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Home My WebLink About1984-07-24; City Council; 7621-1; REPORT FROM TELECOMMUNICATIONS CONSULTANTI,' f '. CI w > 0 c1= Q 2 5 8 .. 2 0 a d 0 z 3 & CIT~F CARLSBAD - AGEND~ILL t g. AB# 762141 i TITLE: DEPT. HC MTG. 7-24~84', REPORT FROM TELECOMMUNICATIONS CITY A17 CITY MG DEPT.CS ' RECOMMENDED ACTION: CONSULT ANT Accept the report as submitted, authorize final payment for Phase I of the contract, and authorize the Consultant to proceed with Phase I1 - Competitive Bidding. ITEM EXPLANATION: On January 24, 1984, Council approved a contract with Communication Resource: Company (CRC) for telecommunication services. That contract consisted of thi phases: (1) Analysis; (2) Competitive Bidding; and (3) Implementation Supervision. Phase I of the contract is complete. CRC has analyzed our existing telephonl system in conjunction with the City operation to determine if the existing system is providing the best service for the least cost. Their report, data May, 1984, is on file with the City Clerk's Office. Based on the analysis, CRC recommends that the City proceed with the formal competitive bidding process for new telephone services. report is attached for Council review. Phase I1 will consist of preparation of specifications for the new system through analyzing all bids. final recommendation and cost information. FISCAL IMPACT : Consultant cost for Phase I1 is $3,500. It is estimated that the City would save approximately $19,500 the first ye? with a new system with savings increasing annually. EXHI BITS : 1. Summary from Phase I report from CRC dated May, 1984. 2. Phase I report dated May, 1984 - on file in City Clerk's Office. The summary from CRI A report will then be presented to Council with v m SUMMARY Communication Resources Company (CRC) was originally retained the City of Carlsbad in February, 1984, to study and anal) telecommunication services throughout the City's facilitic Primary emphasis was placed on long term planning of least co best service telephone systems. / li3 Through the course of the study, interviews were conducted w key personnel and questionnaires distributed to all telephc users. The results of the initial analysis, as detailed wit1 this report, were that the existing Centrex system is obsolete economical design and operation, and excessive in cost. For ti reason, plus the need for increased system flexibility, it I been determined that this system should not be considered for City . By replacing the existing telephone system with a processor c trolled digital system with an appropriate quantity of trun stations, and system features, serving the City operations, existing communication problem areas would be overcome, equipm cost would be reduced and controlled, and usage costs reduc Therefore, it is recommended that the City proceed with for competitive bidding for complete new telephone services 01 schedule consi stant with the City calendar. v 0 f [G] There will be no "sweeping(' changes operationally. The syst functions will be quite similar to today's with updated enhanc ments. The itemization costs and summary of the savings est mates surfaced through the CRC studies are previously detail within this report. We must stress, these are estimates and wi vary depending on installation of a new system. The total annu impact on the City including a reduction in usage costs, is estimated cost reduction of $19,460. / The speci fied new telephone system, incl udi ng mai ntenance a lines, is estimated at $127,917 annually utilizing a 7-year lea purchase, as compared to the existing $147,377. Additionall left unchanged, this existing $147,377 annual rate will contir to increase rapidly, due to telephone company rate increases a surcharges. The recommended new system design will, produce savings immediate and throughout the future. Additionally, an exact accounting cost by facility or department will be possible as the new syst is installed and a call accounting system is implemented. Every effort has been made to communicate this report in laymer terms however, in certain cases it is necessary to use industry technical terms to describe an item. For this reason we ha included a glossary of terms in a later section of this repor Additionally, several technical documents have been developed SI v 0 as equipment inventories, traffic engineering studies and accoi ting sheets which are not included with this report but can made available to staff for future reference. - rB If any questions regarding this analysis should arise plei contact our project manager through Ms. Lee Rautenkranz. -- I r v 0 r -_-- I4 PHASE I REPORT OF TELECOMMUNICATION SERVICES FOR CITY OF CARLSBAD 1208 ELM AVENUE CARbSBAD, CALIFORNIA _- PRESENTED BY COMMUNICATION RESQURCES COMPANY 17 155 NEWHOPE STREET SUITE N FOUNTAIN VALLEY, CALIFORNIA 714/'546-2771 MAY 1984 Proprietary Report for the Exclusive use of the City of Carlsbad V e CONTENTS PA 7w BACKGKOUND ................................................. 1 4 5 6 7 7 7 8 8 8 I( 11 1; 1; It 1E 1; 1E 1s 2( 2( 2: 21 2: 24 2E PRESENT COMMUNICATIONS SERVICES.....................-...... PRESENT COSTS .......................................... EQUIPMENT AND MAINTENANCE COST...=*==.*...=====*====... LINE COSTS ............................................. USAGE COSTS ............................................ MOVE, CHANGE AND ADD COSTS ............................. PRESENT EQUIPMENT, LINE & MAINTENANCE COSTS TABLE-.... AVERAGE USAGE COSTS TABLE .............................. ESTIMATED MOVE AND CHANGE COSTS TABLE.................. EXHIBIT ''A" - BILLING STATEMENTS ....................... TELEPHONE EQUIPMENT AUDIT .................................. OPERATIONAL CONSIDERATIONS AND PROBLEMS.******.....******** INCOMING CALLS ......................................... EXHIBIT "BN ............................................ EXHIBIT "CN ............................................ OUTGOING CALLS AND CALL ACCOUNTING..................... CALL TRANSFERRING ...................................... INTRA-CITY CALLING ..................................... TELEPHONE INSTRUMENTATION .............................. IRAINING ............................................... INTEGRATION OF VOICE AND COMPUTER SERVICES............. CATV - MICROWAVE ....................................... WIRE AND CABLE. ........................................ TELEPHONE EQUIPMENT ROOM ............................... MANAGEMENT OF THE SYSTEM ............................... e 2( 21 21 2' 3c 3( 3; 3: 31 3f 31 3! 4; 4: 4: 4: 4E 5( 51 5: 54 55 5f 5E 5t 5i rm MAINTENANCE OF THE SYSTEM .............................. PUBLIC TELEPHONE DIRECTORY LISTINGS...***......******** EXHIBIT "D" - DIRECTORY LISTINGS ....................... EXHIBIT "E" - RECOMMENDED DIRECTORY LISTING............ TOLL CALLING AND LINE USAGE ANALYSIS=******.***.*********** TRUNK GROUPS ........................................... CITY HALL LONG DISTANCE TOLL STUDY..................... CITY HALL TOLL MAPS .................................... POLICE DEPARTMENT LONG DISTANCE TOLL STUDY............. POLICE DEPARTMENT TOLL MAPS ............................ FIRE DEPARTMENT LONG DISTANCE TOLL STUDY..-.......... FIRE DEPARTMENT TOLL MAPS .............................. RECOMMENDED BASIC TELEPHONE SYSTEM DESIGN.............. COST CONSIDERATIONS ........................................ PRESENT SYSTEM COSTS ................................... EQUIPMENT, MAINTENANCE AND LINE COSTS.................. COMPARATIVE ITEMIZATION OF COSTS....................... RECOMMENDATIONS ............................................ BID ANALYSIS ........................................... MINIMUM AND MAXIMUM REQUIREMENTS... .................... SYSTEM OPERATIONS AND FEATURES ............................. INCOMING CALLS ......................................... .OUTGOING CALLS ......................................... TRUNK QUEING ........................................... OUTGOING CALL ACCOUNTING ............................... INTERNAL CALLS.. ....................................... w 0 5; 5; 52 5E 5t 55 5: 6C 61 6; 6: 6f 6; 6t 65 61 7( 7c 72 7; 7; 7; 7; 7: 7: 7: 'B CONSULTATION/TRANSFER/CONFERENCE CALLS-................ c~~p-0~ ................................................ STATION CALL BACK ...................................... CALL FORWARDING ........................................ CALL PICK-UP ........................................... PUSHBUTTON DIALING (DTMF) .............................. NIGHT RESTRICTION ...................................... TRUNKIN6 REQUIREMENTS ...................................... EXHIBIT 'IF" ............................................ EXHIBIT "G .............................................. SUMMARY .................................................... WHAT DIVESTITURE WILL MEAN FOR YOUR BUSINESS IN 1984-****.* EQUIPMENT .............................................. USAGE .................................................. LINES .................................................. MOVES AND CHANGES ...................................... - MAI.NTENANCE ............................................ MANAGEMENT ............................................. DEFINITION OF TERMS ........................................ BUSINESS LINE .......................................... CBX .................................................... CENTREX (CTX).. ........................................ D~REC~ INWARD DIALING (DID) ............................ EXCHANGE ............................................... FOREIGN EXCHANGE SERVICE (FX)=.................o.e.o..o MICROWAVE... ........................................... e e 7 7, 7. 7L 71 74 7! 7 7 'B MULTI-LINE TELEPHONE ................................... PBX .................................................... PRIVATE COMMON CARRIER ................................. STATION (STATION LINES) ................................ TELCO .................................................. TIE LINE ............................................... TRUNK (TRUNK LINE) ..................................... USAGE COSTS ............................................ WATS ................................................... _- @COMMUNICATION RESOURCES COMPANY 1984 All Rights Reserved. Printed in the United States of America. T part of this document may be reproduced, stored in a retriev: system, or transmitted, in any form or by any means, electronic mechanical, photocopying, recarding, or otherwise, without th prior written permission of COMMUNICATION RESOURCES COMPANY 17155 Newhope Street, Suite #N Fountain Valley, California 92708 w g 'E3 BACKGROUND In February, 1984, Communication Resources Company (CRC) k retained by the City of Carlsbad to advise and assist in plann communication service and to determine the extent to which City's overall telecommunications could be improved functiona and fiscally. Present telephone services were to be reviewed and CRC was determine what economies could be implemented immediately. Bey( what could be done immediately CRC was to analyze and determ requirements and develop complete system design specifications solicitation of competitive bids toward replacement of the exi i ng tel ephone equi pment. The complete study was begun February 6, 1984, to evaluate telephone services, currently provided by Pacific Bell through1 all City facilities, and to establish current and future needs. CRC applied its standard data gathering and analysis procedures this project. A project team was assembled of staff members w various ty.pes of telecommunications experience and expertir Meetings were held with administrative personnel and a schedu series of activities laid out. Communications Analysts perfori a physical inventory of the City' s existing telephone equipmei using industry standard forms and format. This information 1 totalled, summarized, and carefully analyzed by the CRC staff, then compared with Paci fic Bel 1 Is bill ing records. 9 w ‘H An inventory record audit was performed and details developed i presented in a following section of this report. Several hundred pieces of information were amassed and the dat was analyzed to form the basis of the summarized details containc in this report. Inventory forms, questionnaires, interview form: telephone company bills, and summary sheets; all together qui1 voluminous, are available as backup data to the information pr( sented within this report, Answering positions were studied, analyzed and call timin! gathered to determine precise equipment needs and operation; feature requirements. Outside lines were studied to determii usage and cross checked with call load studies. Utilizing a format developed by CRC, each department had kc employees state their requi rements for telephone services. Th. data was gathered and summarized, and is a basis for the systc specifications. This report presents the results of the investigative activitiel an analysis of present services and recommends new system configi rations based on the study data compiled over the past sever( weeks. m W im The end goal is to provide the City of Carlsbad with complet telecommunication services to meet all current and projecte needs, through competitive bidding, in a manner which meets a1 1 egal requirements. The results of this complete planning will assure the City c Carlsbad of receiving least cost/best service telecommunications both now and throughout the foreseeable future. e W 'H PRESENT COMMUNICATIONS SERVICES Currently, the City of Carlsbad has facilities in several loc tions throughout the city, combined into a single telephoi system. The main system utilized by the City of Carlsbad is kno as "C.0." Centrex - meaning the primary switching equipment located at the telephone company's central office. This Centr system is provided by Pacific Bell on a monthly rental basis wi the on premises telephone equipment provided by AT&T. Through divestiture of the Bell System, which was completed January, the Centrex telephone system originally acquired fr Pacific Telephone has been split between two companies. The ma Centrex switching system is now provided by the utility, Pacif Bell (formerly Pacific Telephone) with all on premises telepho equipment now provided and maintained by ATAT. The Pacific Be Centrex is still tinder the control of the California Pub1 Utilities Commission however, the AT&T equipment is no long controlled, - All incoming calls, to any individual or department within t Centrex system, may be directly placed from the outside by diali the prefix of "438" then the desired four (4) dfgit stati number. Internal system calls may be made by dialing the four ( digit station number. Outgoing calls from unrestricted tel phones, may be placed directly by station users by first diali the access code of "9" then the desi'red outside telephone numbe Additionally, there are four (4) Southern California WATS line m b 'E3 two (2) California WATS lines, three (3) foreign exchange (F) lines to San Diego and an additional foreign exchange t Escondido. These lines are automatically routed over Pacifi Bell's flexible route selection (FRS) and do not require dialing separate access number io place calls on these lines. There are approximately 105 Centrex station lines in servic within this system. Most telephones have direct access to tt outside lines. Control of outgoing calls is provided through tk Centrex monthly billing statements which include a detail of a1 outgoing toll and long distance calls placed, by station numbc and selective restrictions of telephones. The system is dividc primarily between the City Hall, Police Department and the Fir Departments. There are additional data 1 i nes and a1 arm ci rcui ts < -. PRESENT COSTS In analyzing the costs of telephone service, it is important t understand that there are four (4) basic catagories of direct co: which must be reviewed independently. They are: - Equipment and Maintenance Cost - Line Costs - Usage Costs - Move, Change and Addition Costs 0 e 'B Together, these costs represent the total di rect telephone expe diture an organization is faced with. Additionally, these ite may be billed together on one (1) statement with very litt i temi ration. However, in today's environment, each item must I reviewed individually to determine cost effectiveness and plan f a1 ternati ves. A more precise definition of each is: EQUIPMENT AND MAINTENANCE COST Equipment cost consists basically of the on-premises hardwar costs. The hardware includes the station equipment (telephone! and any miscellzneous items such as bells, chimes, speakers, etc Maintenance cost consists of the charge to maintain the on-prem' ses equipment in good working order. Tradi.tionally, in the cas of the telephone utility companies, the cost of maintenance wz included in the equipment rental. In recent years however, the: costs have been applied separately. Importantly, AT&T has beg: implementing a four stage increase in equipment costs which wil result in the City' s on-premi ses !:el ephone equi pment i ncreasi ng i costs by approximately 89% over the next. 18 months. Generally it is not adviseable to consider equipment costs withou considering maintenance cost. 0 a '!El LINE COSTS Line costs relate to the flat rate charges for the lines providir access to the outside world. A variety of services such as locz 1 i nes, WATS 1 ines, foreign exchange (FX) 1 ines, a1 arm ci rcui t! computer lines, etc. are included. Typically, the lines are pro vided only by the telephone utility company and involve th utility's outside wire network. Fixed costs are applied to thes lines which may include the basic monthly charge and certai premium charges some times known as "mileage" charges. USAGE COSTS These costs vary with the amount of usage over certain types a lines. Originally usage costs were known only as "toll charges" However, today the length and quantity of most calls will resul in some form of usage charge. There are now "long distance" "zone unit", ''message unit" and ''local unit" charges which appl depending on where one is calling. Generally, only long distanc calls are itemized with limited details pertaining to other type of calls. MOVE, CHANGE AND ADD COSTS These costs are one-time charges incurred for the installation o moving of equipment. In years past these costs were not particu larly significant. However, today move and change charges have substantial impact on most annual telephone budgets. e 0 *H PRESENT EQUIPMENT, LINE AND MAINTENANCE COSTS (BILLED TOGETHER) MONTHLY ANNUALLY Centrex Charges (includes AT&T) $5,365 $64,385 - WATS Lines - California (2@ $50 ea.) 100 1 ,200.y WATS Lines - South. California (4@ $50) 20 0 PI- 2,400 I ' /I LA Jo11a FX Lines - (3@ $247.92 ea.) 744 \L\\l ' \ 8,928 , I Escondido FX Lines - (1@ $137) 137 11,6441 SIJBTOTAL $6,546 $78,557 791 9 ,492 -,' -- Su r c ti a r g e TOTAL $7,337 $88,049 AVERAGE USAGE COSTS -- MONTHLY ANNUALLY Cent rex $3,202 $38,424 WATS Lines - California 280 3,360 MATS Lines - Southern California 1,182 14,184 3 Foreign Exchange Lines (IFX) 180 2,160 TOTAL $4,844 $58,128 -- ESTIMATE^ .- MOVE Am CHANGE _- COSTS Move & Change Charges $ 100 -8 1,2GZ ' I_ MONTHLY - ANNUALLY I io Llac The total costs for telephone service therefore, including th above detailed surcharges, average $12,181 monthly or $141,377 pe year. e e E3 Currently the City receives approximately 25 telephone billir statements each month. Billing dates for these bills ar generally once a month. Exhibit "A" on the following pag illustrates Pacific Bell and AT&T's billing statements. - \ a EXHIBIT 'I A" CITY OF CARLSBAE CENTREX STATION BILLS e Centrex Extension Number Ut ii ity providing line charges PACIFIC BELL SERVICE AREA CALLS 1 DATE^ TIMEI HIN 1 ni PLACE AND NUMBER CALLED 1 CHARGE AN 20 222P 1 DD LA JOLLA CA - 457 0777 .27 JAN 23 348P 7 DD SAN DIEGO CA - 565 7520 1.56 JAN 23 354P 1 DD SAN DIEGO CA - 565 7520 .3c JAN 23 355P 1 DD SAN DIEGO CA - 565 7520 .3c JAN 27 223P 1 DD DEL MAR CA - 755 8936 -21 JAN 31 156P 1 DD SAN DIEGO CA - 239 7711 .3[ FEB 1 1049A 1 SD SAH DIEGO CA - 238 9235 COLl 1.3( FEB 10 114P 5 DD ESCONDIDO CA - 744 1414 -7: FEB 16 121P 2 DD SAN DIEGO CA - 275 4870 -51 SERVICE AREA CALL TOTAL 65.71 toll charges FEB 6 832A 1 Dl3 SAN DIEGO CA - 232 7388 .3( \ K KEY DD-DIAL DAY SD-STATION DAY Total Cost of toll < Detail of 619 438-5591-966-S FEB 19 198G PAGE 39 OF - AT&T COMMUNICATIONS Ut il-ity providing long distance line charges AT&T COMMUHICATIONS LONG DISTANCE CALLS FROM 438-5648 I DATE1 TIHE1 tlIN I *I PLACE AN3 NUMBER CALLED 1 CHARGE 8 DD INDIO CA - 564 6633 2.73 LONG DISTANCE TOTAL $2.73 /'FE5 x KEY 8 DX)-DIAL 1103* DAY \ Total costq of call Detail of calls I\ 0 e 'E4 TELEPHONE EQUIPMENT AUDIT A1 1 existing telephone equipment and services were inventoric within the City of Carl sbad Centrex system for comparison again< Pacific Bell's itemized