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HomeMy WebLinkAbout22-Information Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: TOM MAREK, ACTING I.S. DIRECTOR Subject: RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE PURCHASE OF 200 HEWLETT- PACKARD (HP) DESKTOP COMPUTERS TO REPLACE EXISTING OUTDATED COMPUTERS IN VARIOUS DEPARTMENTS Dept: ADMIN/INFORMATION SERVICES DIVISION . Date: July 27, 200b R\ G\NAL MlCC Meeting Date: August 16, 2004 Synopsis oCPrevious Council Action: Aug. 4, 1997 - Resolution #1997-241 - Authorized a citywide upgrade that included purchase of desktop computer equipment. Recommended Motion: Adopt resolution. ~'" ~~~ Signature Contact person: Tnl'n MQrp'k Phone: 'lIl&_""U7 Supporting data attached: Staff Report Ward: FUNDING REQUIREMENTS: Amount: $ 184,684.00 Source: (Acct. No.) 679-251-5702 (At't"t T)p,(;!{'rlptlnn) rnmpl1tpr P<pl1pmpnt Finance: Council Notes: ~~..q-2~'1 Agenda Item No. l1. f/It,!OV , CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT Resolution of the City of San Bernardino authorizing the purchase of200 Hewlett-Packard (HP) desktop computers to replace existing outdated computers in various departments. BACKGROUND In 1997, the City purchased modern, desktop personal computers. The standard life expectancy of a desktop personal computer (PC) is approximately five years. Older PCs are unable to run current operating systems and software applications due to speed, memory and storage limitations. All city departments rely heavily on their desktop equipment in the performance of their daily operations. A citywide survey has been completed and departments were asked to prioritize their requirements. Two hundred PCs have been identified for replacement in FY 04-05 via this resolution and replacement for the remaining PCs will be requested in FY 05-06. The departments programmed to receive PCs via this purchase include: Department Total Need to Replace PCs Replace in 04/05 . Development Services 63 34 18 . Code Enforcement 18 14 7 . Police Department 325 166 83 . Fire Department 58 36 22 . Finance 19 19 19 . Public Services 58 30 18 . Parks, Recreation & Com. Svs. 41 24 12 . Facilities Management 16 6 3 . Mayor's Office II 8 6 . Administrator's Office 6 5 5 . Council Office 8 5 2 . CATV 5 5 2 . Treasurer 3 3 3 . City Attorney 2 I 0 . Civil Service 13 12 0 . Information Services 26 5 0 . Animal Control 15 I 0 . Human Resources 15 3 0 . City Clerk 17 0 0 Total 719 377 200 This upgrade does not include laptop computers. printers. monitors. servers or other related equipment. The City's anti-virus software vendor updates its software approximately every three to four months. With every update to this software the City's older PCs are becoming slower and more unstable. We are approaching the point where it will be impossible to run anti-virus software on the older PCs. New versions of Internet Explorer (IE) for Windows 95 clients are no longer being developed. The current version of IE (6.0) will not run on Windows 95 PCs. Employees cannot take advantage of the latest revisions of their software or new applications without Windows XP. This also requires sufficient processor speed, memory and adequate disk space. The average desktop PC in today's market has a processor speed of over 2.5 GHz (equivalent of 2,500 MHz). There are PCs in use in City departments as low as 75 MHz, and 377 machines operating below I GHz (1,000 MHz). Most software today is geared to operate on Windows 2000 or Windows XP and the City has 367 PCs that do not have Windows 2000 or XP as an operating system. The goal of this upgrade is to replace the PCs utilizing Windows 95/98 or operating at less than 1 GHz. Of the City's 719 desktop PCs, 377 fall into this replacement category. The IS Department developed a standard PC contiguration in order to compare various brands: . Pentium 4 Processor . 2.8 GHzl800 MHz Front Side Bus Speed . 40 GB/7200 RPM Hard Drive . 512 MB Memory/DDR SDRAM/333 MHzlPC2700 . Windows XP Professional . Floppy Drive . CD-ROM Drive/CD Burner, 48x/32x/48x CD-RW/DVD . 32 MB Video Card (Integrated) . Internal Speaker . Gigabit NIC (Integrated Network Adapter) . 3 Year, Next Business Day. On-site Service (includes parts and labor) The City's Municipal Code establishes a centralized purchasing system. An exemption is allowed according to Municipal Code 3.04.01O.B.2 that states: "Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other California government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received, and the bid award must have occurred within one year at the City's issuance of a purchase order." It was determined that the City could purchase the PCs through the Western States Contracting Alliance (WSCA). This alliance was forn1ed in 1993 by the state purchasing directors from 15 western states, including California. The states joined together in cooperative multi-State contracting in order to achieve cost-effective acquisition of products and services. All