ITEM 4. 23
CITY MANAGER' S REPORT
JUNE 08, 2026 CITY COUNCIL REGULAR MEETING
ITEM:
RECOMMENDATION:
RATIFY EQUIPMENT PURCHASE WITH ALLIED
NETWORK SOLUTIONS, INC. FOR DESKTOP
COMPUTERS
Adopt a Resolution to Ratify the Purchase with
Allied Network Solutions Inc. for Desktop
Computers
SUMMARY:
The Information Systems Department ( ISD) has recently experienced an unusual and accelerated rate of desktop computer failures across multiple departments. This level of failure is not typical and has materially depleted the City' s inventory of spare equipment, thereby constraining the City' s ability to promptly replace critical systems and maintain uninterrupted operations. A significant portion of the affected devices are beyond warranty and at the end of their useful Iifecycle, increasing the likelihood of continued failures, extended downtime, and escalating maintenance inefficiencies.
The depletion of the spare equipment pool introduced an immediate operational risk, particularly for departments that rely on continuous system availability to deliver essential public services. Without adequate replacement capacity, the City faced increased exposure to service disruptions, reduced staff productivity, and delayed response times for both routine and critical functions.
In response to these conditions, ISD proceeded with the purchase of thirty ( 30) replacement desktop computers to restore baseline equipment availability, and reestablish a minimum spare inventory necessary for continuity of operations and emergency response readiness.
Because public disclosure of detailed hardware specifications could create avoidable cybersecurity risk, the specific technical configuration of the desktop computers is not being publicly disclosed. Disclosure of this information could provide threat actors with insights into the City' s technology environment, potentially increasing the likelihood of targeted exploitation. Accordingly, staff recommends limiting public disclosure of equipment details to protect the integrity, confidentiality, and security of the City' s information systems.
Staff requested quotes from fifteen ( 15) vendors and received the lowest quote from Allied Network Solutions, Inc. in the amount of $ 132, 60.3. Sufficient funding for this expenditure was included in the adopted Biennial Budget for Fiscal Year 2025-
26. Given the immediate and compounding operational risks associated with widespread equipment failures, combined with the absence of sufficient replacement inventory, the City Manager approved the purchase in advance of City Council consideration to mitigate service disruption risk and maintain continuity of operations.
CITY MANAGER' S REPORT PAGE 2
JUNE 08, 2026 CITY COUNCIL REGULAR MEETING
RATIFY EQUIPMENT PURCHASE WITH ALLIED NETWORK SOLUTIONS INC.
FOR DESKTOP COMPUTERS
Staff is requesting that the City Council ratify the purchase of thirty ( 30) desktop computers. This request is further supported by current market conditions, as technology equipment costs continue to increase due to inflationary pressures and supply chain constraints. Deferring procurement under these conditions would likely result in higher replacement costs and prolonged exposure to operational risk.
Additionally, the restoration of an adequate spare equipment inventory is a critical internal control necessary to sustain service levels, support emergency replacements, and reduce the risk of extended system outages across City departments.
Maintaining current, supported, and reliable technology is fundamental to the City' s operational continuity, cybersecurity posture, and enterprise risk management framework. Timely replacement of failing equipment and re- establishment of adequate spare capacity reduces vulnerability to system failures, supports compliance with security best practices, and ensures the City can continue to deliver essential services without disruption.
BACKGROUND:
The Information Systems Department ( ISD) is responsible for lifecycle management of the City' s desktop computing environment to ensure systems remain reliable, secure, and capable of supporting ongoing municipal operations. While ISD conducts routine evaluations of equipment condition and performance, the City recently experienced unprecedent and accelerated increase in desktop computer failures across multiple departments. This surge in failures exceeded normal expectations and significantly reduced the City' s available spare equipment inventory.
The depletion of spare devices created an immediate operational vulnerability, limiting ISD' sability to respond to system failures in a timely manner and increasing the risk of prolonged downtime for staff. Several of the affected systems were beyond warranty and at or near the end of their expected service life, resulting in increased failure frequency and reduced reliability. As failures accumulated, the City' sability to maintain continuity of operations and support essential services was increasingly constrained.
In addition to reliability concerns, aging equipment introduces elevated operational risk due to inconsistent performance, longer recovery times, and reduced efficiency in supporting current business applications. Continued reliance on such equipment places strain on support resources and increases the likelihood of service disruptions affecting City staff and operations.