billing records for purposes of validatir current rates and charges. After conducting a billing audit it appears that there are son overbilling and underbilling errors which exist in the syst~ today. Pacific Bell is underbilling the City in the followir areas: Parks & Recreation - 1 single line phone $47 .oo City Manager's Office - 1 six-button phone 117 .OO Personnel Department - 1 single line phone 47 000 Main Library - 1 single line phone 47 000 Police Department - 1 single line phone 47 .oo 1 20-button phone 224 .OO TOTAL UNDERBILLING MONTHLY $529 -00 Pacific Bell is overbilling the City in the following areas: Parks & Recreation - 1 six-button phone $117 -00 2 six-button phones 234 .OO Finance - TOTAL OVERBILLING MONTHLY $351 .OO This overbilling error cost was deducted from the underbillinl error costs, and it is estimated that these errors will impact thl City's monthly bill by an additional $178, should the City elec. to stay with the present Centrex system and if Pacific Bell shoult become aware of the errors, 1 0 a 'B OPERATIONAL CONSIDERATIONS AND PROBLEMS Tnrough analysis of study data and interviews with key personnel the following findings and areas of concern have been surfaced These must all be considered in a total telecommunication syste design. In the process of determining individual and overall communicz tions requirements, approximately 300 questionnaires were distri buted to City telephone users and individual interviews wer corlducted with department heads and key personnel. Overal response was very good. The questionnaires and interviews wer structured to ascertain business operation; how, why, and when th telephone is used; likes and dislikes, and recommendations fo improvements. Interviewees were cooperative and informative. It is essentidl that the operational characteristics be estab lished and business communication needs determined before an recommendations for alterations in equipment or cost savings ca be considered. A consensus of problems and significant comment' are detailed on the followiRg pages along with CRC findings as ' result of our study activities. - INCOMING CALLS The present system is equipped with direct inward dialing (DID, which allows calls from the outside to be placed directly to tht City tel ephone user. m W lz4 This method of receiving incoming calls seems to be effect however, these calls must be forwarded to an answering point h an employee is away from their telephone, so the call may answered. With a lack of answering points this has become a ma problem. Additionally, an item within the Pacific Bell rate structure t is extremely vulnerable to major increases is the Centrex service. Therefore, agencies with this service must maintain flexibility to shift back to the more traditional cent answering concept should the DID service no longer prove to economical. _- Exhibit "B" on the following page reflects the approximate num of calls one relief answering point receives weekly, in addit to the employees other job tasks. Additionally, once the incom call has been directed to the department, the answering PO employee has no way of knowing if the call has been answered if the department was the actual one the public was seeking. Currently, several departments are forwarding their calls to Cashier/Receptionist. This procedure places a burden upon employee since she is unable to determine if all employees in t particular department need messages taken or when they actua return from break, lunch, etc. In addition to answering forwarded calls, she also receives the public information ca i.I 0 'H and processes all cash payments from the public paying wa bills, business licenses, etc. The advanced state-of-the- capabilities of a console will eliminate the problems of c forwarding and allow the employee to process calls much fast Since most receptionists have other duties other than answer calls, this console should not interfere with other activit performed by the employee. Outside the City Hall facilities, most departments utilize call answering and distribution arrangement with no ma problems * During the interview process it was found in some department such as Parks & Recreation, that many calls are repetitive quc tions regarding recreation hours, business hours, etc. The types of cal.1~ could be 'lfunnelledlr through automatic answer: machines which could provide basic information and answers frequently asked questions. If desired, the caller may stay the line and ring through if they wish to speak to a Cj employee e Following is Exhibit "C" which shows the total number of a inconing calls to the Police Department. A 24 hour study vv conducted, for one week, to determine the number of calls receik on all morning, day and evening shifts. T DAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDA # of Calls 21 24 25 20 23 DAY MONDAY TUESDAY YEDNESDAY THURSDAY FRIDA # of Calls 17 18 19 5 17 40 - - __.I TOTAL CALLS 38 - 42 44 25 -~-- - - - ____.___ - . I ~ I c3 (1 I@++:* i i: 1% In alri I 5 -1 ln ./- i cw €+ -. wo rl __ .. -_ c\1 c\i ri c\iE-+rl a r- -T 1-4w r- co co ri I r- 0 N I- -1- iy ZJ 21 E 2 1- m1 I *a mm I i yz 213 E 1 F\ * mG., ril j *- I VI OMP N IX ri rl M :sa N cd rl -€I I m g* Ev 24 4 v s €-ID VI Ed 5s e; -g v+ pJ3 az EF wc3 +!h 40 rl. an ala co M 5 Gk-4 om0 c" 0 ri co/c" co 0 N /* $2 0 rlNP ri 0 w Y!3 ri rl m w 2 3 MFI * H t- 0- riza rl a 0 drlD rl A22 rl cu w 83 33 4 E+ 0 c3c5 €-i 3 SEE 2 H 23 $2 %E w 3 / €3 - c\I cd cd I rn rl rl Ld 0 h rl .A Ld e cc 0 5 5 d a, 3 5 2 e 0 @ OUTGOING CALLS AND CALL ACCOUNTING Currently, users dial "9" for all outside calls, including ca to the San Diego area. San Diego calls are placed without dial a digit or separate access code and the call is autornatica routed over the Flexible Route Selection (FRS). There are f (4) Southern California WATS lines and three (3) foreign excha lines available for these calls to be routed over. Should th seven (7) lines be in use, the calls would overflow to the lo trunk lines making the call go over the most expensive line, creating a toll call. This process is reasonably effecti\ although many users are unsure if their calls are being correcl routed over the foreign exchange (FX) lines, or WATS lines. It was discovered by the City Clerk reviewing the phone bills, ( the large amount of money spent on toll calls, that Pacific Bi had incorrectly programmed the FRS, therefore, most calls plac to the San Diego area are routed over the most economical tri lines available, however if these lines are busy, a busy signal not encounted by the City staff, and the calls are routed over 1 direct lines, making a San Diego call expensive. It was a1 discovered that the City was being billed for calls twice. A ci being placed over a foreign exchange line was billed to the Cit but more importantly the pragramming of the FRS was allowing double billing to occur because it read that same call as goi over a direct line as well as the foreign exchange line (FX line After negotiations with Pacific Bell, they agreed to re-progr m 0 EEI the FRS at no additional charge and also credit the City with , increase incurred post FRS implementation, after subtracting average of September, October and November bills from the post bills. Since the City does not have a way to control all calls pla there is an unquestioned requirement for control and to accountability of the $58,128 spent annually in line usage toll calling. The'need is for a detailed account of how - all ca are actually routed over the WATS and Foreign Exchange lines well as departmental accountability. National statistics show that a minimum savings of twenty perc (20%) can be anticipated when call accounting equipment utilized. The mere fact that calls are "monitored" makes us more conscious of on-line time. __ . Additionally, departments, divisions and specially funded progr may be budgeted for separately. CALL TRANSFERRING Presently incoming calls may be transferred from one extens number to another. This procedure is relatively simple perform, however, the major complaint was the loud clicking no that accompanied each transfer. A1 so, di rectly after e transfer was a temporary disconnect of the caller which cutoff 9 0 'H calling parties name or the beginning of the conversation. most instances the caller was asked to repeat their name or SI of the conversation missed. Not only were City employ1 complaining, but most personnel additionally stated that 1 general pub1 i c cornpl ai ned of these probl ems a1 so. Most departments, within City Hall, do not have a central c answering arrangement. This means arrangements must be made relief coverage during lunch, breaks, etc,, or call forward all the lines, which is time consuming, if it is necessary for employee to be out of the office only a few moments. Mc importantly, should some one be on a line, the secretary can forward that line to another individual, thus creating problems scheduled lunches and breaks. This also interrupts other w schedules for back-up and cross coverage. -. INTRA-CITY CALLING The current system links most City facilities together which is important aspect. This not only simplifies the dialing procedu but avoids a tremendous amount of ''local unit" call charges. Cnfortunately, it is occasionally not possible to reach anot City station due Lo the "peaks" in calling which occur at cert times of the day. This results in additional time being was attempting to obtain what may normally be brief answers questions or a simple return telephone call , 0 (I) ‘H The alternatives are; upon receiving a busy signal-keep dialing, try another time or, make persalnal contact with desired party. This problem can be improved considerably us modern system features, which are currently available with Centrex system, however, there is an additional monthly charge these extra features. TELEPHONE INSTRUMENTATION Currently, within the City system, of the 193 total telephones service, 117 (61%) are multi-line key telephone instruments. comparison to standard single 1 ine telephones, these instrume are quite expensive. Unfortunately, due to the nature of operation and configuration the present telephone equipment most of these phones are nect sary. However, with proper system design using state-of-the-( equipment, as many as one third of these multi-line telephoi could be replaced with less expensive sets. TRAINING The City currently has a system that utilizes featues that 2 similar to features available on state-of-the-art systen However, the users must be retrained on the new systems telephor in order to perform features that are not (currently available the staff. Several training sessions including follow-up sessic are an absolute necessity fo - 11 telephone users. 