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MEMORANDUM
TO: Board of Supervisors
FROM: Shane French, Information Technology Director
DATE: December 19, 2017
SUBJECT: Approve Purchase of Yearly Maintenance from Cisco Systems, Enter into Financing Agreement and Addendum with Cisco Capital.
EXECUTIVE SUMMARY:
The Information Technology Department is requesting permission to purchase a multi-year support renewal, and enter into a 0% financing agreement.
BACKGROUND AND DISCUSSION:
The majority of county departments utilize the countywide Cisco (VOIP) phone system. The system consists of hardware and software that provides voice services. Each year, County IT purchases maintenance contracts for the hardware and software that allows for timely resolution of problems as well as upgrades to the system to allow it to remain current. As the number of users/phones on the system have increased, these costs have gone up as well.
Because Cisco offers a significant discount for purchasing multi-year contracts, it will be advantageous to purchase a five-year contract instead of the typical one-year contract. The attached agreement reflects a discount of approximately 12% below normal rates. As well, by purchasing a multi-year contract, the county will be able to lock in this year's rate. Typically, these service contracts increase in price year over year.
Finally, Cisco is offering the multi-year contract with a zero-percent financing arrangement which will allow the county to continue to make payments as though we are purchasing yearly contracts (that is, the five-year agreement is not paid in a lump-sum, but divided into five equal yearly payments).
The Installment Payment Agreement attached has been reviewed by the County Counsel's office as to form. While the agreement is largely a standardized contract, there were a couple of areas that were pointed out as possible areas for concern, including a requirement for any potential litigation to be carried out in New York State. Additionally,...
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