that allow an end user to access the enterprise
voice system from anywhere. Additionally, modem VOIP systems allow for safety and security
enhancements via greater visibility to emergency calls to E911 placed from the system, as well as the
facilitation of compliance with increasingly complex E911 regulations. To be compliant with law
enforcement regulations, VOIP communications solutions allow for encrypted voice traffic. VOIP
technologies will continue to provide enhanced functionality to enterprises into the future with the
development of capabilities for integration to enterprise applications including ERP, CRM and
call/contact center, as well as capabilities for integration of network enabled devices.
The delivery of VOIP technologies is now widely available as a service. Universal Communications as a
Service (UCaaS) providers have experienced exceptional growth. On-site installations of VOIP
technology require a significant investment in server and storage hardware, and the development of a
team that has expertise in the administration of these systems. UCaaS removes the server and storage
hardware investment while also ensuring that a team of highly specialized administrators are configuring
and administrating the system. Additional benefits are achieved due to the infinite scalability both up and
down monthly without the need to worry about system capacity limits requiring additional investment.
Benefits
The chosen solution will be delivered as a Universal Communications as a Service model. This delivery
model will reduce the overall capital investment required both now and in the future at equipment
lifecycle replacement intervals. The project will be implemented much more rapidly and eliminate the
need to install, configure and maintain servers and storage or create and train an administration staff. The
solution is infinitely scalable up or down monthly and protects the County from purchasing hardware with
unutilized capacity or make additional investments when capacity thresholds are reached. One final
benefit is the geographic diversity provided by the vendor will protect the County even in a regional
outage scenario with services delivered from Ohio and Virginia. The current phone services are delivered
only from the Waterford Data Center. In the event of a local facility disaster, voice and voice mail
services would be impacted until other solutions could be implemented.
The projected features will provide many significant improvements to functionality. These benefits will
allow the County to communicate more efficiently and in more ways with our constituents, staff and
partners. Some of the features include:
• Telephony — this system will implement a Voice Over Internet Protocol (VOIP) system that will
deliver voice and voice mall services over fiber network technologies. This technology will
provide service diversity and increase business continuity protections. Compliance is a top
priority with a solution delivered specifically to meet CBS standards.
• Mobility — this solution eliminates the need to manually set up phones as staff is added or
relocated dramatically reducing administration efforts. Services can be delivered on a variety of
devices including IP phones, mobile devices or desktop workstations. Users can connect to the
County system from virtually any location with internet service.
• Conferencing and Collaboration — Voice, Video and Web conferencing will allow users to
communicate in the most effective ways. Webex conferencing is the premier solution for
allowing teams to collaborate online with seamless integration with our Office 365 documents
and team sites.
• InformaCast is an additional product provided in the solution that facilitates mass notifications
through a variety of delivery methods.
Page 2 of 4
2/11/2019
Oakland County
UCC Program — Phase II, Voice Over Internet Protocol Phone System
Executive Summary
• Enhanced 911 will provides location details to be communicated to the PSAP for all emergency
calls and allow responders to more accurately identify the location of the caller. Automated
information updates are made as users and equipment is relocated.
• The Call Center functionality will provide new opportunities to service our customers more
effectively and provide increased visibility, reporting and monitoring of all call center activity.
Some departments were actively looking for call center products due to limitation of the current
system. This solution meets all of the identified requirements.
• Site Survivability — dependency on network connectivity may minimally increase the chance for
service disruption over legacy copper phone service. Copper service can be disrupted by phone
system outages or severed copper line connections. VOIP technologies mitigate service
disruptions with a variety of survivability options. For sites that have generators to support
business functions during power outages, site gateways provide connectivity even when severed
from the main network. Cellular devices are the next level of protection as VOIP software
installed on the device will provide full connectivity and access if you have a service available.
As stated in mobility, phones may be moved to other intemet connected locations for service. For
emergency connections (elevators, alarms) legacy copper service will still be used if and as
required.
Design and Selection Process
Oakland County Information Technology and Purchasing conducted an extensive design and selection
process to identify the most cost effective and appropriate system replacement for the Voice
Communications system. Additional support from Plante Moran, PLLC consultants provided expertise,
guidance and program management services. The process included definition of detailed technical and
functional requirements for the new voice system including training and implementation services. These
requirements were used to develop a Request for Proposal to solicit bids from qualified vendors for the
new equipment. Oakland County Information Technology and Plante Moran, PLLC consultants then
conducted a detailed due diligence process on the bids including proposal analysis, reference checks and
finalist interviews. The result of this process is a recommendation to award the project to CBTS, Inc., a
private sector IT Solutions Company, who responded to the RFP for the Voice Over Internet Protocol
Phone System Project at the lowest cost and with a comprehensive technical solution that met the RFP
requirements and was selected by the RFP Team.
