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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.