HomeMy WebLinkAbout4/2/2014 - STAFF REPORTS - 2.M. QpLM Sp
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<IFOR City Council Staff Report
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DATE: April 2, 2014 CONSENT AGENDA
SUBJECT: APPROVE A FIVE-YEAR LEASE/PURCHASE AGREEMENT WITH DELL
COMPUTER COMPANY TO LEASE 100 DESKTOP COMPUTERS
INCLUDING SOFTWARE FOR THE POLICE DEPARTMENT
FROM: David H. Ready, City Manager
BY: Police and Administrative Departments
SUMMARY
The City Council will consider a five-year lease/purchase agreement with Dell
Computer, LLC for the lease of 100 desktop computers, including all software, in the
amount of $33,789.39 per year, for a five-year total amount of$154,983.00.
RECOMMENDATION:
1. Approve a five-year lease/purchase with Dell Computer Company, LLC, to lease
100 desktop computers, including all software, in the amount of $33,789.39 per
year, and a total amount of$154,983.00 for the five-year term..
2. Authorize the City Manager to execute all necessary documents, subject to final
review and approval by the City Attorney.
STAFF ANALYSIS:
The City Manager and Police Chief are recommending the replacement of all the
current desktop computers in the Police Department. Replacing all computers at once,
with a Departmental standard, will provide a uniform consistency within the Police
Department. The Police Department currently has equipment of different ages and
types.
The City has standardized the computer equipment across all City departments and
functions with Dell. The authorized standardization of equipment, as allowed pursuant
to Palm Springs Municipal Code Section 7.05.040, facilitates continuity, training, and
ongoing operations in emergencies.
Therefore staff is continuing this standardization on the Dell brand in the best interest of
the City. As such, rather than acquire the computer equipment through third party
providers the City is taking advantage of going directly to the manufacturer and
acquiring the new equipment via the National Authorized Cooperative Purchasing
Agreement WN99ABZ through the Western States Contracting Alliance (WSCA) of
which the City is a participating member agency.
ITEM NO. _� -
City Council Staff Report
April 2, 2014 -- Page 2
Computer Lease Agreement
Pursuant to Palm Springs Municipal Code Section 7.09.010, the City Council is
authorized to approve such acquisition methods as the cost is likely to be less through
the cooperative purchase method due to economies of scale than what could be
achieved through an independent solicitation.
More often, private and government agencies are using a lease-purchase mechanism to
replace computer equipment; much like copier and duplicating equipment, which
enables the City to replace a large number of computers at a single transaction, which
may not be feasible due to the initial capital cost. This is the first time the City has
presented such a lease/purchase model for computers, and Administrative Staff will be
evaluating the model for further replacements of a variety of computers all past their
useful and/or functional life.
The functional life of a desktop computer is now approximately five years. A five-year
lease/purchase provides scheduled replacement of the computer at the end of its
functional life. However, should future replacement not be obtainable at the end of the
five-year period, the City may purchase the computers for $1,00.
FISCAL IMPACT:
The cost per year is $33,789.39, and the total amount for the five-year contact is
$154,983.00. The funds for the annual payment for all five-years are available via the
annual Supplemental Law Enforcement Services Grant (SLESA) from the State of
California.
There is no impact to the City General Fund, no General Fund appropriations will be
used for the lease/purchase.
Alberto Franz J Omes Thompson
Police Chief of Staff/City Clerk
David H. Ready
City Manager
Attachment:
Dell Financial Services Lease Proposal
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pf�►4G Financial Services
DELL FINANCIAL SERVICES LEASE PROPOSAL
City of Palm Springs,California
March 27,2014
LEASE PROGRAM: Tax-Exempt Lease Purchase
Total Payment Lease Term Lease Rate Lease Payments
Dell Quote# Equipment Unit Price Oty. Financed Frequency (months) Factor (Advance)
Amount*
672980750 VLA OFFICE PRO PLUS $ 334.90 100 $ 33,490.00 Annual in 60 0.21802 $ 7,301 49
2013 Advance
OptiPlex 9020 Mini Tower $ 1,183.61 100 $ 118,361.00 Annual in 60 0.21802 $ 25,805.07
Advance
672979991
AX510 black Sound Bar $ 31.32 100 $ 3,132.00 Annual In 64 0.21802 $ 682.84
for UltraShary Flat Panel Advance
$ 154.983.00 $ 33,789.39
LESSEE: City of Palm Springs,California
LESSOR: Dell Financial Services LLC,and/or its successors and assigns.
$1 PURCHASE OPTION
END OF LEASE OPTIONS:
Options available to lessee upon completion of the base lease tens are as follows:
1)Purchase the equipment for$1.
2)Return the equipment to the lessor at the lessee's expense
LEASE QUOTE: The Lease Quote is exclusive of shipping costs,maintenance fees,filing fees,licensing fees,property or use taxes,insurance
premiums and similar items which shall be for Lessee's account. Lessee will pay Payments and all other amounts without set-off,abatement or
reduction for any reason whatsoever. Additionally,Lessee shall declare and pay all sales,use and personal property taxes to the appropriate taxing
authorities.If you are sales tax exempt,please fax a copy of your Exemption Certificate with the Lease Contract.
PURCHASE ORDER: The Purchase Order will be made out to Dell Financial Services,One Dell Way,RR8 Box 23,Round Rock,TX 78682. The
Purchase Order will include the quote number,quantity and description of the equipment. Please be sure to indicate that the PO is for a lease order
and shows the type of lease,the term length,and payment frequency. The date of the lease quote referenced should be included. Please be sure to
include any applicable shipping casts as a line item. Please include your address as the SHIP TO destination.
INSURANCE: The risk of loss on the Equipment is borne solely by the Lessee. Lessee shall be required to purchase and maintain during the Term(i)
comprehensive public liability insurance naming Lessor as additional insured;(ii)"all-risk"physical damage insurance in a minimum amount of the
Purchase Price,naming Lessor as first loss payee;and,(III)workmen's compensation insurance.
APPROPRIATION COVENANT:The Lease shall contain an appropriation of funds clause.The Lessee will covenant that it shall do all things legally
within its power to obtain and maintain funds from which the payments may be paid and Lessee will not give priority or parity in the application of funds
to any functionally similar equipment.
DOCUMENTATION: Duly executed Agreement and other appropriate documents,including,opinions of counsel,UCC financing statements,audited
financials and such other documentation as is reasonably requested by Lessor.
PROPOSAL VALIDITYIAPPROVALS:This is a proposal based upon market mndkions and Is valid for 45 days,is subject to final credit approval,
review of the economics of the transaction,and execution of mutually acceptable documentation.
Andre D.Williams-Inside Sales Account Management,Public
Dell Financial Services LLC
Office-512-7284037
Fax-512-283-9361
Andre Q Williams(@dell.COm
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