Financial Summary
Typical Voice Over Internet Protocol implementations regularly deliver large cost savings through the
elimination of many individual phone service lines. Oakland County realized the large savings upon the
implementation of the SL100 and privately delivered phone services for the County. No cost savings will
be realized with this implementation, but the County will benefit from the many new features and
capabilities of the system.
This program will eliminate annual costs of $440,529 from telephone operations. Annual service charges
for the new system are estimated to be $1,114,522. This includes $934,522 for telephone operations and
$180,000 for call center services. The delta cost increase of $673,993 will be recovered in two ways. The
increase in telephone operations of $493,993 will be recovered by an increase in the telephone rate. The
call center services totaling $180,000 will be charged back to the utilizing departments directly. The
capital program will fund operations through FY2020. Beginning on October 1, 2020, the new rates will
provide the necessary revenue to fund operations.
Page 3 of 4
2/11/2019
Total Year 6 Year 1 Year 2 Year 5 Year 3 Year 4
1,114,522 1,114,522 1,114,522 1,114,522 4,458,088
2,000,243 252,993! 475,880 826,380 548,880, 2,375,880 6,480,256
3,261,046
5,800,390
192,119
226,401
0
5,951,241
0
0
63,803
0
0
0
63,803
0
0
1,114,522
474,230; 0:
704,167: 0:
0: 63,803:
175,000,
0,
1,114,522.
1,336,106
625,000
0
0'
0
1,393,153
1,450,710
4,271,223
710
51,401
0 0:
1,114,5221
1,940,902 1,663,402 3,490,402 10,938,344
1,178,325 1,178,325 15,431,197
2,000,243 252,993 1,590,402
5,774,044 3,554,259 2,667,919 1,178,325
(3,773,801) (3,301,266) (977,517) 762,577 (4,492,853) 485,077 2,312,077
288.67% 1404.88%. 161.46%1 60.71% 70.84%' 33.76%
2,000,243 2,253,236 3,843,638 5,784,540 7,447,942 . 10,938,344
5,774,044 9,328,303 11,896,222 13,074,547 14,252,872 . 15,431,197
10,938,344
15,431,197
Benefits/Savings:
Tangible Benetts Subtotal:
Cost Awidance Subtotal:
Costs:
,Development Senkes Subtotal:
Hardware Subtotal:
Software Subtotal:
Infrastructure Subtotal
Training Subtotal:
Other Subtotal:
Annual Statistics:
Annual Total Savings
Annual Total Costs
Annual Return on Immstment
Annual Costs/Sal/inns Ratio
Project Cumulative Statistics:
:Cumulative Total Saiings
'Cumulatbe Total Costs
Description
Oakland County
UCC Program — Phase 11, Voice Over Internet Protocol Phone System
Executive Summary
The following represents a financial summary of the LICC Program based on projected costs for the Phase
I, Network Equipment Replacement and Phase II, Voice Communications projects, as well as current
budgetary estimates for Phase III, Wireless Network and Remote Access.
Cumulative Return on Investment
Cumulative Cost/Savings Ratio
(3,773,801) (7,075,067) (8,052,584)'
288.67% 414.00% 309.50W
(7,290,007) (6,804,930): (4,492,853) (4,492,853)
226.03% 191.37%: 141,07% 141.07%
Page 4 of 4
2/11/2019
Resolution 419037 March 14, 2019
Moved by Miller seconded by KowaII the resolutions on the amended Consent Agenda be adopted (with
accompanying reports being accepted).
AYES: Jackson, Kochenderfer, Kowa11, Kuhn, Long, Luebs, Markham, McGillivray, Middleton,
Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack, Gershenson,
Hoffman. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted
(with accompanying reports being accepted).
GERALD D. 1)01SSON
CHIEF DEPUTY COUNV EXECUTIVe
ACI1NG PURSONNI7 "'CO MO. 45X45910)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 14, 2019,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 14th day of March, 2019.
Lisa Brown, Oakland County