REPORT TO THE CITY COUNCIL March 9, 2017 FROM: Bruce Rudd, City Manager BY: Bryon Horn, Chief Information Officer Information Services Department SUBJECT ..Title Approve the purchase of network equipment from AMS.NET for $429,441.38 for the Departments of Public Utilities and Information Services, in accordance with purchasing procedures from cooperative agreements as set forth in Administrative Order 3-1. ..Body RECOMMENDATION It is recommended that Council approve the purchase of network equipment from AMS.NET in the amount of $429,441.38 for the replacement of end of life and end of support networking equipment, as well as for equipment that will be used to enhance and expand the City's networking infrastructure. The purchase includes $185,317.92 for the Department of Public Utilities (DPU) for equipment replacement and expansion for the DPU Water Division and $244,123.46 for the Information Services Department (ISD) for equipment replacement as well as wireless and voice equipment to enhance service levels. In accordance with Administrative Order 3-1, the equipment is being purchased through a competitive purchase agreement (Merced County FOCUS Contract #2015109). EXECUTIVE SUMMARY ISD is responsible for the City's networking needs as well as securing the City's network and information. Since technology is a vital part of the City's business processes, it is imperative that proper and authentic equipment be purchased from reputable service providers. The equipment is being purchased through ISD as part of the Department's purchasing policy. Funding for this purchase currently exists in each Department's respective Fiscal Year 2017 budget. BACKGROUND In past years, attempts to procure such items through a request for proposal process has resulted in counterfeit and "gray market" products, even if the bid requirement specified that only genuine and supported equipment be supplied. The ISD and Finance Department have a cooperative purchase agreement allowing the purchases of networking equipment through Merced County FOCUS Contract #2015109. The FOCUS agreement is a very low cost and competitively bid agreement in which the supplier, and authorized dealer, AMS.NET, is generally able to provide the City of Fresno the lowest possible price for the equipment. ENVIRONMENTAL FINDINGS The approval of a purchase order is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because the items are being procured through a cooperative purchase agreement. FISCAL IMPACT Funding for this purchase is in the Fiscal Year 2017 Budget, therefore, no additional appropriations are required. Attachment: Merced County FOCUS Contract #2015109 AMS.NET Customer Price Quote #Q-00014958 (ISD) AMS.NET Customer Price Quote #Q-00014959 (DPU)