HomeMy WebLinkAboutAGENDA REPORT 1988 0907 CC REG ITEM 08OJOHN PATRICK LANE
Mayor
ELOISE BROWN
Mayor Pro Tern
JOHN GALLOWAY
Councilmember
CLINT HARPER, Ph.D.
Councilmember
BERNARDO M. PEREZ
Councilmember
MAUREEN W. WALL
City Clerk
TO:
FROM:
DATE:
REGARDING:
MOORPARK ITEM g D.
MEMORANDUM
The Honorable City Council
Donald P. Reynolds, Jr., Administrative Ai_D
August 29, 1988
I.B.M. Maintenance Agreement
STEVEN KUENY
City Manager
CHERYL J. KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
The City Staff is requesting from the City Council, a change in the
I.B.M. computer maintenance agreements. The current arrangements are
initiated at the end of each individual piece of equipment's warranty,
and thus require a separate renewal date, separate cost, and are only
serviceable during an eight hour business day. The current cost for
the computer maintenance is itemized as follows:
System 36
External Disk Drive
Laser Printer
60.00 per month
5.00 per month
128.00 per month
PC /AT 47.61 per month
TOTAL COST .......................$240.61 per month
An alternative to this arrangement is the IBM Mid -Range System
Amendment. This amendment is a five year arrangement, that will
consolidate all of our equipment into one maintenance agreement. The
benefits of this agreement include: 17% to 27% discount per item to be
maintained; it allows I.B.M. to better service our system by allowing
them to maintain an appropriate parts inventory; I.B.M. will serve as a
resource in the event the City would need to initiate a disaster
recovery process, and also guarantees twenty -four hour repair service.
The I.B.M. Mid -Range Amendment allows the City several opportunities to
cancel the agreement. Without penalty, the City can terminate the
agreement with six months notice. If we choose to end the agreement
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
with a thirty day notice, then this is possible by forfeiting one month
payment as a penalty.
Additionally, the agreement includes protection for cost increases such
as: if the maintenance cost for an individual piece of equipment
increases by more than 7 %, than it can be removed without penalty, and
if all the equipment maintenance costs increase by more than 3.5 %, then
the agreement can be terminated without penalty. The cost of
maintenance has recently increased by three percent.
The Mid -Range System Amendment will save administration in the time the
processing and payment of several maintenance agreements; if entered
into, will provide a cost saving to the City as indicated by the
following chart:
Item Cost* Discount Adjusted
System 36 60.00 /mo 17% 49.80/mo
External Disk Dr. 5.00 /mo 17% 4.15 /mo
Laser Printer 128.00 /mo 20% 102.40 /mo
PC /AT 43.92/mo 27% 32.06/mo
PC /AT Display 3.69/mo 22% 2.88/mo
The new cost for maintenance would be $191.29/mo, which is a savings of
591.84 /year.
As new equipment is purchased, and the warranties on the existing
equipment expire, they can be added to the same agreement at a
discounted rate.
A rate increase became effective on July 28, 1988. Exact rates per
item covered under the maintenance agreement were not available.
STAFF RECOMMENDATION: Authorize the Mayor to sign the I.B.M. Mid -Range
Systems Amendment for five years, on behalf of the City.
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