1990-010ORDINANCE NO. 7 ` U
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
94344 COMPUTER ASSOCIATES $ 21,285.00
94407 IBM $ 32,810.00
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 &!!to"day of , 1990.
0
RAY ST PHE'NS, YOR
r
ATTEST:
NIFER ALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
eY
BID-4
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: PURCHASE ORDER #94344 - COMPUTER ASSOCIATES
RECOMMENDATION: We recommend Purchase Order #94344, to Computer
Associates be approved in the amount of $21,285.00, and that the
vendor be notified to proceed.
SUMMARY: This Purchase Order is for the annual lease payments on
proprietary software required for operation of the Data Processing
Department and available only from Computer Associates. Leasing
this software is less expensive than outright purchase and allows
for flexibility of implementing changes and updates.
BACKGROUND: Purchase Order #94344, Memorandum from Gary Collins,
and Minutes from Data Processing Advisory Board.
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Data Processing
Department and their customers.
FISCAL IMPACT: Funds for this lease were approved in the 1989-90
budget.
Prepared by:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
Account #100-036-0017-8521, lease of software licenses.
Respec lloy~sub i ted:
Lloy Harrell
City Manager
025.DOC
SCREENED AREAS FOR PURCHASING USE ONLY
yy
C
N
M
V
vl
t
o
,
Z
N
C
J
Z
D
O
H
pa
O
a
~
w
z
u
z
z
H
etu
O
H
Q
O
U
O
a
a
z
W
c
0
O
L7
a
Q
N h
m
o v
O
N
U)
O
O
U
O
W
00
w
m
_
O
0
s
3
Q x
w
a
w
a
~
w
~F
p
r=
a
<
ry
~
4
N
o
k
I
z
H
f
C)
m
A
Cf.
N
a°
W
O
O
- O
o
n
z
a ko
o.~o
rn
C
N
M
V
Vf
O
},M
Z
Q
~
~
~
Z
m 1,''
r
LL
W' ~
®
/O~
V
J
Fa-
i$
F-4
O
O
7
.
Ln
. O
a
ove x
v1
rn
i
W
It
N
-IT
Lf)
O
~t
co
~
r
U
O
fYi
-
-
g i
m r
jo
w
6,)-
a
.
N
R ~
Lr)
z
O
H
~q
Z
V
v
y
Q
w
I
B
~
V
3
v
~
$
urn
o,
rn
>
W
E d
E O
t
O
t
O
2
j N
N
N
v
E-H
6
~
m
ON
m
a s
n
H
i 3
O
0
O
O
En
m m
O
6
P
j W
W
W
6fi
01 1,1
1
330
`ry~
GGJ'
L S
' y
v
.
c
w
Ln
a
'A
z
a
°
w
°
>
.
~
>
v
p
oca
o
a
f11r'
3'1
C>
u
a
u
-
N
Z
w0
Ov
~Z
OZ
~a
O0
Zf
~O
O g oa
YZ
ao
~ m ~
.N7. Q
DATE: 1-10-90
CITY COUNCIL REPORT FORMAT
TO: Mayor and Members of the City Council
FROM: Lloyd Harrell, City Manager
SUBJECT: Software Maintenance agreement with Computer Associates
RECOMMENDATION:
That City of Denton continue leasing three software packages from Computer
Associates.
SUMMARY:
These 3 software packages perform the Tape Management, Job Accounting and
File Sorting functions associated with all the jobs run on the mainframe.
BACKGROUND:
This was a sole source purchase order due to the proprietary nature of these
software packages. The Data Processing Advisory Board recommends approval.
PROGRAMS DEPARTMENTS OR GROUPS AFFECTED:
All departments within the organization.
FISCAL IMPACT:
$21,285
Prepared by:
i
ary o ins
Director of Information Services
Approved:
Respe ully ~ubm t d:
Llo Harrell
City Manager
Betty Mckean
Director of Municipal Services/
Economic Development
MINUTES OF
DATA PROCESSING ADVISORY BOARD
MEETING OF JANUARY 9, 1990
MEMBERS PRESENT: Dale Maddry, Jim Kuykendall, Ron McDade,
Charles Ridens
MEMBERS ABSENT: Cengis Capan
OTHERS PRESENT: Gary Collins, Ernie Tullos, Sam Flemming,
Jerry Drake, Tom Shaw, and Dave Ham of the
City staff
Jim Kuykendall made the motion and Charles Ridens seconded the
motion that the minutes of the November 29, 1989 meeting be
accepted as presented. The motion was passed unanimously.
