6.7. SR 10-25-1993
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ITEM 6.7.
TO:
FROM:
MAYOR & CITY COUNCIL
LORI JOHNSON, FINANCE DIRECTOR~~
OCTOBER 21, 1993
DATE:
SUBJECT: AUTHORIZATION TO PURCHASE
COMPUTER EQUIPMENT
When the City purchased the IBM System 36 in the fall of 1988,
it was anticipated that the useful life of that piece of
equipment would be five years. The present computer equipment
has served the City well over the last five years, however,
there is definitely a need to update the equipment to improve
efficiency as well as to take some of the work load off of the
System 36.
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As you may recall, during budget discussions it was noted that
there is approximately $35,000 in Equipment Reserve set aside
for data processing equipment. During the 1993 budget
discussions the City Council again confirmed its wishes to
modernize and improve efficiency of our equipment during 1993.
It was my original intent to have that completed by the time we
moved to the new City Hall, however, since that time frame was
moved up several months and due to concerns with the knowledge
and reliability of various vendors, the research and decision
have taken longer than hoped. However, I believe a vendor has
been located who will provide quality service and maintenance
of the network and a reliable hardware vendor has also been
identified.
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There are two needs for additional equipment, one of them being
in the City Hall itself with the administrative, financial, and
building and zoning staff. An additional need exists in the
public works department. First, let me address the need in the
public works department. As you know, Terry Bye of the Street
Department has been producing maps for various parks, parking
lot layouts, and other items for the Street Department. He
currently does that work on his home computer and the City
often pays overtime for him to do that work. It is appropriate
that the City have equipment available at the public works
garage so that work can be completed on City equipment and on
City time. The public works department will use its computer
equipment for mapping mainly, but it will also use the
equipment for vehicle maintenance tracking, sign inventory,
vendor and supply data base and minor word processing and
spreadsheet applications. It is estimated that the cost of the
equipment which would include a personal computer and monitor,
a plotter to draw medium sized (Size D) maps, and a laser
printer would be approximately $5,500. It is anticipated that
an additional lower grade personal computer will be needed in
the public works department in the next year, however, at this
time, it is felt that one personal computer will be adequate.
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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The second need is for the City Hall staff. We currently have
two clerical employees who do not have access to the current
word processing system. By adding a network to our current
system, these two individuals will be able to utilize the word
processing system, thereby taking some of the work load off of
the other clerical staff. In addition, the Building and Zoning
Department can move forward with computerizing their records.
The current System 36 will still be utilized for financial and
payroll applications, and possibly special assessment,
miscellaneous billing, and building and zoning software
packages. Each employee who utilizes the computer will have a
personal computer which will be connected to the network plus
each individual will have access to the System 36. A few of
the advantages of having a network are that it allows a sharing
of files for word processing and indexing of all the City
minutes plus it gives each employee access to programs such as
desktop publishing, graphics and data base which are not
available on the System 36. The new word processing package
will be much more user friendly and will offer many additional
options that our current outdated word processing system
currently does not have. It is estimated that all of this
software and equipment will cost around $40,000. The hardware
cost will be under $25,000 as will the software cost, therefore
formal bids are not required. I have received five quotes for
the hardware and software for the installation of the City's
network.
Unfortunately, I am still waiting for a few final numbers from
two of the vendors so I cannot present final figures to you at
this time. I will have that information available for you on
Monday. I would like to stress however, that the City will
continue to utilize the System 36 which was purchased in 1988
and will continue to use it several years beyond its expected
useful life therefore maximizing the value of the equipment.
It is also important to remember that all of the expenditures
authorized in 1993 for updating the system and adding a network
will be transferable to any future system the City may
purchase. It is anticipated that the useful life of the
equipment being purchased will be approximately five years
depending upon the level of use and changing needs of the City
staff.
Again, I will be present at Monday night's meeting with quotes
on the hardware and software being recommended for both City
Hall staff and for the public works staff.