1992-102ALLOOO1F
ORDINANCE NO. ~j ~/~
AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES
OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE
IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PUR-
CHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EF-
FECTIVE DATE.
WHEREAS, Section 252.022 of the Local Government Code provides
that procurement of items that are only available from one source,
including: items that are only available from one source because of
patents, copyrights, secret processes or natural monopolies; films,
manuscripts or books; electricity, gas, water and other utility
purchases; captive replacement parts or components for equipment;
and library materials for a public library that are available only
from the persons holding exclusive distribution rights to the ma-
terials; need not be submitted to competitive bids; and
WHEREAS, the city Council wishes to procure one or more of the
items mentioned in the above paragraph; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the following purchases of materials, equip-
ment or supplies, as described in the "Purchase Orders" attached
hereto, are hereby approved:
PURCHASE
ORDER NUMBER VENDOR AMOUNT
25059 IBM $86,112.00
25030 IBM $63,328.95
SECTION II. That the acceptance and approval of the above
items shall not constitute a contract between the City and the
person submitting the quotation for such items until such person
shall comply with all requirements specified by the Purchasing
Department.
SECTION III. That the city Manager is hereby authorized to
execute any contracts relating to the items specified in Section I
and the expenditure of funds pursuant to said contracts is hereby
authorized.
SECTION IV. That this ordinance shall become effective immedi-
ately upon its passage and approval.
PASSED AND APPROVED this the ay of ~ , 1992.
BOB CASTLEBERRY, ~Y~/
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
LEGAL FO~:
DEB~ A. D~YOVITCH, CITY ATTO~EY
Page 2
DATE: JUNE 23, 1992
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: PURCHASE ORDER #~.5059 - IBM $86,112.00
RECOMMENDATION: We recommend Purchase Order #25029 in the amount of $86,112
to IBM be approved as presented.
SUMMARY: Purchase Order ~25029 is for the annual renewal of a sole source
proprietary maintenance agreement for IBM software licenses. This software is
protected by patent and or copyright and only available from IBM. The maintenance
agreement allows for both "trouble shooting" the existing system as well as any new
releases from IBM. The affected software is the basis for the operation of the
Information Services mainframe computer.
The cost of this agreement is approximately 5% more than last year.
Data Processing Advisor Board recommends approval. Acquisitions of supplies or
services available from only one source due to copy rights or patents are exempt
from the bid process.
BACKGROUND: Purchase Order ~2509.9, Minutes of Data Processing Advisory Board.
PROGRAMS ~ DEPARTMENTS OR GROUPS AFFECTED: Information Services Division.
FISCAL IMPACT: Funds for this agreement will come from 1991-92 budget funds
account number #100-044-0080-8341 Maintenance of Office Machines.
t ~./spectfully submitted:
Lloyd V. l~Iarrell//
City Manager
Approved:
Name: Tom D. Shaw~ C.P,M.
Title: Purchasing Agent
TS/ih
275. DOC
MINUTES OF
DATA PROCESSING ADVISORY BOARD
MEETING OF JUNE 11, 1992
M~ERS PPdZSENT: Jim Kuykendall, Bob Minnie,
Brian Scott
~MBERS ABSENT: Cengis Capan and Don Edwards
OTHERS PR]ESENT: Gary Collins, Ray Wells and Chuck Pierce
Bob Minnie made a motion the minutes from the March 31, 1992,
meeting be approved as written. Jim Kuykendall seconded the motion
and it passed unanimously.
