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C1ITYJOF SAN BER~RbINO - REQUEST ..4R COUNCIL ACTION
Fr~: Janis Ingels, Director of M.I.S.
. - . Subject: Employee PC Purchase Program
Dept: Admin/M.I.S.
Dati: May 5, 1992
Synopsis of Previous Council action:
Council gave staff approval to implement an employee PC purchase program at
the council meeting of F~bruary 17, 1992.
Recommended motion:
That attached report regarding the employee PC purchase program be received
and filed.
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Signature
Contact person: Janis Ingels, Director of M.I.S.
Phone: 5010
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Descriotion)
Finance:
Council Notes:
Agenda Item NoJ
CITY- OF SAN BER~RDINO - REQUEST a 'OR COUNCIL ACTION
STAFF REPORT
On February 17, 1992 the Mayor and Council authorized the
Management Information Systems Department (M.I.S.) to develop an
employee PC purchase program. The reason for recommending this
type of purchasing program was:
a) to gain significant price reductions for the employees,
due to a volume purchase
b) encourage computer literacy of its employees
c) allow employees the benefit of paying for their purchase
through payroll deductions
A committee was formed consist.ing of the M. I. S. Director, Finance
Director, Executive Assistant to Council, and the Fire Chief to
research and implement an employee PC purchase program. The
committee wrote specifications for a basic system and requested
quotes from a total of 52 computer vendors. The committee made it
clear the city's only involvement in the transaction would be to do
payroll deductions for the employees. The city would not be
involved in the financing.
sixteen vendors responded to the city's request for quotes. None
of the vendors offered quantity discounts. It was indicated that
quantity discounts generally occur if more than 200 units are
purchased. In addition, many vendors were unable to provide
reasonable financing of the PC's. Those who did proposed interest
rates of 18 or 19%. In addition, quoted prices for the PC's were
above current industry pricing.
For all the reasons noted, the committee rejected all quotes. As
an alternative, it is proposed that the following program be
implemented in lieu of the original PC purchase program:
a) negotiate with the San Bernardino City credit union in
providing financing to interested employees at the
current rate of interest
b) provide employees with flyers describing the basics
for a PC system, including what to look for, warranties,
and possibly noting a list of reputable vendors
c) offer employees the benefit of payroll deduction to re-pay
their credit union loan
This plan will be beneficial to San Bernardino by providing
financing through a local source. It will allow employees to
purchase the system, peripherals, and software of their choosing,
and retain the benefit of availing themselves of payroll deductions
as a means for repayment.
75-0264