HomeMy WebLinkAboutMINUTES - 02152011 - C.32 (2)RECOMMENDATION(S):
AMEND Board action of September 28, 2010 (Item C.55), which approved and authorized
the Purchasing Agent or designee to execute, on behalf of the Chief Information Officer, a
purchase order with Sirius Computer Solutions, in an amount not to exceed $751,000 for
purchase and replacement of mainframe components, to APPROVE and AUTHORIZE the
Purchasing Agent or designee to execute a third party lease agreement with PNC Equipment
Financing, Inc., for the period March 1, 2011 through September 1, 2015, increase the lease
purchase amount by $48,000 to an amount not to exceed $799,000, as recommended by the
Deputy General Services Director.
FISCAL IMPACT:
The increase in the total lease purchase price is due to the cost of borrowing money. The
lease purchase cost not to exceed $799,000 is budgeted in the FY 2010/2011 Department of
Information Technology (DoIT) budget and charged back to user departments through the
DoIT billing process.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 02/15/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
Supervisor
Contact: Steve Silveira
925-313-7120
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 15, 2011
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: GSD Administration, GSD Accounting, GSD Purchasing, Auditor Controller, County Administrator, GSD Purchasing
C.32
To:Board of Supervisors
From:Michael J. Lango, General Services Director
Date:February 15, 2011
Contra
Costa
County
Subject:Lease-Purchase Agreement with PNC Equipment Financing, Inc. for Purchase of Mainframe Computer
System Components
BACKGROUND:
On September 28, 2010, the Board of Supervisors approved execution of a purchase
order on behalf of the Chief Information Officer, with Sirius Computer Solutions in an
amount not to exceed $751,000, for the purchase and replacement of mainframe computer
system components for DoIT.
To finance the purchase, the Purchasing Agent negotiated a lease-purchase agreement
with PNC Equipment Financing, Inc., which amends the September 28, 2010 Board
Order (C.55) in accordance with the following terms:
$750,910.27 Principal
2.625% annual percentage rate compounded semi-annually
10 semi-annual payments of $79,829.68 with first payment due at funding.
In order to finance the purchase of the equipment and pay for subsequent
implementation, service, and support costs, PNC will place funds in escrow with U.S.
Bank’s Corporate Trust Services Escrow Group. The U.S. Bank Money Market account is
a U.S. Bank National Association (“U.S. Bank”) interest-bearing time deposit account.
Execution of this agreement includes authorization to place funds on deposit with U.S.
Bank.
CONSEQUENCE OF NEGATIVE ACTION:
If the PNC financing agreement is not approved, replacement and implementation of the
mainframe computer system components will require payment from operating funds or
cancellation of the project. Full payment from operating funds will create a hardship for
the department and negatively impact support of County information technology
systems. The mainframe computer system is vital to the continued operation of the
County's financial software systems.
CHILDREN'S IMPACT STATEMENT:
Not Applicable.
ATTACHMENTS
PO PNC
PNC Lease Purchase Schedule
C.55 Sept 28 2010