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1990-1202651L-5/3689 ORDINANCE NO. 910- /010 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 PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE 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 materials; 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 98817 American Management Systems $70,987.50 98818 IBM $32,330.00 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 immediately upon its passage and approval. PASSED AND APPROVED this the 4pVf-;f day of , 1990. BOB CASTLEBERRY, MAYO ATTEST: JENNIFER WALTERS, CITY SECRETARY ~n tin- TO LEGAL FORM: APPROVED AS DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: PAGE TWO DATE: August 21,1990 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: PURCHASE ORDER #98817 - AMERICAN MANAGEMENT SYSTEMS, INC. RECOMMENDATION: We recommend this purchase order in the amount of $70,987.50 to A.M.S. be approved and processed for payment. The Data Processing Advisory Board recommends approval. SUMMARY: This purchase order is for the renewal of software license maintenance agreement to A.M.S. for the local governmental financial software (LGFS). This is a single source purchase for proprietary software maintenance and is exempt from bidding requirements. Included in this software program are the following subsystems, LGFS, Fixed Assets, Performance Measurement, Job Cost Accounting, Cost Allocation, Extended Purchasing, Inventory Control, PC Interface, and Report Painter. This purchase order covers the time period from May 1, 1990 through July 31, 1991. BACKGROUND: Purchase order #98817, exert from Data Processing Advisory Board Agenda Packet (Item 3) letter, invoice, price sheet from A.M.S., and Data Processing Advisory minutes. PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: Information Services, Purchasing, Warehousing, Accounting, Finance and Utility Departments. FISCAL IMPACT: Funds for this purchase will come from budget funds account number #437-036-017G-9103. Respec ullly submitted: ly t -.'44W Lloyd V. Harrel City Manager Pr pared by: Name: Tom D. Shaw, C.P.M. Title: Purchasing TS/jh 046.DOC O b 3 w 0 • 0 ~ r i M N M.{ a yd b xw 9 ~i0 W ~ p D O F' 2 v a c ' c i y H ttnn om w t_z F A Ky ` w w a a w •z a V 0 • y OD V • a e: D> v b ~m a OD y ss b rr o N -4 *4 ~ 00 0 • 00 m CD • N W to O Intn h c~ M z O M z O s x 1C a ab 0 M M -~C O C 0 M v O W a O M y w w O 2 m CO) b z < O K Z p M m O a z 0 v 0 o O z r v to c) z n Z 02 4M T xG) . iw X00-' • x D o 64rn M2 91-i M w1 & k > o N a Q co Co a2 m~ w~ Y 0 ~y i~ m y N~ 0) Q) o m ° CLT' v C -i M m Ni co M a to t7WOA mN>O No •Z-0-44 O w zMMM ••O9 0=64 XAtfn^OW NM N R tizz0 NKOr K A a v g m (.as-C Q Qy Ct7 w~ > " '9~am x my O 1tl . w M b ~ -8 M yyw~ ~`D aO S r CD O H b `d BACKGROUND INFORMATION for Item 3 During the past ten years the philosophy of the City of Denton has been to purchase software systems versus developing them in house. The LGFS system from American Management Systems is an integrated financial system that was first installed in October of 1982 with the base system. In January of 1987 a number of subsystems were purchased and at that time the maintenance for the next 3 years was negotiated in the purchased price. The software maintenance agreement ensures that the City of Denton will be provided with ongoing technical support, new releases of the software, fixes to known problems and the hotline support. This cost is quite a bit higher than last year, the increase is due to the subsystems coming under maintenance this year for the first time. It should be noted that while this cost is significantly more than we pay our programmers, this agreement ensures that our software keeps abreast of changes in the financial area of local government both from a legal and procedural stand point. l American Management Systems, Inc. i i May 11, 1990 Mr. Gary Collins Project No: P2649 Data Processing City of Denton 324-B East McKinney Street Denton, TX 76201 Dear Mr. Collins: Effective August 1, 1990 the LGFS maintenance support for the City of Denton