1990-008ORDINANCE NO. 'C>O
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR
THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES;
PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the city has solicited, received and tabulated
competitive bids for the purchase of necessary materials, equip-
ment, supplies or services in accordance with the procedures of
state law and City ordinances; and
WHEREAS, the City Manager or a designated employee has
reviewed and recommended that the herein described bids are the
lowest responsible bids for the materials, equipment, supplies or
services as shown in the "Bid Proposals" submitted therefor; and
WHEREAS, the City Council has provided in the City Budget for
the appropriation of funds to be used for the purchase of the
materials, equipment, supplies or services approved and accepted
herein; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the numbered items in the following numbered
bids for materials, equipment, supplies, or services, shown in the
"Bid Proposals" attached hereto, are hereby accepted and approved
as being the lowest responsible bids for such items:
BID ITEM
NUMBER NUMBER VENDOR AMOUNT
1044 ALL
1045 ALL
1047 ALL
1057 A, B,C,D
1057 A-7
DATAMATIC $ 53,325.00
C.D. MCKAMIE COMPANY $ 22,954.00
COLFAX CREOSOTING COMPANY $ 29,649.00
EDS $ 96,998.00
SOFT WAREHOUSE
$ 4,076.00
SECTION II. That by the acceptance and approval of the above
numbered items of the submitted bids, the City accepts the offer of
the persons submitting the bids for such items and agrees to
purchase the materials, equipment, supplies or services in
accordance with the terms, specifications, standards quantities and
for the specified sums contained in the Bid Invitations, Bid
Proposals, and related documents.
SECTION III. That should the City and persons submitting
approved and accepted items and of the submitted bids wish to enter
into a formal written agreement as a result of the acceptance,
approval, and awarding of the bids, the City Manager or his
designated representative is hereby authorized to execute the
written contract which shall be attached hereto; provided that the
written contract is in accordance with the terms, conditions,
specifications, standards, quantities and specified sums contained
in the Bid Proposal and related bid documents herein approved and
accepted.
SECTION IV. That by the acceptance and approval of the above
numbered items of the submitted bids the City Council hereby
authorizes the expenditure of funds therefor in the amount and in
accordance with the approved bids or pursuant to a written contract
made pursuant thereto as authorized herein.
SECTION V. That this ordinance shall become effective
immediately upon its passage and Z;Zda al.
PASSED AND APPROVED this the y of LU"6'14a-j' 199 0.
61 (7
RAY ST PHENS, JAAYOR
ATTEST:
JENNIFER WALTERS
BY: n-...
APPROVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
BY:
BID-1
Page 2
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BID# 1044 - METER READING SYSTEM
RECOMMENDATION: We recommend this bid be awarded to Datamatic, the
lowest bidder meeting the bid specifications, in the amount of
$53,325.00.
SUMMARY: This bid is for the purchase of a hand held meter reading
system including hardware and software. Included is seven (7)
hand held reading devices and report generation software. The bid
offered by Radix Corporation is lower than the bid of Datamatic.
However, it fails to meet specifications in several major areas.
(See memorandum from Ray D. Wells, Superintendent, Electric
Metering/Substations/Communications, dated 12/19/89 and 12/21/89.
BACKGROUND: Tabulation Sheet and Memorandums from Ray D. Wells.
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Electric Utility Meter
Reading, Customer Service.
FISCAL IMPACT: This expenditure was approved in the 1989-90
budget. Account number 610-080-0253-9224, and Capital Expenditure
Electric Utility.
Respec lllyy submitted:
(.s
Lloy Harrell
City Manager
Prepared by:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
Approved:
lzz:_-~ ~
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
024.DOC
d+
CD
r-I
Q
H
Z
O
H
E-4
H
Q
O
a
P4
O
C)
U
H
H
U
H
H
U
H H
Q
z
W
H
Cl)
C7
2
H
Q
w
x
w
E-i
Q
H
P1
d+
Ol N
N
co
m rn
H I
M
Ln
Ln N
o
a ~ I
W o
a 00
0
W CD I
U o 0
w
Q N
w
P
Q ~D
O
W U
O ~C
124
O
w
O
w
O
W
C)
0
O
O
0
0
M
M
e--I
CD
O
Ln
N
M
M
Ln
4 ,a
Q
W
a
'z
H
O
H
F:~ E
H
W
a
~Q
H
a
wx
U
E-+ E-1
C!]
