COUNCIL COMMUNICATION
From: Subject: The City Manager Replacement of the City’s Network Switches
Manager’s Recommendation: I recommend that an agreement with IOS Consulting, Inc., be approved for the provision and installation of network switch upgrades identified and included as part of the Telecommunications Audit Proposal approved on February 9, 2004 and with CitiCapital Technology Finance, Inc., for financing through a lease agreement. The lease covers the network switches and associated hardware, installation and maintenance for a total amount of $116,460 over 36 months with all work being performed by IOS Consulting, Inc. The lease agreement will be in the amount of $9,705 for the remainder of FY 2003-04, these funds are available in the Geographical Information Systems (GIS) Operating Services Account 650-1738-781-8005. Funds to cover the remaining lease payments for future fiscal years will be budgeted for in the Information Services Equipment Rental account. The agreements are subject to the approval of the City Manager as to substance and the City Attorney as to form. This vendor meets all requirements of the Contract Compliance Provisions, Title 1, Chapter 14, §14.35-14.44, of the Saginaw Code of Ordinances. Justification: On March 8, 2004, Council approved this purchase through a different leasing company. At that time, the communication was submitted stating the contract was
subject to the approval of the City Manager as to substance and the City Attorney as to form. When Council approved on March 8, 2004, the amount of the proposed contract
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COUNCIL COMMUNICATION
was $118,980. CitiCapital has agreed to provide the same leasing terms at a reduced cost of $116,460. This communication reduces the cost and provides for leasing
through CitiCapital instead of the initially proposed leasing organization. As part of the Telecommunications Audit, which was performed by Total Solutions Group for the purpose of reviewing our telecommunications requirements, auditing existing systems and recovery of overcharges, it was found that our existing network switches were outdated and inefficient, and in need of replacement. IOS
Consulting, Inc., will design the network to increase efficiency and connection speeds, acquire and install the hardware and provide training at a total cost of $116,460 for the 36-month lease. This will improve in-house access speed and dial-up connections, for an overall increase in efficiency and customer satisfaction. There is no cost comparison as this is a first-time purchase. Council Action: Council ____ ______________ moved that the recommendation of the City Manager be approved.
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