expires. Under the License Agreement, the City of Denton is entitled to purchase maintenance support from AMS for additional periods. Some of the benefits LGFS clients derive from purchasing on-going support from AMS are: Delivery of annual enhancements to LGFS along with complete installation instructions. Updates to LGFS documentation. Continued active involvement in the Users Group (one of the main sources for developing enhancements lists). Support with the development of new report requests using AMS provided report writers. Hotline support of LGFS processing questions. We would like to continue to provide the City of Denton with enhanced versions of LGFS as they are released. Per your contract the maintenance fee for LGFS is 159 of the prevailing price list (attached). Remittance of the attached invoice will provide the City of Denton with LGFS maintenance support for the 12-month period of August 1, 1990 through July 31, 1991. If you have any questions, please call me at (703) 841-6731. Sin ly, Lee Ross Manager, Product Support 1777 North Kent Street • Arlington, Virginia 22209 • (703) 841-6000 -Telex 64638 •Answerback AMSINC Regional Offires In: Chicago • Denver • Houston • New York • San Francisco American Management Systems, Inc. Mr. Gary Collins May 111 1990 Data Processing City of Denton Project No: P2649 324-B East McKinney Street Denton, TX 76201 INVOICE LGFS Maintenance Fees for August 1, 1990 through July 31, 1991. LGFS $ 29,925.00 Fixed Assets 4,500.00 Performance Measurement 2,250.00 Job Cost Accounting 4,500.00 Cost Allocation 4,500.00 Extended Purchasing 91000.00 Inventory Control 8,250.00 Personal Computer Interface 750.00 Report Painter 750.00 SUBTOTAL: $ 64,425.00 LGFS Maintenance Fees for May 1, 1990 through July 31, 1990. Job Cost Accounting $ 1,125.00 Cost Allocation 1,125.00 Extended Purchasing 2,250.00 Inventory Control 2.062.50 SUBTOTAL: $ 6,562.50 TOTAL INVOICE: S 70,987.50 4 Lee Ross Manager, Product Support PLEASE NOTE: PAYMENT MUST BE RECEIVED BY JULY 31 1990, OR BY JUNE 25, 1990 TO RECEIVE SPECIAL TRAINING OFFER. Please make remittance payable to: American Management Systems, Inc. c/o Le*e Ross, 10th Floor 1777 North Kent Street 1777 North Kent Street - Arlington, Virginia 22209 - (703) 841-6000 -Telex 64638 -Answerback AMSINC Regional Offices In: Chicago - Denver - Houston - New York - San Francisco p !i American managemewiiii~tems, ill u Local Government Financial System (LGFS) LGFS - IBM/GROUP 30 PRICE SCHEDULE MONSOON! 1. SOFTWARE UCENSE FEES PRICE LGFS (Basic System) CICS/VSAM ...................................................................................$199,500 Includes: • Budgeting • Planning • General Ledger • Revenue Accounting • Accounts Receivable • External Financial Reporting • Responsibility Reporting • Encumbrance Control • Expenditure Accounting for Purchases • Accounts Payable • Cash Disbursements • Expenditure Accounting for Payroll • Cost Accounting • Grants Management and Reporting • Project Reporting • Cash Management Optional Fixed Assets 30,000 Subsystems Job Cost Accounting 30,000 Cost Allocation 30,000 Extended Purchasing 60,000 Inventory Control (must have Extended Purchasing) 56,000 Performance Measurement 15,000 Investment Inventory 20,000 Advanced Budget Preparation 30,000 Work Order (must have Job Cost Accounting) 20,000 Fleet Management (must have Work Order) 50,000 Debt Management 25,000 Documentation: Two copies of all user and technical documentation are included. Additional copies of any manuals are available at standard list prices. 