AGENDA #4b

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Fiscal Year 2004-05 Computer Replacement Plan

 

DATE:                        May 23, 2005

 

 

The attached resolution would authorize the Manager to seek proposals for financing of Town computers as part of the computer replacement plan.  The proposed financing would provide funding for the purchase of computer equipment scheduled to be replaced during fiscal year 2004-05.

 

BACKGROUND AND DISCUSSION

 

Town computers are procured through a program managed by the Information Technology Department and funded by the Computer Replacement Fund. Each year approximately one-third of the computers are scheduled for replacement. The program has expanded to include laptop computers and mobile data terminals used by the Police Department. The program manages over 300 computers.

 

The fiscal year 2004-05 budget authorized the purchase of computers totaling $212,000. On April 25, 2005, an authorization request was submitted for the financing of $204,000 in order to purchase replacement computers for the current fiscal year (Attachment 1). The item was later discussed at the Budget Work Session on May 12, 2005. During the intervening period the Information Technology Director discussed options for reducing computer costs with the Technology Committee and determined that some additional cost reductions could be made in the current year and that further cost reductions would be included in next year’s budget.    Thus the proposal presented on May 12 reduced the overall cost of systems being purchased this year to $192,000. This is consistent with a Technology Committee recommendation presented on March 23, 2005, that efforts should be made to reduce computer replacement costs by $20,000 in the first year and by higher amounts in subsequent years. The overall reduction for this year from $212,000 authorized to $192,000 proposed for purchases would meet that goal.

 

The overall rise in the cost of the Computer Fund over the past two years is largely due to the inclusion of mobile data terminals used by Police Department patrol cars. These laptops were initially procured under grant funds with expectations for replacement costs to be funded by the General Fund. Including these laptops in the Computer Fund provided a means to do this on the same basis as other computers in the Town are procured.

 

The majority of this year’s replacement computers would be used for public safety purposes (Police and Fire Departments). All General Fund departments share in the replacement program; however, previous buying schedules have resulted in a larger share of this year’s purchase being designated for the Police Department. It also includes seven mobile data terminal laptops for Police Department patrol cars (replacing ones that are already five years old) and one for the Fire Department command vehicle.

 

CONCLUSION

Computer equipment to be replaced consists of desktops and laptops primarily for the Police Department.  The total replacement cost for these items is approximately $192,000.  The total combined principal and interest payments necessary to finance these items would be approximately $205,000.

RECOMMENDATION

We recommend that the Council adopt the attached resolution authorizing the Manager to direct staff to seek proposals for the financing of Town computer equipment having a replacement cost totaling $192,000.

ATTACHMENT

1.      April 25, 2005 Memorandum (p. 4).

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO SEEK FINANCING FOR COMPUTER REPLACEMENT PURCHASES FOR THE 2004-2005 FISCAL YEAR (2005-05-23/R-3)

WHEREAS, the Town of Chapel Hill has developed a computer replacement plan to set forth a process for the purchasing and financing of Town computer equipment; and

WHEREAS, the Town of Chapel Hill currently has computer equipment that is scheduled for replacement in accordance with this plan; and

WHEREAS, funds were budgeted as a part of the 2004-05 adopted budget for this purpose;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to seek proposals from financial institutions for the financing of computer equipment totaling $192,000 scheduled for replacement during fiscal year 2004-05.

This the 23rd day of May, 2005.