RECOMMENDATION(S):
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute, on behalf of the Chief Information Officer, purchase orders with Medtel Services, LLC, and a third-party lease agreement with IBM Global Finance in an amount not to exceed $721,575, for the purchase of two new telephone systems and expansion shelves, for the period April 1, 2014 through March 31, 2018.
FISCAL IMPACT:
The cost of $721,575 is charged back to user departments through the Department of Information Technology's billing process. The Purchasing Division has arranged a lease purchase contract with IBM Global Finance. The total amount financed is $682,807 at an interest rate of 2.84%. The principal and interest for the first of five annual payments has been budgeted under Org #4280 fiscal year 2013/2014.
BACKGROUND:
The Department of Information Technology is installing two new MDC telephone systems; one to be deployed at 595 Center St., Martinez, for the replacement of the old LH telephone system, and the second to be deployed at the new Martinez Health Center clinic. Three new IXP expansion units will be used at the Pittsburg Health Center, and 651 Pine St., for the voice mail tandems.
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