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SUBJECT:

Authorization to Increase Expenditures Under an Existing Contract for the Utility Billing Program File Server System (#F0211-42) (RTC#02-483)

REPORT IN BRIEF

Approval is requested to increase an existing purchase order contract with Chouinard & Myhre, Inc., of Cotati, to furnish and install an IBM eServer iSeries File Server System for the Information Technology Department.

BACKGROUND

On August 27, 2002, Council awarded a purchase order contract to Chouinard & Myhre, Inc. in the amount of $77,063 to furnish and install an IBM eServer iSeries File System to replace the existing City-owned IBM AS400 system running a utility billing software package licensed from HTE, Inc. HTE had released a major upgrade (Version 6.0) that would provide important enhancements, but would require a hardware upgrade.

DISCUSSION

Included in Invitation for Bids #F0206-79 for the purchase of the system was a line for bidders to offer a trade-in on the City's existing AS400 system. Included as part of the trade-in was an IBM Disk Drive Model 7133-040 (S/N 35459). Chouinard & Myhre offered $1,000 trade-in, and acceptance of the trade-in was included in the Council award (RTC #02-345). Subsequent to the award, Information Technology staff has determined that the 7133-040 disk drive is actually a component of the IBM server system that runs the Public Safety CAD and RMS applications. Discussions with Chouinard & Myhre indicate the disk drive was the only part with any value, and without it they were not interested in offering a trade-in. The net result will be an increase in the cost of the system by $1,000 which will exceed the contract amount awarded by Council.

 FISCAL IMPACT

Funds are available in Information Technology Replacement Account #021100.

RECOMMENDATION

It is recommended that Council approve an amount of $1,000 to an existing purchase order contract with Chouinard & Myhre for the Utility Billing Program File Server System.

Prepared by:
Elaine Wesely
Purchasing Officer

Reviewed by:
Mary J. Bradley
Director, Finance

Shawn Hernandez
Director, Information Technology

Approved by:
Robert S. LaSala
City Manager

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