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Cabarrus County Findings and Recommendations Report In the estimated ten-year cost numbers below, we have included the cost of the annual maintenance contract in order to provide you an appraisal of the estimated long-term telephone equipment costs. Actual maintenance contract costs are based on the system configuration. Vendors are very flexible in the development of various maintenance arrangements and offer various types of programs. For the purposes of this analysis, we have used the normal 8:00am to 5:00pm, five-day week, business day plus coverage that each vendor offered. Cabarrus County may wish to utilize a different maintenance program (i.e., 24 hours/seven day week, etc.), which would affect the actual maintenance costs. CTC has offered the County a unique maintenance plan. Mitel has offered CTC a five (5) year warranty on their equipment. CTC then has proposed to the County two-year full parts and labor warranty, rather than the one-year offered by the other two vendors. Then in years three through five, CTC will only charge for labor, at a rate orS1.00 per month per port, or $1,849 per month. ESTIMATED TEN YEAR COST One of the most important selection criteria of any telephone system is cost. Since this system should last at least ten years, we believe it is important to consider the long-term cost of each system in addition to the purchase price. The following table indicates the cost estimates we used to calculate this ten-year cost. The monthly cost of lines and monthly service costs from the telephone company are not included. ISSUE Purchase Price Recommended Maintenance Ten Years Options Years 2-10 CTC $478,891.39 $48,571.00 $343,914.00 $871,376.39 ALT Communications $759,780.00 $5,669.00 $1,136,502.00 $1,901,956.00 Sprint $816,489.29 $27,212.73 $620,244.00 $1,463,946.02 The purchase price reflects the proposed base system costs that have been adjusted in an effort to provide a like comparison. The Recommended Options shown are two "optional" components, LIPS and System Administration. We recommend both of these options because they provide the County with significant benefits. An explanation of both options is included in a following section of this report. CTC offers an option that would allow the PBX itself to direct calls, rather than using the voice mail system. Two cards with three ports per card, cost $1,400 each, would eliminate the problem of tying up all of the voice mails ports every morning with calls for Building Inspectors. This additional $2,800 cost has been added to the CTC Recommended Options. These cost estimates assume the entire system with only the options mentioned above, and with no growth from the proposed configuration as noted above. It should be noted that maintenance prices will be reduced with any reductions in the configurations proposed. Any other additions to the system would also increase the maintenance cost. LEASE OPTIONS © 2000, RSMMcGladrey, Inc. ~' I 0 Page 5