0 0 E3 INTEGRATION OF VOICE AND COMPUTER SERVICES Currently the City of Carlsbad is not utilizing telephone li for data transmission, but as computer energy management l security systems expand, it may be adviseable to include d switching and/or transmission capabilities through the telephc system and associated network. This could enable the City utilize one vehicle to carry both voice and data services i avoid duplication of cable facilities and their associated cost1 Most of the Pacific Bell/AT&T switching systems including Centrl are of the older analog type, and are not capable of accomplish true end-to-end digital transmission. During the conversion fr digital to analog and back there is a tendency to introduce noi and errors into the signals. Therefore, the City should consic digital switching for future data requirements. Further, future data requirements are being considered it is recommenc that the City acquire as many of its own interface devic (modems, line drivers, etc.) as possible in order to redu re1 iance on telephone uti 1 i ty company 1 eased equi pment . - -- -.. - - CATV - MlCROWAVE --- Currently, all interconnection of facilities throughout the Ci is accomplished through lines rented from Pacific Bell. Th includes telephone lines, alarm circuits, etc. The costs f these services will most likely double, due to rate increse within the next 24 months. Therefore, alternate sources * e E'!4 provide future interconnection of these facilities should investigated by City staff. Today the use of rented lines f Pacific Bell is the most reliable vehicle, and other sour( should not be considered at this time. Microwave is an excellent alternate source, but simply expensive for the City's requirements. However, this alternat may become viable in the future, as microwave costs are decreas and telephone utility costs are increasing. The next alternative, is the combined use of the cable televis network which serves most of the City as provided by Carlsl Calbe Vision and La Costa Cable TV. Cable television transmiss makes use of specific band widths which may allow for a variety types of digitized transmission including video, electro (computer) data and voice. The City is currently provided wit1 "drop" to each City facility, with the exception of the m( branch library, the fire department located on Elm Avenue and fire department located on Catalina Drive. This offers numerous possibilities for future enhanced servic The immediate possibilities are cost savings for voice and d transmission. In order for either to function an "interface" modem is required at each termination. This equipment could supplied and maintained by the cable T.V. company, at a . undetermined charge. 0 w zH The technology to use this type (CATV) of media has only recen been fully developed with the actual application still in infancy. Several Cities, including Portland, Oregon are mak use of their cable television networks for various types of el tronic data transmission, however, voice (telephone) transrniss and receiving has not yet been fully developed, There also exists a concern with the reliability factor, Criti services could be subject to interuption when CATV maintenance taking place, since the entire bandwidth may be interupted dur testing or new installations. It is our opinion that the relia lity factor will improve drastically in the next few years as t equipment and procedures are improved and as the techno1 develops. - Any of today8 s state-of-the-art telephone systems would be capa of interconnecting to the CATV network with the proper interfac WIRE AND CABLE this is an item which must be given close consideration in mu1 facility situation such as exists within the City of Carlsb Fire Stations, Parks & Recreation, Maintenance Facility, e which are located throughout the City. Generally the existing wire .and cable can be re-used and pla u n der 'I new equ i pmen t " wa r r an ty . Additionally, AT&T wh 0 0 H possible, will turn over use of the existing "building" cable the subscriber at no charge. This cabling can save up to o third of the system cost. This reuse of cable is a part of overall divestiture plan from ATAT. TELEPHONE EQUIPMENT ROOM Currently the City's telephone switching equipment is housed Pacific Bell's central switching office. Any new telephone sysl will require the switching equipment be located on the Citj premises. Therefore if a change in telephone systems is to ti place a dedicated telephone equipment room should be planned wh. would generally be sufficient to house any manufactuer's equ- ment. Currently, the City has a dedicated telephone equipmt room that is sufficient to house any new telephone switchi system, with some minor adjustments such as the provision electrical power and the necessary air conditioning. Any system will require a dedicated electrical circuit for t switching equipment and an additional two (2) to four (4) circui for peripheral equipment. Also, continuous air conditioning wi most 1 i kely be requi red. The use of storage batteries for a reserve power supply should considered only as an option to back up commercial power. Tt telephone system reserve power supply would act as a back up the event of a commercial power failure. The City currently ha: 0 0 ‘H generator for emergency power. This generator could be used place of batteries for a power back-up supply. The reserve power unit utilizes wet cell (lead-acid or le; cal ci um) storage batteries. These batteries , when unbal ancc {charging or discharging) give off a small amount of explos. hydrogen gas (approximately .009 cubic feet per hour). Normally, ventilation to the outside is required, to meet t local fire codes. In all cases, CRC recommends ventilation to t outside and any additional costs (usually minor) should considered with this option. A1 1 telephone equi pment , as appl i cab1 e, should be i nstall ed wi earthquake bracing to prevent major equipment damage or fi during an earthquake. MANAGEMENT OF THE SYSTEM As telephone costs become more visible and telephone comrnunic tions become more and more complex, the need to properly mana this resobrce becomes more important. It is suggested that t City designate an individual to thoroughly familiarize themse with the operation of anew system and learn the basics of mana ing and overseeing the system in general. This would inelu staying abreast of pending rate increases and legislation th could effect the City. The City in turn, will be in a position 0 0 'H properly react to internal requests for changes and new serv' requirements. Additionally, the City will be better prepared deal with future rate increases and changes in regulations. MAINTENANCE OF THE SYSTEM In addition to managing the telephone system, the City may des to use its own personnel to maintain the telephone station equ. ment. This would help the City lower its annual maintenance b considerably . PUBLIC TELEPHONE DIRECTORY LISTINGS A review of the public telephone directory listings was conduc. to determine accuracy, adequancy, and to recommend any possil improvements. The listings are informative with all departments and offic shown in alphabetical order. This is very helpful to thc persons who know which office or department they need to call, There are, however, some shortcomings with the current listin1 Since "911" has been phased in and is working properly 1 additional emergency number may not be necessary for the Pol Department and Fire Department headings. A1 so 1 i sted under Police Department listing is a heading of business calls. It recommended that the listing should read-business office - hours-in the format shown on the following page (Exhibit "E"). e 0 *I...1 Exhibit "D" on the following page is the current listing for City. The City should be cautious with "yellow pages" advert i ng in that salespersons representing several different pub cations may request that the City "renew" its advertisement their publication when possibly none existed or is desired. must exercise caution and determine exactly which area and wh directory the listing will appear, so that the City not unnec sarily pay for listings which are not desired. 0 0 EXHI BIT 'I Dl' DIRECTORY LISTING CARLSBAD CITY OF I EMERCElKY NUMBERS Fuc Oept l275 Em Av CSM ............................ .hl ........................ ,438 f501 ......................... 438% bnrarcsvS .............................. 911 0 . '. ................................ .438 bWl .. polialkpc 1200ElmArW kr4nenw ..................... Hrbm,enlmvJmcenter ~rrhlgCrbd.43Eu).6S?4 PRSanel...... ......................... :.*#1= Lnduw ..... ~.. ............. hm RevarcMMIyas .............. Rrdvsbrp ..................... W-AWSPMLSat 1urRm~~.438%20 : nou*~ANc€~~ CSDd 438 %I UBRARY "4 UYJEbnAVQbd ..............., 4385614 . L.cQYmk*wh Licicy~ .......................... a5654 \ ....... . CUhhM........ .......................... mal4 : Vsrr .................................. ...mW7 .i J e 0 EXHIBIT "E" 'm RECOMMENDED TELEPHONE DIRECTORY LISTING CARLSBAD, CITY OF Fire Department - Emergency Calls ........................... 911 Business Calls ............................ 438-5521 Pol? ce Department Emergency Calls ........................... 911 Business Office-24 hours .................. 