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Marion approves $93,125 VoIP system to cut phone bills; council hears failover, licensing details

Marion City Council · June 10, 2025
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Summary

Council approved a $93,124.96 contract with KB Business Technologies to migrate city landlines to a Mitel voice‑over‑IP system, with staff estimating monthly savings of about $6,000 and a roughly 15‑month payback; the plan includes failover to analog lines for 911 continuity and licensing/support considerations.

The Marion City Council voted to approve KB Business Technologies’ proposal to migrate the city’s copper phone system to an IP‑based Mitel Voice‑over‑IP system at an upfront cost of $93,124.96, to be paid from the capital replacement fund.

Mayor Absher framed the decision around long‑term savings and continuity. "So you do an easy math of saving $6,000 a month, it will take us about 15 months to break even," he said, adding that the migration also offers failover protection so calls will route to analog lines if the Internet is lost.

Staff said the city pays roughly $7,000–$8,000 per month on existing copper/long‑distance charges and that VoIP would reduce recurring costs to about $1,138 per month. The council discussed software‑license elements (voice‑mail/mailbox licensing and software assurance) and support plans; staff said those were already accounted for in current service relationships and that the city would retain an appropriate support arrangement after migration.

Council members asked about 911 service continuity and were told the implementation will be coordinated with the county system to avoid downtime. The system purchase includes hardware, routers and handsets; the city will own the equipment rather than rent it, staff said, allowing future elimination of analog lines (fax, elevator lines, etc.) and further savings.

The council approved the contract by roll call. The motion directs staff to proceed with procurement and schedule the installation with minimal interruption to emergency services.