Phone system bid causes row

Jefferson County Administrator Robert F. Hagemann III's job is being threatened by a county legislator who alleges the county's chief executive is rushing to buy a $1 million phone system that local companies couldn't bid on.

Mr. Hagemann defended the bid process, saying the county was pressed between its deadline and a desire to give the current phone vendor a chance to respond.

The phone bid saga started in the fall

The phone bid saga started in the fall, when the county Department of Employment & Training moved from the campus of Jefferson Community College, Watertown, to the former Redwood National Bank, 1000 Coffeen St.

The county had already begun looking at ways to improve the 28-year-old phone system through the ad hoc technology committee, which Mr. Gray chaired. But a Voice over Internet Protocol phone system, like the Cisco system, was only one of several options considered.

The beginning of the year

During ad hoc efficiency committee discussions at the beginning of the year, Mr. Hudson said that moving to a VOIP system county-wide would cost more than $200,000 per year.

In the spring, the county took the phone system out to bid, and many vendors came to a walk-through of the system. The system covers all county buildings.

He said while "we are always sensitive to local vendors and local businesses," this is one of the very few instances" when the services being sought can't be provided locally.

The final analysis of the phone system cost

The final analysis of the phone system cost, completed Thursday after pressure from Mr. Gray and questions from the Times, was held up while the county's current phone vendor challenged the bid figures, he said.

CREG Systems Corp., Watertown, which installed the system in 1982, updated it in 1992 and has maintained it all along, said it could provide all of the features of a VOIP system without the huge capital outlay.

The bid was $926,131 for the phones, switch and other equipment. Phone service would be $28,800 for local and regional calling through Time Warner and $5,000 for long distance, according to figures from county administration.

The county said the maintenance cost for the current system was $53,779 in 2009. Mr. Allen said his services ran beyond phone service maintenance, which ran $35,387.

Mr. Gray said he talked to a Time Warner representative, who said there was no proposal for phone service at $28,800 and the cost would depend on how much it is used.

In total, the county staff said the county now spends $242,245 per year on the phone system. With the new system, it would spend $954,931 in the first year, followed by $84,374 in the following years, except every third, when it would spend $117,117 for licensing fees.

Eventually, the VOIP system could lead to other savings, including no cell phones in sheriff's department vehicles — deputies could use their computers instead.

Mr. Hagemann defended the bid process, saying the county was pressed between its deadline and a desire to give the current phone vendor a chance to respond.

The phone bid saga started in the fall

The phone bid saga started in the fall, when the county Department of Employment & Training moved from the campus of Jefferson Community College, Watertown, to the former Redwood National Bank, 1000 Coffeen St.

The county had already begun looking at ways to improve the 28-year-old phone system through the ad hoc technology committee, which Mr. Gray chaired. But a Voice over Internet Protocol phone system, like the Cisco system, was only one of several options considered.

The beginning of the year

During ad hoc efficiency committee discussions at the beginning of the year, Mr. Hudson said that moving to a VOIP system county-wide would cost more than $200,000 per year.

In the spring, the county took the phone system out to bid, and many vendors came to a walk-through of the system. The system covers all county buildings.

He said while "we are always sensitive to local vendors and local businesses," this is one of the very few instances" when the services being sought can't be provided locally.

The final analysis of the phone system cost

The final analysis of the phone system cost, completed Thursday after pressure from Mr. Gray and questions from the Times, was held up while the county's current phone vendor challenged the bid figures, he said.

CREG Systems Corp., Watertown, which installed the system in 1982, updated it in 1992 and has maintained it all along, said it could provide all of the features of a VOIP system without the huge capital outlay.

The bid was $926,131 for the phones, switch and other equipment. Phone service would be $28,800 for local and regional calling through Time Warner and $5,000 for long distance, according to figures from county administration.

The county said the maintenance cost for the current system was $53,779 in 2009. Mr. Allen said his services ran beyond phone service maintenance, which ran $35,387.

Mr. Gray said he talked to a Time Warner representative, who said there was no proposal for phone service at $28,800 and the cost would depend on how much it is used.

In total, the county staff said the county now spends $242,245 per year on the phone system. With the new system, it would spend $954,931 in the first year, followed by $84,374 in the following years, except every third, when it would spend $117,117 for licensing fees.

Eventually, the VOIP system could lead to other savings, including no cell phones in sheriff's department vehicles — deputies could use their computers instead.