Given the combination of increased failure rates, diminished spare inventory, market conditions and heightened operational risk, ISD determined that immediate replacement of affected equipment was necessary to stabilize the computing environment. ISD therefore proceeded with the purchase of thirty ( 30) desktop computers to restore system reliability, reestablish a baseline spare inventory, and ensure departments can continue to operate without disruption. The replacement CITY MANAGER' S REPORT PAGE 3
JUNE 08, 2026 CITY COUNCIL REGULAR MEETING
RATIFY EQUIPMENT PURCHASE WITH ALLIED NETWORK SOLUTIONS INC.
FOR DESKTOP COMPUTERS
Due to the immediate operational and cybersecurity concerns associated with retaining outdated and unsupported desktop computers in service, the City Manager approved the purchase prior to City Council consideration. Staff is therefore bringing this item forward for City Council ratification to formally approve the purchase and document the replacement of essential end - of -life equipment.
REASON FOR RECOMMENDATION:
To ensure compliance with the requirements of the Department of Homeland Security DHS) and the Department of Justice ( DOJ), enhance the City' s security posture, maintain security insurance coverage, and potentially reduce insurance premiums.
FISCAL IMPACT:
Sufficient funds for this item were allocated in the budget as approved by the City Council in the biennial budget for Fiscal Year 25-6.
ATTACHMENTS:
A. Resolution of the City Council of the City of Lathrop to Ratify the Equipment Purchase with Allied Network Solutions Inc. for Desktop Computers.
B. Redacted PO # 2026- 00000700 with Allied Network Solutions, Inc. for the Equipment Purchase of Desktop Computers
CITY MANAGER' SREPORT PAGE 4
JUNE 08, 2026 CITY COUNCIL REGULAR MEETING
RATIFY EQUIPMENT PURCHASE WITH ALLIED NETWORK SOLUTIONS INC.
FOR DESKTOP COMPUTERS
APPROVALS:
ony Fernandes Date
Information Systems Director
Cari Ja ' s
Finance P rector
4, 01
eresa Vargas l/ Date
Director of Government Services/ City Clerk
ft ---
s// zcb. 24
Date
td, 31, 4
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
Step en J. Salvatore
City Manager
CO' 4• t.
Date
RESOLUTION NO. 26 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO RATIFY EQUIPMENT PURCHASE WITH ALLIED NETWORK SOLUTIONS INC. FOR
DESKTOP COMPUTERS
WHEREAS, the Information Systems Department ( ISD) is responsible for Iifecycle management of the City' s desktop computing environment to ensure systems remain reliable, secure, and capable of supporting ongoing municipal operations; and
WHEREAS, the combination of increased failure rates, diminished spare inventory, market conditions and heightened operational risk, ISD determined that immediate replacement of affected equipment was necessary to stabilize the computing environment; and
WHEREAS, the City Manager approved the purchase in advance of City Council consideration to mitigate service disruption risk and maintain continuity of operations; and
WHEREAS, staff requested quotes from fifteen ( 15) vendors and received the lowest quote from Allied Network Solutions, Inc. in the amount of $ 132, 60.3; and WHEREAS, sufficient funding for this expenditure was included in the adopted Biennial Budget for Fiscal Year 2025-6; and
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby ratify the purchase with Allied Network Solutions, Inc. for desktop computers in the amount of $ 132, 60.3.
The foregoing resolution was passed and adopted this 8th day of June, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Docusign Envelope ID: 70A4C185- 0D2E- 86C3-285- B0F7462E8529 The parties to this agreement
are:
Vendor No. 2819
Allied Network Solutions, Inc.
D
5718 Lonetree Blvd
oROCKLIN, CA 95765
03 390 Towne Centre Dr
Ei Lathrop, CA 95330
I
O
CA 390 Towne Centre Dr
F. Lathrop, CA 95330
Attachment B
Purchase Order
No. 2026- 00000700
Date 5/ 4/ 2026
Resolution
PURCHASE ORDER NUMBER MUST
APPEAR ON ALL INVOICES, SHIPPERS, BILL
OF LADING AND CORRESPONDENCE
DELIVER BY
SHIP VIA
FREIGHT TERMS
PAGE 1 of 3
ORIGINATOR Emily Malay
c; II:. tITil r l : ti l l [ El
30. 00
1. 00
EACH
EACH Tax
4, 065.000
10, 670.300
The contractor agrees to furnish all labor, equipment and materials necessary to perform the services describe herein and agrees to comply with the terms and conditions identified below which are made a part hereof by this reference ( Outline exact detail what is to be done, where is to be done and include work specifications, if applicable.)
