HomeMy WebLinkAboutOrdinance 16739-12-2005Ordinance No (Q 73 /'~.~-oZt~-
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE INFORMATION SYSTEMS CAPITAL PROJECTS
FUND IN THE AMOUNT OF $1 040 415 FROM A THREE YEAR REPAYMENT
FROM THE INFORMATION SYSTEMS FUND FOR THE PURPOSE OF
FUNDING A PURCHASE AND INSTALLATION AGREEMENT WITH
CORNERSTONE SYSTEMS INC FOR THE INFORMATION TECHNOLOGY
SOLUTIONS DEPARTMENT MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH
TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2005-
2006 in the Budget of the City Manager there shall also be increased estimated receipts and
appropriations in the Information Systems Capital ProjectsFund in the amount of $1 040 415 from a
three-year repayment from the Information Systems fund for the purpose of funding a purchase and
installation agreement with Cornerstone Systems, Inc. for the information Technology Solutions
Department.
SECTION 2
That should any portion, section or part of a section of this ordinance be declared invalid
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No 16582 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict with such other ordinances and appropriations, in which instance said
conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed
SECTION 4
ADOPTED AND EFFECTIVE ~J/C~,.C@v~~2r' r~O~ ~~``
This ordinance shall take effect upon adoption
Page 1 of 3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 12/20/2005 Ordinance No 16739-12 2005
DATE Tuesday December 20 2005
LOG NAME 13P05-0299
REFERENCE NO P 10292
SUBJECT
Authorize a Purchase and Installation Agreement for an IBM 2890 Mainframe Computer a DS 6800
Disk Storage System and an Automatic Tape Library System from Cornerstone Systems Inc and
Adopt Appropriation Ordinance for the Information Technology Solutions Department
RECOMMENDATION
It is recommended that the City Council.
1 Authorize a purchase and installation agreement for an IBM 2890 Mainframe Computer a DS 6800 Disk
Storage System and an Automatic Tape Library System from Cornerstone Systems, Inc. for the Information
Technology (IT) Solutions Department for an estimated cost of $1 040 415 00
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$1 040 415 00 in the Information Systems Capital Projects Fund based on the budgeted three year
repayment from the Information Systems Fund
3 Authorize the trade-in and removal of the existing IBM model 3000-H30 Mainframe Computer and
ancillary components with a current estimated value of $4 000 00' and
4 Authorize the maintenance of hardware and lease of operating system software for three years
DISCUSSION
The IT Solutions Department will use this procurement for a new mainframe computer and peripheral
components to replace an aging system that is approaching obsolescence The City of Fort Worth has
used the current IBM mainframe computer for five years On January 30 2001 (M&C P 9282) the City
Council approved the lease/purchase of the current mainframe system
Many vital automated systems continue to run on the City's mainframe environment. Although several
application systems are scheduled to migrate to other computing platforms ie Municipal Court, the IT
Solutions Department projects there will be continued utilization of the mainframe platform for at least five
years. As is the case with many older technology products, the current system is dated and its usefulness
to the City has diminished As an example the Human Resources software system is scheduled for a
mandatory upgrade and the current mainframe system cannot accept the upgrade. Additionally the City
received formal notification from IBM that support for the current system will cease in March 2007 If the
City were to have an outage the lack of support could easily delay the repair and impact important
applications such as payroll accounts receivable accounts payable general ledger Police data and
Equipment Services information
http.//www.cfwnet.org/council~acket/Reports/mc_pnnt.asp 12121/2005
Page 2 of 3
The cost elements for the purchase installation and trade-in of the existing systems are as follows
Elemen Cost
Hardware Pricing (for all) $485 967 00
Maintenance (3 years, 24 X 7) $205 135 00
InstallationlMigration Services $83 400 00
Lease Operating System Software for 3 years $269 913 00
Trade-in (current market pricing) ($4,000.0
Total $1 040 415 00
Part of the cost above is estimated The cost of shipping for the tape library as well as its installation cost
is estimated The installation cost will be billed at $200 per hour Additionally the quote for the trade-in
value of the old equipment is based on the market conditions that currently exist. The mainframe computer
is over 5 years old and the other trade-in equipment is even older As is the case with other old technology
hardware the equipment being traded has little or no value The proposal cost from Cornerstone is
approximately $43 500 less ,per year over the current annual cost for system software
IT Solutions staff solicited quotes for the mainframe replacement from three State of Texas Catalog
Information Systems Vendors (CISV) In addition to Cornerstone quotes were solicited from IBM
Corporation and T3 Technologies, Inc. Only Cornerstone submitted a response Although only one quote
was received Cornerstone is the City's designated Premier Partner for IBM Services IBM's business
model is for its customers to designate a Premier Partner and allow the designee to offer the best pricing
for goods and services
In planning for the replacement of the mainframe computer the IT Solutions budget as approved was to
spread the acquisition cost over three years. In June 2005 the City transitioned to a self financed inter
fund loan model to make payments for computers and other technology items. Use of the fund will allow
the equipment to be financed over three years without paying interest. For this acquisition the estimated
interest savings using the inter-fund loan approach is $44 500 00
Cornerstone Systems Inc. is designated as a CISV by the State of Texas Under section 271 083 of the
Texas Local Government Code a local government satisfies otherwise applicable bid"ding requirements
when it makes a purchase through the Texas Building and Procurement Commission catalog purchasing
procedure. The City will comply with that procedure for the purchase agreement authorized under this
Mayor and Council Communication
M/WBE - An MlWBE goal is not assigned when making a purchase from an approved purchasing
cooperative or other public entity
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance funds will be available in the Information Systems Capital Projects Fund
BQN\\
TO Fund/AccountlCenters
C196 485200 004196004003 $1,040,415.00
FROM Fund/AccountlCenters
C 196 541320 004196004003 $1, 040,415.00
http.//www cfwnet.org/council~acket/Reports/mc~nnt.asp 12/21/2005
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C 196 541320 004196004003 $1, 040,415.00
Submitted for City Manager's Office b~
Originating Department Head.
Additional Information Contact:
Richard Zavala (Acting) (6222)
Jim Keyes (8517)
Pete Anderson (8781)
Robert Combs (8357)
Pete Anderson (8781)
http.//www cfwnet.org/council~acket/Reports/mc~rmt.asp 12/21/2005