C!~ H
W
~ 3
Q
U] W
Q P~
W W ~D
w
~
N
w
H
a H
104 w
~ W H
0aH
-
u U) F-a
H
C~
- - -
- - - - - - - - - - - - - - -
r1 s
1"i 3: 07
CITY of DENTON MUNICIPAL UTILITIES / 901-A Texas Street / Denton, TX 76201
MEMORANDUM
DATE: December 19,1989
TO: Robert E. Nelson, Executive Director of Utilities
,,,John J. Marshall, Purchasing Agent
FROM: Ray D. Wells, Supt. Electric Metering/Substations/
Communications
SUBJECT: EVALUATION CITY OF DENTON BID NO. 1044
METER READING SYSTEM.
Sealed bid proposals were opened December 5, 1989 at 2:00 PM. We
had three companies to respond with valid bid documents. These
companies were:
1. RADIX CORPORATION - SALT LAKE CITY, UTAH
2. ITRON, INCORPORATED - SPOKANE, WASHINGTON
3. DATAMATIC, INCORPORATED - RICHARDSON, TEXAS
The prices quoted by the respective companies were:
1. RADIX CORPORATION - $ 40,408.00
2. DATAMATIC - 53,325.00
3. ITRON - 134,376.00
After careful examination of bids versus specifications I
recommend we accept the bid of DATAMATIC, INC. in the amount of
$53,325.00 as the low bid meeting specifications. While
RADIX CORP. submitted lowest price,they do not comply with some
very important requirements in the specifications. I therefore
recommend next low bid.and suggest award to DATAMATIC, INC.
Respgctfully,
y,Z.- We
1220949
Ott; r•~"4
pip 12 jMii 9: 46
CITYof DENTON MUNICIPAL UTILITIES / 901-A Texas Street / Denton, TX 76201
TO: John J. Marshall, Purchasing Agent
FROM: Ray D. Wells, Supt.
Electric Metering/Substation/Communications
DATE: December 21, 1989
SUBJ: Evaluation BID #1044 - Meter Reading System
In my memo dated December 20, 1989, I noted that Radix
Corporation was low bid in the amount of $40,408.00; but I
recommended acceptance of the Datamatic bid of $53,325.00. To
substantiate my recommendation. I offer the following
,tplanations:
Reason #1
Item 9 of the Radix proposed order schedule
lists the WLT-40 format via PC-connected 9-channel mg
tape. In other words, we would have to run the Data Star
(Sangamo) 101 recorder programs and the Westinghouse EMF
2500 (T.O.U. Metering) programs separate from the program
format used to send billing records and data over to Data
Processing for customer billing. We deem this unacceptable
since it would create the need to run two (2) separate
programs just to gather data needed, and then do a manual
input back into the billing system. This would create
additional work for our Meter Reader Foreman and Meter
Information Tech., while slowing down the process of
customer billing. In short, it would be one step
backwards form where we are now, not a step ahead, which
was the original intention.
Reason #2
Item 1 listed four (4) hand-held devices with
256 Kb memory at $2,500.00 each and Item 2 listed three
(3) hand-held devices with 512 kb memory at $3,200.00
each. Why they chose to price this way I haven't a clue.
We asked for seven (7) hand-helds in the specifications
with capability to hold data from 400 meters including
the Data Star 101 recorder and the Westinghouse EMF 2500.
This would require a minimum of 512 Kb which means we
would have had to increase their bid price by $2,800.00
to purchase the other four (4) units.
Reason #3
Item 8 of the Radix quote listed only one (1)
Dac Probe. I again do not understand why; since seven
(7) (one for each hand-held) would be required. This
again would raise the price by $2,550.00.
Well to sum up, by the time you increase their bid price to the
required levels there is $7,567.00 difference (with Radix still
low) between Datamatic and Radix. We have in place a Datamatic
system which functions with our existing file transfer program.
