Agenda Item #12.1
For Council Meeting of: January 25, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: KRISTIE BARTLETT, IT MANAGER
INFORMATION TECHNOLOGY DEPARTMENT
SUBJECT: ADDITIONAL FUNDING FOR THE CONTINUED PURCHASE
OF COMPUTER AND SERVER EQUIPMENT FROM
DELL MARKETING, L.P.
AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Information Technology Department that the Council, by resolution, approve additional funding for the purchase of Dell computer and server equipment through the National Association of State Procurement Officials (NASPO) cooperative purchase agreement under the Minnesota WSCA-NASPO Master Agreement Award with Dell Marketing, L.P. No. MNWNC-108 and California Participating Addendum No. 7-15-70-34-003, in the amount of $451,358.79 through the period ending as of the current termination date of the NASPO Agreement and California Participating Addendum or as it may be extended through July 31, 2022, for a total not to exceed amount of $3,016,358.79.
EXECUTIVE SUMMARY
This resolution is to request additional funding for ongoing purchases of computers (PCs, laptops, tablets), monitors and servers from Dell Marketing, L.P. The City has designed a selection, purchasing and deployment process optimized for efficiency and cost management for the purchase replacement of approximately 2,000 PCs, laptops and tablets and servers for city staff use. The increase in cost is due to several factors, including the increase in cost of PC hardware, the purchase of additional public safety projects, EOC (Emergency Operations Center), the Covid-19 pandemic, and other departmental projects requiring servers and PC equipment not originally estimated to procure under this agreement. The City is also continuously adding applications that require additional server resources.
BACKGROUND
On June 20, 2017, Council approved a resolution to authorize the purchase of computer equipment with Dell Marketing, L.P. using the NASPO cooperative purchase agreement between the State of Minnesota and Dell Marketing, L.P. and the California Participating Addendum No. 7-15-70-34-003 between the State of California and Dell Marketing, L.P. in the amount of $1,500,000 for a 5-year period, ending June 30, 2022. Annually, the IT Department budgets funds for the PC Replacement (PCR) Program, which is designed to capture the cost of future replacement of PCs on 5-year basis. The cost of computer replacement has risen in the past 3 years due to increase in hardware costs. The IT Department also purchases equipment for other departments which is not part of the PC Replacement Program and was not considered at the time of the original estimates. Additionally, due to the increased equipment needs for staff working hybrid schedules/remotely from their homes, the City has had to increase its spending.
On November 5, 2019, Council approved of adding additional funds in the amount of $965,000, for a total not-to-exceed amount of $2,465,000.
On April 22, 2021, the City Manager approved of adding $100,000 additional funds, for a new total of $2,565,000.
PRIOR CITY COUNCIL REVIEW
On June 20, 2017, the Council, by Resolution No. RES-2017-120, approved the purchase of Dell hardware through the NASPO cooperative purchase agreement and the California Participating Addendum, for the amount of $1,500,000 for a 5-year period.
On November 5, 2019, the Council, by Resolution No. RES-2019-161, approved of adding additional funds in the amount of $965,000, for a new total of $2,465,000.
ANALYSIS
The original analysis in 2017 of the purchase of Dell computer equipment was based on the replacement of the City’s 1800 PCs within a five-year period. That original budget was set at approximately $300,000 per year. Due to increases in costs, and additional hardware and server needs, that cost is averaging $493,000 per year. An additional $100K average spend is due to increases in PC hardware costs, adding additional equipment, laptops, monitors and tablets to the PC Replacement Program. $80K per year is due to server replacements and adding new servers. The other miscellaneous increase is due to departmental projects not foreseen in the original estimated spending.
FISCAL IMPACT
Annually, the IT Department budgets funds for the PC Replacement (PCR) Program, which is designed to capture the cost of future replacement of PCs on a 5-year basis. Computer purchases from Dell are included in the PCR budget. Other departmental projects requiring additional PC’s, servers, monitors and Dell equipment are budgeted through the departments’ operating budgets as needed.
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Attachment 1 – Minnesota WSCA-NASPO Master Agreement Award with Dell Marketing, L.P., Contract No. MNWNC-108 (NASPO cooperative agreement) Attachment 2 – Amendment Nos. 1, 2 and 3 to Contract No. MNWNC-108, extending through July 31, 2022 Attachment 3 – California Participating Addendum No. 7-15-70-34-003 Resolution
CONTACT
Kristie Bartlett
IT Manager
[email protected]
707-543-3104
PURCHASE OF COMPUTERS THROUGH DELL, INC
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