Agenda Item Wording:
title
Authorization to purchase computers - Authorize the City Manager to enter into a purchase agreement with Dell to purchase replacement computers utilizing the National Association of Procurement Officials (NASPO) ValuePoint competitively bid agreement in the amount of $719,000 and appropriate $185,300 from various funds.
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Agenda Date: 03/16/2026
Prepared by:
Jaime Salazar, IS Supervisor, 559-713-4121, jaime.salazar@visalia.gov
John Howison, IS Manager, 559-713-4122, john.howison@visalia.gov
Renee Nagel, Finance/Technology Director, 559-713-4375, renee.nagel@visalia.gov
Department Recommendation:
Authorize the City Manager to enter into a purchase agreement with Dell Inc. to purchase replacement computers utilizing the National Association of Procurement Officials (NASPO) ValuePoint competitively bid agreement in the amount of $719,000, transfer $44,852 from CIP CP9997 to CP9799, and appropriate $185,300 from the funds outlined in the report.
Summary:
Information Services (IS) manages the citywide technology equipment and software. To replace technology, the City sets aside depreciation annually in the IS Fund. The depreciation schedule is based on the anticipated life of the equipment. The computers recommended for replacement have been in service for eight years. The older the equipment gets, the more downtime departments experience due to components failing, new software conflicts, and other support issues. In addition, older equipment requires significantly more staff time to fix or replace. Obsolete hardware and incompatible platforms complicate support further.
Background Discussion:
The current computers were purchased in 2018 and are currently eight years old. The replacement scheduled for computers is five years. These units carry a five-year manufacturer warranty period that expired in April 2023 which makes repairs much more difficult to facilitate resulting in delays in repairs. We have identified a total of 567 computers that meet replacement criteria which include computers in the City’s standard cycle replacement schedule as well as the off-cycle replacement schedule.
Computer costs are rising significantly because of an unprecedented shortage of components caused by the artificial intelligence (AI) industry demand. All major computer brands are anticipating record pricing increases this year. Staff are recommending moving forward with the computer replacement purchase now to avoid future price increases.
Disposal of the obsolete equipment will be handled through an e-waste collector/recycler at no cost to the City. All equipment hard disks will be shredded for security at a minimal cost. Other disposal approaches were considered but due to the age and of the equipment, they have no resale value.
Fiscal Impact including annual maintenance and operating costs:
There is currently a capital project to replace city-wide computers (CP9799) with a budget of $488,852. Staff has another capital project (CP9997) to replace off-cycle computers with a budget of $44,852. This project encompasses all computers; therefore, staff is requesting to transfer the $44,852 to the city-wide replacement project bringing the total to $533,704. The total cost of this project is $719,000, so the project is short $185,300. The additional cost is due to changes in equipment and price increases due to rising costs. The amount that is depreciated from the computers purchased in 2018 is not equivalent to the costs to replace the same computer today. Staff is requesting the additional appropriation of $185,300 from the following funds:
Prior Council Action:
Council approved prior computer replacement projects (2002, 2006, 2011, 2018) utilizing competitively bid pricing agreements.
Alternatives:
Council can choose to deny the recommendation and direct staff to evaluate options and attempt to support existing computers.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to enter into a purchase agreement with Dell Inc. to purchase replacement computers utilizing the National Association of Procurement Officials (NASPO) ValuePoint competitively bid agreement in the amount of $719,000, transfer $44,852 from CIP CP9997 to CP9799, and appropriate $185,300 from the funds outlined in the report.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 03/16/2026
Attachments: Dell Quote.PDF
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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