We just don't know how much programming time would be required to
make the Radix system compatible, but I am sure it would far
exceed the money saved on hardware. Datamatic is local
(Richardson, Texas), gives excellent customer support both for
hardware and software, and I don't think we would get the
personal attention from SALT LAKE CITY, UTAH.
I hope this helps to clear up my reasoning; but if you need
additional information please call.
Resp ctfully
Ray Wells
RDW:th
12219051
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BID# 1045 - ROOF MCCORMICK FIRE STATION
RECOMMENDATION: We recommend this bid be awarded to the lowest
bidder meeting specifications, C.D. McKamie Company, in the amount
of $22,954.00.
SUMMARY: This bid is to replace the original roof on the McCormick
Street Fire Station, known as Station #3. The bid includes removal
and disposal of the old roof and installation of a new roof. The
building is approximately 100' X 68' on two levels. The existing
roof has been patched numerous times over the past eight (8) to ten
(10) years. The existing roof leaks in several places creating a
very unkempt appearance and health hazards to firefighters in the
facility.
BACKGROUND: Tabulation Sheet
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Denton Fire Department,
Firefighters, and Citizens of Denton.
FISCAL IMPACT: Funds for this purchase will be partially from
Building Maintenance, and partially from funds transferred out
of Equipment Maintenance. This project was not included in the
1989-90 budget, however, due to continuing problems with the roof,
the replacement is necessary.
Respect ly submitted:
Lloy 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
Ei
W C7
wz
p~ H
H 6t~
U] O
L~ O
W~
O
W
H
L) a4
O
• U
q
U
U?
z
O
H
H
U
H
a
a
a
O
Oz
p.' H
E~ w
w 0
O
Pr
L~
W
a~
a
H Q,'
a
• O
W U
a
O
W
P-'
O
W
W.
O
R
w
O
W
x
0
W
C4
z
O
H
E-
4
z
-0
o
O
CD
Lf)
O
~H
d~
H
N
O
O
-
O
O
Lf)
O
V
d
N
Lr)
V)-
J).
O
N
Cl)
N
t!}
o
O
C)
O
Ln
N
Ln
Co
M
tr).
-C~
r
0
0
M
N
0
o
O
0
0
0
0
00
t:v
re)
V).
lj)~
H
00
l:
N
N
V)-
O
-
O
O
O
O
O
00
Lfl
M
00
VIM
ti.
Ln
~
N
N
V)r
H
o
.1
O
Cl)
m
O
H
Cl
M
P
co
a
U
~
H
H
O
p.,'
lf)
Lf)
U
O
co
G74
0
x
o
w
a
U
W
q
W
O
W
G+
O
Ct.
U
I
H
U2
U]
U
O
W
O
H
Ln
0
q
o
a
H
Ei
cn
W.
z
z
o
x
a
~D
~D
q
w
W
E~
z
O
Q
a
Q
U
PU
W
O
~C
~
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BID# 1047 - WOODEN TRANSMISSION POLES
RECOMMENDATION: We recommend this bid be awarded to the lowest
bidder meeting specification, Colfax Creosoting Company, in the
total amount of $29,649.00, FOB Denton.
SUMMARY: This bid is for the purchase of 75' and 80' wood poles.
These poles are replacement for inventory stock. They are used by
the Electric Distribution Department in the maintenance and new
construction of overhead high voltage transmission power lines.
This bid was previously awarded to International Paper on December
19, 1989. International Paper failed to indicate that their bid
did not meet specification until after bid award. Our
specification requires Douglas Fir poles. International Paper bid
Yellow Pine. The Fir Poles has a considerable longer life
expectancy. The award to International Paper will be cancelled and
the requirement reassigned to Colfax Creosoting Company.
BACKGROUND: Tabulation Sheet
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Warehouse stock and
Electric Distribution Department
FISCAL IMPACT: Funds for the purchase will be taken from funds
budgeted for inventory purchase #710-043-0580-8708
Respe ully submitted:
Llo Harrell
City Manager
Prepared by: \
1
Name: Tom "D. Shaw, C. P.M.
