REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
August 20, 2019
FROM
LAURIE ROZKO, Director, Purchasing Department
SUBJECT
Title
Amendment to Agreement with IBM Credit LLC
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No.1 to Agreement No. 16-658 with IBM Credit LLC exercising the first one-year option to extend the contract from August 23, 2019 to August 22, 2020 to provide fair market value lease financial services up to $10 million.
(Presenter: Laurie Rozko, Purchasing Director, 387-2074)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally Responsible and Business-Like Manner.
FINANCIAL IMPACT
This item will not result in the use of additional Discretionary General Funding (Net County Cost). Departments are responsible for ensuring that sufficient appropriation is available when a lease of equipment is initiated, and that appropriation for any financing agreements is budgeted in subsequent fiscal years.
BACKGROUND INFORMATION
On August 23, 2016 (Item No. 108), the Board of Supervisors (Board) approved Master Lease Agreement No. 16-658 with IBM Credit, LLC (IBM) to provide fair market value (FMV) lease financial services for information technology (IT) hardware up to $10 million per year from August 23, 2016 through August 22, 2019, including two one-year options to extend the term, and authorizing the Purchasing Agent to execute schedules and required documents, pursuant to review and approval by County Counsel. A FMV lease is treated as a rental. It offers alternatives to either return equipment, continue the lease at the FMV renewal rate at the end of the term, or to buy the asset at its FMV at the end of the lease term.
The original Agreement with IBM Credit LLC, was for FMV leases of any brand of IT hardware including, but not limited to, storage, networking equipment, desktops, laptops and tabl...
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