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Home My WebLink AboutReg 2017-03-06 Item 6A - Lease Agreement - Dell Computers with Davenport Group / Dell Client System for $400,000COUNCIL AGENDA SYNOPSIS Initials Aleetiug Date Prepared by Mayor's review Council review 03/06/17 TS ❑ Resolution R1tg Date ❑ Ordinance AN Date ❑ Bid Award AItg Date ❑ Public Hearing kftg Date ❑ Other Mfg Date SPONSOR ❑Council ❑Mayor • HR DCD ❑.Finance ❑Fire TS • P&R ❑Police ❑P[V ❑Court SPONS(At' S The City of Tukwila is replacing its out dated desktop comptuing systems with new Dell SUMMARY leased laptops. This will provide the City of Tukwila with refresh infrastructure to handle modern cloud and computer based applications, which burden our current systems. This Lease will put the City on a 3 year refresh cycle for enuser computing systems. REVIliWE17 BY ❑ C.O.W. Mtg. ❑ CDN Comm I Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 2/22/17 COMMITTEE CHAIR: SEAL RECOMMENDATIONS :. SPC)NsoR /ADMIN. CommiTTEE Technology and Innovations Services Department Unanimous Approval; Forward to March 6 New Business COST IMPACT / FUND SOURCE EXPENDITURE RI:QUIR1 L) AMOUNT BUDGETED APPROPRIATION REQUIRED $400,000 $450,000 $ Fund Source: Comments: ITEM INFORMATION ITEM No. 6.A. 103 S'1':1I `I: SI ()\soil: JOSEPH TODD ORIGINAL AGENDA la-VIE: 03/06/17 AGENDA ITEM TnLI?. Approval of Dell computer lease contract CATEGORY '/1 Discussion AN Date 3/6/17 IN Motion AItg Dale 03/06/17 ❑ Resolution R1tg Date ❑ Ordinance AN Date ❑ Bid Award AItg Date ❑ Public Hearing kftg Date ❑ Other Mfg Date SPONSOR ❑Council ❑Mayor • HR DCD ❑.Finance ❑Fire TS • P&R ❑Police ❑P[V ❑Court SPONS(At' S The City of Tukwila is replacing its out dated desktop comptuing systems with new Dell SUMMARY leased laptops. This will provide the City of Tukwila with refresh infrastructure to handle modern cloud and computer based applications, which burden our current systems. This Lease will put the City on a 3 year refresh cycle for enuser computing systems. REVIliWE17 BY ❑ C.O.W. Mtg. ❑ CDN Comm I Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 2/22/17 COMMITTEE CHAIR: SEAL RECOMMENDATIONS :. SPC)NsoR /ADMIN. CommiTTEE Technology and Innovations Services Department Unanimous Approval; Forward to March 6 New Business COST IMPACT / FUND SOURCE EXPENDITURE RI:QUIR1 L) AMOUNT BUDGETED APPROPRIATION REQUIRED $400,000 $450,000 $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 3/6/17 MTG. DATE ATTACHMENTS 3/6/17 informational Memorandum dated February 28, 2017 (New memo after FIN Com.) Dell Lease documents Minutes from the Finance Committee meeting of 2/22/17 103 f� City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: TIS Department BY: Joseph Todd, Technology and Innovation Services Director CC: Mayor Ekberg DATE: 02/28/2017 SUBJECT: Dell Computer Lease Contract for Dell Products ISSUE The attached three -year lease will provide computer replacements for all city employees, including devices in fire and police vehicles. The City Council authorized funding for replacement of employee computers in the 2017/2018 budget at $150,000 per year. The annual cost for this lease will be $123,467.53. This will be a 3 -year total of $370,402.59 with an option to purchase the equipment for $29,543.41 at the end of the Lease BACKGROUND As part of the 2016 Technology and Innovation Services Strategic Plan, the City proposed a three -year replacement or refresh program for all computing devices. The current equipment is approximately on a five -year replacement cycle, with some older equipment still in use. In talking to vendors and other technology departments as well as researching best industry practices, it was determined that the most cost- effective method would be to lease the equipment, rather than purchase. This provides better overall services to the end user. And the lease schedule will ensure that the City can meet the demands of modern desktop and cloud software, and ensure that the City stays current with desktop computing systems. DISCUSSION In December of 2016 the City Council approved the