CSigned
by
rt, Y s
5/ 2026
w1U1P4 U..
CITY OF LATHROP
RECOMMENDED FOR APPROVAL DATE APPROVED BY
spn. ay:
3041 a . Mir4ItC.
121, 950. 0
10, 670.3
132, 60.3
5/ 4/ 2026
VENDOR ( Signature)
CITY OF LATHROP
APPROVED BY DATE
Special Instructions
Jordan Miracle
DATE
5/ 4/ 2026
VENDOR ( Print Name)
APPROVED BY DATE
This Document was Redacted
Due to Cybersecurity Provisions
Docusign Envelope ID: 70MC185- 0D2E- 86C3-285- B0F7462E8529
STANDARD PURCHASE ORDER
TERMS AND CONDITIONS
1. ACCEPTANCE. Acceptance of this Purchase Order. whether by written acknowledgement or by performance by Sella. shall be upon the teams and conditions hereof, no other tams or conditions shall be binding an Buyer unless written approval thereof specifically refining. to such other tams and conditions shall haw been given to Seller.
INVOICES_ Separate invoice shall be supplied for each Purchase Order shipment. Each invoice shall be itemized and shall show Contract Number, tams, discounts. date of shipment or service dates. and Purchase Order Number. Failure to show said items may result in delay of payment with all rights reserved, inchrding ash discount'. The Vendor name on this Purchase Order retuned from a quotation signed in the same name. Payment will not be made to a firm name other than that shown on the face hereof without written assignment.
3. PAYMENT TERMS. Sella shall receive payment either by One- Titae payment ( Lamp Sum). Mordhly or Quarterly ITEMIZED INVOICE. All payments are in anent'.
4. ORDER CHANGES_ The Buyer shall have the right from time to time by written notices to make changes in quantities andfor delivery dates of any article, material, or services coveted by this Purchase Order prior to the time the item or items ate actually placed into final production by the Seller. If such changes we made alter the article. material, or unitesites are placed into final production by the Seller and such changes cause a substantial increase or decease in Seller' s performance will be made and this order will be modified in writing accordingly, provided that any claim for adjustment matt be asserted by the Seller within a ! escapable time (in no caw to exceed twenty days) after the change is ordered
5. SHIPPING. Seller will indicate plainly the Purchase Order Number on all bills of lading. all goods shipped pursuant to said order. and on all invoices, freight bills, and packages. Each package must contain a memorandum showing Seller' s name. contents of package. and Purchase Order Number.
Shipments of goods specified on this Purchase Older number should result m lowest possible freight rate unless otherwise specified by Buhr. Penalties or increased charges due to faihre to observe this provision will be charged so Seller.
Shipping costs for goods on back order shall be paid only at the rate which would have been applicable bad the complete order been shipped at one time. All excess costs shall be borne by Seller. Partial shipments ntust be identified as such on shipping memoranda and invoices.
When shipping. Seller will make no declaration of value to retried. except where shipment is subject to released value ratings.
Any materials supplied to City which are covered by the OSHA Hazard Commtmrcation Standard must be accompanied by the applicable Material Safety Data Sheet (MSDS) at the time of delivery.
6. DELIVERY. Unless otherwise expressly provided, Seller shall deliver all articles to Buyer' s premises. free of all freight handling. transportation, drayage. boxing and similar charges. All times in this contract are of the essence.
7. TERMINATION. Buyer may terminate all or part of this contract with or without cause If buyer teammates without cause. then Buyer shall pay all reasonable termination charges Moused by Seller.
S. DECLINE IN PRICES. Buyer shall be protected in the event of elechnit prices on the undelivered portion of this Pm -char Order If prices decline got items ordered Seller may elect to meet priced reductions or other vendors. or is own lower prices to other purchasers. but ifSeller should refuse to do so, Buyer shall haw the right to cancel any orall of the balance dot on this Purchase Order without cost to Buyer.
