HomeMy WebLinkAboutStaff Report 3.B 11/17/2014DATE: Nov. 17, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Tim Williamsen, IT Manager 'w /
SUBJECT: Resolution Authorizing City Manager to Sign Lease Documents for Replacement
Computer Workstations
RECOMMENDATION
It is recommended that the City Council approve the attached Resolution Authorizing the City
Manager to Execute the Purchase Order and Lease, Maintenance and Other Documents
Necessary for Computer Workstation Replacements from Sterling Computers and Dell Financial
Services in a Five Year Lease Amount Not to Exceed $98,000.
BACKGROUND
The Fiscal Year 2014-2015 Budget includes a CIP item for workstation replacement. Council
approved orders of 90 workstations for this CIP item in Fall 2013 and 65 in May 2014. There
remain, unreplaced, some units that were placed into service as far back as 2005 and 2006. Prior
to 2008 the City had leased computers manufactured by Dell. The old systems lack features
found in more modern systems, such as the ability to support Windows 7 and future operating
system versions. Further, the old workstations lack the ability to be controlled for energy
efficiency and to support recent software. As well, vendor maintenance contracts are no longer
available and replacement parts are not readily available. Workstation maintenance is
problematic, failures have increased, and workstation slowness has at times become a barrier to
timely completion of work.
Many workstations installed throughout City offices have reached the end of manufacturer
support, thus repair response and normal updates are no longer available for many models
currently in service at the City.
DISCUSSION
Most of the existing workstations were acquired under a Dell Master Lease Agreement initiated
in 3005. The master lease allows the City to acquire workstations and other products from Dell.
Among Information Technology goals included in the 2014-2015 budget is a goal to complete
replacement of the final 1/3 of the workstations in service. While the first 1/3 for fiscal year
2013-2014 has been placed, as well as an additional 65 in the Police Department in May 2014.
IT needs to place a final order of 90 units for fiscal year 2014-2015. A critical role of the IT
Division is to ensure continued operations of desktop and enterprise computing functions.
Replacement of workstations allows achievement of that goal.
A quote was obtained from Sterling Computers for delivery of 90 Dell Optiplex desktops and
operating system installation, via Dell Finance. The equipment was formally bid and pricing
obtained through the National Cooperative Purchasing Alliance (NCPA) contract, number
NCPA01-01. In accordance with City Municipal Code 4.04.100, the City may purchase goods
and services that have been already bid and awarded by other public agencies. The alternative is
purchasing via the Dell Premier program, or through full retail, alternatives that offer less
favorable pricing than the NCPA price. The obtained pricing benefits the City in that the cost
per desktop unit is less than the Dell Premier program; it includes basic software installation not
available in the Premier program, saving the City over 100 hours in staff labor; and, the proposed
acquisition includes 5 -year maintenance, shipping, sales tax and recycling of shipping materials.
The technical standard for computer workstations was established in 2005. That standard was
and continues to be the Dell Optiplex desktops. At the time, it was determined these provided
the greatest functionality, flexibility, ease of maintenance and compatibility with existing
systems. That standard has continued since 2005 and staff believes savings in employee training
and technician labor will continue.
Utilizing the existing Dell Master Lease Agreement, which was approved by the City Council in
2005, the City can add the proposed acquisition as a schedule by submitting a purchase order and
completing related information forms. The leasing quote is included as Attachment 2. To
distribute the costs over the 5 -year life of the equipment, staff recommends a lease. The full cost
of the project has been anticipated and can be supported in the IT fund budget. The annual lease
expense is less than $19,600.
Implementation of this proposed project will result in reduced risk of computer workstation
functionality losses, as the new hardware will be supported by the manufacturer for the duration
of the lease. Also, implementation of this proposed project will complete a full cycle of
workstation replacements. The workstation replacement CIP effort will then be complete one
year ahead of schedule.
FINANCIAL IMPACTS
Total project costs, including hardware, software, installation, training and five years
maintenance, lease expense and sales tax is not to exceed $98,000. Lease payments will be not
more than $19,600/year, corresponding to 4.26%. The total, 5 -year leased cost is less than
$98,000. Funding is in place within the IT budget. fiord 7300. The effort is also identified in the
CIP as project E73501401.