Technology and Innovations Services Department's 2017 -- 2018 biennial budget. Included was $150,000 annually allocated to refresh our systems on the three -year lease cycle. This $150,000 budget amount is listed on page 248 of the 2017 -2018 Adopted Budget under line item — "000.12518.880.45.00 Rental — Technology Refresh." The attached Dell Client System Agreement with Davenport Group (the local Dell Service Provider) will replace all of the City's desktop computing assets including Fire and Police in -car computing. The agreement covers the new computing devices and provides four key services: • Factory imaging of devices before they leave Dell, which means departmental software will be installed before the devices are shipped to the City, freeing up staff time; • Next -day air replacement of broken or malfunctioning devices, leaving the burden to Dell to deal with these issues and not City staff; • Dell premium dedicated onsite services for device deployment and help ticket services associated with these devices; and • Device tagging and asset management services. 105 106 INFORMATIONAL MEMO Paget Moving to the lease system will allow for significantly greater efficiencies throughout the City, . particularly for staff working on out -of -date machines. The additional staff time that will be realized by Technology and Innovation Services through this contract will allow for greater service to our clients throughout the City. Summary of Lease Terms The following is a quick summary of the terms of the lease: This is a Fair Market Value Lease. The options for the equipment at the end of the lease are as follows: • Exercise the option to purchase the products at the then fair market value up to or less than the full lease contract price of $399,946.00. • Return all products to lessor at the lessee's expense. • Renew the lease on a month to month or fixed term basis. Equipment covered under the lease: Item Notes Details Units Cost Equipment E5570 Laptops (for use at most office locations) Dell Latitude E5570 214 7202 36 Rugged laptops (for use in police and fire vehicles) Dell Latitude 12 Rugged 7202 36 7275 Laptops (2 in 1 devices for more mobile users) Dell Latitude 7275 2 -in- 1 14 Additional Equipment "Docking Stations" for devices to be used in conjunction with monitors and/or keyboards • 214 Dell E -port replicator with USB 3.0 • 36 Dell Keyboard Cover with Kickstand for Latitude 12 Rugged Tablet 14 Dell Dock -- WD15 with 130W Adatper • Dell E -port replicator and key boards with USB 3.0 246 Total Equipment Cost $370,402.59 Purchase Option: Purchase Computers at fair market value at end of lease $29,543.41 Total Lease Contract 399,946.00 2:1Council Agenda Items \Technology Senricesllnfomemp_dell_lease contract_v4.docx INFORMATIONAL MEMO Page 3 FINANCIAL IMPACT The total lease contract is up to $399,946.00 over three years. Our actual annual payment will be $123,467.53 a total of $370,402,59 over 3 years. At the end of the lease we will have the option to keep the devices and pay the fair market value of the devices up to or less than $29,543.41. If we choose this option, the total lease contract will be $399,946.00 RECOMMENDATION The Council is being asked to authorize the Mayor to sign a three -year lease agreement with Dell Computer for $399,946.00 ATTACHMENTS Davenport Group and Dell Lease Agreement Davenport Group and Dell — Detailed Dell Client System for City of Tukwila reference no. MDIRQ1019 -01 Z:1Council Agenda ItemslTechnalogy Services\Inromemo_del!