Exh 8A0
~~z~-99
CITY OF ATLANTIC BEACH
CITY COMMISSION
STAFF REPORT
AGENDA ITEM: Purchase of Computer Upgrades
DATE: _ May 18, 1999 ~~~~~~
SUBMITTED BY: David E. Thompson, Chief of Police
BACKGROUND: Please see the attached reports regarding Information Management
Systems in the City of Atlantic Beach. These reports have been
modified slightly from the previous report submitted at the May 10,
1999 City Commission Meeting.
The attached reports explain the existing situation in the City
relative to the AS/400 system and software, and the two (2)
networks. The report includes cost estimates to upgrade the
networks to Y2K compliance, and to upgrade the AS 400 system to
enhance its operations.
~, The funding has been identified in the existing budget to cover the
expenses of the recommended upgrades, and the mid-year budget
adjustments make the necessary funds available. The attached
memorandum from the Finance Director identifies the funding
sources for the purchases.
RECOMMENDATION: Staff recommends the approval of funding for the Information
Management Systems as recommended in the attached reports.
This includes approximately $28,115 for the Public Safety
upgrades, $17,585 for the City Hall network, $73,520 for the AS
400 system, and cabling, travel, and contingency of $8,895.
RECOMMENDATION: Staff recommends that the City Commission authorize the City
' ~ Manager to negotiate and enter into contracts with HTE as an IBM
business partner for upgrades on the AS/400, and with Purvis Gray
& Co. for upgrades to the networks in Public Safety and City Hall.
ATTACHMENT: Memorandum to David Thompson from Nelson Van Liere
May 18, 1999 City Manager Report
REVIEWED BY CITY MANAGER: f
t AGENDA ITEM NUMBER:
MEMORANDUM
f
Date: May 19, 1999
To: David Thompson, City Manager
From: Nelson Van Liere, Finance Director~~
Subject: Funding for computer hardware and software upgrades
The following is an estimate of the total costs and funding for the current proposals for the computer
upgrades.
AS/400
HTE/IBM proposal is $73,520 not including annual maintenance. Maintenance is already a part
of our normal budget. I recommend that the computer be paid for by the Finance Department and funded
with a transfer from the General Fund. Resolution #99-14 amends the budget for numerous items which
more than cover the cost of this upgrade.
City Hall Server
I would also recommend that the City Hall Server become a part of the Finance Department's
responsibility and that its purchase should also be funded in the same manner as the AS/400. The Purvis
& Gray estimate is $17,585 which does not include travel expenses, cable installation and a contingency.
Total estimated cost is as follows:
AS/400 -model 170 73,520
City Hall Server 17,585
Travel 2,000
Cable 3,000
Contingency 3,895
Total 100,000
Resolution #99-14 adjusts numerous accounts in the General Fund which free up funds to make the
necessary transfer to the Finance Department. Among the more significant are the following:
City Contributions to the Pension Fund are reduced by $35,055
Chief Ruley's salary and benefits in the Fire Administration is a reduction of $47,839
Elimination of the budget for a Strategic Plan of $30,000
These three items add to $112,894. There are other reductions as well as enhanced revenues in the
General Fund as a result of the budget resolution that could be tied to this proposal.
Police Department Server
I recommend that the Police Department server upgrade estimate in the amount of $28,115 by
Purvis & Gray be funded through the Federal Local Law Enforcement Grants with matching funds from
the Law Enforcement Trust Fund. Resolution 99-14 adjusts the 1998-99 Operating Budget to reflect this
recommendation.
Please keep in mind that these proposals are estimates. Due to the nature of upgrading to an entire new
system with multiple vendors being involved, it is likely we will encounter some unknown hurdles during
the transition. Additional funding may be requested if such problems arise.
t
City Manager Report on Information Management Systems
("~ May 18, 1999
The City Staff has been working on Information Management Systems for many months to
address Y2K concerns as well as overall direction and planning. During this process, all of the
computers and softwaze programs in the City were inventoried and evaluated relative to Y2K
compliance. Additionally, staff has contracted outside consulting to assist in the overall
evaluations of existing systems, and to plan for future problem solving and management.
The City has computers in virtually all of its departments. Some of the computers are basically
stand-alone systems, while others are networked to file servers. Others are on networks and
connected to the City's AS400 system. Due to the variety of computers, systems, and issues,
this report is going to separate its evaluations and recommendations into five (5) sections. The
first section will look at the City's AS400. The second section will deal with the PC networks,
and the third will look at the connectivity between the systems. The fourth will address
purchasing issues.
1. AS400
The City has one (1) central system for the City's financial and utility billing. This system is the
foundation for City operations including the accounting for payroll, water, sewer, garbage,
stormwater, occupational licenses, land management, utility tax chazges in the Buccaneer system,
service orders, and all purchasing for the City of Atlantic Beach. This system is a critical
component of the City's operations, especially in terms of record keeping and maintaining
revenues citywide.