2. TERM OF LICENSE AND RENEWAL The initial term of the License is thirty (30) years. At the end of this initial term, Licensee may renew the License annually for a fee equal to two (2) percent of the initial license fee. 3. MAINTENANCE AND WARRANTY The system is warranted for one (1) year from the date of delivery of the software. An options] annual maintenance service provides continued warranty, telephone consultation, and annual enhancement releases. The current annual maintenance fees are fifteen (15) percent of prevailing license fee for LGFS. 4. INSTALLATION As part of the license fee AMS will install LGFS and the licensed options on your computer and complete the standard installation test. 5. IMPLEMENTATION SUPPORT AMS professional staff will provide support for training, product consulting, conversion, and other tasks necessary to implement the system. These tasks will be conducted primarily at the client's site. Support will be provided at standard AMS rates for professional services, as attached. Travel time to and from the client's site will be charged at 50% of the standard rate. Reasonable travel, living, and other out-of-pocket expenses to provide the support will be billed to clients at AMS mats, including a ten (10) percent fee for associated administrative costs. To provide for initial implementation assistance, a client may elect to purchase $50,000 of professional services at a 10% discount ($45,000). 6. TERMS OF PAYMENT OF SOFTWARE LICENSE FEE A. 85% of license fee upon execution of License Agreement and delivery of documentation. B. 16% of license fee upon delivery of the software. C. Contractual fees, expense reimbursement, and charges for additional support due upon receipt of monthly bill. D. A finance fee of two (2) percent per month will be due for any amount not paid within thirty (30) days of due date. EFFECTIVE JULY 1, 1999 PRICES SUBJECT TO CHANGE WITHOUT NOTICE Corporate Headquarters 1777 North Kent Street Arlington, Virginia (703) 841-6000 Decision Support Tools and Data Base Options IBM Versions - All Processor Groups PRICE SCHEDULE 1. SOFTWARE LICENSE FEES Price Decision Personal Computer Interface (PCO, including PC Report Painter $10,000 Support Report Distribution 15,000 Tools: IMAGINE (Restricted Version) 25,000 IMAGINE (Unrestricted Version) 50,000 REPORTER Included Altemate DB2/CICS $50,000 Technical ADABAS/CICS 50,000 Versions: DATACOM/CICS 50,000 IMS/DBDC 75,000 The surcharge for alternate technical versions applies to the base product (CUFS, SIS, IiRS), not to the optional subsystems. Discounts on The license fee listed above provides ten (10) copies; additional copies are available at the following license PC-Based fees: Tools: Second ten copies Third ten copies Additional sets of ten copies $5,000 2,500 1,250 Documentation: Two copies of all user and technical documentation for mainframe software are included. Additional copies of any manuals are available at standard list prices. 2. TERM OF LICENSE AMS provides a license to use the software at a single computer facility for a term of thirty (30) years. For personal computer products, each copy permits use of the software on a single machine. 3. MAINTENANCE, ENHANCEMENT, AND WARRANTY The system is warranted for one (1) year from the date of delivery of the software. An optional annual maintenance service provides continued warranty, telephone consultation, and enhancement releases. The current annual mainte- nance fees are fifteen (15) percent of prevailing license fees. 4. TERMS OF PAYMENT A. 70% of license fee upon execution of License Agreement. B. 30% of license fee upon delivery of the software and documentation. C. Expense reimbursements and fees for support provided on a time and materials basis are due upon receipt of monthly bill. D. A finance fee of two (2) percent per month will be due for any amount not paid within thirty (30) days of due date. EFFECTIVE SEPTEMBER 1, 1969 PRICES SUBJECT TO CHANGE INITHOUT NOTICE I Corporate Headquarters 1777 North Kent Street Arlington, Virginia (703) 841-6000 MINUTES OF DATA PROCESSING ADVISORY BOARD MEETING OF AUGUST 9, 1990 MEMBERS PRESENT: Jim Kuykendall, Bob Minnis, Brian Scott, Charles Ridens MEMBERS ABSENT: Cengis Capan OTHERS PRESENT: Gary Collins and Dave Dickey Jim Kuykendall made the motion and Charles Ridens seconded the motion that the minutes of the January 9. 