438-5511 - - ---- 0 0 'H TOLL CALLING AND LINE USAGE ANALYSIS An analysis of telephone company billing statements was perforn to establish calling patterns and determine if there is a need 1 additional foreign exchange services, WATS lines, or other spec. line services. The City of Carlsbad currently does not have toll control equ' ment to ensure that outgoing calls are placed over the prop trunk line group, (WATS, La Jolla Foreign Exchange, Escondi Foreign Exchange). General ly call s are bei ng placed correct1 however many calls are placed over the wrong trunk group (v Pacific Bell's Flexible Route Selection "FRS") which causes li misusage and additional toll costs. The following illustrates t average number of calls placed incorrectly in one month. _-. NO. OF CALLS COST La Jolla Foreign Exchange 24 $15.84 California WATS 152 45.60 Southern Cal i forni a WATS 818 245 -40 TOTAL 994 $306 -84 TRUNK GROUP Li ne misusage therefore , accounts for approximately 11,928 cal at a cost of $3,682 annually. This misusage could be the resu of calls being billed twice, (as discussed earlier in th report) . a m Ei4 Due to the existing problem with the Pacific Bell programming the foreign exchange and WATS lines, CRC analyzed one (1) month billing statements (November) prior to installation of these lii and one (1) month (January) post installation of these lines. CRC's analysis indicates an insufficient quantity of lines, bas upon the City's calling patterns and billing statements. CRC recommendation of additional lines is shown in the block diagr on page 42. By routing all long distance or toll calls over the appropria WATS or FX trunks and automatically routing the "overflow" those calls over the next, least expensive route, the City wou be able to save costs and utilize the Automatic Route Selecti (AKS) available in a new telephone switching system. Th combined with Call Detail Recording would enable the City to s monthly how all calls are placed. -- Call pattern maps which show the City's calling patterns are shoi on the following pages and are ''broken down" by the November ai January billing statements and are also broken down by the majc faci 1 i ti es. 0 e CITY OF CARLSBAD CITY HALL LONG DISTANCE TOLL STUDY OUT OF STATE/CALIFORNIA AREA CODES *E4 OUT OF STATE: November, 83 January, 84 Arizona Colorado Illinois Iowa Maine Michigan Missouri Nevada New Jersey New Mexico New York Oh io Oregon Pennsylvania Tennessee Texas Virginia Washington Washington D.C. Guadalajara Mexico CALIFORNIA AREA CODES: 209 213 20 7 408 415 619* 707 80 5 818 916 6 4 1 1 0 2 1 0 1 0 0 1 0 2 8 0 1 2 0 3 7 6 3 1 3 1 0 1 0 1 4 8 1 0 6 0 0 1 1 0 - 10 0 0 2 1 52 0 10 27 0 0 26 0 49 0 1 714 425 * Total of calls outside of local calling area 0 0 m ri ri cd OM co Tj rim cd rid P 0- m9 .. riFc k cd> oxo z bh +J Pf-4 .d .d 0 C) Vk ( ( 1 e I) v) r-l d cd 0. -3- ado2 -P* k .ri *d 0 UUGi , c c c e e CITY OF CARLSBAD POLICE DEPARTMENT LONG DISTANCE TOLL STUDY OUT OF STATE/CALIFORNIA AREA CODES 'H OUT OF STATE: NOVEMBER, 1983 JANUARY, 1984 Arizona Colorado Connecticut F1 orida Idaho Illinois Iowa Kansas Kentucky Massachusetts Michigan Minnesota Montana Nevada New Harnpshi re New York North Carolina Ohio Okl ahsma Oregon South Dakota Texas Washington Washington D.C. Wi sconsi n CALIFORNIA AREA CODES: 20 9 213 408 415 619* 707 7 14 88 5 818 916 * Total of calls outside local calling area 2 0 7 2 0 1 2 0 0 1 1 1 3 0 1 0 1 0 1 1 0 2 3 0 0 1 2 2 0 2 5 1 0 1 0 1 0 1 2 1 0 1 0 2 1 5 1 1 Q 3 4 0 76 0 5 0 6 0 14 a 62 0 28 0 v w rn * aF: Lda P E kM m* om dkhm kd r( cdpcol 0 a, op OE h*dd Q, *dd+ *do00 U&QZ j---$gf cn fr / a- c .. c c e .) CITY OF CARLSBAD FIRE DEPARTMENT LONG DISTANCE TOLL STUDY OUT OF STATE/CALIFORNIA AREA CODES 'H OUT OF STATE: NOVEMBER, 1983 JANUARY, 1984 Arizona 0 2 Louisiana 1 0 Mary1 and 0 1 Massachusetts 2 4 Nevada 1 0 New York 5 0 Oregon 2 0 Texas 4 0 CALIFORNIA AREA CODES: 209 213 8 0 408 1 0 415 619* 0 2 707 7 14 14 0 80 5 3 0 818 - 916 * Total of calls outside local calling area w q em dhol *d *d 0 0 UR-PZ c C C @ 7 *ri .d 0 (d Uk+JS c C c q q 'H The City's call pattern maps indicate that a common carrier cou be utilized to give the City additional savings. In checking wi MCI, CRC discovered several ways for the City to use the M service. These options are listed below: 1) MCI CORPORATE ACCOUNT - Must have at least $2,500 per mon in long distance calls, not feasible for the City Carl sbad. 2) $10 per month service charge for each City facility pl usage. (This $10 service charge will be waived July 1 1984). 3) MCI "ADVANTAGE" ACCOUNT - $10 per month per every 4 line per location. It is not necessary to dial an access co with this advantage account, - all long distance calls a automatically routed over MCI lines. MCI will work with a vendor in routing these calls automatically through t switching system. With this service there isn't an insta lation charge if the service is left in for a minimum of o (1) year. If service is cancelled before one (1) year, the would be an installation charge of $200. This is the opti CRC recommends for the City of Carlsbad. . z 1 Escondido FX E+ 7 La Jolla FX 0 H 2 a 4 2 Sta. 10 Local m Lines b 4 S. Calif. WATS f3 Hd 04 2 Go 2 Calif. WATS 2 I f3 az cda ( >a 0)bO 03q .ri 2Es Q) *ri % 583 PI a .fi : Z4D 4 -rf E Q)a .d k E+& 4 4 Busine: i Ern Lines 2* 4 I E $5 /) ,$+e b a Lines z E+ a m 8 Sta. r3E 3 !4 654 a 23 2 Sta. Lines B - I a B=;! w 0 E-c 0 8 c0 Pi H d +-' a, ah0 a& 0 -ti oao a riori I I mP- w q w COST CONSIDERATIONS Having established operational characteristics, and identifyinc problems, along with other considerations, it is necessary ii planning for improved telecommunication services thlat several areas be given appropriate consideration due to their potential financial impact on overall communication services. Following art primary items which will affect the communications system design. - PRESENT SYSTEM COSTS First, although the Centrex system is doing an adequate job ir, providing communications to the City, it is the expressed desire of the City administration to control telephone communication costs wherever possible, while providing an effective level of service. There are four (4) areas in which telephone costs may be lowered. These are equipment and maintenance, lines, usage, and moves and changes. Under the current arrangement the telephone equipment, is on a fixed monthly rental from the telephone utility company basea on the amount of telephone equipment and instrumentation in use. Si nce the City' s telephone system has remained somewhat stab 1 e over the past several years, it, is necessary to determine how recent state-of-the-art communication innovations could be of value to the City and how any changes will impact overall City telephone servi ce. 0 w Ei3 It is further necessary to understand that costs have increase dramtically for the Pacific Bell Centrex system in recent years Several items have contributed to this. The most obvious are ratc increases which have been occurring regularly at the rate of 15: to 25% per year. While Pacific Bell is actively attempting to stabilize Centre. rates, the Centrex system under current tariffs, colmbined wit1 AT&T equipment costs, is typically 20% to 25% more costly thai other comparable systems on the market. Additionally, it is necessary to understand that the method 01 acquiring telephone equipment and maintenance has changec drastically in recent years. Substantial companies, includin! AT&T, are manufacturing, selling and maintaining telephone equip- ment. This means that most btisinesses and tax-supported agencies are acquiring their telephone systems through competitive compari- sons. Since State and Federal tariffs effect continuously changing line and usage costs the system and manager must maintain the flexibi- lity to take advantage of the most economical services available. In the next section we will discuss the cost of a recommended equipment reconfiguration, maintenance and service considerations and the most strategic arrangement of lines. Following this is a section with discussion of usage costs and alternatives. 0 m 'H EQUIPMENT, MAINTENANCE AND LINE COSTS As stated previously, it is the expressed desire of the Cit administration to controf ongoing telephone costs wherever possi ble, while providing an effective level of service to th community. The fact is, Pacific Bell and AT&T are f'ormally an informally currently proposing rate increases which will boos existing costs considerably in the immediate futurle. Some o these rate -increases are avoidable, others (i.e., lines and lin usage) are not. The existing telephone equipment, lines and services which coul be replaced by a new system are currently costing the City $78,55 annually, (excluding uqage). In attempting to project new system costs it must be understoo that cost estimates and projections are based on prelirninar~ quotes by suppliers without complete details of exact equipment cab1 e and faci 1 ity 1 ayout requirements. These projections arc provided merely to illustrate initial estimates to provide a ne\ system to meet the established basic needs of tlne City 0' Carl sbad. The cost estimates obtained by CRC from various system suppliers indicate that new system equipment, properly designed, shoulc range in the area of $130,000 to $150,000 for a direct purchase of equipment only. Utilizing a lease purchase, with political sub- 0 w [Z] division funding, and a seven (7) year lease period at 10: interest, the cost would be approximately $27,871 annually. Utility line charges of approximately $36,132 (recommended syster design) and maintenance (beginning in the 2nd year) of approxi. mately $6,600 combined with the $27,871 for lease purchase of l new system would make the total cost $70,603 annually. This, of course, is based on today's cost of money and woulc necessarily vary depending upon the lease period and the monej market at the time of the final quote. However, this is $7,95@ less annually than the $78,557 cost of today's utility provide( Centrex system , (excl udi ng usage) . ._ Further , thi s does not i ncl udc additional savings which can be affected with a modern system suck as toll and equipment reduction savings. These projections do not include the pending rate increase! Pacific Bell has before the California Public Utilities Commission F .C .C. increases or any other surcharges and AT&T rate increases that would impact the City's current telephone system costs. For example, the portion of the F.C.C. "access charge" which has beer recently approved and will go into effect June 13, 1984 will increase the cost of the existing Centrex to $2,520 per year anc the cost of the proposed new system to $2,008 per year. Thi: increase potential savings by $512 per year. It is noteworthj that Pacific Bell, the local telephone utility supplier, 1: ?