IRON MOUNTAIN — A new phone system for all departments in the city of Iron Mountain will carry an initial cost estimated at $12,000, but the investment might be recouped in four years through savings in monthly charges.

The city council Monday approved a ClearlyIP VoIP phone system proposal from Guide Star of Iron Mountain. The new cloud-based system will replace an on-premise PBX system that comes with hardware and maintenance needs, City Manager Jordan Stanchina said. The hardware has reached the end of its life and needs to be replaced, he told the council.

Moving to the ClearlyIP system would eliminate the need for local hardware and mostly eliminate the maintenance costs, Stanchina said. Guidestar’s quote sets the cost for new phones and installation at $12,001, while the annual savings on the service contract could be $2,400 to $3,000.

The upgrade is made possible by the city’s switch to a dedicated fiber line through Peninsula Fiber, which provides direct internet access for all city departments.

Stanchina said he expects the new phone system to be “a lot more functional” and “a lot more convenient.” The final cost of the upgrade will depend on the plan chosen.

In other action, the council:

— Heard Stanchina report he told first-term U.S. Sen. Elissa Slotkin, D-Mich., of concerns over adequate funding for U.S. Department of Agriculture Rural Development programs that assist municipalities. Slotkin met with local officials Feb. 22 during the Pine Mountain ski jumping tournament. In particular, grant funding that assists communities with squad car purchases has been unavailable. The agency is also relied upon to administer grants or low-interest loans for infrastructure needs.

— Amended its administrative sick leave policies to comply with changes signed into law by Gov. Gretchen Whitmer on Feb. 21. Changes in city policies had previously been approved Feb. 17 to comply with Michigan’s Earned Sick Time Act, with the expectation that revisions might be forthcoming. Stanchina noted part-time employees will still earn one hour for every 30 worked to a maximum of 72 hours of accumulated sick time. They would not be eligible to use sick leave in the first 120 days of work.

— During citizens’ time, heard Mark Pilette speak in support of continuing to have a deer pen at City Park. The city is researching the cost of castrating all the male deer as a means of phasing out the current 24-member herd.

— Learned that Mountain View Ice Arena Inc. is reviewing its bylaws in advance of a proposed renewal of a 10-year lease with the city. The city leases the Mountain View Ice Arena property to the non-profit organization, which is responsible for use and maintenance. There is a nominal $1 annual fee. The council tabled the renewal Feb. 17 after Tim Jaska, president of the Dickinson Area Hockey Association, raised questions about the arena’s operations and board structure.

— Renewed a contract for pest control services in the police and fire building with Guardian Pest Solutions of Superior, Wis., at annual cost of $900, up from $850.

Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.