TITLE
Recommendation to authorize City Manager to execute a lease-purchase agreement and related financing documents with Banc of America Leasing & Capital, LLC for the financing of personal computers and computer related equipment in an amount not to exceed $2,330,000 including interest, payable over a four-year period. (Citywide)
DISCUSSION
In 1997, the Technology Services Department implemented a plan to replace all Cityowned personal computers (PCs) after three years of use. The three-year replacement cycle was designed to refresh the technology to take advantage of new innovations and to reduce the ongoing support costs associated with the maintenance of older equipment and software.
As part of the replacement program, we began leasing PCs. This financing method allows us to maintain level annual expenditures. Departments are able to spread the acquisition cost over three years, rather than budgeting large one-time capital outlay expenditures.
In an effort to reduce PC related expenditures, the City implemented a program to extend the replacement cycle for PCs from three to four years as a part of the City’s Financial Strategic Plan. This strategy was successful and substantially reduced the number of personal computers purchased and associated costs. In the four-year period ending in Fiscal Year 2006 (FY 06)’ the program will have reduced PC acquisition costs by over $3.3 million, or approximately $840,000 per year when compared to Fiscal Year 2002 costs.
Currently, there are 1,326 City PCs, laptops and servers beyond their replacement cycles. This is slightly more than last year’s need to replace 1,185 computers. The estimated cost to replace 1,326 ,computers is $2,136,913. The equipment will continue to be acquired from Dell Marketing L.P., utilizing Dell Master Purchase Agreement No. 28280.
The Department of Financial Management conducted a bid process to secure the most favorable financing terms for this acquisition. Requests for bids were solici...
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