TITLE
Recommendation to authorize City Manager to execute a lease-purchase agreement and related financing documents with Banc of America Public Capital Corporation for the financing of personal computers, computer-related equipment, and servers in an amount not to exceed $1,260,000 including interest and fees, payable over a four-year period. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager to finance the lease/purchase of personal computers, computer-related equipment and servers through the Banc of America Public Capital Corporation’s Master Lease Agreement that was approved by the City Council on May 10, 2011.
In March 2011, the Department of Financial Management conducted a Request for Proposals (RFP) FM11-031 for a master lease agreement program that provides lease financing for multiple purchases in order to streamline the purchasing and financing process and take advantage of reduced interest rates offered by financial institutions in the purchasing of eligible assets. Lease financing provides a cost-effective approach to facilitate the purchase of essential capital assets to meet immediate service demands. Banc of America Public Capital Corporation was selected.
Over 15 years ago, the Technology and Innovation Department (TI), formerly known as the Technology Services Department, implemented a plan to replace all City-owned personal computers (PCs) after three years of use. The three-year replacement cycle was designed to refresh the technology, to take advantage of the latest innovations and to reduce the ongoing support costs associated with the maintenance of older equipment and software. TI also leveraged lease financing for the replacement program to allow the City to maintain level annual expenditures and enable departments to spread acquisition costs over the term of the financing, rather than budgeting large one-time capital outlay expenditures.
In 2003, to reduce PC-related expenditures, the City ext...
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