DATE: August 13, 2019
SUBJECT:
Title
RESOLUTION APPROVING SCHEDULE 3 TO MASTER TAX-EXEMPT LEASE/PURCHASE AGREEMENT WITH KEY GOVERNMENT FINANCE, INC. TO FINANCE BOARD-APPROVED PURCHASE OF CISCO SMARTNET SUPPORT SERVICES FROM DIMENSION DATA IN AN AMOUNT NOT TO EXCEED $752,676.00 OVER FIVE YEARS AT ZERO PERCENT INTEREST. FY2020 EXPENDITURES ARE INCLUDED IN THE FY2020 INFORMATION TECHNOLOGY BUDGET. FUNDS REQUIRED FOR FUTURE FISCAL YEARS WILL BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH FISCAL YEAR'S BUDGET.
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EXECUTIVE SUMMARY:
On May 14, 2019, the Board approved the purchase of a five-year Cisco SmartNet maintenance contract with Dimension Data, in an amount not to exceed, $752,676.00. A net zero-percent financing option that allows for equal payments over five years is available to acquire these services without an up-front investment of the full amount. This option represents an estimated 40% savings over annual contracts for the same services and reduces the administrative overhead. A Master Services Agreement with Key Government Finance, Inc. has been in effect with the District since 2009 and has been used for financing Cisco equipment and services in the past. Staff recommends the addition of Schedule 3 to the Master Agreement with Key Government Finance, Inc. to engage the zero-percent financing option.
RECOMMENDATION:
Recommendation
Adopt a resolution approving Schedule 3 to Master Tax-Exempt Lease/Purchase Agreement with Key Government Finance, Inc. to finance Board-approved purchase of Cisco SmartNet Support Services from Dimension Data in an amount not to exceed $752,676.00 over five years at zero percent interest.
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FISCAL IMPACT:[h1]
Funds for the first year of this expenditure were approved and accrued in the FY2019 Information Technology budget. Funds for the second year of this expenditure are included in the FY2020 Information Technology budget. Staff estimates an annual cash ...
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