Gary Collins explained that there were four vendors that bid on
this year's personal computer acquisition. The four vendors
were EDS, Basic, Softwarehouse and Compucom. Not all vendors
bid on all items and none of the vendors bid on every item.
Gary also explained that last year we awarded the hardware bid
to one single vendor and the software bid to another single
vendor. The awarding of the bids last year was based upon the
single vendor that could provide the best price for the most
items. If we were to continue this practice this year then EDS
would be the lowest bidder on both software and hardware with
the exception of the Epson LQ1050 printers. If we were to
select and choose between each item there would be an
approximate $1,100 difference in the total then awarding on the
lowest overall cost in each category of hardware and options,
software, printers, and maintenance.
The Board continued to discuss taking the low bid on only
software as a whole or at the cost of each package from each of
the four vendors. Gary Collins explained that the differences
of $821 in software prices would be more than offset in staff
time in coordinating the acquisition and implementation of the
software package. With a single vendor this would be their
responsibility. Jim Kuykendall suggested the City consider
standardization of software.
Gary explained that the PCs and options are regularly justified
in the budget process and he then looks at the requests to see
what other equipment will be needed to support those PCs.
The Board questioned the need to take the PCs to bid. Gary and
Tom explained the new purchasing law that has gone into effect
that if you have similar and subsequent purchase orders that
Data Processing
Advisory Board Minutes
January 9, 1990
Page 2
will exceed $10,000 then you must bid all of the items. Dale
Maddry expressed a concern with the need to know what will be
purchased during the year. Gary and Tom explained that the
City is aware of all PC purchases for the year ahead of time
because of the budget process and why the City must meet the
requirements of the law.
The Board reported that it is standing behind the City's
methodology of purchasing PCs, and asked if the City staff is
requesting for the Board's approval of the purchase of the
PCs. Gary Collins stated that yes the staff was requesting a
recommendation.
The Board expressed the need for standardization of software.
The Board expressed that there could be a substantial benefit
to the City staff in training and efficiency of systems to have
standardized software. On the other hand, as Gary pointed out,
the individual departments must be allowed to allocate the time
and skills of their employees as well as the fiscal resources
of their departments themselves.
Tom proposed purchasing all the software from EDS, the low
bidder for the package. Choosing individual software packages
"a all _ carte" would result in slightly lower expense.
Purchasing the software from a single vendor will simplify the
installation. Since one vendor will be responsible for
coordination and implementation, no coordination will be
necessary.
The Board supported Gary's judgment on the bid as written.
Jim Kuykendall made a motion and Dale Maddry seconded that the
Board recommend the hardware, options, and software be awarded
to EDS and the Epson Printers be awarded to Softwarehouse. The
motion was passed unanimously.
Gary Collins explained that in the past each department was
responsible for obtaining maintenance contracts on their PCs.
This year, due to changes in the purchasing laws and to ensure
that all PCs were covered with maintenance contracts, a Request
for Proposal (RFP) was prepared for vendors to propose on-site
maintenance on 58 PCs. Gary Collins further explained that
three vendors bid maintenance on the PCs. IBM was high bidder
with $1327219 Softwarehouse was next with $13,271, and the
office Equipment center was low with $10,700. Gary Collins
noted that the Softwarehouse proposal was not signed and they
did not provide any references as requested. Also
Softwarehouse had responded that their average on-site response
time was 24 hours.
Data Processing
Advisory Board Minutes
January 9, 1990
Page 3
Gary Collins stated that the office Equipment Center was a
small local firm that had limited parts inventory and had asked
what a number of items that were specified in the proposals
were and had stopped at his office to view them. Gary Collins
stated that since 19 of the PCs listed in the proposal had
these items, he was concerned about parts availability from
this vendor. Jim Kuykendall discussed some negative
experiences his wife had with this vendor in having a PC
repaired.
