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HomeMy WebLinkAboutAgenda Statement 1980/11/18 Item 15 , COUNCIL AGENDA STATEMENT Item IS Meeting Date ITEM TITLE: Resolution/I?~;!.LlAPproving Agreement with Burroughs Corporation for Lease of Single Line Control and Line Adapter Director of Policy Analysis and ~ Program Evaluation 11 /18/80 SUBMITTED BY: (4/5ths Vote: Yes___ No-X-) During the May 10, 1980 budget overview session, the City Council considered and accepted my report on the Provision of Contractual Data Processing Services. As indicated in that report, the marketing of the City's data processing services to other agencies has been greatly enhanced by Data Processing's on-line terminal capability. Two outside agencies have now taken concrete steps toward installing on-line terminals to be connected to the City's computer using phone lines, but completing this connection requires Data Processing to obtain some special interface hardware. This hardware is essential for the City to provide on-line service to contract agencies, and the revenue from providing this service will be considerably larger than the cost of the equipment. Therefore, it is my RECOMMENDATION: That Council: 1. Adopt the resolution approving the agreement. BOARD/COMMISSION RECOMMENDATION: Not Applicable. DISCUSSION: The City's 82805 computer currently has the capability of providing on-line service to users located within 1,000 feet of the computer, and the Finance Department will become the first such user when its on-line terminal is installed in December. Users who are located further than 1,000 feet from the computer, however, must use phone lines to communicate with the computer. The interface between the phone lines and the computer requires a modum (which will be leased from Pacific Telephone) and equipment such as Burroughs B2351-1 Single Line Control and B2667-5 1200 BPS Line Adapter. Two of the Data Processing Division,'s outside clients ,have decided that on-line computer service is important for meeting their needs and have committed to the use of terminals. The City of Coronado has purchased two terminals and a printer, which are scheduled to be installed in December of 1980. The San Diego Housing Commission is purchasing similar equipment, which will be installed early next year. Several other outside clients and potential clients are also considering on-line applications, although they have not yet committed to the use of terminals. From a user's viewpoint, on-line service is attractive because it provides virtually instantaneous ,asessrli.ility and updating of data and provides users V more control over their data. 'From the Data Processing Division's viewpoint, on-line service is also advantageous because it allows greater utilization of the computer while minimizing the Division's data entry and operator staff time required for the increased computer utilization. The cost of leasing the single ljne control and line adapter for one year is $2,950, including installation, maintenance; and tax, as shown below. Form A-113 (Rev. 11/79) /03;2 C( Continued EXHIBITS Agreement~ Resolution v" Ordinance_____ Plat_____ Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on "\"" > . Page 2, Item .15 Meeting Date 11/18/80 Total $ 145 $1,806 $ 108 $2,059 82677-5 Line Adapter Tota 1 $ 72 $ 217 $773 $2,579 ~ $ 154 $891 . $2,950 82351-1 Single Line Control Installation Charge l-Year Lease (incl. maint.) Sales Tax I am recommending a one-year lease rather than purchase of this equipment because it appears very likely that less expensive substitute equipment will be available within a year. If this alternative equipment arrangement does not materialize, it will still be possible to apply 50% of the lease payments toward the purchase of the above equipment. FISCAL IMPACT The cost of leasing the Single Line Control and Line Adapter for one year is $2,950. The lease will not begin until we need the equipment, i.e., until the City of Coronado's terminal is installed in December. The estimated FY 1980-81 cost for the lease is thus approximately $1,720, and the FY 1981-82 cost approxi- mately$1,230. The $1,720 in 1980-81 funds will be made available in the Data Processing Division's budget by administratively transferring funds from account 0213-5101 to 0213-5271. The cost of leasing the equipment will be more than offset by additional revenue from the Division's outside clients using on-line service. JRT:lm ~..,,(~ by the City Council of Chula Vista. California Dated 1/- / f- J1J . I . , I j I q?> zcj