@ e H entering the age of deregulation and is experimenting wit "creative" and competitive pricing for their newer Centrex produc lines. These new pricing concepts (subject to California P.U.C approval) may place them back in the competitive arena and shoul( allow them to offer the same flexibility and contractual guaran. tees as private suppliers. According to ATAT, it has been necessary to subsidize F'acific Bel in recent years as the company has not been self-supporting, Experts are predicting that the "utility" rates must increase sub- stantially in order for Pacific to become profitable. Regardless of how a telephone system is acquired, it 1s not possi- ble to total ly control cost increases associ ated with tel ecommu- nications equipment, systems and service. According to tht Federal Government Price Index statistics, the inflation rate for the calendar year 1981 was 8.9%, 1982 was 3.8% and 1983 was 3.4%. This, of course, affects everyone, including the communications industry. Following is an itemized comparison of current costs as comparec to the recommended new system configuration. Year One PRESENT NEW SYSTEM ANNUAL COSTS ITEM ANNUAL COSTS SEVEN YEAR DIRECT PURCHASE LEASE System & Equipment $ 64,385 $140,000 $ 27,871 Maintenance Included Included Included Trunks & Business Lines Included 2,880 2,880 Tie Lines & OPS Lines Included 7,188 7,188 Usage 58, 128 54,400 54,400 Move & Change Costs 1,200 600 600 Foreign Exchange Lines 10,572 22,476 22 , 476 WATS Lines 3,600 3,600 3,600 t Surcharge( *) 9,492 N/A N/A b Yeas Two . 1 PRESENT NEW SYSTDh ANNUAL COSTS ANNUAL COSTS SEVEN YEAR ITEU DIRECT PURCHASE I LEASE System & Equipment $ 70,823 (*I r) $ 27,871 Maintenance Included $ 6,600 6,600 Trunks & Business Lines Included 3,168 (*I 3,168 (* Tie Line & OPS Lines Included 7,907 (*> 7,907 (* Move & Change Costs 1,320 (*I 660 660 Usage 637941 (*I 59,840 (*> 59,840 ( * Foreign Exchange Lines II,OLY (*) L4,./Lj \ X) WATS Lines 3,960 Year Two Total $151,673 3,960 (*c) ““,:Z 1 z $106,8 58 $134,729 0 - ‘E4 Based on a direct purchase of CRC’s projected figures, the est mated payback on thl? proposed system would go into effect in ye five. If the City elected the lease-purchase option the estirnat payback would go into effect in year five also. 0 0 'H RECOMMENDATIONS In view of the recent. major changes within the telephone industrj and the fact that the existing telephone system is becoming in- creasingly costly, the City will soon be faced with new systerr acquisition. It is recommended that the specified new system be acquired through formal competitive bidding. Through competitive bidding, the City may establi'sh exacting criteria which bidders must meet and, at the same time, be assured of meeting all legal require- ments imposed on major acquisitions. As a hedge against inflation it is recommended that bidding be conducted as soon as possible. With City approval, CRC will develop a complete and detailed Bid Specification for the provision of new telephone communication services. The Bid Specification and bidder response forms will i ncl ude: - Complete detail of a1 1 equipment requirements - Initial capacity requirements for instruments, trunks, and stations - Expansion requirements - Complete hidder response forms - Detailed system pricing and payment options - Guaranteed future "add-on" equipment costs - Maintenance and service guarantees - Complete system function and feature requirements with 0 e operational descriptions 2H - All required legal forms and documentation A formal bid specification can be developed in the next thirt (30) days for City approval. Upon completion of the total bi speci ficatioln package, and approval by the City, the Bid Requesi will be provided to qualified suppliers and advertised in thl requi red manner. BID ANALYSIS Upon completion of the bidding process, CRC will analyze each bic response, develop bid response comparisons, perform an in-deptb study of each system bid and present all facts in a formal docu- mented report. This report wi 11 incl ude fi nal system recommen- dations based on all known factors and cost projections year-by- year over a t.en (10) ,year period. MINIMUM AND MAXIMUM REQUIREMENTS Present and future requirements have been ascertained through de- tailed research done by CRC in order to determine system capaci- ties. Through a weU1 planned system design based on these requirements, all existing problem areas would be resolved and future needs, as anticipated, would be readily met while lowering and controlling on-going telephone costs. e 0 Lm It is a reasonable assumption that the City Hall and the Polic and Fire Departments will remain the major users within the tele. phone system. Therefore, since the other City facilities hav comparatively 1 ight telephone requirements, they would general1 remain status quo with moderate changes in answering arrangement and directory listings. Each facility would receive new statio equipment. Several items planned for the future may have an impact on tht initial system design and must be given consideration befort bidding takes place. In addition to the normal moves, changes and additions, current plans are in progress for the construction of the new Police Department, and several other possible City facilities, by the middle of 1986. These projects require advance planning for telephone changes and additions, CRC has taken this into consi- deration and has planned for this future move in the initial telephone system design. _- The initial design includes a switching system serving the City Hall, and a separate system serving the Police and Fire Depart- ments, with other City facilities utilizing smaller key systems. All City facilities would have the capability of reaching most departments, by dialing a 3 or 4 digit code, similar to the City's existing system. 0 e *H CRC recommends the following basic configuration be accepted an utilized in the detailed design and subsequent acquisition of th new telephone system to meet current and projected long terr requi rements: CITY HALL ITEM INITIALLY INSTALLED CAPACITY Switchboard Consoles 1 2 Local Business Trunks 10 30 Cal if. WATS Lines 2 5 So. Calif. WATs Lines 4 10 La Jolla FX Lines 7 10 Escondido FX Lines - 1 5 Station Lines 115 200 POLICE DEPARTMENT ITEM INITIALLY INSTALLED CAPACITY Switchboard Corisol es 1 2 Station Lines 55 150 Pie Lines (to City Hall) 5 5 Local Business Trunks 7 10 0 e lE!4 SYSTEM OPERATIONS AND FEATURES The planned new system, which will alleviate current problems an( provide more economical service , would be a current state-of-the. art processor controlled digital switching system. This syster will include a sufficient quantity of trunks, and stations to mee' all needs, both initially and throughout the foreseeable future with the flexibility to change with the times. The "digital" processor controlled system is the latest state-of- the-art in proven communications within the telephone industry, Every major manufacturer includes this system as their primarj product line. It may be the stored-program control , digital I space-division mu1 ti-plex, time-division mu1 tiplex, or similar types. Today tax supported organizations must select the 1 atest technology since their telephone systems are required for 1 ong term use of 19-20 years. - An intelligent approach to the inclusion of "required" system features is essential in the basic architecture of telephone system design. This is particularly true when planning today's state-of-the-art telephone systems with their vast array of available features. Therefore, the "required" features must solve a problem, enhance City operations and/or provide cost savings in order to be given consideration. Furthermore, those features which add to the overall cost of the system must be carefully studied and a value judgement rendered. 0 rl) 'H Studies have shown that features and their use are too often over sold and that individuals seldom use more than four (4) availabl features which suit their needs. Additionally, features must b "user" friendly" and relatively simple to activate. Most of th desi reable "convenience" features such as auto dial, automati redial, executive override, hotline service etc. are provided wit any new system. The CRC recommended design for the City of Carlsbad includes man; modern features, specifically to correct existing deficiencies an( blend with the City's desired method of operation. This sectioi details how the system will operate, the required features ant their application. As mentioned above, in-addition to thesc required features, many other non-essential "standard" features are offered in varying degrees from one product to the next ant are i ncl uded with the standard package. However, the di scussior of design is limited to those features which are applicable to the overall City operation. The p'lanned new services, as designed, will function as follows: A) INCOMING CALLS - Incoming calls will be handled by a console operator and forwarded to the appropriate department or individual. Any change in telephone systems will most likely involve total telephone number changes. e 0 [iiii] Emergency "911" services will remain separate from the tel phone system and basical ly unchanged. These services are integral part of Pacific Bell's equipment and receive sep4 rate funding. B) OUTGOING CALLS - These calls would be placed by dialing "! then the outside number. The new system would be equippc with "toll restriction" equipment which will allow outgoii calls to be placed only on the appropriate line group for tl area called and only by ''approved" telephone stations "Least Cost Routing" equipment would also be included whic would automatically route outgoing calls over the leas expensive trunk group (local, WATS, or FX) for the arc call ed ,, These features wi 11 prevent to1 1 call i ng mi susagt save art appreciable amount in future usage costs, and great1 simp1 i fy outgoing call pl acement. - C) - TRUNK QUEING - In the event the most economical route i busy, the user may be placed in "que" and their call proces sed as soon as the route becomes available. On a select€ basis, users may override the que and their calls will b processed via the next available route. D) OUTGOING CALL ACCOUNTING - The telephone system design wil include the option for equipment which will automaticall record and print out, at pre-determined intervals (bi-weekly 0 e 'I4 or monthly), - all outgoing calls placed from telephones withi the new telephone system detailing the station number, datl and time of call, telephone number called, call duration an cost. This equipment will also provide certain "exception reports and traffic data which is extremely valuable i managing telecommunications. E) INTERNAL CALLS - Most departments and telephone users withir the City may call anyone within their system by simply dial- ing