Ron McDade questioned whether the City should place PCs under
contract. Ernie Tullos and Dave Hamm discussed some of the
critical roles PCs play in their departments' operations and
the need for fast on-site response time. Jim Kuykendall
indicated that his firm had a staff member dedicated to PCs,
and this person performs most maintenance as one part of the
job function. Gary Collins stated he had requested a similar
position in the last budget process, but the package was not
approved. Jim Kuykendall made a motion that the Board
recommend the proposal be awarded to IBM. The motion failed
due to a lack of a second.
Dale Maddry asked if the staff knew what the repair charges
would have been last year if the PCs had not been under
maintenance. Gary Collins explained that since each department
was responsible for its own maintenance, he did not have that
information. Gary Collins stated he was aware of approximately
$2,000 worth of invoices on PCs that did not have maintenance
contracts. Dale Maddry suggested that the staff gather the
information on what costs the City would have incurred on a
time and materials basis and bring this item back to the Board
along with the vendors' responses to an RFP.
Gary Collins explained that we had sent out an RFP for
maintenance on the IBM mainframe and received only one response
from IBM. Gary Collins stated that IBM had offered three
different options: the standard maintenance at $5,635 per
month, a five-year mid-range systems amendment (MRSA) at
$4,592.86 per month, and a corporate service amendment (CSA) at
$4,356.86 per month.
Gary Collins explained that two lower options required either a
six month notification or one month penalty fee if the City
wished to cancel its contract versus 30-day notification with
the standard contract. Also Gary Collins stated that both of
the lower cost options guaranteed only a three percent (3%)
increase in maintenance costs per year for the next five years
over the current prices. Gary Collins stated typically IBM's
maintenance costs have increased five percent (5%) to ten
percent (10%) a year with most years being seven percent (7%)
Data Processing
Advisory Board Minutes
January 9, 1990
Page 4
to eight percent (8%). Gary Collins stated that in order to
take advantage of the lowest option, IBM would have to qualify
the City's computer operations procedures. Jim Kuykendall
stated that his firm took advantage of this option, and IBM had
conducted an intensive audit of their data processing
operations. Ron McDade asked if the IBM audit was
unreasonable. Jim Kuykendall stated he felt the audit was
appropriate. Ron McDade stated the City would be getting a
free audit by exercising this option. Gary Collins stated that
the fiscal funding out options and upgrade or replacement of
individual pieces of equipment were available under all three
options. Jim Kuykendall made a motion that the Board recommend
the City exercise Option 2 and then exercise Option 3 once IBM
determined the City qualified. Dale Maddry seconded the motion
and it passed unanimously.
Gary Collins explained Item 5 was a continuation of the leasing
of proprietary system software from IBM that enabled the IBM
mainframe to function. Jim Kuykendall and Dale Maddry seconded
a motion that the Board recommend approval of this purchase
order. The motion passed unanimously.
Gary Collins explained that the next item was continuing
leasing the proprietary software from Computer Associates for a
tape management system, job accounting and file sorting
system. Jim Kuykendall made a motion that the Board recommend
approval and Dale Maddry seconded the motion. The motion
passed unanimously.
There being no further business, the meeting was adjourned.
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: PURCHASE ORDER #94407 TO IBM
RECOMMENDATION: We recommend Purchase order #94407, to IBM be
approved in the amount of $32,810.00 and that the vendor be
notified to proceed.
SUMMARY: This Purchase Order is for the annual lease payments on
IBM software for the Data Processing Department. This software is
for the IBM 4381 Mainframe, and is proprietary to IBM. Leasing
this software is less expensive than outright purchase, and allows
for updates as new releases are developed.
BACKGROUND: Purchase Order #94407, Memorandum from Gary Collins,
Minutes from Data Processing Advisory Board
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Data Processing
Department and their customers.
FISCAL IMPACT: Funds for this lease were approved in the 1989-90
budget process, account #100-036-0017-8521, lease of software
licenses.
Respe ully submitted:
4111 weer1all
Llo Harrell
City Manager
Prepared by:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
025.DOC
' h O
O`
a:
st . Z
m
U I n.
gi .
:n N
O a) w W
N p C, F
W y y
CL Cl
'm
cc
y .