governmental entities within WSCA states are able to use the approved agreements. All WSCA contracts have been competitively bid out. Amendment #02 to the WSCA Master Price Agreement #90-00151, states, "The agreement is effective September 3, 1999 through September 2, 2003 with one (I) one-year optional renewal." The contract has been renewed and the prices shown are tixed per a master price agreement that expires September 3,2004. Product lines and prices that are approved tor purchase under WSCA agreements include: Price without monitor: Unit Cost Tax Total Dell $ 944.88 73.23 1.018.11 Gateway $ 944.00 73.16 1.017.16 Hewlett-Packard (HP) $ 857.00 66.42 923.42 Prices are as of 07-01-04. The City has purchased a number of Dell PCs and they are located in various departments. The City has been satisfied with Dell PCs and the IS technicians rate their reliability and warranty service as superior. Dell has had the lowest cost in the past. Dell computers purchased through WSCA are ordered directly from the manufacturer and do not go through local resellers. Recently, the price of HP computers purchased through WSCA has dropped while the cost of Dell PCs has increased. Local vendors in San Bernardino, i.e., Burtronics Business Systems, Inland Computer Systems and Imagine Systems, Incorporated, are authorized HP resellers and are authorized to offer WSCA pricing for these PCs. PCs purchased through WSCA require that the City issue a PO directly to HP, who would pay a commission to the local vendors, identified by the City. WSCA does not allow Purchase Orders to be issued directly to the resellers. Utilizing WSCA purchasing procedures, the City would issue three Purchase Orders to HP, for a total 01'200 PCs (67 PCs from each of two vendors and 66 PCs from the third). Three San Bernardino vendors that are typically used by the City for local purchases, Burtronics Business Systems, Inland Computer Systems and Imagine Systems. will be identified as the resellers and HP will pay a commission directly to each San Bernardino vendor. A three-year warranty is included in the price. California tax is applicable and shipping is free. The above local vendors were asked for price quotes if the City issued the PO through the local business instead of sending the PO directly to HP. All three vendors responded and the lowest price available was $1001.01 ($929.01 plus $72.00 tax) as opposed to the WSCA price of $923.42 ($857.00 plus $66.42 tax). To purchase 200 PCs directly through WSCA costs $184,684.00, as opposed to buying through the local vendors at a cost of $200.202.00. Purchasing the computers through WSCA saves the City $15.518.00. FINANCIAL IMPACT The total cost, including tax and shipping. for 200 Hewlett-Packard PCs is $184,684.00. The funds to pay for this PC upgrade are in the IS account 679-251-5702. Computer Equipment. RECOMMENDATION Adopt resolution. o o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~~~'i RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE PURCHASE OF 200 HEWLETT-PACKARD (UP) DESKTOP COMPUTERS TO REPLACE EXISTING OUTDATED COMPUTERS IN VARIOUS DEPARTMENTS BE IT RESOLVED: SECTION 1. That the Mayor and Common Council authorize the Purchasing Manager to issue a Purchase Order not to exceed $61,869.00 to Hewlett-Packard Corporation, for the purchase of 67 HP desktop computers. The Purchase Order shall reference the number of this resolution and shall read, "For purchase of 67 HP desktop computers not to exceed $61,869.00, local HP reseller Burtronics Business Systems". SECTION 2. That the Mayor and Common Council authorize the Purchasing Manager to issue a Purchase Order not to exceed $61,869.00 to Hewlett-Packard Corporation, for the purchase of 67 HP desktop computers. The Purchase Order shall reference the number of this resolution and shall read, "For purchase of 67 HP desktop computers not to exceed $61,869.00, local HP reseller Inland Computer Systems". SECTION 3. That the Mayor and Common Council authorize the Purchasing Manager to issue a Purchase Order not to exceed $60,946.00 to Hewlett-Packard Corporation, for the purchase of 66 HP desktop computers. The Purchase Order shall reference the number of this resolution and shall read, "For purchase of 66 HP desktop computers not to exceed $60.946.00, local HP reseller Imagine Systems, Inc.". III III III III III III III o 14 JOHNSON 15 McCAMMACK 16 17 18 19 20 21 . o o 1 2 3 4 5 6 7 8 9 10 11 12 13 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE PURCHASE OF 200 HEWLETT-PACKARD (HP) DESKTOP COMPUTERS TO REPLACE EXISTING OUTDATED COMPUTERS IN VARIOUS DEPARTMENTS I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the_ day of , 2004, by the following vote, to wit: Abstain Absent Council Members Aves Navs ESTRADA LONGVILLE McGINNIS DERRY KELLEY Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of , 2004. 22 23 24 25 26 27 28 Judith Valles, Mayor City of San Bernardino Approved as to form and legal content: James F. Penman, City Attorney B'J-~lPu-.