_lease oontract_v4.docx 107 Dell Financial Services" February 28, 2017 Prepared For: Tukwila, WA Joseph Todd joseph.todd@tukwilawagov Thank you for giving Dell Financial Services L.L.C. ( "DFS ") the opportunity to provide a technology financing solution. Enclosed is a financing proposal for your new technology needs. We look forward to discussing this opportunity in further detail with you. If you have any questions, please contact me at the phone number or email address below. Davenport Group Quote Number MDIRQ1048 Proposal Expiration Date: March 30, 2017 Summary Product Description Dell Latitude E5570 SubTotal Latitude 12 Rugged 7202 SubTotal Latitude 7275 2 -in -1 SubTotal TOTALS Product Price $1,320.00 $2,736.00 $1,355.00 Quantity 214 Extended Price 36 14 $282,480.00 $98,496.00 $18,970.00 $399,946.00 Term Option 36 FMV Payments: Consolidation: Payments Due: Interim Rent: Annual Monthly Advance None Rate Factor 0.30610 0.31670 0.30610 3 Payments $86,467.13 $31,193.68 $5,806.72 $123,467.53 PLEASE NOTE: Personal Property Taxes (PPT) will apply to this lease. Leasing and financing provided by Dell Financial Services L.L.C. or its affiliate or designee ( "DFS ") to qualified customers. Offers may not be available or may vary in certain countries. Where available, offers may be changed without notice and are subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS, and may be subject to minimum transaction size. Offers not available for personal, family or household use. Dell and the Dell logo are trademarks of Dell Inc. Proposal is property of DFS, contains confidential information and shall not be duplicated or disclosed in whole or part. Proposal is not a firm offer of financing. Pricing and rates based upon the final amount, configuration and specification of the supplied equipment, software, services or fees. Prorata payment may be due in the first payment cycle. Proposal excludes additional costs to customer such as shipping, maintenance, filing fees, applicable taxes, insurance and similar items. Proposal valid through the expiration date shown above, or if none is specified, for 30 calendar days from date of presentation. End of Term Options: Fair Market Value (FMV) Lease: • Exercise the option to purchase the products at the then fair market value. • Return all products to lessor at the lessee's expense. • Renew the lease on a month to month or fixed term basis. Tiffany Collins Financial Solutions Representative Dell 1 Financial Services office + 1 512 723 -7225 Tiffany Collins @Dell.com Page 1 of 2 109 Dell Financial Services" February 28, 2017 Prepared For: Tukwila, WA Joseph Todd joseph.todd @tukwilawa.gov Additional Information: LEASE QUOTE: The Lease Quote is exclusive of shipping costs, maintenance fees, filing fees, licensing fees, property or use taxes, insurance premiums and similar items which shall be for Lessee's account. Lessee will pay payments and all other amounts without set -off, abatement or reduction for any reason whatsoever. Additionally, Lessee shall declare and pay all sales, use and personal property taxes to the appropriate taxing authorities. If you are sales tax exempt, please provide a copy of your Exemption Certificate with the Lease Contract. If Lessee provides the appropriate tax exemption certificates to DFS, sales and use taxes will not be collected by DFS. However, if your taxing authority assesses a personal property tax on leased equipment, and if DES pays that tax under your lease structure Lessee must reimburse DFS for that tax expense in connection with the Lessee's lease. PURCHASE ORDER: The Purchase Order must be made out to Dell Financial Services L.L.C., One Dell Way, RR8 -23, Round Rock, TX 78682. The Purchase Order will need to include the quote number, quantity and description of the equipment. Please be sure to indicate that the PO is for a lease order and shows the type of lease, the term length, and payment frequency. The date of the lease quote referenced should be included. Please be sure to include any applicable shipping costs as a line item and include your address as the SHIP TO destination. INSURANCE: The risk of loss on the equipment is borne solely by the Lessee. Lessee shall be required to purchase and maintain during the Term (i) comprehensive public liability insurance naming Lessor as additional insured; and (ii) "all- risk" physical damage insurance in a minimum amount of the Purchase Price, naming DFS as first loss payee. APPROPRIATION COVENANT: The Lease will contain an appropriation of funds clause. The Lessee will covenant that it shall do all things legally within its power to obtain and maintain funds from which the payments