REPORT TO THE CITY COUNCIL
April 4, 2019
FROM: BRYON HORN, Chief Information Officer
Information Services Department
SUBJECT
Title
Actions pertaining to a comprehensive network upgrade:
1. Approve a cooperative purchase agreement with AMS.NET, Inc., in the amount of $9,500,000.00.
2. Authorize the Chief Information Officer to enter into a finance agreement with Key Government Finance, Inc., on behalf of Cisco Systems Capital Corp., in the amount of $9,748,900.00.
3. Authorize the Chief Information Officer to enter into all agreements necessary to facilitate the cooperative purchase and financing of the network equipment purchase.
Body
RECOMMENDATION
Staff recommends that Council authorize the Chief Information Officer to enter into a cooperative purchase agreement, and a finance agreement with Key Government Finance, Inc., on behalf of Cisco Systems Capital Corp., in the amount of $9,748,900.00 for a comprehensive network upgrade consisting of Cisco equipment priced from the cooperative agreement, Merced County FOCUS Agreement (Contract #2015109) purchased through AMS.NET, Inc.
The finance agreement with Key Government Finance, Inc., will be for a period of five years with quarterly lease payments in the amount of $487,445.00 per quarter. The payment has no pre-payment penalty; therefore, payments can be made annually.
EXECUTIVE SUMMARY
The City's network is outdated and its core equipment is end of life/nearing end of life and/or end of support. The network core has been in place for over 13 years and is in dire need of replacement. On December 14, 2017, ISD entered into an agreement with Cisco Systems, Inc., for a network assessment and technology review in order for ISD to make an educated, informed and fiscally responsible decision on which components need to be replaced,. This assessment was completed in April of 2018 and ISD began working on a roadmap for replacement.
ISD has funds in current fiscal year (FY19) for the first quarterly...
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