SUBJECT/RECOMMENDATION:
Title
Authorize equipment leases with Hewlett-Packard Financial Services Company, of Murray Hill, NJ, for desktop, laptop, and tablet computers in an amount not to exceed $1,350,000 in accordance with City Code of Ordinances Section 2.564 (1)(b) Intergovernmental Purchases, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City has leased computers for over ten years. The benefits of leasing include operational savings for asset acquisition, maintenance, improved efficiency in user support and asset management, improved security for City systems and network, and improved performance for system users.
There are approximately 1,300 desktops and 500 laptop/tablet computers within the City. The City’s computers are upgraded on a three-year cycle, changing out approximately 1/3 of the equipment annually. Each lease agreement is for a three-year term and covers one-third of all equipment.
All lease terms and conditions are established in State of Florida Contract No. 43211500-WSCA-15-ACS. The Contract is available to piggyback in accordance with City Code of Ordinances Section 2.564 (1)(b) Intergovernmental Purchasing. Shipping costs are included in the contract as well as end-of-life disposition of the equipment.
The State Contract includes a value-added enhancement - the Self-Maintainer Program - which enables City staff to be trained at no additional costs. Trained staff functions as Hewlett-Packard certified technicians to expedite diagnostic and resolution actions. Hewlett- Packard tracks and reimburses for these services for every 15 minutes of work performed.
On an annual basis, the maximum cumulative costs for existing leases (prior authorization by Council) and each new lease is $450,000.
Quarterly payments are budgeted in the Information Technology annual operating budget. Costs are prorated to all departments based upon their respective computer counts through the Administrative Services fund chargeback for Information Technology services.
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 555-09862-544500, Computer Equipment Rental, to fund this contract.