Gary Collins ~xplalned that a number of months ago the City of
Denton had sent out a bid for 11 personal computers, and the City
of Denton Utility Department bid on these computers and submitted
the low bid. Gary Collins also stated that since the Utility
Department was low bidder for the personal computers, they had to
let out a bid for the parts necessary to build these personal
computers. Ray wells explained that after bidding the parts
COMPUCAN Center in Farmers Branch was low bidder at $18,666. Bob
Minnie asked how many computers this would entail. Ray Wells
responded that these parts would allow them to make 11 computers
and that all of them were in the Utility Department with the
exception of one personal computer in Customer Service. Gary
Collins stated that since Cengis Capan had indicated he could not
make this meeting, Gary Collins had called Cengis since the
University of North Texas had at one time built their own personal
computers. Cengis had told Gary Collins that approximately 3 or 4
years ago the university started building their own computers
because the price differential on building personal computers and
buying them was so great. In the last year the university has gone
back to purchasing their personal computers since the price
differential had gotten to the point where the university did not
feel it was worth the bother.
Gary Collins stated that all of these computers were equivalent tO
an IBM PS/2 model 80 or above. Ray Wells explained that they were
all 486 machines with the exception of 2 that were 386 machines and
met the specifications outlined by the requesting Department or
Division. Gary Collins explained that the next lowest bidder on
the original PC bid was Gateway Computers at $24,000 and the
highest bidder was IBM at $82,000. Both Brian Scott and Jim
Kuykendall expressed their dissatisfaction with the Gateway
Computers their respective companies had purchased.
Bob Minnie asked what software was going to be used. Ray Wells
responded that the software would be standard off the shelf
software and each Department or Division would purchase the
software they needed. Gary Collins reminded the board that the
City had an Administrative Directive regarding the purchase of
software~ so there would be no violations of the copywrite law.
Bob Minnie ask what would we do about warranties. Chuck Pierce
responded that the utility Department would perform all of the
warranty work and the parts had 1 or 2 years warranty with them.
Brian Scott ask if the machines would have EISA Architecture,
Chuck Pierce indicated that the machines would have ISA
Architecture. Church Pierce indicated they had found out that the
ESA Architecture would add $800 to $900 to the cost of each machine
and felt when that capability was needed, they would look at
replacing the mother boards and doing a major upgrade of the
personal computer. Brian Scott asked Gary Collins what his
feelings were. Gary Collins responded that he was biased and felt
very secure in calling IBM and knowing they would respond. Gary
Collins also stated that the communications group had assured him
they would ~es~ond in a timely ~anner and the city was already
dependent on 6has group to maintain the fiber optic lines for the
Telephone system and other communications such as the Radio system.
Gary Collins expressed his concern about the 3270 connectivity
issue and the need for his staff to provide software support to
these users. Chuck Pierce responded that they have tested out the
3270 connectivity. Ray Wells said that their Department had been
instructed by their Executive Director to find ways to save money
and this was a way for them to save money. Jim Kuykendall asked if
this Division had enough manpower to support these 11 PCs and what
they would do if a Police radio went out and this PC went out. Ray
wells responded that they had 6 people to service the various
equipment they are responsible for and if all 11 PCs went down at
the same time there was a potential for a problem, but that to date
they have not encountered problems providing support to the
Telephone system, Radio system and various computers they now
service.
Brian Scott asked how much additional memory these personal
computers could have. Chuck Pierce responded that they were coming
with 4 Megabytes of memory but could handle up to.32 Megabytes of
memory. Jim Kuykendall asked if the price differen=ial between
acceptable assembled personal computers and the component parts was
not so high would the Electric Department be using this method.
Ray Wells responded that they had been instructed by their
~xecutive Director to try to save money. Gary Collins added that
in conversations he had with Bob Nelson the Executive Director of
utilities, Bob wanted to at least try this method this time to see
if it was not cost effective, with the understanding that the City
could always revert back to the other process at a later time.
Gary Collins also stated that with the exception Of Customer
Service, all of these personal computers ~ere for use in the
Utility Departments and they would }De the ones feeling any adverse
impact and were willing to take that risk,
Brian Scott made a motion that the D.P. Advisory Board recommend
the City Council approve the purchase of personal computer parts
from CO~UCAN Center at least this year. Bob Minnie seconded the
motion and it passed unanimously.
