Item 30 Staff Report Consider Adopting Resolutions Authorizing Town Manager to Enter Into Agreements with Hewlett-Packard, Incorporated and Pentamation, Incorporated for Acquisition of Hardware, Software, Installation, and Training for a New AdministrativCOUNCIL AGENDA
DATE: 2/3/92
ITEM NO. 30
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: January 31, 1992
TO: MAYOR AND TOW COUN IL
FROM: TOWN MANAGER
SUBJECT: CONSIDER ADOPTING RESOLUTIONS AUTHORIZING TOWN MANAGER TO ENTER
INTO AGREEMENTS WITH HEWLETT-PACKARD, INCORPORATED AND
PENTAMATION, INCORPORATED FOR ACQUISITION OF HARDWARE, SOFTWARE,
INSTALLATION, AND TRAINING FOR A NEW ADMINISTRATIVE COMPUTER SYSTEM
(FINANCE/ACCOUNTING, BUDGET, PAYROLL, PERSONNEL, BUSINESS LICENSE,
GENERAL DATABASE, AND OFFICE AUTOMATION), AND AUTHORIZATION FOR
EXPENDITURE OF FUNDS FOR MISCELLANEOUS SERVICES.
RECOMMENDATION:
Continue this item to February 18, 1992.
BACKGROUND:
We are finalizing some minor points on the proposed contract with Hewlett-Packard. While I feel certain the
details will be worked out, I did not want to rush the negotiations.
Continuing to operate the Town's finances on the Wang system requires significant manual backup.
Operating the Wang without this backup puts the Town at fiscal and legal risk. Knowing and depending on
timely financial information is not possible with the current system. It does not provide adequate accounting
safeguards, nor does it provide the functions or speed one would expect in a twenty million dollar per year
operation.
Complying with Council direction from the meeting of December 16, 1991, staff is negotiating contracts with
Hewlett-Packard (HP) Inc. and Pentamation Inc. for an administrative computer system.
This system includes hardware and software to link the Town's existing PCs. It also includes hardware and
software for the Town's finance, accounting, budget, payroll, personnel, electronic mail, business licence,
and general database activities.
The system does not include additional PCs; individual departments will request additional PCs as part of
the regular budget process. For example, the Library having only one existing HP PC, will need an
additional PC for adequate access to the new accounting system.
PREPARED BY: Brian N. Jones, Information Systems Coordinator
SYS40; C: \ WP50\REPORTS\ UN IXSYS 1 g
01 /31 / 1992/Fri/ 1701 /BNJ
1/31/92 5:01 pm
Reviewed by: Attorney
Clerk
Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER ADOPTING RESOLUTIONS AUTHORIZING TOWN MANAGER TO ENTER INTO
AGREEMENTS WITH HEWLETT-PACKARD, INCORPORATED AND PENTAMATION,
INCORPORATED.
January 31, 1992
DISCUSSION:
Recommended System
Based on the Town's requirements identified in the KPMG Peat Marwick Report, software evaluations, site
visits to other cities, and reference checks, staff believes the Pentamation finance/accounting software best
meets the requirements of the Town. Staff also recommends Hewlett-Packard Unix hardware. This
hardware recommendation is based on Hewlett-Packard's track record with the Town's existing desktop PCs
and laser printers, endorsements received during the reference checking phase of the evaluation process
from other cities, and the positive role the Hewlett-Packard sales and technical team played during the
evaluation process.
System Components and Costs
The system includes the following major hardware and software components, installation, and training listed
by vendor, cost, and description:
Vendor Cost Description
HP
HP
HP
HP
HP
Pentamation/Informix
Pentamation
Pentamation
SUBTOTAL
TAX
SYSTEM TOTAL
One-time personnel
$68,500
$39,653
$35,102
$37,083
$50,255
$16,810
$45, 500
$57,200
$350,103
$20,018
$370,121
$16,000
Model 837 Unix Based CPU, memory battery backup, 32
user license, 64 MB RAM, 2.72 Gbytes Disk, UPS power.