9. FORCE MAJEURE. Nether Seller am Buyer shall be liable for noopet£ ormance due to causes beyond reasonable control. Where only a part of Seller' scapacity to perform is excused under this paragraph. Seller must allocated production and deliveries among the various customers then wider contract for similar goods dining the period The allocation must be made in a fair and equitable manner. Where either Seller or Buys claims an excuse for nonperformance under this paragraph, it matt gate notice in writing to the other party_ Seller shall not be obligated to sell, nor Buyer obligated to purchase, at a later date. that portion of the goods that Seller is unable to deliver or Buyer is unable to receive or use due to guy excused reuse. No goods we to be tendered by Seller after the expiration of the terms specified in this Purchase Order without consent ofBuyer.
10. WARRANTY. Seller wayrants that all articles and services covered by this Purchase Order will camfoam to dtawipgs. specifications. or samples and will be merchantable sal of good material, design and wodcmapship. free from an defects. and suitable for the use intended.
All articles will be subject to Buyer' sinspection and rejection at the place of delivery. Deflective articles may be returned to the Seller for full credit or replacement at the Seller' srisk and expense. including trmsportation charges both ways. but no defective articles shall be replaced without formal replacement order signed by the Buyer.
11. ASSIGNMENT. Neither party shall assign or transfer this Purchase Order without the written consent of the other.
12. INDEMNITY. SELLER W. RRA VTS THAT GOODS FURNISHED UNDER THIS PLTRCHASE ORDER DO NOT INFRINGE ANY PATENT. TR• 1DElLUi&, OR TRADE MME, OR COPYRIGHT AND AGREES TO I DEI NDY AND SAVE HARIs LESS BUYER OR ITS NINDEES FROM Y AND ALL CL1I! dS, SLITS, LLIBILITIES, DAMAGES, LOSSES, OR EXPENSES INCURRED BY BUYER OR ITS VENDEES BY REASON OF ANI ALLEGED INv' FRLNGE. M NI OF ANY SUCH RIGHTS.
Docusign Envelope ID: 70A4C185- 0D2E- 86C3-285- B0F7462E8529 PAGE 3 OF 3
SELLERFR SHALL MIDEILNIFY AND HOLD HARhLESS BUYER AND ITS AGENTS AND EMPLOYEES FROM AN AGAINST ALL CLAIMS, DAMAGES, LOSSES AND EXPENSES. INCLUDING ATTORNEY' SFEES, ARISING OUT OF OR
RESULTLNG FROM THE PERFORMANCE OF THE WORE CAUSED BY ANY NEGLIGENT ACT OR OMISSION OF SELLER, ANY SUBCONTRACTOR, OR ANYONE FOR WHOSE ACTS ANY OF THEM MAY BE LIABLE. LN CASE OF CONCURRING FAULT, EACH PARTY SHALL BEAR ITS SHARE OF THE LOSS.
13. BUYER' SPROPERTY. Any properly of Buyer in Seller' s active or constructive possession or custody hereunder will be at Seller' s nsk. and Seller agrees to reimburse Buyer for any loss or damage to such property however caused.
14. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. By acceptance hereof, Seller Warrants:
a) that all goods, merchandise, and materials delivered and services rendered hereunder will have been produced and provided in compliance with all requirements of the Fair Labor Standards Act of 1938. as amended and b) that all goods, materials, and equipment delivered hereunder shall comply with the applicable federal standards prescnbed by the Occupatiamal Safety and Health Act of 1970, or as amended. c) that Seller will comply with all applicable laws, rules and repletion of fed al, state and local gov anmarts and agencies. thereof including but not limited to Executive Orders 11246. 11701. and section 503 of Public Law 93- 112. The Rehabilitation Act of 1973. the provisions of The Americans and Disabilities Act, Transient Employer Law ( 285.30 IL S Mo. et seq.) and Excessive Unemployment Lw ( Section 290. 550 et seq R. S. Mo.) which are hereby incorporated by reference. unless this Purchase Order is exempt pursuant to said Executive Orders. or Acts and the regulations issued thereunder.
