3 Resolution Authorizing the Acting City Manager to Prepare and Enter into a Lease with Hewlett-Packard for Computers, Monitors, and Associated Hardware/Software and Authorizing the Use of Mid-Valley IT to Install the Equipment and Software.

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Meeting Date: May 16, 2017

STAFF REPORT

AGENDA ITEM: Resolution Authorizing the Acting to City Manager to Prepare and Enter into a Lease with Hewlett-Packard for Computers, Monitors, and Associated Hardware/Software and Authorizing the use of Mid-Valley IT to Install the Equipment and Software.

MEETING DATE:  May 16,2017

PREPARED BY:  Ruben Chavez, Acting City Manager

REVIEWED BY:  Jose M. Sanchez, City Attorney

RECOMMENDATION:

Staff recommends that the City Council authorize the Acting City Manager to prepare and execute a lease with Hewlett-Packard, in a form approved by the City Attorney, for thirty two (32) computers, thirty eight (38) monitors, and associated hardware/software to replace the desktop computers used by all City employees for the day to day operations, in the amount of $38,214.00 and authorizing the use of Mid­ Valley IT to install the equipment and software for the amount of $4,000.

BACKGROUND:

The City of Livingston has reached the end of life usefulness for the computers used by all employees. The desktop computers, monitors, and associated software/hardware are all at least five (5) years old including the computers confiscated and used by the City in 2012 during an Internet Cafe/Casino investigation. The performance issues associated with aging computers have increased dramatically over the last six months and as a result, the City’s Information Technology (IT) Contractor Mid Valley IT was contacted and requested to provide quotes for both computer replacement and computer lease options.

DISCUSSION:

In today’s IT world, computers generally age out after five years. The City has at least 32 desk top computers and 38 monitors which are older than 5 years. Each day, issues arise and work tickets are submitted to resolve the issues. On several occasions, this has resulted in a loss of productivity for city staff that must either alter work schedules or be relegated to other duties. The City has requested the IT provider, Mid Valley IT, to provide both purchase and lease options for the City. There were three separate quotes provided for both purchase and lease.

The computers quoted were either Dell or Hewlett-Packard (HP). Mid Valley IT strongly recommended the HP product as being superior and having better customer service in resolving issues. This recommendation was consistent with other IT professionals. The City then needed to analyze the costs and other benefits associated with a purchase versus a lease option. The costs may be about equal with the quotes submitted, if there is a difference, it is minimal. There are four main benefits to the lease option.

The first is that the computers are kept up to date meaning that if any performance issues or problems arise; the company may simply replace the leased item. Secondly, there are minimal up-front costs as the expenses will be spread out over the time period. The monthly charges will be easily budgeted as the costs known allowing for better cash flow. Lastly, at the end of a lease, the contract can be easily renewed or the company will assist in removal and there will be no need for a surplus council item to be brought forth for approval.

After reviewing the quotes from three separate companies for both purchase and lease, the City recommends the lease option with Hewlett-Packard for the 36 months.

FISCAL IMPACT:

The costs for the lease would be allocated in percentage from each department’s budget line time 4304, “Computer Support Agreements”. The amount will vary dependent upon the number of computers the department leases though this option. There are some computers that are covered by other funding sources such as the PSAP 9-1-1 residual fund that covers all of dispatch. The final costs for the HP lease option for 36 months will be $38,214.00. This amount does not include the installation charge of $4,000.00 by Mid-Valley for this additional project.

ATTACHMENTS:

I. Resolution No. 2017-

1. Dell Direct Purchase – $49,991.68

2. HP Purchase Southern Computer Warehouse – $45,934.50

3. HP Direct Purchase – $47,492.56

4. CDWG purchase – $49,309.64

5. HP 36 month Lease Option – $38,214.00 not including $4,000.00 installation expense

6. Mid Valley IT installation – $4,000.00

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RESOLUTION NO. 2017

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE ACTING CITY MANAGER TO PREPARE AND EXECUTE A LEASE AGREEMENT WITH HEWLETT-PACKARD FOR THIRTY TWO (32) COMPUTERS, THIRTY EIGHT (38) MONITORS AND ASSOCIATED HARDWARE/SOFTWARE AND AUTHORIZING THE USE OF MID-VALLEY IT TO INSTALL THE EQUIPMENT AND SOFTWARE

WHEREAS, the City of Livingston has reached the end of life usefulness for the computers used by all employees; and

WHEREAS, the performance issues associated with aging computers have increased dramatically over the last six months and as a result, the City’s Information Technology (IT) Contractor Mid Valley IT was contacted and requested to provide quotes for both computer replacement and computer lease options; and

WHEREAS, in today’s IT world, computers generally age out after five years. The City has at least 32 desk top computers and 38 monitors which are older than 5 years. Each day, issues arise and work tickets are submitted to resolve the issues. On several occasions, this has resulted in a loss of productivity for city staff that must either alter work schedules or be relegated to other duties; and

WHEREAS, the City has requested the IT provider, Mid Valley IT, to provide both purchase and lease options for the City. There were three separate quotes provided for both purchase and lease; and

WHEREAS, the computers quoted were either Dell or Hewlett-Packard (HP). Mid Valley IT strongly recommended the HP product as being superior and having better customer service in resolving issues. This recommendation was consistent with other IT professionals; and

WHEREAS, the City has analyzed the costs and other benefits associated with a purchase versus a lease option. The costs may be about equal with the quotes submitted, if there is a difference, it is minimal.

WHEREAS, after reviewing the quotes from three separate companies for both purchase and lease, the City recommends the lease option with Hewlett-Packard for the 36 months; and

WHEREAS, our current IT services provider, Mid-Valley IT, will install the equipment and software for a charge of $4,000.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Livingston hereby authorizes the Acting City Manager to prepare and execute a lease with Hewlett­ Packard, in a form approved by the City Attorney, for thirty two (32) computers, thirty eight (38) monitors, and associated hardware/software to replace the desktop computers used by all City employees for the day to day operations, in the amount of $38,214.00

and authorizing the use of Mid-Valley IT to install the equipment for the amount of

$4,000.

Passed and adopted this 16th day of May, 2017, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Jim Soria, Mayor

of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 16th day of May 2017.

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Antonio Silva, City Clerk of the City of Livingston