may be paid. DOCUMENTATION: In addition to a duly executed Agreement, other documents as reasonably requested by DFS may be required, such as but not limited to, opinions of counsel, IRS tax exemption forms (if applicable), and audited financials. PROPOSAL VALIDITY / APPROVALS: This is a proposal based upon market conditions and is valid for 30 days, is subject to final credit approval, review of the economics of the transaction, and execution of mutually acceptable documentation. Page 2of2 110 davenportgroup City of Tukwila, WA Dell Client System MDIRO1019 -01 your davenport group representative Ryan Gray account executive ryan.gray ciavenportgroup.com cell: 360.680.1030 corporate: 877 - 231 -9114 Summary Amount Summary Prepared For: City of Tukwila, WA Joseph Todd 63O0 Southcenter Blvd Tukwila, WA 98188 us joseph.todd @tukwilawa.gov Quote Information: Quote Number: MDIRQ1O19 -01 Date: 2/14/2017 Quote Expiration: 2/4/2017 Dell Latitude E5570 SubTotal $282,480.00 Latitude 12 Rugged 7202 SubTotal $98,496.00 Latitude 7275 2 -in -1 SubTotal $18,970.00 Total $399,946.00 • • r • ♦ • • • • • • • davenportgroup Quote Qty Description Unit Price Ext. Price 214 Dell Latitude E5570 6th Generation Intel Core i7-6600U (Dual Core, 2.6GHz, 4MB cache) Windows 7 Professional English, French, Spanish 64bit (Includes Windows 10 Pro License) Dell Latitude E5570, CTO Internal Dual Pointing Backlit Keyboard (US- English) Internal Keyboard Shroud 106, E5570 No Out -of -Band Systems Management 16GB (2x8GB) 2133MHz DDR4 Memory 500GB (7,200 Rpm) Serial ATA Hard Drive Intel Dual Band Wireless 8260 (802.11ac) W/ Bluetooth Intel Rapid Storage Technology No Wireless WAN Card Primary 4 -cell 62W /HR Battery 39.6cm (15.61 FHD (1920x1080) Touch LCD with Camera (WiGiG compatible) No Fingerprint Reader and No Smart Card Reader (Contact and Contactless) Adobe Reader 11 Dell Data Protection Protected Workspace DeII(TM) Digital Delivery Cirrus Client Windows 10 Pro OS Recovery 64bit - DVD US Power Cord 90 Watt AC Adaptor No DDPIESS Software Dell Data Protection Encryption Personal Edition Digital Delivery Dell ProSupport for Software, Dell Data Protection Encryption Personal Edition, 3 Year Dell Limited Hardware Warranty - 3 Years $1,225.00 $262,150.00 ...i.oldavenportgrouo Qty Description Unit Price Ext. Price ProSupport: 7x24 Technical Support - 3 Years ProSupport: Next Business Day Onsite - 3 Years Custom Asset Tag Image Load - Custom Image, Fae tory Install Configuration Services - Gusto m, Laser Etching,Factory Insta I I 214 Dell E -Port Replicator with USB 3.0 Dell Latitude E5570 SubTotal 36 Latitude 12 Rugged 7202 Intel Core M -5Y71 processor Win 10 Pro 64 English, French, Spanish Intel Core M -5Y71 Processor with 8GB Memory and Dedicated GP5 11.6 HD (1366x768) Outdoor - Readable Glove - Capable Touchscreen with Gorilla Glass 8GB 1600MHz LPDDR3 Memory 128G SSD Latitude, Rugged 2 -cell (26Wh) Lithium Ion Secondary Battery 2MP HD Webcam / 8MP Rear Camera with Flash and Dual Microphones Intel 7265AC Dual -Band 2x2 802.11 ac WiFi Wireless LAN card bracket No Wireless WAN Card No Out -of -Band Systems Management Intel Dual Band Wireless 7265 802.11ac Wi -Fi + BT 4.0 LE Driver E5 Power Cord (US) Dell Rugged Tablet Dock 2 -cell (26Wh) Lithium Ion Primary Battery Dell Power Manager Kickstart Product Registration Platform Quickset, 7202 $95.00 $2,441.00 $20,330.00 $282,480.00 $87,876.00 • •. • • • • • • • • • davenportgroup Qty Description Unit Price Ext. Price SupportAssist 45 Watt 3Pin AC Adapter Flex 2 ProSupport: Next Business Day Onsite - 3 Years Dell Limited Hardware Warranty - 3 Years ProSupport: 7x24 Technical Support - 3 Years Accidental Damage Service - 3 Years Keep Your Hard Drive - 3 Years 36 Dell Keyboard Cover with Kickstand for the Latitude 12 Rugged Tablet Latitude 12 Rugged 7202 SubTotal $295.00 $10,620.00 $98,496.00 Continued On Next Page.... iiiiiiiildavenportgroup Qty Description Unit Price Ext. Price 14 Latitude 7275 2 -in -1 Dell Latitude 7275, CTO 6th Generation Intel Core m7 -6Y75 Processor (4M Cache, up to 3.10) Win 10 Pro 64 English, French, Spanish