On April 22, 2019, City Council approved the Master Lease Agreement for an initial lease schedule of 36 months from Dell Financial Service, L.L.C. via DIR Contract No. DIR-TSO-3763.

On March 15, 2022, City Council approved an extension of then-existing lease schedule month-to-month for up to six months in an amount not to exceed $86,153 and approved a new lease schedule of new citywide computer equipment for 36 months in the estimated amount of $3,115,661 to Dell Financial Service, L.L.C. via DIR Contract No. DIR-TSO-3763.

The current 36-month lease agreement, approved on March 15, 2022, is set to expire in August 2025. Staff evaluated the useful lifespan of the City's client computers and determined that they remain in good working condition and continue to meet operational needs.  Based on this, Technology Solutions updated the City’s asset lifecycle for client computers from our current three (3) year lifecyle to a four (4) year lifecycle. By extending the computer lifecycle and lease, we are being more fiscally responsible while minimizing the operational disruptions caused by more frequent computer replacements.

Technology Solutions recommends the fixed term extension of six (6) months with fixed monthly rent of $73,230 and an additional extension month-to-month for up to six months in an amount not to exceed $73,230 per month during the computer replacement project. This extension will reduce the current monthly lease payment by approximately $12,923. As assets are returned during our computer replacement project, the monthly lease cost will decrease as a reflection of assets being returned to Dell.

Should the contract extension with Dell Financial Services, L.L.C. not be awarded, the City will need to purchase computers. It is unlikely that the City will be able to complete a competitive bid process, order, receive, prepare and deploy computers within the timeline without impacting services and support to Plano citizens.

The City is authorized to purchase from the State Contract list pursuant to Chapter 271 Subchapter D of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (DIR Contract No. DIR-TSO-3763 / City of Plano Contract No. 2018-0552-I)

Funding for this item is available in the Technology Replacement Fund for a total expenditure not to exceed $878,761. This request is to approve the extension of the existing computer equipment lease in the amount of $73,230 for FY 2024-25 and $805,531 for FY 2025-26. All future year expenditures will occur within council approved appropriations.  

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.