Network equipment: Direct Terminal Controllers, Modems,
Ethertwist Hubs, Ethertwist Cards, LAN Bridges, etc.
High-speed printers: 1 ea. 1200 LPM, 2ea. 420 LPM.
Network, EMail, and Utility Software.
System training, network implementation, system
implementation, EMail implementation.
Informix Database Software with Informix 4GL.
Finance/accounting Software: fund accounting, purchasing,
budget, human resources, position control, receipts,
investments, receivables, fixed assets, employee benefits,
applicant tracking.
Finance/accounting training, travel expenses, software
integration.
On hardware and software.
Includes hardware, software, installation, training and tax.
Estimated one-time operating cost for four persons, full-
time, for twenty days temporary services for data entry to
new system (4 persons x $25.00 x 8 hours x 20 days).
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER ADOPTING RESOLUTIONS AUTHORIZING TOWN MANAGER TO ENTER INTO
AGREEMENTS WITH HEWLETT-PACKARD, INCORPORATED AND PENTAMATION,
INCORPORATED.
January 31, 1992
One-time contingency
TOTAL
On -Going Costs
$13,879 Estimated one-time contingency cost and costs for
additional cabling installation for PFM, and Neighborhood
Center; miscellaneous hardware, software, and related
services.
$400,000 Estimated system cost.
In addition to costs for hardware, software, installation, and training, on -going cost for hardware and software
service and support is approximately $2,150 per month. Additional phone line cost for two dedicated digital
56Kb lines for network communications to PFM and the Neighborhood Center is approximately $232 per
month.
System Description
The proposed administrative computer system provides hardware and software to implement a Town -wide
finance/accounting system, a central database system (Informix SQL relational database) , a wide area
network (WAN), and an electronic mail system for existing PCs.
The finance/accounting software consists of several integrated modules including fund accounting, payables
purchasing, budget, human resources, position control, receipts, investments, receivables, fixed assets,
employee benefits, applicant tracking.
System configuration includes networking the Town's existing 32 desktop PCs. After the initial installation,
and once the system is stable, departments will request additional PCs and network connections as part of
the regular budget process. The proposed central system has been sized to accommodate growth and, if
necessary, can be expanded with additional memory and disk capacity.
The proposed system will give access to all departments. This incudes network access for off -site locations,
Parks Forestry and Maintenance and Community Services. Department -specific information will be available
to individual department personnel (with appropriate security authorization) such as year-to-date budget
versus actual expenditures. Additionally, users on the network will be provided with electronic mail and the
ability to share and move files between departments.
Implementation and Training
To ensure a satisfactory transition from the Wang system, significant implementation assistance and training
is included. Hewlett-Packard is providing hardware, network, and system software installation and will
provide a single point of contact for implementing these systems. Hewlett-Packard is also providing an
escalation procedures for problem resolution. This will help to resolve finger pointing typically associated
with hardware and software vendors.
Additionally, Pentamation is including 368 hours of training for all of the application modules described
above.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER ADOPTING RESOLUTIONS AUTHORIZING TOWN MANAGER TO ENTER INTO
AGREEMENTS WITH HEWLETT-PACKARD, INCORPORATED AND PENTAMATION,
INCORPORATED.
January 31, 1992
CONCLUSION:
The Wang system no longer meets the Towns requirements and should be replaced. Based on the
consultant's requirements report, the Town's RFP, vendor responses, and staff evaluations, the Hewlett-
Packard/Pentamation system is recommended. The system description, costs, contracts, and lease terms
necessary to move forward are included in this report and its attachments. With Council approval, staff will
begin implementing system.
Staff recommends adoption of resolutions authorizing the Manager to sign contracts with Hewlett-Packard
Inc. and Pentamation Inc. for an administrative computer system and associated services.
FISCAL IMPACT:
A bundled sixty -month government lease through Hewlett-Packard is recommended. Major costs associated
with the purchase of the new system, with the exception of monthly hardware and software maintenance,
one-time personnel, contingency and miscellaneous costs are included in the lease amount. Total costs
listed below include leasing, onetime, miscellaneous, and monthly maintenance costs. Maintenance cost
would be on -going and continue until the system was replaced.
