SR-11-09-1976-11A('
Santa Monica, Califor. A, October 29, 1976
TO: Mayor and City Council CITY COUl"IM
FROM: City Staff l,�
THIS -NUSA° DU
SUBJECT: Telecommunications Study ItSTGL I 5Li�NF
F.
FOR RWII +1l.
Introduction
This report is an information update relating the status of the telecommunications
study initiated by the City staff on June 1, 1976. In addition, this report requests
that the City's telephone consultant, COM Consultants Incorporated, be retained
on an interim basis for the purpose of implementing several cost reduction
programs in order to further reduce the City's monthly telephone charges.
Background
On April 27, 1976, the City Council approved the retention of COM Consultants
Incorporated to conduct a telecommunications analysis of the City's present
telephone system for the purposes of updating the system to meet current service
requirements and reduce operating costs. The study as approved is being con-
ducted over a period of nine months and has been divided into three nonconsecutive
phases.
Phase 1 -- Survey
Phase 1, which concentrated primarily on data collection for analysis, was concluded
on July 30, 1976. The following is a list of components and results of Phase 1.
1. Computer analysis of telephone usage:
Upon analyzing the results of the computer printouts, COM Consultants
recommended that we eliminate all 118" lines throughout the City and
replace them with 119" lines. By eliminating the 118" lines, staff has
reduced expenses incurred thrqugh the misuse of local lines by $500
per month ($6, 000 annually), and has expanded the switchboards
capacity to handle both incoming and outgoing calls.
To: Mayor and City C cil -2- October 29, 1976
2. Telephone equipment audit and trunk activity analysis:
This analysis has determined the expense involved in long distance
and out -of- county calls. The purpose of this information is to insure
that the design of the new telephone equipment provides for adequate
long distance usage at the lowest possible cost.
3. Operator call distribution:
This component consists of a time and capacity study to determine
which City departments are being adequately serviced by our telephone
system.
4. Physical survey of City facilities to inventory equipment and review
instrument placement:
This survey has preliminarily identified unneeded telephones and
lines which will be eliminated in the new system.
Phase 2 -- Design Element
This phase, completed on October 1, 1976, utilized the information gathered in
the initial phase for the purposes of designing a telephone system that would be
more efficient and cost effective. The components of Phase 2 included.
1. Determination of proper trunk configuration to design of optimum
communication system.
2. Written bid specifications for equipment and functions.
3. Meeting with management to approve written specifications.
4. Request of bids from telephone company and other appropriate vendors.
5. Analysis of bids and submittal of written recommendations to City
staff.
Staff is currently reviewing the results of Phases 1 and 2 along with the
consultants' final report and recommendations for a new telephone system, and
will submit a final report to Council next month. It is anticipated that should
a new system be recommended and approved, it would be installed in coordination
To: Mayor and City 0 cil -3- 1 October 29, 1976
with the completion of the Police Communications Facility scheduled for June,
1977. Consequently, Phase 3 - Implementation, would not begin until March or
April, 1977.
Cost Reduction Programs
During the five month period of Phase 1 and Phase 2, COM Consultants analyzed
all telephone bills received by the City since January 1, 1976. In doing so, COM
Consultants was able to recommend several cost - saving alternatives totalling
$1, 100 since May ($220 per month). Pursuant to the receipt of COM Consultants
final report and recommendations, it was indicated that during the interim period
between Phase 2 and Phase 3, an intense expense reduction program could save
the City an additional $2, 000 per month ($8, 000 over the next 4 months) on its
present system. In order to effect these savings the telephone consultant would:
1. Provide a continuous communication management program to
further reduce all unnecessary equipment and lines.
2. Review with each Department Head all bills for which the
department is responsible, and recommend immediate
changes to reduce departmental telephone expenditures.
3. Audit and approve all telephone bills each month in order
to monitor the reductions.
4. Report monthly to the City Manager on communication expenses
and cost reductions.
In addition to these immediate cost reduction activities, the COM Consultants
would initiate several longer range cost - saving programs including the designing
of a new pocket page system which would combine all departments at a reduced
cost, and investigation of a microwave network that could replace, at lower cost,
the land lines between the Civic Center, Fire Department, and the City Yards.
To: Mayor and City C ncil -4-
October 29, 1976
The cost for this expense reduction program would be $500 for a period of four
months beginning November 15, 1976.
Alternatives
1. Retain COM Consultants Incorporated on an interim basis for the
purpose of implementing an intense expense reduction telecommica-
tions program to reduce the City's current telephone expenditures
by $2, 000 per month, from approximately. $11, 500 per month, to
$9, 500 per month. The $500 monthly fee could be appropriated
from the savings in the City's various departmental telephone
expense accounts.
2. Not retain COM Consultants during the interim period between
Phase 2 and Phase 3, and maintain telephone expenditures at
its present level (see attachment).
Recommendation
Staff recommends that the City Council retain COM Consultants for a period of
four months at a total cost of $2, 000 for the purposes of a telecommunications
expense reduction program.
Prepared by: Larry J. Kosmont
Administrative Assistant
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Reference:
Contract No. 2241
(CCS)