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CR 88-98 Upgrade Finance Computer .. - .. . . . , )'} ,.. May 9, 1988 Council Rpt: 88-98 UPGRADE FINANCE COMPUTER P.rovosed ActionL Staff recommends adoption of the following motion: Move to purcha.se nISI'" computer ~rocessing haldware and oper.atins system which will up~:rade the Finance Deyartment's mini computer for a net cost of $35.435. Overvi.ew. Computoservice, Inc. (CSI) will not support our DX10 operating system after 1990 on the present annual maintenance agreement. Support woula be on a cost prohibitive time and materials basis. CSI is switching all of their software to run with new state of the art Unix (Xenix) operating systems. The new system will provide greater capacity and speed which has become a problem in our present system. An upgrade to our system is in the Equipment Replacement plan for 1992 at $73.000. Developments in the industry and the direction of CSI make it feasible to accelera~e an upgrade now. Purchase and upgrade incentives being offered by CSI are of a magnitude that makes it advantageous to proceed with a purchase at this time. Primary Issues to Consider. o The need f~r additional capacity and speed are now present. o The industry change practically dictates the City tc upgrade before the end of 1990, o A special incentive of $4.595 is offered if Hopkins is tde first metro area city to purchase the new system. o Upg~ade and purchase incentives before the 1989 deadline will save the city an additional $8,280. o A 924 terminal that is an inseparable part of the hardware package will be needed by the Police Department for their ENFORS system and will not be needed by Finance, thus saving $795 the Police Department planned to expend. Supporting Information. o Staff background. o Background. o Alternatives. o CSI proposal. o CSI Statement of Direction. /:-1 ~ /" /l /1/7 9-flWt; <J C!-~i1 Johm/E. Schedler.' Finance Director - >I r _ . Rapt 88-98 page 2 BACKGROUND . The present Texas Instrument 661 Computer was delivered to the Finance Department in February, 1984. Payroll and utility billing applications were in operation by July, 1984, with the accounting package in operation by December, 1984. By mid 1985, the accounts payable (Council checks) aystem was operational. Beginning in 1987, delayed response times were being experienced when multiple applications are processed. In January, 1988, Hopkins became the test site for the new payroll system currently being tested. When we attempted to close the books for 1987, our computer came to a halt as its capacity had been exceeded. It took the better part of three days working with the technicians in Mankato to down load several applications, r~n the close, and then restore the down loaded applications. This is not an efficient procedure. There is a definite need to increase our capacity and speed to avoid a reoccurrence of the 1987 close disaster and to maintain timely normal operations. The new system would increase speed and capacity four fold. Alonq with the upgrade there would also be some new features that had been planned for 1988. Two PC's (one already in the department and the other PC is in the 1988 Finance budget) would interface with the mini computer providinq an additional input station so that all Finance personnel would have an input device at their work station. The second PC is included in the upgrade price. Additionally, this inter- face will allow down loading information directly from the mini to the PC in order to produce reports with the LOTUS software. A small printer would also provide quality reports not efficiently done on the large printer, which is being retained from the old system. A second new feature would provide an interface with electronic devices to enter meter readings into the mini computer directly. This would eliminate he-ura of manual leeying. The quoted price includes all costs to qet a new computer installed, convert existing data to the new system, and provide system orientation. . - ..",:~ . - .. . Rapt 88-98 page 3 . AlJTERNATIVES Considering the timing, needs and cost, the City Council has the following to consider: 1. Expend $35,435 now for which funding is identified in the 1988 budget ($5,000 Finance) and the 1992 Equipment Replacement Fund ($73,000). 2. Expend $39,795 during 1989 to upgrade.. 3. wait until the last possible minute in 1990 when no incentives are available and the cost would be $48,075 to upgrade. 