The total fiscal year expenditures are not to exceed amounts, however because of project timing,
unexpended balances may be carried forward.
FY 91-92 FY 92-93 FY 93-94 FY 94-95 FY 95-96 FY 96-97
Annual $48,000 $96,000 $96,000 $96,000 $96,000 $48,000
Maint. $6,440 est. $25,800 $25,800 $25,800 $25,800 $25,800
Onetime $32,056
Total $86,496 $121,800 $121,800 $121,800 $121,800 $70,800
Cost
An additional, estimated $232 monthly on -going phone line cost will be budgeted in the General Town
Administration (GTA), Operating Budget.
Miscellaneous and onetime expenditures are included in fiscal year totals. These costs include items that
are not in the lease such cabling, network software, temporary data entry personnel, contingency etc. Any
remaining balance at the end of FY 91-92 will be carried forward to FY 92-93.
The funding source for this project is the equipment replacement fund, Fund 13. Adequate funds exist to
finance this project and to maintain an effective equipment replacement schedule. The lease option is
recommended over a one-time purchase.
There will be an estimated cost savings of $4,000 in FY 92-93 and $16,000 in FY 93-94 and every year
thereafter through the elimination of the Wang system hardware and software support costs.
February 3, 1992
Los Gatos, California
HAZARDOUS MATERIALS ORD. CONT.
Motion by Mr. Attaway, seconded by Mrs. Benjamin, to introduce and adopt Draft Urgency
Ordinance 1888 entitled, URGENCY ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING AND ADDING CERTAIN SECTIONS OF RECODIFIED CHAPTER 13 OF THE
TOWN CODE RELATING TO THE STORAGE OF HAZARDOUS MATERIALS CLARIFYING
DEFINITIONS. GRaNNTING THE ENFORCING OFFICER AUTHORITY TO ISSUE ORDERS
AND ESTABLISHING REVIEW OF SUCH ORDERS, Carried by a vote of 4 ayes. Mr.
Ventura absent.
INFORMATION SYSTEMS/HEWLETT-PACKARD/PENTAMATION/NETWORK LINKAGE (30.28)
Motion by Mr. Attaway, seconded by Mr. Blanton, that Council continue this item to February
18, 1992. Carried by 3 ayes. Mr. Carlson abstained for reasons stated in previous record. Mr.
Ventura absent.
FAIRVIEW PLAZA PARK/VICTOR BOOHER MEMORIAL/PARK COMMISSION (31.25)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council approve Park commission
recommendation on placement of memorial plaque honoring Victor Booher in Fairview Plaza
Park. Carried by a vote of 4 ayes. Mr. Ventura absent.
COUNCIL MEETING SCHEDULE/REVISED 1992 (32.10)
Motion by Mr. Attaway, seconded by Mrs. Benjamin, that Council approve the revised 1991-
92 Town Council Meeting Schedule. Carried by a vote of 4 ayes. Mr. Ventura absent.
BUDGET REPORT/MID-YEAR/1991-92 (08.06)
Motion by consensus that Council approve the revised 1991-92 revenue estimates and department
budgets as shown in the staff report, with correction to page 4, under Summary Comments, line
4 of the staff report, "on -time payment" should be changed to read "one-time payment". Carried
by a vote of 4 ayes. Mr. Ventura absent.
SOLID WASTE MANAGEMENT/LOCAL ENFORCEMENT AGENCY/SANTA CLARA COUNTY
(14.07)
Motion by consensus that Council authorize the Town Manager to sign and forward the attached
letter of intent to designate the County of Santa Clara as the Town's Solid Waste Management
Local Enforcement Agency (LEA). Carried by a vote of 4 ayes. Mr. Ventura absent.
ADJOURNMENT
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adjourn this evening's meeting
at 9:42 p.m. Carried by a vote of 4 ayes. Mr. Ventura absent.
TC. D3: M M020392
ATTEST:
Marian V. Cosgrove
Town Clerk
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