| | | | | | | |
CITY COUNCIL AGENDA COMMUNICATION |
|
| | | | | | | | | AGENDA DATE: | February 13, 2018 |
|
| | | | | | | | | SUBJECT: |
Authorize the City Manager to Execute a Four (4) Year Lease Agreement with Dell Financial Services for Computer Equipment in the Total Principal and Interest Amount of $218,675. |
|
| | | | | | | | | STAFF RESOURCE: | Eric Matthews, Information Technology Director
|
Eric Matthews, Information Technology Director
Eric Cannon, Chief Financial Officer
|
|
Eric Matthews, Information Technology Director
Eric Cannon, Chief Financial Officer
|
|
|
| | | | | | | | | BOARD / COMMISSION ACTION: | City Council Approved a Five (5) Year Technology Strategic Plan in the 2006-2007 Budget. Council then Approved the Second and Subsequent Five (5) Year Technology Strategic Plan in Spring 2012. Both Strategic Plans recommended the establishment and continuation of a lease program for computer replacements. |
|
| | | | | | | | | ACTION PROPOSED: |
Authorize the City Manager to Execute a Four (4) Year Lease Agreement with Dell Financial Services for Computer Equipment in the Total Principal and Interest Amount of $218,675. |
|
| | | | | | | | BACKGROUND
In 2006, the City developed a Five-Year Strategic Plan for Technology. As part of that plan, it was determined that staff needed to establish a lease program for computer replacements. This has benefitted the City by providing a mechanism to budget more consistently for computers and has rotated our desktop and notebook computers, keeping the City more current with industry standards.
This lease will include the replacement of approximately 178 computers for the following departments/divisions:
- Convention & Visitors Bureau
- Allen Events Center
- Engineering (Inspections)
- Parks & Recreation (Service Center)
- Community Services (Utility Billing, Service Center and Pump Station)
- Police
The proposed lease agreement with Dell Financial Services utilizes state contract pricing through the State of Texas Department of Information Resources (DIR). The total cost of $218,674.20 over the four year lease term includes $200,162.50 for the cost of the equipment plus $10,691 for service costs such as the imaging of hard drives, delivery, set-up, and removal of and wiping of machines at the lease term, with the remaining balance being the interest on the lease. An option to purchase the equipment at the end of the lease term in the 49th month is available for a final payment in the amount of $8,006.50. Alternatively, the equipment can be returned at the end of the 48th month with entry into a lease for new hardware.
|
| | | | | | | | BUDGETARY IMPACT
The lease of computer equipment is included in the annual Information Technology Department operating budget. The average annual lease payment of $54,668.55 is consistent on a per-unit basis with previous computer hardware lease agreements.
|
| | | | | | | | STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to execute a four year lease agreement with Dell Financial Services for computer equipment in the total principal and interest amount of $218,675.
|
| | | | | | | | MOTION
I make a motion to authorize the City Manager to execute a four year lease agreement with Dell Financial Services for computer equipment in the total principal and interest amount of $218,675.
|
|