Agenda Report
Fullerton City Council
MEETING DATE: JUNE 7, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
FROM: ERIC J. LEVITT, CITY MANAGER
PREPARED BY: ROBERT DUNN, CHIEF OF POLICE
LAUREN PARKHOUSE, ADMINISTRATIVE ANALYST
SUBJECT: TECHNOLOGY LEASE PROGRAM WITH DELL FINANCIAL SERVICES
SUMMARY
City Council consideration of a three-year technology lease with Dell Financial Services (DFS) for replacement of an initial 275 out-of-support computers.
RECOMMENDATION
Approve an agreement and related documents with Dell Financial Services and authorize City Manager, or designee, to execute and administer the agreement and related documents, in a form approved by City Attorney.
BUDGET POLICY PRIORITY STATEMENT
This item matches the following Budget Policy Priority Statement:
Fiscal and Organizational Stability.
Infrastructure and City Assets.
FISCAL IMPACT
The annual lease program costs $141,163 with $423,489 total cost over an initial thirty-six-month (three-year) term before taxes and fees. American Rescue Plan Act (ARPA) allocation obligated by City Council in February 2022 will cover this cost.
DISCUSSION
The City evaluated the proposed technology lease program with Dell to ensure computer equipment throughout the organization continues to have support and remains operational, Staff complet3ed a three-year and ten-year analysis and found that the zero percent financing lease from Dell the lower expenditure for the City. This program has the added benefit of stabilizing the annual cost of computer replacements. This program will ensure that the software and hardware the City utilizes remains compatible with security updates as information technology security has significant ties to software updates and upgrades.
The City operates approximately 600 computers. This lease covers the 275 computers currently out of support. City Council approved use of ARPA for replacement of these computers. The City will bring forth subsequent lease agreements for City Council consideration to move all City computers into this lease program.
The lease program with Dell was sourced through the National Association of State Procurement Officials (NASPO) ValuePoint California cooperative agreement. NASPO ValuePoint facilitates public procurement solicitations using a Lead State model. This allows NASPO ValuePoint to provide competitively sourced cooperative contracts with reduced procurement pricing to public entities. Per City of Fullerton Purchasing Policy 4.1.2 and Fullerton Municipal Code Section 2.64, the City must obtain goods and services consistent with the quality needed for the proper operation of the various departments through the use of quotes and competitive bids whenever possible. As listed in Section IV.D of Purchasing Policy 4.1.2, exceptions to the Open Market Process include when participating in an established governmental Cooperative Purchasing Agreement, such as NASO ValuePoint, since NASPO ValuePoint has already competitively bid the agreement.
Attachments:
Attachment 1 – Dell Financial Services Lease Agreement
Attachment 2 – Dell Financial Services Amendment 1 to Lease Agreement Attachment 3 – Dell Financial Services Warehousing / Redelivery Statement of Work Attachment 4 – Dell Financial Services Government Rider Attachment 5 – City Attorney Approval as to Form
Technology Lease Agreement
June 7, 2022 - Page 2