Fountain, Colorado Development News

Fountain City Council Approves $1.4M Lease for Critical Server Hardware Amidst Price Volatility

The Fountain City Council convened a special meeting on June 29th, 2026, to approve Resolution 26-033, authorizing a lease-purchase financing and acquisition of server hardware and supporting equipment for the city's core technology infrastructure. The acquisition is necessary due to the inability to extend support for current hardware past mid-2027, which would prevent necessary software updates and patching of vulnerabilities. The council was urged to act quickly due to volatile technology prices, with quotes expiring rapidly and expected month-over-month increases of 10-20%. The approved resolution includes amending the FY2026 budget to facilitate the purchase, which is sourced through Holman Capital and utilizes Dell hardware from Sanity Solutions. The total lease price is $1,420,823.67 at a 5.51% interest rate, with semiannual payments of $120,731.28 starting January 9th, 2027. This amount is within the approved resolution limit and represents a saving of approximately $63,000 over the lease life compared to initial projections. The lease agreement has no penalties for early payment. The utility department will contribute to the costs through an end-of-year cost allocation process.