Coversheet

Item Coversheet

CITY COUNCIL AGENDA MEMO

MEETING DATE:	6/8/2026
DEPARTMENT:	Technology Solutions
DIRECTOR:	Roger Wright, Chief Information Officer
AGENDA ITEM:	Extend the current lease and establish a new lease for citywide computer equipment and deployment
RECOMMENDED ACTION:	Purchase from Existing Contract


ITEM SUMMARY To approve an extension of the existing computer equipment lease for three (3) months in the estimated amount of $219,690 and a new 48-month lease for the next iteration of citywide computer equipment including deployment services in the estimated amount of $5,595,520 from Dell Marketing, L.P. for a total estimated amount of $5,815,210 through an existing contract; and authorizing the City Manager to execute all necessary documents. (Texas Department of Information Resources Contract No. DIR-CPO-5792) Approved


PREVIOUS ACTION/PRESENTATION On April 22, 2019, City Council approved the lease of citywide computer equipment from Dell Financial Services, L.L.C. in the estimated amount of $3,095,079 and related services from Dell Marketing, L.P. in the estimated amount of $156,093 through Texas Department of Information Resources Contract No. DIR-TSO-3763. The Master Lease Agreement established an initial 36-month term with options to renew for two additional lease terms. On March 15, 2022, City Council approved an extension of the existing computer equipment lease month-to-month for up to six months in an amount not to exceed $85,979 per month and a new 36-month lease of citywide computer equipment in the estimated total amount of $3,115,661, the purchase of peripheral equipment from the current lease and data-wiping services for computers being returned from the current lease, through Texas Department of Information Resources Contract No. DIR-TSO-3763. On March 28, 2022, City Council approved the purchase of Dell peripheral equipment in the estimated amount of $206,810 from Dell Marketing, L.P. through Texas Department of Information Resources Contract No. DIR-TSO-3763. This purchase supported the City's approach of purchasing monitors, docking stations, keyboards, and mice as those items are expected to outlast the associated leased computers. On July 28, 2025, City Council approved an extension of the existing computer equipment lease for six months in the amount of $439,381 and an additional month-to-month extension for up to six months in an amount not to exceed $73,230 per month for a total expenditure not to exceed $878,761 to support the City's transition to a four-year equipment lifecycle through Dell Financial Services, L.L.C. via Texas Department of Information Resources Contract No. DIR-TSO-3763.


BACKGROUND The City historically maintained a 36-month computer replacement lifecycle supported through corresponding lease terms. In July 2025, City Council approved extending the lease for the City’s existing computer fleet beyond its original 36-month term to support the transition to a four-year lifecycle. That action applied only to the current computer inventory and effectively allowed the existing computers to remain in service for approximately 48 months. The current request includes two separate actions. First, Technology Solutions requests a three-month extension of the existing lease to allow sufficient time to complete deployment of replacement computers and return existing equipment to Dell in a controlled manner. Second, Technology Solutions requests approval of a new 48-month lease for replacement citywide computer equipment. The proposed 48-month lease is for new equipment and does not extend or duplicate the lease for the current fleet. Technology Solutions plans to begin deploying the new computers in August 2026, with completion expected by October 2026. The temporary extension will allow staff and deployment resources time to image, stage, deploy, validate, and return equipment without compressing the work into an impractical 30-day window or requiring extensive after-hours or weekend deployment efforts. As existing assets are returned during the project, the monthly extension cost will decrease to reflect the reduced number of leased devices remaining in service. The new 48-month lease will provide standardized, supported citywide computer equipment, preserve a predictable replacement cadence, and spread costs over the lease term instead of requiring a large upfront purchase. This request does not include monitors, docking stations, keyboards, or mice, which generally outlast the computers and are more cost-effective to purchase than lease. If the three-month extension is not approved, the City would need to accelerate deployment and returns into a substantially shorter timeframe, increasing both deployment risk and potential project costs. If the new 48-month lease is not approved, the City would need to pursue a large upfront purchase or alternate procurement approach, reducing the City’s ability to maintain a predictable replacement cycle. The City is authorized to purchase from the State Contract list pursuant to Chapter 271, Subchapter D of the Texas Local Government Code, and doing so satisfies any State law requiring local governments to seek competitive bids for these items. (Texas Department of Information Resources Contract No. DIR-CPO-5792 / City of Plano Contract No. 2018-0552-I).


FINANCIAL SUMMARY/STRATEGIC GOALS Funding for this item is available in the Technology Replacement Fund for a total expenditure not to exceed $5,815,210. This request is to approve the extension of the existing computer equipment lease in the amount of $219,690 for FY 2025-26. This request is also to approve a new 48-month lease in the amount of $159,917 beginning in FY 2025-26, $1,472,110 in FY 2026-27, $1,398,880 in FY's 2027-28 and 2028-29, and $1,165,733 in FY 2029-30. 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.