Administrative
Report
H.10., File # 23-6257 Meeting Date: 7/18/2023
To: MAYOR AND CITY COUNCIL
From: MICHAEL COOK, INFORMATION TECHNOLOGY DIRECTOR
TITLE
APPROVE A FOUR-YEAR LEASE AGREEMENT WITH DELL MARKETING L.P. FOR DELL
COMPUTER WORKSTATIONS, LAPTOPS, AND PERIPHERAL EQUIPMENT FOR AN AMOUNT NOT TO EXCEED $562,998.40 FOR THE TERM AUGUST 1, 2023 THROUGH JULY 31, 2027
EXECUTIVE SUMMARY
This will be the seventh desktop workstation equipment refresh approved by the City Council since 2001, when the City started the desktop computer refresh program. The City’s current all-in-one desktop-style computers are beyond their projected end-of-life and are beginning to show their age with increased rates of failure and increasingly poor performance. The citywide deployment of only desktop-style computers reduces staff mobility and encourages the continued use of printed documents at meetings, at customer service counters, and in the field. The upcoming lease with Dell will include desktop and laptop computers, with docking stations, that will be equipped with considerably more processing power than current models. The equipment refresh also includes replacement monitors, dual displays for certain positions to enhance productivity, and uninterruptible power supply units wherever desktop computers are necessary.
BACKGROUND
The desktop computer refresh project is part of the scheduled Information Technology (IT) work plan for FY 2023-24 and is funded from the IT operational budget. The project fits within the IT Department’s strategy of supporting the organization technologically as part of a continued effort to increase the productivity of employees and support the effective delivery of services to the public.
Like the IT equipment replacement program, these technological refreshes provide an opportunity for the Department to plan for, and move, the City to next generation technology while at the same time increasing the efficient operation and resiliency of the organization.
This year’s refresh prioritizes laptop computers equipped with docking stations as the primary computer issued to staff. This considerable change will allow staff to have access to their work computer and files from meeting rooms, at home, and when on the go while still having the benefits of full-sized monitors, keyboards, and a mouse at their desks. The Latitude Laptops specified feature touchscreen displays, have the same computing power as their desktop equivalents, and include 4- years of Dell ProSupport Plus Warranty with Accidental Damage Protection.
For staff who share computers or service a public counter, the proposed Dell Optiplex Micro is a business class, all-in-one computer that will help to de-clutter staff workspaces, run more efficiently and possess faster processors and enhanced memory. This will allow staff to run newer, more demanding applications that are becoming a fixture in our modernized technology ecosystem. The
H.10., File # 23-6257 Meeting Date: 7/18/2023
demanding applications that are becoming a fixture in our modernized technology ecosystem. The new computers come with a 4-year ProSupport Plus warranty, multimedia display with camera, microphone, and speakers and a dedicated uninterrupted power supplies (UPS). This makes them agile and stable tools for City staff.
The equipment refresh also includes a limited number of secondary monitors, wireless keyboard/mouse combos and high-power Precision desktop computers for locations with advanced CAD, Graphics, and 3D Rendering needs. All devices are Energy Star 6.1 certified and the secondary monitors include at least 25% post-consumer waste product.
The larger scope of the desktop refresh includes an upgrade to Windows 11, an increased level of integration with Office 365, a reduction in cost moving to Microsoft endpoint protection, hard disk encryption for all devices, identity management upgrades, and end-user management upgrades.
The scope of the refresh includes professional services to apply configuration templates, asset tags and deploy images (custom software configuration set to the City’s specifications) to all systems in preparation for deployment.
Purchasing Vehicle
Dell provides discounts to government agencies through National Association State Purchasing Officers (NASPO), a multi-state cooperative. The primary purpose of NASPO is to establish the means by which participating states may join together in cooperative multi-state contracting in order to achieve cost-effective and efficient acquisition of quality products and services. In order to obtain the lowest cost for the Dell equipment and services, the City will participate in the Dell Master Price Agreement.
COORDINATION
Information Technology staff worked directly with Dell to specify equipment and structure the lease, which will be coordinated between the Information Technology Department, Financial Services Department, and Dell. The lease documents have been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
The FY 2023-24 cost of $140,749.60 (first of four annual payments) for the Dell computer equipment will be paid from the FY 2023-24 IT Department Internal Service Fund and is included in the IT Department adopted FY 2023-24 annual operational budget. Future lease costs will be budgeted for in their respective fiscal years. Equipment costs reflect anywhere between a 32% to 64% discount off of list price.
The 4-year Dell True Lease (fair market value) is the most cost-effective Dell lease option at this time.
The City can return the computer equipment to Dell at the end of the lease, or purchase the equipment at fair market value. The cost of the four-year lease (including $551,480 for equipment and interest) is $562,998.40.
Quantity Item 4-Year Total
106 Latitude 5540 Laptops $129,920
50 Latitude 5440 Laptops $60,950
233 Optiplex Desktops $201,545
5 Optiplex Upgraded Desktops $5,800
16 Precision Desktops $25,600
16 Compact Keyboards and Mice $560
H.10., File # 23-6257 Meeting Date: 7/18/2023
Quantity Item 4-Year Total
106 Latitude 5540 Laptops $129,920
50 Latitude 5440 Laptops $60,950
233 Optiplex Desktops $201,545
5 Optiplex Upgraded Desktops $5,800
16 Precision Desktops $25,600
16 Compact Keyboards and Mice $560
88 Secondary Monitors $16,720
151 Primary Monitors for Laptops $40,015
226 Primary Monitors for Desktops $49,720
146 Keyboards and Mice $5,110
254 UPS’s for Desktops $15,540
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Dell 4-Year Lease Agreement
· Lease Schedule
· Agmt - Dell Financial Services Master Lease Agreement #6458532, March 19, 2009 · Agmt - Dell Financial Services Master Lease Agreement Amendment #2, December 7, 2011 · Agmt - Dell Marketing L.P. NASPO Master Agreement #MNWNC-108, February 1, 2023 · Agmt - Dell Marketing L.P. California Participating Addendum #7-15-70-34-003, October 1, 2015
· Insurance - Dell Technologies, Inc.