CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 4, 2019 ITEM NUMBER: CC-7 SUBJECT: DESKTOP COMPUTER REPLACEMENT PROGRAM DATE: MAY 22, 2019 FROM: INFORMATION TECHNOLOGY DEPARTMENT PRESENTATION STEVE ELY, I.T. DIRECTOR BY: FOR FURTHER INFORMATION STEVE ELY, I.T. DIRECTOR, 714-754-4891 CONTACT: RECOMMENDATION: Staff recommends that the City Council: 1 . Approve the Desktop Computer Replacement Program for the purchase of 435 desktop computers in three phases to replace the computers that have already reached their end-of-life stage. 2. Approve and authorize the Acting City Manager to execute a purchase order with Dell Marketing, LP. (Dell) in the amount of $166,266.27 for completion of the first phase of the Desktop Computer Replacement Program, which includes the purchase of 140 desktop computers. BACKGROUND: The City purchased 435 desktop computers in 2013. These computers have long passed their life expectancy. Their warranty expired in 2016, which makes them prone to issues and causes staff to have to troubleshoot or make repairs as much as they can. In addition to dedicating time for repairs, parts may become obsolete or costly to obtain, resulting in the necessity to purchase new equipment. Desktop computers are the most heavily used pieces of equipment and upgrading them will allow employees to be more efficient in their daily duties and provide the assurance that data and information will not be lost due to aging equipment. ANALYSIS: Many department computers have exceeded their useful life and become inefficient in performing normal functions. Over time, these resources wear, age, 1 and/or become obsolete, causing performance degradation, excessive support and repair activity, and loss of reliability. This results in a loss of productivity for staff and an increase in labor and equipment costs to maintain the environment at an acceptable level. The City's desktop computers are outdated and will need to be replaced. Relying on repairs is not very dependable as parts may be discontinued and not be available anymore. Waiting to replace them will result in productivity being hampered as old computers are slow computers. As technology changes rapidly, these old computers eventually stop working and staffwill not be able to locate the matching hardware. Employees rely heavily on their computers for their daily functions and slow computers will hinder their efficiency. Moreover, new software requirements will not be compatible with aging computers. In order to manage these impacts, staff proposes to employ a cost-effective equipment upgrade and replacement program. The IT Department recommends purchasing the replacement computers in three phases as follows: a. The first phase includes replacing one-third of the computers in Fiscal Year 2018-19; b. The second phase includes replacing another one-third in Fiscal Year 2020- 21; and c. The third phase includes replacing the remaining one-third in Fiscal Year 2021-2022. Staff intends to purchase the equipment from Dell Marketing, L.P. through the State of California's Participating Addendum (Participating Addendum No. 7-15- 70-34-003) (Attachment 2) to the National Association of State Procurement Officials (NASPO) ValuePoint Cooperative Purchasing Program Master Agreement (Attachment 1 ), as permitted by Section 2-165(b)(5) of the Costa Mesa Municipal Code. Purchasing the equipment through the State's Participating Addendum meets all requirements set forthin the City of Costa Mesa's Purchasing Policy and ordinance and all requirements set forth by the State of California in regards to regional, state, and national cooperative purchasing agreements. NASPO has established an approved vendor list following a nationwide competitive bid process. This process confirms the City still receives the lowest available pricing and meets the competitive bid process requirements. The IT Department is proposing Dell equipment due to staff's past experience when dealing with computer issues and Dell's prompt and quality customer service. ALTERNATIVES CONSIDERED: The City Council could choose not to replace existing City desktop computers; however, this alternative is not recommended as this could significantly hinder staff efficiencies, contribute to a loss of productivity, and increase the City's cost to 2 maintain the aging equipment. Additionally, if this maintenance and replacement are deferred, the City could be subject to higher costs to replace in the future. FISCAL REVIEW: The IT Department is recommending phasing the project, which allows the City to spread the cost of replacing 435 desktop computers over three (3) years to minimize the fiscal impact of this program. For phase 1, the IT Department proposes the purchase and replacement of 140 desktop computers, which is approximately one-third of all City computers this fiscal year, and is estimated to cost $166,266.27. This was budgeted as part of the Fiscal Year 2018-19 Adopted Budget in the IT Replacement Fund. The funding for phase 2 and phase 3 will be incorporated into the appropriatefiscal year budgets in the IT Replacement Fund. LEGAL REVIEW: The City Attorney's Office reviewed this report and approvedit as to form. CONCLUSION: The new desktop computers will allow the City to keep pace with rapidly developing technology, thus enhancing efficiency and productivity. Therefore, staff recommends that the City Council: 1 . Approve the Desktop Computer Replacement Program for the purchase of 435 desktop computers in three phases to replace the computers that have already reached their end-of-life stage. 2. Approve and authorize the Acting City Manager to execute a purchase order with Dell in the amount of $166,266.27 for completion of the first phase of the Desktop Computer Replacement Program, which includes the purchase of 140 desktop computers. 3 I.T. Director � D, CPA Finance Director ATTACHMENTS: 1. California Participating Addendum 2. NASPO Master Agreement 3. Dell Quote 4 .