Agenda Report
Fullerton City Council
MEETING DATE: AUGUST 15, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ROBERT DUNN, CHIEF OF POLICE
PREPARED BY: LAUREN PARKHOUSE, SENIOR ADMINISTRATIVE ANALYST SUBJECT: LEASE AGREEMENT WITH DELL FINANCIAL SERVICES TECHNOLOGY FOR TECHNOLOGY REPLACEMENTS
SUMMARY
Approval to replace 75 additional out-of-support computers through the technology lease program with Dell Financial Services (DFS).
RECOMMENDATION
Approve Dell Technologies quote to amend the Dell Financial Services Agreement to add 75 computers to the technology lease and authorize City Manager, or designee, to issue a change order and execute and administer the amendment and related documents, in a form approved by the City Attorney.
Approve Amendment Number Six to the Professional Services Agreement with Glass Box Technology, Inc. dated July 1, 2022 for services to manage and deploy the additional 75 personal computers.
Approve $119,134 budget appropriation from IT Fund balance to IT Fund operating budget (Fund 68).
CITY MANAGER REMARKS
None.
BUDGET POLICY PRIORITY STATEMENT
This item matches the following Budget Policy Priority Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The annual cost of adding 75 personal computer (PC) replacements to the lease program equals $32,050 ($34,534 including tax) with the total $96,150 cost before taxes over an initial thirty-six-month (three-year). Amendment No. 6 to the Glass Box support agreement to deploy the additional 75 PCs would cost $84,600, making the total Year One lease and deployment costs $119,134 for the additional 75 PCs. IT Fund (Fund 68) has available fund balance from FY 2022-23 savings to cover the Year One cost. Staff requests a budget appropriation from IT fund balance for the additional costs.
DISCUSSION
City Council approved a three-year agreement with Dell Financial Services on June 7, 2022 to replace 275 out-of-support computers. The City evaluated the proposed technology lease program with Dell to ensure computer equipment throughout the organization continues to operate with support. This program would stabilize the annual cost of computer replacement and ensure that software and hardware the City utilizes remains compatible with security updates, as information technology security is significantly tied to software updates and upgrades.
The City operates approximately 500 computers. The current technology lease agreement with DFS covers 275 of those PCs. This updated DFS lease amendment would add an additional 75 computers currently out of support to the current City lease. The City initiates lease amendments by approving Dell Technologies quotes and issuing a purchase or change order followed by Dell Financial Services and the City executing an amendment to the lease agreement. The City will present subsequent lease amendments and budget requests for City Council consideration as the City moves computers into this lease program.
The National Association of State Procurement Officials (NASPO) ValuePoint California cooperative agreement sourced the lease program with Dell. 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. City of Fullerton Purchasing Policy 4.1.2 and Fullerton Municipal Code Section 2.64 require the City to obtain goods and services with the quality needed for the proper operation of the various departments through the use of quotes and competitive bids whenever possible. Section IV.D of Purchasing Policy 4.1.2 lists exceptions to the Open Market Process including when participating in an established governmental Cooperative Purchasing Agreement, such as NASPO ValuePoint, since NASPO HAS already competitively bid the agreement.
Attachments:
Attachment 1 – Dell Financial Services Lease Quote
Attachment 2 – Glass Box Technology, Inc. 2022 PSA Amendment Number Six cc: City Manager Eric J. Levitt
DFS Technology Lease Agreement
August 15, 2023 - Page 2