HomeMy WebLinkAboutAgenda Statement 1979/06/12 Item 08CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT Item Nr. 8
For meeting of 6~ 7g
ITEM TI LE Resolution~~,?,2 G!aiving Bid Requirements and Approving Agreement with
Burroughs Corp. for Purchase of B-2805-2 Computer
SUBMIT ED BY City Manaoer C._...~
ITEM EXIPLANAT ION
(4/5TH'S VOTE REQUIRED YES NO X )
During udget hearings held D1ay 23, 1979, the City Council approved the Data Processing
budget or FY 79-80. Included in the budget were funds for installment purchase of a
Burroug s B-2805-2 computer. Consequently, staff is submitting for Council approval a
contrac for the acquisition of the computer, a copy of which is attached.
Prices uoted by Burroughs are valid until June 15, 1979, at which time prices may
increas However, the contract date will be July 1, 1979, and Burroughs will agree to
pre-Jun 15 prices if Council approves the purchase prior to that date.
It~is r commended that, pursuant to Section 2.56.170 of the Municipal Code, Council waive
the bid ing requirement and authorize the purchase of the B-2805-2 computer from Burroughs
Corpora ion. Support for the waiver stems from the following:
1. xisting programs are 100% compatible with the B-2805-2.
2. urroughs will allow an $11,248.50 trade-in credit for our B-2500 processor.
3. eripheral equipment currently owned and operating is compatible and will be used
ith proposed equipment.
4. urroughs is the only manufacturer which offers a processor and software compatible
ith existing peripheral hardware and programs.
Burroug~s will finance the entire cost of the hardware, including sales tax, at 5.75% for
five (5) years. Following is an analysis of the costs involved.
continued on Supplemental Page 2
FINANC]
reement~, Resolution
EXHIBITS
Ordinance Plat Notification List
r ENVIRONMENTAL DOCUMENT: Attached Submitted on
IMPACT
See next page
STAFF F
;ECOMMENDATION
Adopt resolution
BOARD/(
COUNCIL
~ti
:OMMISSION RECOMMENDATION
ACTION
l/`"`"~
..=~ ~ ~-/~-~9
Form A-113 (Rev. 5/77)
Item No. 8
Meeting of 6/12/7
Supplemental Page~Two
~al~rsis of Equipment Financinc
List price (82805-2) $112,485.00
Less 10% trade-in (62500) 11,248.50
Balance after trade-in $101,236.50
Sales Tax at 6% 6,074.19
Finance charge (5 3/4%) 15,828.51
Total Deferred Balance 123,139.20
Deferred balance to be paid in 59 monthly installments of
$2,052.35 and a final installment of $2,050.55.
alysis of Maintenance Fees
Monthly maintenance of new equipment
including equipment retained from B-2500
(12 months at $872) _ $ 10,464.00
Maintenance cost is fixed by contract and will be $10,464 for the
first year and cannot exceed 10% increase in any single subsequent
year.
alysis of Software License Fe
Item
Initial Charge
Annual Charge
* B-2000 MCP
** B-2000 NDL
-0-
4,675
4,675
-0-
468
468
)uring the first year the annual charge of $468 is included in the initial charge.
* - Master Control Program
** - Network Definition Language
JP:mab
FINANCIAL IMPACT
s detailed in earlier reports, the costs of operating this machine, including
urchase and maintenance, would be less than operating the existing B-2500 computer.
o additional employees will be required because of the new equipment. Purchase
ost of the new machine will be $127,814.20, including sales tax, software and finan-
ing for five years. The effective date of the contract will be 7/1/79.
979-80 Budget Impact
Account No. Account Title
5268 Service to Maintain-Other Equipment $10,464.00
5271 Rentals and Leases 29,303.00
5568 Other Equipment (.air-conditioning) 750.00
40,517.00
The above amounts are included in the Data Systems (0213) budget as reviewed
and approved by the City Council.
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