4. Retain present system and maintain on time ($40 to $165 per hour) and material (parts?) basis and replaco in 1992 with Equipment Replacement fUl1ds now showing an allocation of $73,000. This would be the costliest approach to provide data processing. To upgrade at this time, utilizing some very servicable parts of the old system, should provide a system capable ot fulfilling- the City's needs for an additional six years. Industry standards reference a 5-8 year useful life of hardware and software. Projecting past, present and future costs (original pur- chase, hardware and software maintenance and 'the upqrade) over a ten year period through 1994, the City's annual Finance computer costs would average $17,900 per year. . '. . .:.' . .' ,..... ~ .' -; '.' . .' . '. .:. _ :' . . . . ~ '. ..',' . . .' .'" ,. ' ',' '. . ~ .~ -- April 15, 1988 Kr. John E. Schedler Finance Director City of Hopkins 1010 First Street South HOFklns, HH 55343 * * Greater speed...up to lour ti.es laster than your current TI 661. Cost-effective growth using the a..e software and utllizlns cODpatible equipaent up to and over 200 users. Multi-level password security to prevent unauthorized ace... and aalntain data integrity. Disk optimization to aaxi.ize storage effiCiency and access data faater. near John ~ Thank you for your interest in upgrading your current Coaputoservice financial syate. to Coaputoservice'. new XENZX-based tinancial system. Based on our discua~ion of your needs. I have asseabled the enclo.ed proposal providing XEHIX-based solutions with a target iaplementation date of July, 1988. . Vith a XENZI-b.sed operating syet.., the City of HOFkins will be using the fastest arowina operating systea in the industryo the operatinr syete. that ha. been accepted .s the standard operating syat.a for buslne.. applications by the United Stat.. Gove~naent. Th. benefit. XENIX provides the City of Ropkins include: It It Ve beliove the IENIX solution proposed provides a long-term solution to the City of Hopkins' data processing needs and greater opportunity to take advantage of new 80ftwars applications appearing on the aarket, 4S well as enhance the productivity and perforMance of your depart_ant. Sincerely, 7i:J7PJ . Michael T. Todd Sales Representative l1TT/Jk Enclos/Jre - \"'~ - '" IJ -, ._1 , .....-... ~~ . '. . .. crTY OF HOPKINS XENIX UPGRADE PROPOSAL HAT 3. 1988 Hardware: TI 1115 A CPU AST Premium 266 Texas Ins~rumentG 877 Printer Cables, peripheral equipment, etc. as detailed per Schedule A. 'i:z..q. -t"E~IfI/,,, A L .s CoLt.. R<.'i..A CE P 'i' 'J I -rEIl. no .P~~ XEHIX Operatfn& Syatea Licensln: Fee for Ex18ting Applic&tlons: Accounts Payable fund and Budget Accountin& FDA - Suamary Option Peyroll Utili ty B11UI1& $28,261 <7-r~> T" ;>o/,c..e < :11/1) 1,<600 2,000 4,000 400 2,000 5,000 800 2, 200 3.050 $-49,111 (7,380) (9DO) $40,831 < I D3t;, ----=-- 3~ ?'1~ to .(4 !;tjr) It ]51.0{) / 235 $ 35,435 In addition, Rhould Hopkins be the first \laG, in the ..tropolit6n area -.ke a decision to upcrade to a XENIX .yet.., CSI will authorize an ~\~ additional $4,595 a. a preliMinary conver.ion site incentive. This effectively reduces the pr!ce of the proposed uPtrade to $36,236. Software: Licensinc Fee for Hew Applications: Hiai-fticro Interface U8-Generic Interface Gther: Installation. Training, SyG&en and One-Day SYRt~ Orlentatlan Total Hardware .and Soft"'.r. Up:r_de Allowance Exiatlnt Applications Purchase Incentive New Application TOTAL ADD: 1.44 ME Floppy Disk Drive IOTE: Upgr.de ^lloNan~e on Existing Applic.tlon8 Valid until 12/31/89. Purchase Incentive on Hew Applications Valid until 12/31/88. I 1 I I -- . . . . CITY Of HOPKINS XENIX UPGRADE PROPOSAL SCHEDULE A: HARDWARE CONFIGURATION April 15. 1988 Hardware: CPU: Texas Instruments 111SA with .. .64 liB Memory (1) 120 ftB Disk Drive 60 HB Cartridge Tape B~ck-Up (1) 1.2 KB Floppy Disk Drive (I) Eight-Port Multiplexer (1) Texas Instruaents 924 Honochro.e ftonitor, Graphics Card, snd 101 Style ~.yboard (1) 2400 BPS Async Internal Hod.. with Telephone lIorbtaUon: AST Pr..tUll 286 PC. Kodel 140 with 1 IfB HUlor, (1) 40 HB Disk Drive (1) 1.2 ftB Floppy Disk Drive (1) nOftocaro.. Honitor with 3G Plus Graphics Card 101 Style .ceyboard ADD: 1.44 MB Floppy Disk Drive (Needed to change input/output format so that the Mini computer and the PC network can communicate. Frinter: Texas Instrument. 877 ~ide Carriage Heavy Duty Dot Hatrix Printer Other: Conversion of Existing LP600 Line ?rinter to Parallel E.ulatlon Upgrades for (2) ISH Compatible Personal Co.puters Interface Cables to Hade... TerMfnals and Micro Computer Workstations Delivery, freight Insurance, Assembly and Inetal1.tion --. IT