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SR-6-L (62) .,. . 6-L JUl 1 0 1990 Santa Monica, California . CM:JG (Voicel) July 10, 1990 / t;/- tJfJ 3 - t'l--tJ2 FROM: Mayor and City Council City staff TO: SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute Contract with Octel for Purchase of Voicemail System INTRODUCTION The following recommends that the City Council authorize the City Manager to negotiate and execute a contract with Octel for purchase of a telephone voice messaging system in order to enhance the city's telephone call processing and information dissemination ability. BACKGROUND Many corporations, private businesses, large scale public and non-profit organizations and municipalities have recently begun implementing voice messaging systems. Such systems provide three different types of service -- call processing, automated attendant and voicemail. Specifically, call processing enables callers to route themselves to specific service departments by offering them a complete menu of choices, thereby providing the most efficient path to complete their calls. Automated attendant provides callers with a menu of informational options, which enables them to gain access to commonly requested information provided on tape recorded messages. This feature means that basic information about an organization's services is available 6-L - 1 - jUL 1 0 J990 . . to the public 24 hours per day and also frees staff to handle other callers with unique informational or assistance needs. Finally, voicemail allows internal and external callers the ability to leave detailed messages for individual staff members, thereby insuring that all messages are received in an accurate and timely fashion. In all cases, voice messaging systems allow the caller to access a live operator at any point during the call should the automated functions not prove sufficient to handle their needs. Implementation of the technology is intended to enhance rather than replace current methods of communication among staff and the pUblic. DISCUSSION Recognizing the information dissemination and call processing benefits of a voice messaging system, City staff initiated a detailed assessment of several system options in April of this year. After an initial review, staff of the Information Systems Department selected four leading voice messaging systems and an interdepartmental study group consisting of representatives of all city departments attended vendor demonstrations and completed a detailed evaluation process. Two vendors were then selected based on a combination of rating factors including system features, quality of 'caller care' provided by individual systems, technical compatibility of each system with the City's telephone switching equipment, ability of each system to meet city call processing and voicemail capacity requirements, cost of the initial system and future expansion components, and ability of the company to provide high quality service to the city. Both - 2 - . . vendors provided proposals and the study group selected Octel due to its superior references, more compatible system, and more competitive price. Octel is one of two leading companies in the voicemail industry, both in terms of number of clients served and overall financial viability. Octel hardware and software are considered state-of-the-art in the voice messaging market and the company provides a full-range of system features for medium-sized clients such as the City of Santa Monica. In addition, the basic system and its capacity upgrade components are more competitively priced than its leading competitor. Finally, reference calls to other local Octel customers, including the city of Santa Rosa, revealed a high level of satisfaction and particular praise for the strong support and design assistance provided by local Octel technical staff. Upon Council approval, the City Manager will negotiate and execute a contract with Octel for purchase of the initial system and will also finalize costs associated with any future capacity or software upgrades desired by the city. Total cost for the purchase is $170,000. Once the contract has been finalized, it is anticipated that Octel will be able to install the city's voice messaging system by October of this year. BUDGET/FINANCIAL IMPACT No appropriation is necessary to implement the city's purchase of the Octel voice messaging system. Expenditure of funds in the amount of $170,000 for the prepaid purchase of the system will be - 3 - .~ . . . recorded at account #01-000-000-00000-9580-00577 on the General Fund balance sheet. During FY1990/91, the user departments will reimburse the General Fund from already budgeted operating funds based on their proportionate usage of the system. RECOMMENDATION city staff recommends that the city council authorize the City Manager to negotiate and execute a contract with Octel in the amount of $170,000 for the purchase of a voice messaging system. Prepared by: Julia N. Griffin, Senior Management Analyst (voicel) - 4 -