In April 2014 the city entered into a contract with Jive Communications for three years to provide telephone service using VOiP (Voice Over Internet Protocol) technology.  After a rough conversion from our failing 20 year plus technology the first year, the service has been satisfactory but we acknowledge that it has not been without it's challenges, problems and service interruptions.

Information Technology has worked closely with Jive to make sure that we are being provided with the best service as possible.  Using "Cloud Based" technology is not without it's challenges as we have found out over the last three years.  There have been other opportunities on how a "digital" phone system works compared to traditional phone systems that IT has worked with all city departments to overcome through technology and training.

Information Technology had planned to start the process of looking at other VOiP providers but with the cut to the Major Systems IT CIP budget this next fiscal year, we do not have the resources to implement another service at this time.  Jive has worked with the city to lower the cost of the initial three year contract by creating a two levels of phone use and also lowered the per device connected by 75 cents each.

The current contract calls for $18.95 a month charge per device attached to the system and $1.00 per phone number.  The new contract has split the devices into two categories...those with over 50 minutes a month usage and those with less than 50 minutes a month.  The new charge will be for those that average over 50 minutes a month for $17.95 and devices at $9.95 a month for under 50 minutes of usage.  The city has 195 phone numbers on the system and the new charge will be .25 cents per line.  Our monthly dedicated connection to Jive on the internet is unchanged at $722.35.  Our average monthly phone charge since moving to Jive has been about $10,000.  The new monthly charge would be about $7,000 a month.

With the CIP resources allocated to Information Technology during the next year being cut, IT will not be able to search for a new system and/or provider.  We realize that there are continuing challenges with a "cloud based" telephone system and continue to ask departments to track issues with the current system.  Over the next two years, IT will work with departments to find out the actual challenges the city has faced with the Jive VoIP system and also to start researching what options other providers can give.

The City Council could recommend that the city not accept this agreement to continue phone service from Jive Communications and ask the city manager to pursue other vendors to provide a VoIP system for the city.

I move to approve the agreement with Jive communications for continuing phone service in the estimated annual amount of $87,902.40.