Gary Collins explained that the purchase request for $86,112 was
for the annual renewal of 16 software licenses maintenance for a 12
month period and this was proprietary software. Bob Minnie asked
how this cost compared with last year's costs. Gary Collins
responded it was approximately 5% greater than last year. Bob
Minnie made a motion that the D.P. Advisory Board recommend the
City Council approve the renewal of the software license
maintenance with IBM. Brian Scott seconded the motion and it
passed unanimously.
Gary Collins explained that the purcl%ase request for $63,328.95 was
for the continuation of the annual maintenance on the IBM hardware
and this wa~ the fourth year of the 5 year MSA contract that
restricted IBM'S price increases to 3% in a single year. Bob
Minnie made a motion that the D.P. Advisory Board recommend that
the City Council approve the annual renewal of this hardware
maintenance contract with IBM. Srian Scott seconded the motion and
it was passed unanimously.
Gary Collins reviewed the proposed budget of the Information
Servicee Department with the D.P Advisory Board. There being no
need for action none was taken.
There being no other business the meeting was adjourned.
DATE: JUNE 23, 1992
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: PURCHASE ORDER ~25030 - IBM $63,328.95
RECOMMENDATION: We recommend Purchase Order #25030 to IBM in the amount of
$63,328.95 be approved as presented.
SUMMARY: Purchase Order#25030 is for the annual maintenance of the IBM Mainframe
Hardware used by Information Services Division. This contract renewal is for the
fourth year of a five year not to exceed 3% increase fixed cost contract offered by
IBM. This CSA/MRSA hardware maintenance contract is only available from IBM and
therefore exempt from the bid requirement laws of the State of Texas Local
Government Code, Subchapter B, Section 252,020, General Exceptions.
The Data Processing Advisory Board recommends approval.
BACKGROUND: Purchase Order #25031, Data Processing Advisory Board Minutes.
PROGRAMS ~ DEPARTMENTS OR GROUPS AFFECTED: Information Services Division.
FISCAL IMPACT: Funds for the contract renewal will come from 1991-92 budget
account #100-044-0080-8341 maintenance of office machines.
/~es~ectfullYLl¢ Y'~/d V ' H~arre~/submitted:
City Manager
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
276.DOC
MINUTES OF
DATA PROCESSINGADVISORY BOARD
MEETING OF JUNE 11, 1992
M~MBERS PPdZSENT~ Jim Kuykendall, Bob Minnis,
Brian Scott
M~MBERS ABSENT: Cengis Capan and Don Edwards
OTHERS PRESENT: Gary Collins, Ray Wells and Chuck Pierce
Bob Minnis made a motion the minutes from the March 31, 1992,
meeting be approved as written. Jim Kuykendall seconded the motion
and it passed unanimously.
Gary Collins %xplained that a number of months ago the City of
Denton had sent out a bid for 11 personal computers, and the City
of Denton Utility Department bid on these computers and submitted
the Iow bid. Gary Collins also stated that since the Utility
Department was low bidder for the personal computers, they had to
let out a bid for the parts necessary to build these personal
computers. Ray Wells explained that after bidding the parts
CO~PUCAN Center in Farmers Branch was iow bidder at $18,666. Bob
Minnis asked how many computers this would entail. Ray Wells
responded that these parts would allow them to make 11 computers
and that all of them were in the Utility Department with the
exception of one personal computer in Customer Service. Gary
Collins stated that since Cengis Capan had indicated he could not
make this meeting, Gary Collins had called Cengis since the
University of North Texas had at one time built their own personal
computers. Cengis had told Gary Collins that approximately 3 or 4
years ago the university started building their own computers
because the price differential on building personal computers and
buying them was so great. In the last year the university has gone
back to purchasing their personal computers since the price
differential had gotten to the point where the university did not
feel it was worth the bother.
Gary Collins stated that all of these computers were equlvalent to
an IBM PS/2 model 80 or above. Ray Wells explained that they were
all 486 machines with the exception of 2 that were 386 machines and
met the specifications outlined by the requesting Department or
Division. Gary Collins explained that the next lowest bidder on
the original PC bid was Gateway Computers at $24,000 and the
highest bidder was IBM at $82,000. Both Brian Scott and Jim
Kuykendall expressed their dissatisfaction with the Gateway
Computers their respective companies had purchased.