1990 meeting be accepted as presented. The motion was passed unanimously. Charles Ridens nominated Jim Kuykendall for Chairman of the Data Processing Advisory Board Brian Scott seconded the motion, it passed unanimously and Gary Collins turned the meeting over to Jim Kuykendall. Gary Collins briefly described the department's background and operational philosophy. Under this philosophy the City of Denton has maintained a very minimum staff. Gary Collins explained that the 'LGFS' system is a totally integrated Financial System and the increase in the annual fee was due to the number of subsystems coming under maintenance for the first time. In negotiating for the subsystems in 1987 we negotiated that purchase price would include 3 years of maintenance rather than the traditional 1 year of maintenance. Gary Collins explained that while $70,000 was more than we would pay for a Programmer that we receive more than just Programming services from this agreement. He explained that in addition to the annual release of the system, with this agreement we also receive technical assistance via phone "hot line" for not only Data Processing staff but Accounting staff. The AMS staff stays up-to-date with changes in the Financial Industry, Government regulations, and auditing procedures and incorporates these changes into their system. Gary Collins explained that in order to have in house staff perform all of these activities it would require more than the cost of this agreement. Jim Kuykendall explained the reason that the D.P. Advisory Board looks at items like this maintenance agreement. Gary Collins explained that $6,562.50 of this cost was for the 3 months of maintenance on the subsystems that were purchased in 1987 in an off cycle time frame and the $64,425 was for the 12 months of maintenance on the entire system. Charles Ridens made a motion that the Board recommend the City Continue this maintenance agreement and Jim Kuykendall seconded the motion. The motion was passed unanimously. Jim Kuykendall explained that back in January when this issue was first brought to the board he had put a motion on the floor and it died for a lack of a second and how critical he felt this issue was to properly serve the various departments throughout the city. Gary Collins discussed the criticality of some of the PCs and the age of the PCs and how some PCs have experienced failure. Jim Kuykendall stated that in most cases these PCs are not only PCs but also double as terminals for Departments to access the mainframe. Charles Ridens asked if IBM could not refuse to service the PCs that are broken and then placed under maintenance. Gary Collins explained that IBM could ask to inspect the PCs before accepting them for maintenance and require us to have them operational before acceptance on a maintenance contract. Bob Minnis asked if the staff could not maintain these PCs. Gary Collins explained that currently we do not have the staff to support this function for all the various departments' PCs. Gary Collins also stated that he would consider supplying this support if the Personal Computer Analyst's position that has been requested in the last 2 Budget Processes had been approved but cautioned that we would also have to have a parts inventory, training for staff, and diagnostic equipment. Charles Ridens ask if we could not piecemeal these maintenance contracts since they were for various departments. Gary Collins explained that under the new state law similar contracts needed to be grouped and sent out for bid and that the Purchasing agent was emphatic that we follow this process. Charles Ridens stated that the cost of having someone perform this service on a time and material basis is prohibitive due to the per hour cost of service people. Jim Kuykendall made a motion the board recommend that the city enter into a maintenance agreement with IBM for all of the IBM PCs in various departments and Charles Ridens seconded the motion. The motion passed unanimously. Gary Collins stated that when the City of Denton first looked at the GIS system we were going to need 5 workstations. We initially acquired 4 IBM RT model 125 workstations with the intent of acquiring the 5th workstation at a later date. Gary Collins explained how the D.P. staff could use the 5th