Intel Core m7 Processor Base with 8GB RAM, WLAN Only Microsoft(R) Office 30 Days Trial SupportAssist Latitude 12 Premier Keyboard Dock Cover Internal US English Qwerty Backlit Keyboard 82 Keys 31.8cm (12.5 ") FHD (1920x1080) Touch 8GB DDR3L 1600MHz Memory M.2 128GB SATA Class 20 Solid State Drive No Out -of -Band Systems Management Intel 8260 Dual band 2x2 802.11ac 2.4 /5GHz + Bluetooth 4.1 No Mobile Broadband E5 Power Cord for 3 -pin Adapter (US /China) 30 Watt AC Adapter Dell Adapter USB -C to USB -A 3.0 Primary 2 -Cell (3OWhr) battery Dell Premier Magnetic Folio for Mobility keyboard +system No DDPIESS Software Dell Data Protection Encryption Personal Edition Digital Delivery Dell ProSupport for Software, Dell Data Protection Encryption Personal Edition, 3 Year BTO Standard Shipment (M) Dell Latitude 7275 Flex 3 System back Cover to support Non DS4, Non - Keyssa, WLAN Dell Limited Hardware Warranty Plus Service - 3 Years ProSupport: 7x24 Technical Support - 3 Years $1,250.00 $17,500.00 •l, • • • • `. • • * * • • • ',A, • . , davenportgroup Qty Description Unit Price Ext. Price ProSupport: Next Business Day Onsite - 3 Years Custom Asset Tag Image Load - Custom Image, Fac tory Install 14 Dell Dock - WD15 with 130W Adapter Latitude 7275 2 -in -1 SubTotal $105.00 $1,,470.00 $18,970.00 Continued On Next Page.... -• •• ♦ • • • • • • • • • • • davenportg rau o Qty Description Unit Price Ext. Price Total $399,946.00 davenportgraup Terms and Conditions Terms of payment are Net 15 days from shipment, unless otherwise agreed upon. Applicable tax and shipping will be included on your invoice. We reserve the right to cancel orders arising from pricing or other errors. We will assess a late fee of 1.5 percent per month on all amounts received after that time. The terms of this proposal are subject to credit approval. Thank you for your business. Signature Date davenportgroup 120 FINANCE COMMITTEE Meeting Minutes City of Tukwila City Council Finance Committee February 22, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Verna Seal, Chair; Kathy Hougardy, Thomas McLeod Staff: David Cline, Peggy McCarthy, Stephanie Brown, Erika Eddins, Joseph Todd, Gail Labanara, Craig Zellerhoff, Laurel Humphrey CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Lease Agreement: Dell Computers Staff is seeking Council approval of a contract with the Davenport Group in the amount of $397,750.00 to lease Dell computing systems for City employees on a three year "refresh" cycle. In the past, the City has purchased computer equipment leading to inefficiencies and productivity losses due to aging systems unable to keep up with changing technologies. The Council previously authorized $450,000 for this in the adopted budget and the lowered price is a result of negotiations. Computers that are relatively new and in good working order will be used at front counter /service areas in the City. The Committee discussed the proposal and requested clarifying information be added to the memo and attachments regarding the actual contract price and budgetary context. UNANIMOUS APPROVAL. FORWARD TO MARCH 6, 2017 REGULAR MEETING (NEW BUSINESS) B. Employee Compensation Policy The City Council desires to review and possibly modify the City Council's Compensation Policy, adopted via Resolution 1796. Staff is seeking clarity and direction on the appropriate background, research and phasing for a successful process. Suggestions from staff include a compensation trend overview, comparable cities, timing and process for non - represented compensation, benefits structure, and a discussion on how the current policy has been working. Additional items from the Committee are summarized as follows: • Can non - represented and represented employees be aligned more fairly? • Summary of outcomes from the non - represented employee committee • Update on status of union negotiations • Review of decision band methodology, including how it is working • Reevaluate policy to avoid salary compression • Are the comparable cities (jurisdictions +/- 50% of Tukwila's A /V) still a fair measure? 121