Title: Assistant Purchasing Agent
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Assistant Purchasing Agent
024.DOC
a
O
E- W
O
Ua
W
H
2
H
2
H
Q C7
w U H
O
Q Q H
O
W
U
H
R'+
O
W
a
✓
w
P
C7
FC H ~C
O
000
W
U
R;
U
a
W
o
a
O
R
co
N
O
L`
m
co
O
co
I
H
dl
N
U]
c-I
co
H
O
N
I
M
t~
o
W
I
E~
PQ
o
O
U
CD
O
W
z
O
Q
Q
w
U
H
H
a
U
W
W
0
rC
z
O
H
C)
0
0
-
0
0
0
A
o
tYl
in
H
>
N
N
lfl
Q
H
r{
H
00
H
CD
N
U
1t
SIC
C) 0
00
00
00
kD 10
N N
U1
rl- CY)
0c) CO
mil`
0000
Q
U
i
E
~
if)- M(i
i
vL i v
o
E
00
H
H
x x
- - - - - - - - - - - - - - - - - -
Q
H
m
O
0
0
0
0
0
0
rn
rn
~
rn
00
%.0
x
to
U Q
H
c 1
~-I
r : Ln
0,
H
V).
~1}
E-A -4
N
U
00
p
U1
a4
H
Pa
W
U
- W
- W
E-
tn
Lo H
CD E~
00
F:~
x
x
O
H E-1
H E
7- R+ U'
)
w>
H
U) ~
U
Q
O
U
U
z Q
"
E-
~
a
,-A
P4
H
U2
3
~C
O
CQ
E-4
~D
lT
-
41
ro
r-A
x
DATE: JANUARY 16, 1990
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BID# 1057 - PERSONAL COMPUTERS AND RELATED ITEMS
RECOMMENDATION: We recommend this bid be awarded to the lowest
bidder for each section, A) Hardware, B) Hardware Options, C)
Software, and D) Maintenance, with the exception of Item A-7
Printers. The lowest bidder for Sections A, B, C, and D, is EDS
Corporation, in the total amount of $96,998.00. The exception,
Item A-7 Printers, the lowest bidder is Soft Warehouse, in the
amount of $4,076.00. Total bid purchase is $101,074.00.
SUMMARY: This bid is for the purchase of the PC's and related
items approved in the budget process for 1989-90. Several
departments and even more numerous configurations make up the
request. No bidder responded to all items. Section A, Hardware
and Section B Options, must be awarded to the same vendor since
some options must be factory installed. On Section C Software, we
based our evaluation on the vendor offering the most items, at the
lowest cost. An advantage to one vendor is staff time saved in
installing all software at one time, as well as the time saved in
coordinating the hardware configuration with the software
application. Soft Warehouse is lower on some items, however, the
amount is not significant enough to offset the savings associated
with a single vendor award. This was discussed with the Data
Processing Advisory Board, and they are in agreement with the
recommendation. The savings generated by separating the printers
from the other hardware is significant enough to justify the split.
BACKGROUND: Tabulation Sheet, Memorandum from Gary Collins, and
Data Processing Advisory Board Minutes.
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Electric Utility,
Water/Wastewater Utility, Legal, Municipal Services/Economic
Development, and Data Processing.