workstation during the implementation of the GIS software and database. Gary Collins also explained that shortly after acquiring the GIS system IBM announced a replacement machine for the RTs which was the RISC/6000 and it was 4 to 5 times as powerful as the RT. For a limited time IBM is offering a 80% rebate of the RT purchase price if a customer purchases a RISC/6000. Gary Collins explained that we had budgeted $33,681 for the acquisition of the 5th GIS workstation and with the 80% rebate and the lower costs of the RISC/6000 we can upgrade the 4 existing workstations and acquire the 5th workstation for $1,351 less than originally budgeted for the 5th RT. Charles Ridens asked why IBM sold us the RTs if they knew the RISC/6000 were coming out. Gary Collins responded that IBM had not announced the RISC/6000 at the time we got GIS and therefore could not bid them. Bob Minnis asked why they would offer this rebate and how we could get them so cheap. Gary Collins responded that IBM was aggressively going after the workstation market and the RISC/6000 was a new generation of technology that made the cost less than the RTs. Brian Scott made a motion that the board recommend the City acquire the 5th GIS workstation and upgrade the existing 4 workstations to IBM RISC/6000 and Charles Ridens seconded the motion. Gary Collins explained we have had Courier equipment for quite a while and our problem in the past has been that not all of our equipment could be attached to the Courier controllers. Gary Collins further stated that with the new Courier equipment being bid at this time that problem no longer exists. Gary Collins explained that most of the equipment being replaced was form 6 to 9 years old and some of the equipment was failing on a weekly if not more frequent basis. Gary Collins went on to state that some of the new equipment has a 3 year warranty and due to the age of our current equipment the maintenance costs keep escalating. Gary Collins explained that the city could replace this equipment and place the new equipment on a 5 year lease/purchase agreement and the additional costs would be $18.44 per month greater than the maintenance costs on the current equipment. Gary Collins indicated that maintenance costs used in his analysis had a 10% per year inflation factor and this was probably conservative since some of the older equipment was experiencing a 15% per year increase. Brain Scott asked if all the equipment was IBM compatible and Gary Collins responded it was totally compatible. Bob Minnis asked if we currently leased this equipment and Gary Collins replied that we currently own all of this equipment and just pay maintenance on it. Gary Collins indicated that the cost of the lease purchase reflected the trade-in allowance be applied to reduce the amount being financed. Brian Scott asked why there was a difference between the number of units of Courier and IBM. Gary Collins responded that if we went with Courier we could use some of the newer Courier equipment and would not have to replace them but if we went with IBM we would have to replace 6 more terminals and 2 more printers. Brian Scott made a motion that the city replace the current terminals, controllers and printers with new terminals, controllers and printers from Idea Courier and Bob Minnis Seconded the motion. The motion passed unanimously. There being no other business the meeting was adjourned. DATE: August 21,1990 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: PURCHASE ORDER #98818 - IBM RECOMMENDATION: We recommend this purchase order #98818 to IBM be approved in the amount of $33,330.00. The Data Processing Advisory Board recommends approval. SUMMARY: This Purchase Order is for the purchase of one IBM, RT workstation model RISC/6000 and for the upgrade of 4 IBM RT workstations to the RISC 6000 models. These work stations are part of the G.I.S. System and will complete the requirements for five workstations. These RT workstations are proprietary items and exempted from the bid process as a high tech acquisition in compliance with state