That the City Council approve and authorize the City Manager to enter into a purchase order with Dell Computers in the amount of $728,456.12 for the purchase of 350 Dell desktop computers and monitors and 20 Dell laptop computers.

In an effort to stay current with changing technology and provide City staff with effective tools necessary to provide efficient public service, the City's Information Technology Division had developed a program to replace outdated computer hardware and equipment on a regular schedule; however, this program was suspended after Fiscal Year 2014-15 due to budgetary constraints at that time. Since then computers used by City departments have only been replaced on an as needed basis in the event of hardware failure that was either not repairable or not cost-effective to repair, or if the older hardware was unable to effectively operate newer software or systems. As a result, most of the computers currently used by staff are more than seven years old, are out of warranty, and are in need of replacement as they have approached, reached or exceeded their useful lives and are requiring more frequent repair or replacement.

In order reestablish the City's PC replacement program and comprehensively upgrade the City's technology across all departments to current standards, staff recommends the purchase and replacement of 350 Dell desktop computers and monitors, and 20 Dell laptops. If approved by Council, this comprehensive upgrade will provide the City with a stable current technology hardware environment with warrantied equipment, along with a platform of computers that can operate all current and anticipated City software applications and systems, and provide for future upgrades to help extend the projected useful life of the new equipment. The upgrade is also expected to significantly reduce the amount of IT staff time currently spent on troubleshooting and repairing older computer hardware that has failed.
 
The National Association of State Procurement Officials, (NASPO) is a nationally focused purchasing cooperative that secures competitive solicitations for the procurement of products and services used by the public sector. This includes information technology products and services for state and local government agencies at prices which have been assessed to be fair, reasonable and competitive. Based on the size of proposed City order for new computer equipment, staff was able to obtain Dell computer pricing below the NASPO pre-negotiated competitive pricing. After negotiations with staff, Dell has agreed to reduced their per/unit cost by $50 which equates to an additional savings of $17,500. Staff was also able to negotiate with Dell to have approximately $35,000 of additional computer memory and upgraded graphics cards included for the desktop computers at no additional cost.

Consistent with La Habra Municipal Code (LHMC) Section 4.20.070, staff recommends the sole source purchase of the proposed equipment from Dell Computers. The La Habra Municipal Code Section 4.20.070 provides exceptions to the City's bidding requirements when the proposed purchase involves "the acquisition of technology, hardware, software, computers, telecommunications equipment, cabling, installation, support or similar electronic equipment or product(s)." That said, staff ensured that the pricing provided by Dell was at or below competitively bid pricing levels reported by NASPO. In addition, the purchase of Dell equipment is being recommended since the City's municipal operations have been standardized on Dell computers for the past decade or more, and City IT staff have been provided with significant training and expertise in the operation, maintenance and support for Dell hardware.

Funding for the proposed $728,456.12 purchase of desktop computers, monitors and laptops will come from eligible American Rescue Plan Act funds allocated to the City by the U.S. Treasury Department. A portion of these funds were encumbered by the City Council on January 18, 2022 specifically for the allowable category of cybersecurity and technology modernization. If approved, this recommended purchase of computer hardware will have no impact on the City's General Fund.