W E Fa,
'0o aNi ZI-N
u] to
J V) Vi '
jy.oc?..~ ZiUQX
QW
J~F- w
Qa z
wanes
N
0 U000
z
Q O
w H
F cc U `
1 2 N W W z
r Oo > m `r
o D o
Wes 0 • i o'-,
i \N w•
F_ o a
m
x _ 0.
1 m
CV)
f ~r a `0
sco I M=a
2 N '
Ux ,S
Y4. cc W
v
W:.
00% P-.4
WQ Q ON O
_ a a.
nUYC' O w w
I F-'; •"J
W O SCJJ..~
- Z m •a ZZ
O O { Ir,
U Q Q ,
z U) z
c
0 \ W W
L. J 47 W z
Q Q
C7
[7
O
O
d '
• •
O
O
O
U
0
00
•
•
•
s
s
4"
a
0
0
0
0
OD a)
~O
N
10
\0
M
w w .
f7
d
F
+D
0
f']fq
w
w
w
s
MM
N
~p
M
N
0
0
o
a
o
J.J
0
d
a
o
d
44
o
o
c>
o
v
0
0
7
W
N
0
tip
.r
N N
M
r
N.
YJ
Z
~
N
as
0, it
0
c
0
N
0
c
ro
L
i
a'
0
•
0
C
r'
-
W
.
_,.Q .
a M
a
d
U.
z
z
z
z
zo
jr
-
-
0. d
N
w-
jcd
d
v
uz
(0
6
LL:
; s
a
-
`
rx
a'_.
"
a
a~
?o2
y
.
O
a«
Q
QcV
Q
o
.Q
.ra
'
'
Ud
c]a
CO
0~
z,..
W)W
z
WW.
z=
W
x
ua
Zu1
wa
N
LO
z ` ro~
,
co
I C;)
0
En
_s
t des C
CL' .
J
J
r o o.
F- 0 Z .G
J
h
z
`
w
u
U1'
V
U
J
z
♦
a
0.
0<
Oj
01.4
Ow
0 ~
a'
tea
era
-rte
4>-
It
.
OM,
Oro
00
"
ON
04x.
S/
N--''_'
cUG7
_
Na
(\j
N t
M-'
QOM'
a v
q, Ix
Q t
O CL
d
\
0
_
` `
qs j
Sle to
Rt (n
4
4! 0
'
n
,
>
>
z
r]
*a
v
F- v1
M W
M u]
.1->
1-0
M
5
"0
*40
oAO
%4LU
"CO'
V
'0 ID
L' > C
U)"'mc
x
7:
O daYX
S
U 0 N ~ F
Ow
0
O
>c
Como
~Q N
fr 0
~ O
N
M
'
At
to
z lp co
fh
i-
0
-0
Q
-0
O
0
C~
O.
> N
ZECEI`Y'ED
CITY O 1`1:;;TQP!
P11,L,H1"S'1N(,2
19Q9 DEC 15 AH 10: 49
CITY of DENTON, TEXAS
215 E. McK1NNEY / DENTON, TEXAS 76201 / TELEPHONE (817) 566-8200
MEMORANDUM
To: Tom Shaw, Purchasing Agent
From: Gary A. Collins, Director of Data Processing
Date: December 11, 1989
Subject: SYSTEM SOFTWARE FROM IBM
The attached purchase requisition is for leasing of system
software for the IBM 4381 mainframe.' This software is
proprietary to IBM and therefore must be acquired from IBM.
I am leasing this software versus purchasing it due to the
extremely high purchase price and the flexibility this method
provides when new releases of this software is developed.
If you have any questions, please call me.
Gar A. Collins
Director of Data Processing
DATE: 1-10-90
CITY COUNCIL REPORT FORMAT
TO: Mayor and Members of the City Council
FROM: Lloyd Harrell, City Manager
SUBJECT: Software Maintenance Agreement with IBM
RECOMMENDATION:
The operating system software on the IBM mainframe from IBM.
SUMMARY:
This software consist of items such as DOS/VSE SP, VM POWER, CICS, etc.
These software packages are proprietary to IBM and necessary for the mainframe
computer to function.
BACKGROUND:
This was a sole source purchase order due to the proprietary nature of this
software the Data Processing Advisory Board recommends approval.
PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED:
All departments within the organization.
FISCAL IMPACT:
$33,810
Prepared by:
Gary Aff Collins
Director of Information Services
Approved:
Respe ully submitt d:
L+arrell
City Manager
Betty McKean
Director of Municipal Services/
Economic Development
MINUTES OF
DATA PROCESSING ADVISORY BOARD
MEETING OF JANUARY 9, 1990
MEMBERS PRESENT: Dale Maddry, Jim Kuykendall, Ron McDade,
Charles Ridens
MEMBERS ABSENT: Cengis Capan
OTHERS PRESENT: Gary Collins, Ernie Tullos, Sam Flemming,
Jerry Drake, Tom Shaw, and Dave Ham of the
City staff
Jim Kuykendall made the motion and Charles Ridens seconded the
motion that the minutes of the November 29, 1989 meeting be
accepted as presented. The motion was passed unanimously.
Gary Collins explained that there were four vendors that bid on
this year's personal computer acquisition. The four vendors
were EDS, Basic, Softwarehouse and Compucom. Not all vendors
bid on all items and none of the vendors bid on every item.
Gary also, explained that last year we awarded the hardware bid
to one single vendor and the software bid to another single
vendor. The awarding of the bids last year was based upon the
single vendor that could provide the best price for the most
items. If we were to continue this practice this year then EDS
would be the lowest bidder on both software and hardware with
the exception of the Epson LQ1050 printers. If we were to
select and choose between each item there would be an
approximate $1,100 difference in the total then awarding on the
lowest overall cost in each category of hardware and options,
software, printers, and maintenance.
The Board continued to discuss taking the low bid on only
software as a whole or at the cost of each package from each of
the four vendors. Gary Collins explained that the differences
of $821 in software prices would be more than offset in staff
time in coordinating the acquisition and implementation of the
software package. With a single vendor this would be their
responsibility. Jim Kuykendall suggested the City consider
standardization of software.
Gary explained that the PCs and options are regularly justified
in the budget process and he then looks at the requests to see
what other equipment will be needed to support those PCs.
The Board questioned the need to take the PCs to bid. Gary and
Tom explained the new purchasing law that has gone into effect
that if you have similar and subsequent purchase orders that
Data Processing
Advisory Board Minutes
January 9, 1990
Page 2
will exceed $10,000 then you must bid all of the items. Dale
Maddry expressed a concern with the need to know what will be
purchased during the year. Gary and Tom explained that the
City is aware of all PC purchases for the year ahead of time
because of the budget process and why the City must meet the
requirements of the law.
The Board reported that it is standing behind the City's
methodology of purchasing PCs, and asked if the City staff is
requesting for the Board's approval of the purchase of the
PCs. Gary Collins stated that yes the staff was requesting a
recommendation.
The Board expressed the need for standardization of software.
The Board expressed that there could be a substantial benefit
to the City staff in training and efficiency of systems to have
standardized software. On the other hand, as Gary pointed out,
the individual departments must be allowed to allocate the time
and skills of their employees as well as the fiscal resources
of their departments themselves.
Tom proposed purchasing all the software from EDS, the low
bidder for the package. Choosing individual software packages
"a all _-carte" would result in slightly lower expense.
Purchasing the software from a single vendor will simplify the
installation. Since one vendor will be responsible for
coordination and implementation, no coordination will be
necessary.
The Board supported Gary's judgment on the bid as written.
Jim Kuykendall made a motion and Dale Maddry seconded that the
Board recommend the hardware, options, and software be awarded
to EDS and the Epson Printers be awarded to Softwarehouse. The
motion was passed unanimously.
Gary Collins explained that in the past each department was
responsible for obtaining maintenance contracts on their PCs.
This year, due to changes in the purchasing laws and to ensure
that all PCs were covered with maintenance contracts, a Request
for Proposal (RFP) was prepared for vendors to propose on-site
maintenance on 58 PCs. Gary Collins further explained that
three vendors bid maintenance on the PCs. IBM was high bidder
with $13,721, Softwarehouse was next with $13,271, and the
office Equipment center was low with $10,700. Gary Collins
noted that the Softwarehouse proposal was not signed and they
did not provide any references as requested. Also
Softwarehouse had responded that their average on-site response
time was 24 hours.
