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�1.1 <br />City of <br />Pequott <br />Lakes— <br />AGENDA ITEM #12.1 <br />REPORT TO <br />CITY COUNCIL <br />Date: July 5, 2011 <br />Subject: Phone System <br />Report: At the last Council meeting, staff informed the <br />Council that TDS has introduced a new Managed IP Phone <br />system to the City. The Council's response to Staff s <br />request to pursue looking into this system was as follows: <br />"The Council indicated that if the City will benefit from the new system and <br />there is not a cost increase, staff should pursue working with TDS on the <br />Managed IP System." <br />Staff has received a proposal from TDS for this new phone <br />system. There is no doubt that the City would benefit from <br />moving to a new phone system. There are many benefits <br />which are listed in the letter to Nancy Malecha from TDS. <br />However, the City would incur a cost increase from the <br />previous system. The City currently pays $739.14 per <br />month for phone service with TDS. The new system would <br />cost $1,044.43 per month for the first 36 months as this <br />would include the cost of the equipment, and $950.38 per <br />month after 36 months. This amounts to an increase of <br />