law. BACKGROUND: Purchase Order #98818 to IBM, exert from Data Processing Advisory Board Agenda Packet (Item 5), Price Quotation from IBM. PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: Information Services Department and G.I.S. implementation. FISCAL IMPACT: Funds for this purchase will come from G.I.S. Certificate of Obligation. Fund Account #437-036-0176-9103. Respectfully submitted: v Ll Yyd V. Harre City Manager Prepared by: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent TS/jh 045.DOC c oo G O Cs A (n A L, N w H N W F+ ny m m m ~ a a a to on -i o oi-4 C" aH •CH V in a w- le ril 0 W O 1b > VA tee 4 the 1.4 0 O ~C -'1 comN mm N CN O ozo m c 01 0.4 G o 0 -1 o z mV0, zo M cn x> v z z o -4n w > z n (r m e ~ o b 0 O H b;o %0 < < < < ~ z z z z o x, W x x O \O O O mm z z z an n D Y D -•I -a --1 -i c• • • • C) • *A VA VA it b b rn 0x z 7 z on mY a a a ..1 to W N w G W x O H o n 0 O zm ~ c n. co •v to 0 ey co w pp i.- -4-4 co a O cn tT 00 . • r -1-4 O O O O O as o o G G c rr a o G G W N N r+ w ~ rn w ~ i0 W co + Y • Y O 00 OD Jl (P • • (10 aD w• o o O o cs+ rn 0 C) • • • • C) b G G G G Q C) G D Z < m Z < p m m o CD O m 0.0 ~y Z p a rci l17 z H Nb M • X M x~ O • O O rn uh N tr mm C < < m -C cC o m ~ y 0 O 0 Z iu G i O s 6 D \ y o w$ J J J T o W co iy ~ ~ FR 0 Oy rn N~ 1 O (n a 0 o C ~ N $ 7 m m Na 4 OX H n y 2 O~nCn rn mC.rni o zw--1Z - a -i L W X7 z vv fOo -axno xV ior •J Q) -c rn (n a• ho -17 0 G) M+ m W K L7 4+ W (D a 0 O O Z- z O -n -n 2 :I p ? 'i CZL7(f rmO:c Div m m cu CL 0 E q :>In, f/ gNC(7 0 w m m D w NO x y ° D.wyNm y N d 0 m m o Z N Q• ~ O rn d N Z L' o a, w c. o. r BACKGROUND INFORMATION for Item 5 When the City of Denton decided to implement a GIS system with council approval, we determined the need for 5 workstations. At the start of the project only 4 workstations were acquired with the intention of acquiring the 5th workstation at a later date once the GIS Data Base was built. At that time $33,681 was budgeted for the fifth workstation. Since that time a number of circumstances have occurred that would make it advisable to acquire the fifth workstation. The original workstation selected were IBM RTs and since that time IBM has introduced the RISC/6000. For a limited time IBM is offering a 80% rebate of the cost of the RTs if a customer purchases a RISC/6000. The RISC/6000 is approximately 5 times more powerful than the RTs. Additionally it has become apparent that the Information Services Department could utilize the fifth workstation in the implementation of the GIS system and the creation of the GIS Data Base. The attached cost analysis shows that the City of Denton can upgrade the existing 4 RTs to RISC/6000 and acquire a 5th RISC/6000 for $1,351 less than originally budgeted for the 5th RT. GIS WORKSTATION COST COMPARISON UNIT TOTAL ITEM QTY COST COST WORKSTATION COSTS 5TH IBM RT 1 339681 33,681 TOTAL BUDGETED 1 33,681 339681 IBM RISC/6000 NEW WORKSTATION 1 25,490 25,490 UPGRADE EXISTING RTS 4 11710 69840 TOTAL UPGRADE COST 5 27,200 32,330 SAVINGS 11351 1 1 0 PRGE.002 International Business Machines Corporation Date: 8/7/90 Memo to: Subject: Dear Gary, Gary Collins Director of I/S City of Denton RISC replacement 1605 LBJ Freeway Dallas. Texas 75234 21418884000 I have reviewed the pricing for the RT Migration Assistance Program and compiled the following information. RT invoice amount 27,072.00 6157 tape invoice amount 1,403.00 28,475.00 X.80 Total to apply to RISC/600 229780.00 Hardware for RISC/6000 system tape CD ROM 21,910.00 The entire cost of the RISC/6000 will be absorbed by the RT credit. Software for each replacement RISC/6000 11,710.00 .Dave's RISC/6000, no CD ROM 239510.00 software 14980.00 Total for Dave's RISC16000 259490.00 Total cost of replacing 4 RT's with 4 RISC/6000s and ordering and additional RSIC/6000 is: 32,330.00 Note that the RISC/6000 configured has only 2 serial ports and 1 parallel port for device attachment. No other slots are available. Please give me a ring if there are any other questions.` J Sincerely, , Dean A. Belvis ' Marketing Representative t l..