a 3 or 4 digit number. Most Intra-City calling will bc through the City Hall system. F) CONSULTATION/TRANSFER/CONFERENCE CALLS - Any station ,- whilc on an incoming or outgoing outside call, may consult pri. vately with another station, transfer an outside call ti another station, or establish a 3-way conference call wit1 the outside party and another station within their OWI system. G) CAMP-ON - This feature applies to those internal calls place( to a busy station. It is a fact that a telephone conversa- tion requires at least two (2) people be connected. However all too often, the attempt to call the second person result! in a busy signal, preventing even a short message. Utilizin! this feature, the caller may "camp-on" the busy station an( be automatically connected as soon as the busy station hang! e 0 rm up. The busy station will also receive a signal indicatini that the "camped on" call is waiting. !4) STATION CALL BACK - This feature is similar to Station Camp On, except an internal caller, upon receiving a busy signal may program his telephone to automatically call the bus. station as soon as it becomes idle. At this time both thc calling and the called station will ring. Both statior camp-on and station call back will be particularly helpful during those peak conversation periods when contact i: di fficuli. I) CALL FORMARDING - Designated personnel may program their telephone to automatically forward outside or internal call! to an extension number other than their own when they wil' not be at their assigned location or available to accepl calls. ,J) CALL PICK UP - This feature enables personnel within assignec station groups {departments) to access and answer incomlns calls to station users not at their desks. This would eli- minate the need to add station iines to additional phones anc to prevent persons having to walk to another desk to answer z ringing station. * 0 '!E4 K) PUSHBUTTON DIALING (DTMF) - The entire telephone system wil be equipped with pushbutton dialing for all services. Thi will provide faster and more accurate telephone systev operations and all of these call types may be performed b! the station user on a plain telephone or automatically withir the system without assistance. L) NIGHT RESTRICTION - This feature will automatically changc the ability of specific telephones throughout the City ti pl ace to1 1 call s after hours. Unsupervised telephones car therefore be restricted from unauthorized after-hours use. Though many of the features described on the preceeding pages arc currently being used, through proper planning and effective utili- zation of these and the new system features, many of the existin< multi-line key telephones could be eliminated or reduced in size which will provide further cost savings while maintaining a high level of operation efficiency. In addition to these featdes, the system should have the ability to add the following equipment and/or features in the immediate future: - Data Switching - Electronic, Digitized Telephone Sets - Electronic Mail - Message Waiting 0 a 'B TRUNKING REQUIREMENTS The telephone industry "Erlang" method is used on the followin pages to determine requirements for the recommended quantity o trunks. There are three basic types of telephone traffii measurement; hours per busy hour, minutes per busy hour, an( hundred-seconds per busy hour. Hours per busy hour are callec erlangs. The erlang is used largely by design engineers ani mathematicians; it is particularly convenient in that it show: directly the average occupancy during an interval. The "grade of service" the City receives relates to the number oi calls blocked per 100 attempts. CRC recommends a grade of servicc which will equate to the probability that one out of I00 call attempts (in and out) will be blocked (P.01) during normal business operations on all trunks and (P.01) on tie lines. - I' N P N I' .\ Y 1) \ I' N '! .o:'"r 'I .O,OI 10 .mi7 11 .oom 12 .oo12 I.".' I 1, .oon-i i. I-: I, .II'?I :(I .OO~~Q 11 ,0040 12 .0015 4. io .oiii{ 11 .wii; I:) .01n:: 11 .no43 12 .0016 1; .no!)) !{ .one- ii .OOOI .i. ;!I ] : . illl: 'I .O?l:! 10 .flO!li I1 ,0077 12 .0014 I I . noo6 1.1 , 0002 !<; .no01 -4.i'iI '. .02-i:: IO .011:1 !I ,11046 I2 .0017 13 ,0006 i I . ow2 I c . ow1 I-! . 0002 15 . on01 14 ,0002 IS .oool I; . ooo:i IS . ooni 1.1 .nom IS .OOOI -1.ti01 .' .WGI 10 .OIIP I: ,ana!# :? .OOI!< 13 .0007 4.65 '1 .0274 10 .0126 11 .005:3 12 .OOEO 13 .0007 3.70 e> .om IO .013:t 11 .no57 12 .0022 13 .OOOR .1.75 '1 . om1 in .oi41 11 .noen IZ .ooz.i 13 . OOOR 4.m '1 .o:iic) in .014!1 II .006S 12 .oox 13 .OOO~ .4.115 '1 . 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OOO! 3 .0355 4 .006K 5 . 0010 !i . 0001 3 .ORGF 4 ,0071 5 .0011 6 .000! :I .0:37c 4 .ofl7; 5 .flflI2 !> .oooL' 'i . 0sii7 .: -0077 5 ,flOI" 5 . fl(I(12 .1 .03!lR 4 .a080 :i .001:1 ti .000', 3 . 0409 4 .DO03 5 .0014 6 .0002 3, . 0420 .I .0086 5 . 0014 6 ,0002 '$ . 0431 4 .0090 5 .001S 6 . 0002 3 .044:2 4 .00!13 5 . 0016 6 .000? :< . 0454 i . 00!!7 5 . 0017 6 .ooo'? 3 . 0465 4 .OIGO S .0017 6 .0003 3 .0427 4 .0104 5 .0018 6 .oOo:j 3 .048" 4 .0108 5 .001!) 6 . 0003 4 .0111 5 . 0020 6 . 0003 5 .00?1 6 .0003 .92 4 .Ollii c, .OW? 6 .a003 .IJR 4 .a123 > . 0023 6 . 0004 .n4 4 .0!2? 5 .DO24 6 .0003 7 .OOO! , 05 4 . 0132 5 .0025 6 .0004 7 .0001 .R6 4 .0136 5 .OO?F 6 . 0004 7 . 0001 .97 4 ,0140 5 .OG27 6 .0004 7 .0001 .98 4 .0145 5 .OOZR 6 .0005 5 .0001 .!I9 4 .014R 5 .OOZP. 6 .0005 7 ,0001 1.00 4 .0154 5 .0031 G ,0005 7 ,0001 1.02 4 .0163 5 .0033 6 .0006 7 .0001 1.04 4 .0173 5 .0036 6 .0006 7 .0001 1.06 4 .0183 5 .0038 6 .0007 7 .OOOl 1.08 4 .0193 5 .0042 6 .a007 7 ,0001 1.10 4 .0204 5 .0045 6 .0008 7 .0001 1 I e 0 'm SUMMARY Communication Resources Company (CRC) was originally retained the City of Carlsbad in February, 1984, to study and analy telecommunication services throughout the City's facilitie Primary emphasis was placed on long term planning of least cos best service telephone systems. Through the course of the study, interviews were conducted wi key personnel and questionnaires distributed to all telepho users. The results of the initial analysis, as detailed with this report, were that the existing Centrex system is obsolete economical design and operation, and excessive in cost. For th reason, plus the need for increased system flexibility, it h been determined that this sys%em should not be considered for t City . By replacing the existing telephone system with a processor cc trolled digital system with an appropriate quantity of trunk stations, and system features, serving the City operations, a existing communication problem areas would be overcome, equipme cost would be reduced and controlled, and usage costs reduce Therefore, it is recommended that the City proceed with form competitive bidding for complete new telephone services on schedule consi stant with the City calendar . e 0 *m There will be no "sweeping" cnanges operationally. The syst functions will be quite similar to today's with updated enhanc ments, The itemization costs and summary of the savings est mates surfaced through the 2RC studies are previously detail within this report. Ne must stress, these are estimates and wi vary depending on installation of a new system. The total annu impact on the City including a reduction in usage costs, is estimated cost reduction of $19,460. The specified new telephone system, including maintenance a lines, is estimated at $127,917 annually utilizing a 7-year lea purchase , as compared to the existing $147,377 e Additional 1 left unchanged, this existing $147,377 annual rate will contin to increase rapidly, due to telephone company rate increases a surcharges. The recommended new system design will produce savings immediate and throughout the future. Additionally, an exact accounting cost by facility or department will be possible as the new syst is installed and a call dccounting system is implemented. Every effort has been made to communicate this report in laymen terms however, in certain cases it is necessary to use industry I technical terms to describe an item. For this reason we ha! included a glossary of terms in a later section of this repor1 Additionally, several technical documents have been developed sui 0 e 'm as equipment inventories, traffic engineering studies and accou ting sheets which are not included with this report but can made available to staff for future reference. If any questions regarding this analysis should arise plea contact our project manager through Ms. Lee Rautenkranz. -. I a 0 WHAT DIVESTITURE WILL MEAN FOR YOUR BUSINESS IN 1984 'H Called many things, least frequently of all "simple", the break ul of the Bell System (Divestiture) has major impact on many signifi- cant areas of communication for every person in the United States. As a business telephone user, you face decisions and responsibili- ties directly resulting from this divestiture process. This papei will address facts and myth, outline necessary action Cammunicatioi Resources Company strongly recommends and attempt to inform the reader so that divestiture can afford your organization all of the benefits our government has intended. First, a fact; no longer will one company be all things to you ir telecommunications. The phone company will be a utility companj providing a utility (dial tone) such as the other utilities provide gas, water and electricity. This means that each subscriber shall be required to obtain and niai ntai n thei r own telephone systems and equi pment with the uti1 ity providing the line service (dial tone). Most businesses have never found it necessary to pay the level of attention now required to their telephone services. It is now imperative that you know and understand the types of the services 0 0 *H your business operation requires, the available services and pro ducts in the marketplace, and impact of internal (your management and external (regulatory, legislative, etc.) actions affecting you decisions. The majority of benefits, cost savings and satisfaction will accru to the prepared decision maker. The simplest statement applying t this situation will be that you will be buying what you need rathe than what someone wants to sell to you. Those who have not preparec effectively will spend money and time unnecessarily. What exactly will you be buying? Let's examine this question seg ment by segment. EQUIPMENT - (includes inside cabling, wiring, instrumentation