Item #06 Approval for Separate Surplus Auction of PBX Telephone Equipmentt %/�
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AGENDA ITEM COVER SHEET
Meeting Date: July 1, 2014
Item #
Reviewed By:
Contact Name: Al Butler, Support Services Department Director:
Contact Number: 407 - 905 -3100, ext. 1543 City Manager:
Subject: Approval for separate surplus auction of PBX telephone equipment.
Background Summary:
As previously approved by the City Commission, the city will change to utilize a voice over Internet
protocol, or VoIP, telephone system from CenturyLink and will no longer need the Nortel Meridian private
branch exchange (PBX) equipment that was purchased and installed in 1999. The city will receive all
new network and telephone handset equipment as part of this change in telephone system operation.
The switching function will be provided by CenturyLink facilities.
The VolP system will also include replacement of the city's aging computer data network, thereby saving
significant capital costs related to its required replacement in 2014 -2015. Even though the routers and
switches used in the data network are no longer suitable for a high - reliability operation, such as a
municipal government with public safety responsibilities, they continue to have value in the secondary
market for less rigorous applications.
Northern Telecom, the company that made the PBX equipment, is no longer in business and this line of
equipment is no longer manufactured; 2013 was the last year for software support. It is precisely
because this widely used product is no longer being manufactured that a strong market exists for the
surplus sale of PBX equipment for parts /repair. Staff anticipates that a better price for the PBX
equipment can be acquired through the specialized PBX used equipment market than through the city's
normal local surplus equipment auction. The PBX will remain in use until the new phone system is
installed, which will likely be in September; however, the surplus PBX auction should occur in July since
advanced sales are the norm in the PBX market so brokers can place the equipment with new owner(s)
prior to removal from the seller's facilities. It may also be advantageous to the city to sell its related
surplus telephone handsets and network switches through the secondary market.
Issue:
Should the City Commission approve staff's request to sell the surplus telephone and data network
equipment through a special auction process?
Recommendations
The Support Services Department recommends the City Commission authorize staff to use the PBX
secondary equipment market to sell the existing telephone switching equipment prior to its removal from
service. Staff also recommends including its soon -to -be surplus telephone handsets and data network
switches and routers in this specialized market auction. Staff will work with its telephony consultant to
offer the products for sale and facilitate the best opportunity to sell.
Attachments:
None.
Financial Impact:
The sale of the PBX equipment will generate funds for the city.
Type of Item: (please mark with an x')
Public Hearing
Ordinance First Reading
Ordinance Second Reading
Resolution
X Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
For Clerk's Dept Use
_ Consent Agenda
Public Hearing
Regular Agenda
Reviewed by City Attorney
Reviewed by Finance Dept.
N/A
N/A
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