Bid# 1057 - Personal Computers and Related Items
January 16, 1990
Page 2 of 2
FISCAL IMPACT: Funds for the purchase of these items were approved
in the 1989-90 Budget in the following accounts:
Municipal Services/Economical Development 100-030-0009-9103
Legal 100-010-0004-9103
Electric Utility 610-080-0256-9229
610-080-0250-9229
610-080-0253-9224
610-080-0251-9229
Water/Wastewater Utility 620-081-0460-9107
620-081-0461-9103
620-081-0463-9103
620-081-0472-9103
620-082-0481-9103
620-082-0470-9103
Lloy(Y Harrel
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
I
I 001~to 000
I N
O
mtnN
MCOmtntnNmOtntnptn O mOtnN
O
tn T(ON
m(
1 rl- CO N
-
-
-
y
rT V CO C7COmr+rO NmO~tT c} OtntOtn
r
- r
- r
(q
cpN*-MNMO tnTO)TM Mr h.rMM
❑
I LO N~ rCO NH
T
mTN T
d
I \ m
I z
\
O
1 W
z
U
I w
I z
i H
I =
i U-) U
w
I "t Q
W
I
F- D
I m
LL O
1 r 0
O =
1 0 3
U) w
I F-
cr
I
Q
1 w
3
J =
1 F-
I
1 CY) q 00 rCq Nw
001~Cf)OCnO/~NOMIt)COstMI- CO Ott
rON
m
l
mN•-N•-COrFO♦2'
Od)Mf~O)(ON(OrrNCOGOMt~~~(DOrOCn
W
I r~m•-tOOtOt+N W
0--MNMO tClrmrN Mr-tnt-mtONr-
U F-
I - -3
HD
I to C\Jr rMM N
r r r
fA d
I p
T r r~-
m o
`r
i
U
I J
I W
I ❑
1 0
1 It 0)000NMr-~
'It 0 'It0000000 M0)0wm 00 U) 0
1 00MC000OMOr
M0Mt--0-OOOOCOMcont~twmm
I (O CO o m M r- ow
4t N r- M M M M LO O m T N Nt T CO)
~t
I - - - - p
U)
Y1
1 to N r T- N ('M r 00
T co m
❑
W
1 N
I
\ \
I Qr
Z z
I Q
a
I f
1 O
I r N Z U
c0 ❑ O
I- OF- M d' w lYM w
I 0 w z
1 r0It0 OQ
tOdco H M W > Uam>
040 Y 0 F-~ I-H OOFA W
Z I
r I om Ua
Lf) (5
•❑J m D- xHll'za) a)w>
CO (0z
tnQwzoF- Qtn0 0r- 00
H
a000H ❑00tO
O I
F-
Ou)~
UQ
c
H 1 stn ~
F- MW W OH fY MmtQ to zYewOD 0'1 Y❑
1
Q I
o co N(0 d
to to 0 0
zM: > > mU) rT F- Q(AZr-LL (0co
w
i
CD xCO N .t to
o"" Z W M 0 tn~-HXo-"<N HY
xmcrmzQox 0000Y0 x❑aMacr aw
cr I
U I
co
OtOtOO wtYJ
d o a- w w J cow x fro
H
HW Hx()x }>-MZ0 xW=QLLxa
U) i
co toNM
www
Oaw W F- W W W <<00w}H I-0 H
❑ I
*
a
JJ..JJ 0zz0
WIQ-F-I~-W>-OUXwaa0U)0() cr 0ww3~oW W
f I
Wa❑❑0wNWw
m:.
JJYYZOMMD""NQdW.
W I
XOOOOW dQ.N
2:01-
x
<<WWom0<o00\dOxMwr-wxMH
F- 1
H
<MXX Xxm U)
3
zz""Owoom f XU X: N} W Lt
1
1
1-0zma
ONNNNOI-Ow
OQ~ x m wir W W mm MU1M: co
HW O = N00F- 2Yx
I
ir \ \ \ \ d U) U)
co I xm
F- F- F- F- m F- U) \ J J U1 F- M X a 00 m x
I
QU)U)U1(AUQCL Qca
a-ZZZNXQ>-woo>-W<No00xx00
I
I
=dd a adJ WJH
0...MNXWCLOOU)XXTN 3~t ~td(O
I
m r T r r T ON
F- I
O 1
~ I
W I
F-
TNM V t!)c0n09F
*-NMQ lO(0r`COmO~-NMstt000~CDmOT
U I
H I
Q
T T T T T T T T T T N N
m
1
L!) LoM 0 M0MLo M-4 co CO m Lc) L0 M
00000000
f I
MMM - r•- rnMco M I-- co-tt 001)Lo
L0 U) Lo to Lo V)LnLo
O I
CM MN N M(\j NN (DOT U) 00
- TT.-- - TT
U I
H H H
I
co m mm
a ~
\
0 00
z
O i
z
zz
U I
I
I
1
I