consoles y switches and/or common equipment etc .) . Your equi pmenl which is in place right now is either owned by your business, lease( or rented. If you own, lease, or rent your equipment from a vendor other than a utility company it is very likely that you will no1 notice much change in this area. If however your equipment is rented or leased from Pacific Tele- phone, Nevada Bell or other Bell Operating Company (BOC) y your equipment is being transferred to AT & T as a part of divestiture. Your costs and services now protected by regulation of the Public 0 'H Utilities Commission in your state will pass out of these protec tions and AT & T, at their discretion, will determine costs and th services that they will offer. AT & T has publicly stated thei intention to nationalize and stabilize prices for a limited perio of time. For states such as New York with much higher rates thai California and Nevada this could mean reduction in equipment costs For California, which has the lowest telephone rates in the country it most surely will mean cost increases. For AT & T "carry-over" customers, the area of service on embedde equipment is also affected. No longer will you be protected b. subsidization buffers to maintain low maintenance and service costs Labor intensive services will reflect higher costs. This will bc most expensive for older , past state-of-the-art systems whet-( trained service people are at a premium and parts are scarce. I separate billing statement will be rendered by AT & T for thesf services. Other utility company customers and AT & T equipment subscriber: should consider the appropriateness of purchasing their in-pi ace 01 "embedded" equipment when looking at system replacement. _.- USAGE - Your local, message unit, toll and long distance callins needs will be served by a number of providers. Local service will be provided by your current utility company. This is the essence 01 their "utility". A bill will be rendered to you for local service e 0 k [Z] and access to long distance by your utility company. It is gener. ally accepted that the local (intra-state) access charge will bc approximately $3.00 per month for each outside line. For long distance calling you will receive a bill from AT & T for inter-state access and calls placed each month. The access chargc is $6.00 per outside line per month and becomes effective April 3 1984. Also, for long distance service you will have an ever growing number of AT & T competitors to select from. These include major vendor! such as GTE Sprint, MCI, ITT and Western Union; as well as reseller! of these services such as Starnet, Allnet, US Tel , Com Net, TDX etc. LINES - Your trunks and private lines, data channels and alarm cir- cuits will be provided by the local utility. If you have tie lines or off-premises stations, these too would be the domain of the local utility company. These lines would "meet" or "connect" with your telephone equipment at the demarcation point. MOVES AND CHANGES -- - Any changes, additions or reconfigurations to an existing installation fall into this category. Normally they are performed by your maintenance provider, but divestiture will bring many new companies into existence. These companies may also subcon- tract for installation activities. 0 0 *H - MAINTENANCE - Typically the first year's maintenance following z installation is covered by a warranty. Subsequent maintenance 1 either contracted for or provided on a time and materials basis. P the owner of a telephone system this will be an important issue Current utility company subscribers will be notified by their parti cular company as to authorized service center locations and provi ders. MANAGEMENT - One thing should be eminently clear to you by now Management of whatever services you select is imperative. Manage ment means making sure your original decisions remain (or become: good decisions. Education is vital. If you don't know whal external actions, offerings or opportunities might impact your decisions, you'll never successfully take full advantage. Instead, you'll probably become mired down in unnecessary confusion and anxiety. Good management can be provided by in-house personnel or an outside communications advisor. It is interesting to note that in the short-term, it is likely that the interconnect champions who lobbied for deregulation may regret their aggressive actions and persistence in perpetrating the break- up of the Be71 System. Initially, the impact of this separation will cause a major shakedown throughout the Telecommunications Industry, and many of its organizations may be adversely affected by the new direction of AT & T; some may not survive at all. But in the final analysis, the law of supply and demand should prevail, and the market will continue to expand. * 0 -H On the local side, the divested BOC's/telcos are gearing up fo their emergence into the competitive industry. In California an Nevada the new name for the consolidated Pacific Telephone an Nevada Bell Utility Companies is "Pacific Telesis Group". Thi organization has many divisions, most notably the regulated utili ties called Pacific Bell and Nevada Bell, and the direct sale (deregulated) division, and PacTel Communications Systems which wil offer many currently marketed products from a variety of manufac turers. CRC encourages our clients to take advantage of divestiture and tc evaluate their true needs and requirements. We believe there ir much opportunity to improve and reduce costs by acting in a timel; and appropriate fashion. Further, CRC places substantial importanct .on competitive comparison of any and all alternatives. And, as ever, Communication Resources is available to assist you in which- ever way is most appl icabl e to your needs and requi rements. Rev. 11/83 ja Communication Resources Company Communication Resources Company 17155 Newhope Street, Suite N 4966 El Camino Real, Suite 118 Fountain Valley, CA 92708 Los Altos, CA 94022 7 14/546-277 1 415/961-2922 * e e DEFINITION OF TERMS w BUSINESS LINE Outside telephone line which connects directly to a telephone instrument. This type o line cannot be connected directly to a switchboard or "PBX"-type telephone system. CBX A general reference to the main telephone switching equiment which utilizes a "micro or 9-nini~' computer to control switching functions. CBX is the abbreviation fo Computer Bane h Exchange. CENTRU (CTX) A telephone utility company-system which provides direct inward and outward dialing fo telephone system stations. The telephone system switching equipment is usually locate( in the telephone company central office. There are many varieties of the Centre: system uti lizing various state-of-the-art components. DIRECT INWARD DIALING (D.I.D.) A basic facility of Centrex, and available on most other state-of-the-art systems, allow- ing incoming calls from the public telephone network to reach specific stations withoui attendant (operator) intervention or assistance. Allows direct termination of outside lines to stations, bypassing the attendant consoles (switchboards). These lines have the full capability of being transferred to other stations within the system. 0 e EEI EXCHANGE A geographical area within which there is a single, uniform set of charges for telephonl service. Exchange areas are generally given the name of the primary city or communit they include, however, exchange boundaries do not normally conform to city or count boundaries. FOREIGN EXCHANGE SERVICE (FX SERVICE) A trunk or line brought in from a teiephone exchange (city) outside of one's own locc exchange (city). MICROWAVE Radio transmission using very short wave lengths: 30 centimeters or less, correspondin to a frequency of 1,000 megahertz or greater. Utilized for point-topoint sound trans mission over a narrow beam without use of direct wire or cable connections. MULTILINE lELE3'HONE Telephone instruments which are capable of utilizing (terminating) more than one line o a single phone. Generally, the minimum size is a 6-button telephone, capable of up t five lines and a "Hold" button-sizes range up to the 30-button telephone capable of 2 lines and a "Hold" button. Multi-line telephones are equipped with the features of lighte line buttons and the ability to place calls on "Hold" on all lines. (I) 1) PBX General reference to any telephone system which utilizes trunks, stations and a switch board. PBX is the abbreviation for Private Ekanch Exchange. Many variations exist fol this abbreviation such as EPABX (Electronic Private Automatic Branch Exchange), CB> (Computer Branch Exchange), etc. - PRIVATE COMMON CARRIER These are companies, other than telephone utility companies, which offer various ser vices similar to WATS and complete directly with the utility companies. STATION (Statim Lines) The inside, two, three or four digit numbers of your "PBX" telephone system. referred to as station lines or "lines," sometimes inaccurately called "extensions." Alsc mco The abbreviation generally used for the local telephone utility company whose rates and service are governed by the appropriate State Fiegulatory Agency. TIE LINE A direct line between two PBX-type telephone systems which allows the station user of one system to call a station user of another. There are many types of tie lines from basic switchbmrd-to-switchboard tie lines to very sophisticated dial equipment-to-dial equipment tie lines. ,. C e a I m TRUM (Trunk Line) A telephone communication channel ("outside line") from the telephone company central switching office, connected to the subscriber's telephone system (PBX, EPABX, CBX, etc.) and assigned a sevendigit number. For use in placing and receiving all outside telephone calls. Cannot be connected directly to a telephone instrument. USAGE COSTS The charge from the telephone utility company for calls placed through their outside network of lines. These costs are known as 11toII,1' "long distance," "message unit," "local unit," "zone," and "metered" calls. Any one or a Combination of these types of calls incur a form of usage cost which will vary with the quantity of calls placed and the length oi each call. - WATS The abbreviation for Wide Area Telephone Service. This is a service offered by tele phone utility companies which provide calling to a large geographic area at reducec rates. WATS lines are one direction only-incoming or outgoing. Incoming WATS line are preceded by an "800" area code.