To: Aaron Rector, City Manager
From: Sean Vreeland, Director of Information Technology
Subject:
Title
Consider a resolution authorizing the City Manager to execute a three-year agreement with Datavox, of Houston, Texas, for the purchase of Zoom Phone, a city-wide cloud-based phone system, through the State of Texas Department of Information Resources (DIR) Cooperative Purchasing Program, for the Information Technology Department.
Background:
The City is currently using an on-premise Cisco Call Manager phone system. This requires two servers and two voice routers. Those hardware components will no longer be supported by Cisco in 2028. While evaluating all options, it was determined that shifting to a cloud-based phone solution would be the most cost effective and beneficial option in the long term.
Below are several substantial benefits of moving to Zoom Phone:
- Infrastructure Reduction - Eliminates the need to maintain servers and routers.
- Centralized Management - Consolidates all management into an intuitive dashboard
- Seamless Access - Usable from anywhere with an internet connection, no VPN
- Additional Features - Call recording, SMS Texting, Fax capability all included
- Predictable Cost - Eliminates unpredictable Cisco yearly maintenance and licensing
Financial Impact:
The contract includes a one-time professional services fee of $26,872.93. Each year of the three-year contract costs $63,013.42. The total cost over the three-year contract is $215,913.19.
The Texas Department of Information Resources (DIR) has entered into a contractual agreement with Zoom on behalf of State and Local governments for phone services. Zoom Phone services are sold by Datavox, a value-added reseller, through their respective DIR contract.
By participating in the State of Texas' cooperative purchasing program through DIR, the City meets all State and local competitive bidding requirements, while also benefiting from increased buying power through the cooperative purchasing network.
Funding is available from the Fiscal Year 2026-27 Information Technology Fund. Every department within the city contributes a per phone/line fee to the Information Technology Fund within their specific fund/department/program office equipment lease budget line item.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
The recommendation is to award the three-year Zoom Phone services contract to Datavox, at a cost not to exceed $235,000 over a three-year period and authorize the City Manager to sign the contract and related documents. The additional $19,086.81 ($235,000 - $215,913.19) will provide a 10% contingency amount that can be used if additional features or services are needed to address future technology requirements.