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Council approves $137,307 networking equipment purchase to complete IT upgrade

December 09, 2025 | Madison Heights, Oakland County, Michigan


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Council approves $137,307 networking equipment purchase to complete IT upgrade
The Madison Heights City Council approved a $137,307.26 purchase to complete phase‑2 of the city’s networking upgrade, authorizing Skynet (the city's IT contractor) to acquire 10 Cisco Catalyst switches, stacking cables, transceivers and a five‑year hardware and licensing renewal.

City staff presented the recommendation and itemized costs in the meeting packet: hardware costs of $68,068; licensing of $54,006.39; and labor of $14,600. Staff said the five‑year licensing payment is due this year and noted that the updated quote expanded the licensing from an originally estimated one‑year term.

Council members asked whether previous switches purchased were leased or bought, and whether the new phase completes replacement of all networking switches. Staff confirmed the new purchase will replace the city’s networking switches (routers tied to the phone system are not included) and said Cisco hardware carries next‑day service coverage under the subscription/licensing approach. The packet lists a one‑year licensing price of $17,409 and a five‑year price of $54,639 for comparison.

After clarification from staff and brief discussion about warranty and licensing terms, council moved, seconded and approved the purchase by voice vote.

Next steps: staff will process the Skynet purchase, install the equipment to replace the city’s aging switches and monitor the transition to the new hardware and licensing schedule.

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