This system includes hazdwaze manufactured by IBM, and softwaze developed by HTE. HTE is
an IBM business partner, and HTE writes the software specifically for the IBM AS400. When
Atlantic Beach entered"into the original purchase of this system in 1991, it committed to IBM
and HTE on a long termed basis. HTE updates its softwaze on a continuing basis, and they
provide,important system upgrades and guidance as a part of the City's ongoing contracts with
them. IBM provides the operating system softwaze and the maintenance on the hazdwaze,
including upgrades that have been undertaken to keep the systems operational even when the
technology is becoming obsolete.
Existing Situation:
Some of the previous HTE softwaze on this system was not Y2K compliant. HTE has designed
new software that is compliant with Y2K, and the City has installed or is installing these
programs at this time. However, these software upgrades require significantly more memory in
the system, and they will be a short termed fix for the system.
HTE has more advanced software that has been developed for our needs, and that softwaze
~~ includes a variety of problem solving mechanisms that were lazgely member driven. This means
that the upgrades usually relate to problems and solutions specifically identified or recommended
by the businesses and cities who actually use the system. The latest version of the HTE software
will not function on the operating system of our AS400. The latest operating system software
from IBM will not function on our AS400 due to hardware limitations.
The current AS400 system is eight (8) years old. It was originally purchased in 1991 at a total
cost (consulting, training, hazdwaze, software, cables, printers, etc.) of approximately $301,000.
In 1995-96, an upgrade on the system was completed for approximately $52,647.
In 1997-98, memory was added to the system, at an expense of $2,956, to extend its usable life
for a yeaz to provide time to evaluate the system as a whole,.
The City could choose to do nothing beyond assuring the Y2K compliance. The software to
accomplish this is being installed at this time to assure its operation in the near future. HTE tests
the softwaze and assures the City that this upgrade is compliant for Y2K purposes. The system
will work, for a while, with its existing softwaze and hazdwaze.
The current system will not be capable of accepting the latest programs and upgrades in software.
This will prevent Atlantic Beach benefiting from the upgrades that are provided on a frequent
basis. It will not allow Atlantic Beach to add "new" programs from HTE that may benefit other
departments or expand services. It will be inconsistent with the guidance and recommendations
from HTE to upgrade the system. Regardless of the existing software and hazdwaze, technology
changes and upgrades aze inevitable.
There is another consideration that should be evaluated in this decision making process. The
current back-ups of the data must be conducted manually with multiple tapes, and this requires
staff time, always during evenings or weekends, to facilitate the protection of the data. An
unattended back-up on a new system would assure the protection of the data while eliminating
the cumbersome staff time and subsequent expenses.
Changing or purchasing another system is not a practical or cost effective solution. The selection
of new software and hazdwaze would be an extensive process. Data conversion would have to
be accomplished, which could be problematic, and all staff would have to be trained and
indoctrinated on the new system. Installation and administration would be time consuming and
expensive, and it is doubtful that a new product would be any better than the HTE/IBM system
available to Atlantic Beach at this time. Shopping for a different system is not a feasible option.
It is staff s opinion that the most practical course of action is to purchase the HTE/IBM softwaze
and hazdwaze system. We are dealing with one of the most critical information sources in the
City from customer service and revenue generation perspectives, and this requires a reputable,
reliable system that can keep up in a changing world. The commitment was made to utilize IBM
and HTE in 1990, and staff recommends that we continue to work with these business partners.
This system has been a reliable performer for City operations since its implementation.
City Staff has had discussion with various sources relative to the existing and future needs of the
system. As a result of those discussions, staff was able to refine specifications and reduce IBM
price estimates by more than $20,000. The hazdwaze and software upgrades necessary to handle
the new system, including the required software and data conversion, will cost approximately
$75,000. This is based on a discount for the trade-in of the existing equipment. The City is
already paying annual maintenance and support costs that would continue with the new system.
Recommendation: We recommend that the City Commission authorize staff to negotiate with
HTE and IBM and purchase the hardware, softwaze, and related expenses
for the improvements discussed above. The necessary funding has been
identified in the mid-yeaz budget adjustments.
2. PC Networks and Others
The City purchased its first microcomputer in 1986 for the Police Department. As computers
and softwaze developed over time, microcomputers were added to vazious departments according
to needs and available funding. These early systems were primarily stand-alone systems that
operated independently ofone-another.
In the early 1990s, the Police Department obtained a grant to create a public safety network. This
involved having a central file server to store data and software, and individual workstations
n connected to the file server. The City Clerk's Office set up a similar network at City Hall, but
this network has been underutilized and most of the City Hall staff is not on the network. There
are numerous advantages to using networks instead of stand-alone systems, and the Police
Department and City Clerk's Office networked their systems to take advantage of the benefits.
