AGENDA MEMORANDUM

Meeting Date:           September 10, 2007

From: Stan Carter, Information Technology Director           

Subject:                      Resolution authorizing Computer Lease Funding for Fiscal 2008

Staff Recommendation:       

Staff has been directed to identify all technology alternatives that can provide cost savings to the City of Leesburg.   Staff recommends not funding the computer equipment lease with IBM due to the budget constraints.

Analysis:        

The annual cost to provide a backup IBM iSeries computer system is $81,696.00 plus considerable staff time to manage the backup system. An acceptable alternative would be to contract for remote backup services. The cost for remote managed backup services is $36,000 per year plus $2,400.00 per year for one MB of internet bandwidth to connect to the remote backup service, resulting in new annual backup computer costs of $38,400.00 and annual cost savings of $43,296.00. 

Should the City Commission decide to not fund the current IBM lease for fiscal 2008, a contract will be negotiated for remote managed backup services and presented at a later date.

Options:

1.  Approve resolution to fund lease with IBM.

2.  Do not approve resolution to fund lease with IBM.

3.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Submission Date and Time:    9/5/2007 5:44 PM9/5/2007 9:49 AM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                           Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING FUNDING FOR FISCAL YEAR 2008 FOR AGREEMENT NO. LEE0903 WITH IBM CREDIT LLC, FOR ANNUAL LEASE CHARGES; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the City Commission hereby authorizes staff  to provide fiscal year 2008 funding for agreement number LEE0903 with IBM CREDIT LLC, whose address is NORTH CASTLE DRIVE, ARMONK, NY 10504, for annual lease charges.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _10th____ day of _September________ 2007.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk