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City IT contractor details $316,992 in long‑term savings after network overhaul
Summary
MacroConnect reported to council that moving leased network equipment into city ownership and consolidating telecom lines yielded about $316,992 in net savings over a seven‑year term and an estimated $53,200 in annual telecom savings from AT&T consolidations, offset by roughly $323,000 in upfront equipment and licensing costs.
Micah Schllef of MacroConnect briefed the council on an IT consolidation that officials say will reduce long‑term costs and increase network capacity. He described a two‑part effort: purchasing formerly leased network equipment and consolidating legacy telecom lines.
"We realized ... it made more financial sense really for the city to purchase and invest in its own network infrastructure," Micah Schllef said, outlining the move away from an equipment‑lease arrangement with Everstream. Schllef reported a net savings figure of $316,992 over a seven‑year term after calculating equipment licensing and installation costs.
He also described an AT&T review that eliminated unnecessary legacy lines and upgraded out‑of‑contract services, which Schllef said yielded roughly $53,000 a year in recurring savings and upgraded the city hall backup connection from 10 Mbps to 100 Mbps.
Schllef said the city incurred approximately $323,000 in capital costs for licensing and hardware but will benefit from reduced ongoing licensing and telecom fees and improved resiliency. Council members asked about possible future phases and whether additional licensing across departments could provide further savings; staff said ongoing review of software and licensing would be part of phase‑three efforts.
There was no formal vote associated with the presentation; council thanked the presenter and discussed next steps for broader licensing reviews.