Cna) U) rcM T00M in MM M
W I
r rUnNM co 0Lo r M(Dr Un
to I
0 0 0 0 0
0 0 0 0 0 0 0 0
}-D I
(Dr0)M0 *-tnO
N a)L00) 'HHHH
HHHF-(HHHH
ULO 1
~T(n(D0Ca )T(D000Tr(D000OCoCOCOCo
mmco cofn co co co
02 I
~t MNNN\(NJ cy) - N\N st
U)W I
z z 0 0000
00000000
0 Y 1
Z Z z z Z
z Z z z z Z z z
Q I
3 I
1
I
1
00000*-u)oUnUt7lnUAt( O OM CO TLo
00000000
1
0 0 0- N r (D mqt r M 0 CO 00 0 00 It r M
L) L) U") L0 Lo N
W I
(MMNNN MIttdt NN MOT L) N
U i- I
H
H ~ I
m
U) a t
Q x 1
0
co 01
z
U I
I
I
I
I
0 It r r a) T (n 0 (D (D T 0) r N (n r r
0 0 0 0 0 0 0 0
I
M~t(Drr- 00MTN00co 0)CO MTM
Cl)MNMMrCJ 00
1
MM NN Mgt ~NNN -t0 LnNN
I
H
~ I
m 00
~ I
\
W I
Z O
I
I
Z
i
1
I
C0 O U)
I
U Q W
I
H 0 H
i
= LL T F-
I
Q ~ H
Z 1
Q J T
0 1
m if) N W H U N
H 1
C7 • > H Q
F- I
N N ~ O a T
(p
CL I
• (J) W W O
0
H I
cMN(nz >U O Q J
N
Q I
WQ Z tOti7W00 W
X I
U I
irXZH oQ 0 U . = O >
O(nLn0
(1) 1
W W H(n F-J F-F- ZM W
co U')NM W W
W I
> > (1) CC Ut) U U Q x T J
W Un (D F- F-
O 1
OWNTW + W W>wQ
UJ JJ co Zz
I
MMm> W HQQLL.O W W }
z W JW W N H H
I
W NN C C QQ>F-(QQ'CC<YeM it
QO W00of xcr
W I
ir- -00 W WLL HHt-W W QF- OM W F-
Z0000 W M M M
►
Q x<>> U)QQZX(n • •WNZ
Wx0fx20
H I
3 W U) Q U CA W W O Nt M \ W
F- M F- F- Z Cr
I
F- O»2It It0(n(n0001-WQ NU)
ZN\NNO OW
1
LLF- F- XF- \\F- QQCr M Wt Q3F-(nU1\ Q
H\N\\ CLU!(n
I
000aa33OMM0000aa00( 3:0
QU)U)WWo<aQ
t
t
(n J J 2~ O O J 0 0 3 3 3 z Q 0 0 0 0 0 3
~ a a a a Q J W J
H 1
d i
~ I
W
I
TN('Mq 00r-0000 TN0 .1 00 r- M0
TNM~tA0r-00
Y
t-# t
T T T T T T T T T T N
H 1
U
0
DATE: 1-10-90
CITY COUNCIL REPORT FORMAT
TO: Mayor and Members of the City Council
FROM: Lloyd Harrell, City Manager
SUBJECT: Purchase of PCs and related Hardware and Software
RECOMMENDATION:
That the city award the purchase order of Personal Computers, Hardware options,
Printers and related Software to the lowest bidder in each category. The PCs,
Hardware options and Software would be awarded to EDS and Epson Printers would
be awarded to Soft Warehouse.
SUMMARY:
Four vendors bid on this purchase request and the low bidders in each category
is being recommended.
BACKGROUND:
These 14 PCs and related items were requested and approved during the budget
process. The Data Processing Board recommends approval.
PROGRAMS DEPARTMENTS OR GROUPS AFFECTED:
Municipal Services/Economic Development, Legal, Electric Utility, and Water
Utility.
FISCAL IMPACT:
$ 101,074.00
Prepared by:
f
v
Gary AJ/Collins
Director of Information Services
Approved:
Res ctfully/ submitted
Llv`yd 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 $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 (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.