15. WORKER' SCOMPENSATION, EMPLOYER' SLIABILITY. AND C LFRAL LIABILITY. When work is performed on Buyer' s premises. Seller agrees to carry at Seller' sown expense a) Worker' sCompensation and Employer' sliability Insurance. b) General liability ( including Contactual Liability and Products LiabtlityCooapkted Operations) Insurance and Auto Liability insurance each in amamts no less than $ 1. 000,00 per occurrence. Insurance certificates of such coverage shall be submitted to City Utilities' Risk Mmagement upon request ofBuyer.
16. LNSOLVENCY. If Seller shall became insolvent file a petition in bankruptcy. or shall make an assignment for the benefit of creditors. or if a receiver or trustee shall be appoinsed of or for any of Seller' s property or business, the Purchase Order may be cancelled at Buyer' s option without liability.
17. TAXES. Seller agrees to cooperate with Buyer in opposing the imposition of any tax on any article covered by this Purchase Order. the legality of which is questioned by Buyer, and in securing any abatement or any refund thereof sought by Buyer.
18. FOREIGN SHIPMENTS. Foreign shipments must be preceded by execution of formal Consular Invoice. At time of shipment. Ocean Bills ofLading, Consular Invoice, and Commercial Invoices. in triplicate, shall be forwarded directly to the Purchasing Agent issuing this Purchase Order.
19. VENUE. This Purchase Order shall be governed by the law of the State ofCalifornia.
20. BRANDLNG. Seller warrants that all materials covered by this Purchase Order are no altered or misbranded within the meaning of the Federal Food, Drug and Cosmetic Act; not an article with may not , under provisions of Section 404 or 505 of said act. be introduced into interstate commerce. and not adulterated or misbranded within the meaning of the pure food and drug laws or the ordinances of any state or city which are applicable to such shipment or delivery. and Seller hereby agrees to indemnify and save the Buyer harmless from and against all claims. charges. action and proceedings brought against Buyer by any lawerl government authority or by any pawn on account of any alleged adulteration or misbranding by Seller of any such material referred to above. Seller does no guarantee against any such material becoming adulterated or misbranded after delivery to Buyer by reason of causes beyond Seller' scontrol
21. CONFLICTING TERMS. In case of a conflict between these terms and conditions and those of a separate written contract signed by both Buyer and Seller, the written contract shall prevail.
22. REVIEW OF RECORDS. During the term ofthe purchase order/ agreement and for three years thereafter. City of Lathrop ( City) shall have the right to review Seller' srecords, only for the purposes of verifying claims for payment and compliance with the tams and conditions of the purchase order? agreement for at least three years after final payment.
23. OFFSETTING BILLS. City reserves the right to apply offsetting payments for goods and/ or services that are due against delinquent utility bills which me due City.
24. NON- EXCLUSIVE AGREEMENT The purchase order is a non- exclusive contract and City reserves the right to purchase same or like materials and/ or services from other sources as City deans necessary and appropnate.
Docusi. Envelope ID: 7CA4C185- 0D2E- 86C3-2:5- 80F7462E8529 r7lf' 1 NF' t1( Ir Si) li;! 7ia; S
Allied Network Solutions, Inc.
5718 Lonetree Blvd.
Rocklin, CA 95765
Phone: 916- 774- 2670
Fax: 916- 774- 2654
FEIN# 68- 0480187
QUOTE
QUOTE #:
Date: 04/ 21/026
DVBE Certlfication# 24852
CA Seller Permits SR KH 97-02196
Prepared For:
City of Lathrop
Ship To:
City of Lathrop
Prepared By:
Co') tract Number Pay ncnt Terms FOB valid Through
NET 30 Destination, Freight PPD 05/ 21/026
P. irt Number N. n ofact_ irer Q Un t Price Evte! (led
Product Descript on
30 $ 4, 065.0 $ 121, 950. 0 Y
SubTotal $ 121, 960. 0
Sales Tax 0.8750 $ 10, 670.3
Shipping $ 0.0
TOTAL S1. 32. 620,3
Thank you for the o, portunity to provide this quote. Quoted prices assume dock -to -dock delivery. Additional charges may apply for inside delivery. liftgate truck. etc. Please advise your sales rep if special delivery is required Please reference quote number in the upper right- hand corner on any purchase order resulting from this quote. Prices quoted are contingent upon contract award of all items. Manufacturer' sreturn policy applies to all items. Return of items may require a restocking fee.
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