Bob Minnis asked what software was going to be used. Ray Wells
responded that the software would be standard off the shelf
software and each Department or Division would purchase the
software they needed. Gary Collins reminded the board that the
City had an Administrative Directive regarding the purchase of
softwaref so there would be no violations of the copywrite law.
~ob Minnie ask what would we do about warranties. Chuck Pierce
responded that the Utility Department would perform all of the
warranty work and the parts had i or 2 years warranty with them.
Brian Scott ask if the machines would have EISA Architecture.
Chuck Pierce indicated that the machines would have ISA
Architecture. Church Pierce indicated they had found out that the
ESA Architecture would add $800 to $900 to the cost of each machine
and felt when that capability was needed, they would look at
replacing the mother boards and doing a major upgrade of the
personal computer. Brian Scott asked Gary Collins what his
feelings were. Gary Collins responded that he was biased and felt
very secure in calling IB~ and knowing they would respond. Gary
Collins also stated that the communications group had assured him
they would r~6pond in a timely manner and the city was already
dependent on ~his group to maintain the fiber optic lines for the
Telephone system and other communications such as the Radio system.
Gary Collins expressed his concern about the 3270 connectivity
issue and the need for his staff to provide software support to
these users. Chuck ~ierce responded that they have tested out the
3270 connectivity. Ray Wells said that their Department had been
instructed by their Executive Director to find ways to save money
and this was a way for them to save money. Jim Kuykendall asked if
this Division had enough manpower to support these 11 PCs and what
they would do if a Police radio went out and this PC went out. Ray
Wells responded that they had 6 people to service the various
equipment they are responsible for and if all 11 PCs went down at
the same time there was a potential for a problem, but that to date
they have not encountered problems providing support to the
Telephone system, Radio system and various computers they now
service.
Brian Scott asked how much additional memory these personal
computers could have. Chuck Pierce responded that they were coming
with 4 Megabytes of memory but could handle up to 32 Megabytes of
memory. Jim Kuykendall asked if the price differential between
acceptable assembled personal computers and the component parts was
not so high would the Electric Department be using this method.
Ray Wells responded that they had been instructed by their
Executive Director to try to save money. Gary Collins added that
in conversations he had with Bob Nelson the Executive Director of
utilities, Bob wanted to at least try this method this time to see
if it was not cost effective, with the understanding that the City
could always revert back to the other process at a later time.
Gary Collins also stated that with the exception of Customer
Service, all of these personal computers were for use in the
Utility Departments and they would be the ones feeling any adverse
impact and were willing to take that risk,
Brian Scott made a motion that the D.P. Advisory Board recommend
the City Council approve the purchase o~ personal computer parts
from COM~UCA.N Center at least this year. Bob Minnis seconded the
motion and it passed unanimously.
Gary Collins explained that the purchase request for $86,112 was
for the annual renewal of 16 software licenses maintenance for a 12
month period and this was proprietary software. Bob Minnis asked
how this cost compared with last year's costs. Ga~y Collins
responded it was approximately 5% greater than last yea~. Bob
Minnis made a motion that the D.P. Advisory Board ~ecommend the
City Council approve the renewal of the software lloense
maintenance with IBM. Brian Scott seconded the motion and it
passed unanimously.
Gary Collins explained that the purchase ~equest for $63,328.95 was
for the continuation of the annual maintenance on the IBM hardware
and this was~ the fourth year of the 5 year MSA contract that
restricted IBM's price increases to 3% in a single year. Bob
Minnis made a motion that the D.P. Advisory Board recommend that
the City Council approve the annual renewal of this hardware
maintenance contract with IBM. Brian Scott seconded the motion
it was passed unanimously.
Gary Collins reviewed the proposed budget of the Information
Services Department with the D.P Advisory Board. There being no
need for action none was taken.
There being no other business the meeting was adjourned.