TITLE
Recommendation to authorize City Manager to execute a lease-purchase agreement and related financing documents under the Master Lease Agreement with SunTrust Leasing Corporation for the financing of personal computers and computer related equipment in an amount not to exceed $1,374,000, 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 to enhance workforce productivity and to reduce the ongoing support costs associated with the maintenance of older equipment and software.
As part of the replacement program, the City began leasing PCs. This financing method allows the City to maintain level annual expenditures. Departments were 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 five-year period ending in Fiscal Year 2007 (FY 07), the program will have reduced PC acquisition costs by over $4,000,000 or approximately $800,000 per year when compared to Fiscal Year 2002 costs.
In July 2007, the City Council authorized the City to enter into a Master Lease Agreement with SunTrust Leasing Corporation for financing of such items as computers and computer related equipment. The proposed financing provides the resources to replace those machines that have reached the end of the four-year replacement cycle, in addition to new computers and servers to meet City business needs. In Fiscal Year 2008 (FY 08), the Cit...
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