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HomeMy WebLinkAbout08-MIS 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. ) . '.. / /' "- /1 /' . ~--- f . '(./l-/t (-1./1 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