Data Processing
Advisory Board Minutes
January 9, 1990
Page 3
Gary Collins stated that the office Equipment Center was a
small local firm that had limited parts inventory and had asked
what a number of items that were specified in the proposals
were and had stopped at his office to view them. Gary Collins
stated that since 19 of the PCs listed in the proposal had
these items, he was concerned about parts availability from
this vendor. Jim Kuykendall discussed some negative
experiences his wife had with this vendor in having a PC
repaired.
Ron McDade questioned whether the City should place PCs under
contract. Ernie Tullos and Dave Hamm discussed some of the
critical roles PCs play in their departments' operations and
the need for fast on-site response time. Jim Kuykendall
indicated that his firm had a staff member dedicated to PCs,
and this person performs most maintenance as one part of the
job function. Gary Collins stated he had requested a similar
position in the last budget process, but the package was not
approved. Jim Kuykendall made a motion that the Board
recommend the proposal be awarded to IBM. The motion failed
due to a lack of a second.
Dale Maddry asked if the staff knew what the repair charges
would have been last year if the PCs had not been under
maintenance. Gary Collins explained that since each department
was responsible for its own maintenance, he did not have that
information. Gary Collins stated he was aware of approximately
$2,000 worth of invoices on PCs that did not have maintenance
contracts. Dale Maddry suggested that the staff gather the
information on what costs the City would have incurred on a
time and materials basis and bring this item back to the Board
along with the vendors' responses to an RFP.
Gary Collins explained that we had sent out an RFP for
maintenance on the IBM mainframe and received only one response
from IBM. Gary Collins stated that IBM had offered three
different options: the standard maintenance at $5,635 per
month, a five-year mid-range systems amendment (MRSA) at
$4,592.86 per month, and a corporate service amendment (GSA) at
$4,356.86 per month.
Gary Collins explained that two lower options required either a
six month notification or one month penalty fee if the City
wished to cancel its contract versus 30-day notification with
the standard contract. Also Gary Collins stated that both of
the lower cost options guaranteed only a three percent (3%)
increase in maintenance costs per year for the next five years
over the current prices. Gary Collins stated typically IBM's
maintenance costs have increased five percent (5%) to ten
percent (10%) a year with most years being seven percent (7%)
Data Processing
Advisory Board Minutes
January 9, 1990
Page 4
to eight percent (8%). Gary Collins stated that in order to
take advantage of the lowest option, IBM would have to qualify
the City's computer operations procedures. Jim Kuykendall
stated that his firm took advantage of this option, and IBM had
conducted an intensive audit of their data processing
operations. Ron McDade asked if the IBM audit was
unreasonable. Jim Kuykendall stated he felt the audit was
appropriate. Ron McDade stated the City would be getting a
free audit by exercising this option. Gary Collins stated that
the fiscal funding out options and upgrade or replacement of
individual pieces of equipment were available under all three
options. Jim Kuykendall made a motion that the Board recommend
the City exercise Option 2 and then exercise Option 3 once IBM
determined the City qualified. Dale Maddry seconded the motion
and it passed unanimously.
Gary Collins explained Item 5 was a continuation of the leasing
of proprietary system software from IBM that enabled the IBM
mainframe to function. Jim Kuykendall and Dale Maddry seconded
a motion that the Board recommend approval of this purchase
order. The motion passed unanimously.
Gary Collins explained that the next item was continuing
leasing the proprietary software from Computer Associates for a
tape management system, job accounting and file sorting
system. Jim Kuykendall made a motion that the Board recommend
approval and Dale Maddry seconded the motion. The motion
passed unanimously.
There being no further business, the meeting was adjourned.
- -
_ _ _ _ _4
_ _
_
_ ~ , g - j
~
~
-
-
r
i
_
_ - _ _ - - ~ t
- _ _ _ _ -
~5~x
i~~„'°
I
_
- _
=A
- _ ~ £ _
_
_ _ _
1 _ _ _ _
~
-~r
_ ~ i.r
_ _ _
- - f
t-
- - ~
~
-
_
11
_
_,~f'
_
_
-