Line of credit to update computers

A $1.5 million lease agreement for the supply of IT equipment has been signed off by Baw Baw Shire.

The agreement, with Macquarie Equipment Finance, will provide a $620,000 line of credit to be spent as needed over the next three to five years.

Some councillors did not support the concept of unspent money remaining in reserve.

A report to council said the existing IT equipment fleet, including 200 desktop computers and 70 laptops, were outdated and in need of renewal.

Council currently leases IT equipment (including servers, desktops, laptops and other devices) with Macquarie Equipment Finance.

Officers said the lease term was between three and five years depending upon the type of equipment. At the end of the lease term the equipment is obsolete and requires replacement.

“The IT fleet of laptops and desktops is now at the end of their lease with the equipment due for upgrade.

Council recently replaced its IT servers, so officers recommended this equipment be included in the new lease agreement with Macquarie Equipment Finance.

“Both the supply of IT equipment and the supply of lease finance were the subject of a competitive procurement process,” officers said.

The report said the $1.5 million lease was designed to provide additional capacity for officers to activate the lease agreement without the need for further council approval.

The $1.5 million includes $230,000 for IT servers already acquired in October last year; $650,000 for desktop PCs, laptops and other devices now due for replacement; and $620,000 to meet additional IT equipment needs as they arise such as printers, network devices and server storage.

Council’s operating budget includes recurrent expenditure of $573,000 to fund the lease of IT equipment.

Moving that council approve the lease agreement, Cr Jessica O’Donnell said it was fantastic to have a solution to council’s IT upgrade.

She said it would give council a line of credit for further upgrades in the years to come.

“If, and it’s a big if, that $1.5 million was drawn down, it equates to $800 per year per staff member. It’s not a huge amount when you break it down like that,” she said.

Cr O’Donnell said technology was constantly moving forward and hopefully new IT equipment would provide more flexibility for work places and hours among staff. Cr Danny Goss said it was a good outcome. “There is an amount of fat in there to allow for other purchases throughout the lease.

“Whilst we don’t have $1.5 million to spend right now, we will have it over the period and we don’t have to draw it all down,” he said.

Cr Tricia Jones did not support $620,000 being included for future purchases.

“It’s an awful lot of money and what we are saying is in advance we are allowing that to be used,” she said.

Cr Jones said if additional IT purchases needed to be made then they should be approved.

“If they have not been scoped then it can come back to us so council is aware of what the money is for and whether we think it is reasonable,” she said.

Cr Michael Leaney said it was providing a “line of credit” that would essentially “future proof the shire.”

He said the IT world was a fast moving industry and there may be products come up that would benefit the organisation.

“We need the flexibility that when new equipment becomes available we can consider it,” he said.

Cr Jones called for a division. In favour of the motion were councillors O’Donnell, Goss, Leaney, Mikaela Power and Keith Cook. Against the motion were Crs Jones, Peter Kostos and Darren Wallace.