ATTACHMENTS
Resolution Authorizing the City Manager to Sign Equipment Lease and Maintenance
Agreement Documents for Computer Workstation Replacement
Dell Financing Services lease quote.
ATTACHMENT 1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE ORDER,
AND LEASE, MAINTENANCE AND OTHER DOCUMENTS NECESSARY FOR
COMPUTER WORKSTATION REPLACEMENTS FROM STERLING COMPUTERS
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WHEREAS, the City of Petaluma utilizes a functioning, well integrated computer
network system for the performance of all business and administrative functions; and
WHEREAS, the existing system is comprised of and depends upon well-functioning
computer workstations; and
WHEREAS, some of the existing workstations are no longer supported by the
manufacturer for these purposes; and
WHEREAS, the continued use of computer workstations is necessary to accomplish
administrative and business functions; and
WHEREAS, the acquisition of replacement computer workstations is funded in the
Information Technology budget; and
WHEREAS, the existing City standard for computer workstations is Dell; and
WHEREAS, cooperative purchasing requirements of the Petaluma Municipal Code,
section 4.04.100 allow for the acquisition under cooperative purchasing agreements; and
WHEREAS, the acquisition of replacement computer workstations from STERLING
Computers is by a cooperative purchasing agreement through National Cooperative Purchasing
Alliance, contract #NCPA01-01.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
The City Council authorizes the City Manager to execute the lease, maintenance and
other documents necessary for Dell computer desktop replacements in an amount not
to exceed $98,000.
- T -77r1 -u Wwu� v h,4-,
® Prepared For. City of Petaluma, California
Tim Wllliarnsen
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Imtlter detall wish you If you have any questions, please contact nro at the phony number or email addn:ss below con:al,aahon monthly
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Quote Number I Summary Product Description {P.oduct pdtu'@"mmy1 ErtenacLn
pae I as••0vIvr S
Pnvmenit
$TCFit.IIJG Qh I Deli Opnflrv. :'92,0 59250 s1) L25090,0 ' S18,096.89
Cf PETAWh1A (90.?201a1 lax 5566394 t S3,44a.61
TOTALS - 569,913.94 - S19,545A5
iecember 9, 2014R�1viS_
December 9, 2014
Per¢onat property Trials (PPT} do not apply to this tense,
I easing and finannng lb,,al e by Dail Fei al Ser:m e, L t C vb ns adil"he or dcsrgaee {'DPS'} to queidred custon'crs Oners may not be avadaoe or may
varymr;ertamcountnes Where avaAabie.olk:rs may be changed wlfhouc lrcn¢em'rtl are subled to prorL¢t avmlabi0ly, uedd approval, enenrhon of
documentabon Provided by and accIduales to DFS. and may be subject to nummum traosactron vac filters not available for pdrsonal, famay or household
rise Dell a,d the Deli logo are gademah's of Cell Inr Pmposat is P!opertyof DPS, contains cont denhai information and shall not be nuplicaled or disclosed
In whoh: or Earl Proposal is not a fnru lrn
oiler of ancrng Eric g and rates based upon dra final amount, t.onOgulah(Dn and sPcnOcauon of thr: ott phod
ea.pilcm, soi xae:ce s Or lees None" payment +.. ay he nue m the first payment :vale. P!rpoyai �'As!rrbv atldaa;^ai cc.sis to cmto'ba, su_h s5
shipping, mamtcnance. filing lees apptrcabe taxes, insurance and similar Items Proposal valid tbrnugh the erpaan,h dale strewn above, or If ,one Is
specified, for 30 calendar dry, from dote of presentahon
End of Term Options:
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. aec mas Pay f.,:L f� re[]m er ere ra:a �c ^+c•!n:e
Tiffany Collins
(incudal Snub r, Repamntauvc
flab I Fa i's l Svamec
cq¢w 151` 7.'s 72 -
rifle Collins@Dell.com
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