Both networks are set up with Novelle softwaze. The Public Safety and City Clerk networks are
both using 100 MHZ microprocessors that are outdated, cumbersome, and are unable to run new
softwaze.
The file servers on the nerivorks aze not Y2K compliant. The actual processors are capable of
functioning after the year 2000, but the network softwaze is not Y2K compliant. The file servers
are not capable of accepting upgraded network software (Windows NT) that is Y2K compliant.
For this reason, the file servers need to be replaced in the near future. There are three (3)
workstations that are not Y2K compliant, and they have been identified for replacement.
Other workstations around the City aze not networked with a file server. They are basically
stand-alone systems, and the types of computers, softwaze, and microprocessors vary
significantly.
Both network file servers need to be replaced, and the network software should be changed to
Window NT 4.0. Individual workstations that are not Y2K compliant should be replaced.
~i
n Recommendation: We recommend that the City Commission authorize staff to purchase the
hazdwaze, software, installation, and related expenses to bring the Public Safety and City Hall
networks up to Y2K compliance as discussed above. The funding has been identified in the mid-
yeazbudget adjustments.
3. Connectivity
One of the more complicated and difficult tasks for the City has been establishing the
connectivity between systems. For example, most of the computers need access to the City
AS400 system. This, alone, is not an easy task to accomplish. Some computers are connected
through file servers with emulation cards and software. Some computers aze connected through
phone lines and different emulation cazds and software. Some computers are not connected at
all, and sepazate workstations or terminals are purchased and installed in the offices for AS400
use (like in the City Manager's Office). The networks are on Windows 3.1, while some
computers aze on Windows 95, and others are on Windows 98.
Most of this is a result of purchasing the systems and having them installed and then maintained
by various vendors. Each computer "expert" appears to have their own way to do things, and the
result has been a conglomeration of ideas, installations, and connections that were created by a
variety of contracted "experts."
t Recommendations: The workstations, networks, and sofrivare should be designed and set up to
function with similar, if not identical, steps and processes. This should be
accomplished in conjunction with the hardware and software upgrades and
purchases discussed above.
4. Purchasing Issues
The networks have different funding sources available, and should be discussed separately from
the AS 400.
The Police Department has already identified $10,000 in grant money, towazd their needed
upgrades through a grant approved by the City Commission through the Department of
Community Affairs. The grant application for this work was approved with another $10,000
matching money from Police Contraband/Forfeiture funds. There is an additional $8,000 that
will be left over from a previous grant that can be used for this expense. The total projected price
for this work is about $28,000.
The City Clerk's Office does not have any known grant funding available. The total projected
costs for this work is about $17,500, and funding for this project has been identified in the mid-
yeazbudget adjustments.
~'
The maintenance of the system should be contracted with one (1) company, preferably the one
who sets it up. Using different companies with different staff is confusing, cumbersome, and
l inefficient. If the City could justify hiring a data processing professional to maintain these
_ systems, a staff person would be an ideal solution. However, it is not clear that this is necessary
or cost effective at this time.
The AS400 system is basically a sole source item. There is no feasible way to use competitive
bids for the HTE/IBM system. Funding for the AS 400 upgrade has been identified in the mid-
yeazbudget adjustments.
The City may keep in mind that computer processing equipment and software is not required to
go through the competitive bid process. Many of the current problems that exist in the systems
were the result of competitive bidding. The City has utilized low bidders in purchasing
equipment, which has led to a great variety in the workstations and hardware. Various computer
companies have handled connectivity and software issues, which has resulted in virtually every
computer working differently from the other computers. The staff of the computer companies
has changed so frequently that we are constantly having "new" people trying to figure out each
workstation and its related software. There is a value to obtaining quality, standazdized
equipment from a reputable company. There is also value to having reliable support and
consistency in the people programing and maintaining the systems.
Summary
All programs on the AS400 have been brought up to Y2K compliance over the past few months
with the exception of the HTE Utility Billing program and the Complaint Management System.
The Utility Billing program is being replaced with the Customer Information System,
which requires some special expertise due to the meter reading connectivity. The
Customer Information System is currently loaded, and it will be activated as soon as the
connectivity issues are resolved. As of May 14, 1999, staff believes that the connectivity
issues have been addressed. Testing is now being conducted on the CIS software.
The Complaint Management System is not an HTE program, and staff has identified an
existing HTE program, already on the system, which can be utilized to accomplish the
same goals.
The Public Safety and City Hall networks are not Y2K compliant. The file servers must
be replaced to upgrade to network software to gain Y2K compliance.
The review of the information management systems for Y2K purposes helped to expose some of
the limitations of the existing systems. As discussed in this report, there are necessary upgrades
to hardware and software that are recommended for City computer systems, even though they
aze not necessarily Y2K issues.
n Relative to timing, it is anticipated that Y2K will impact the ability of computer companies to
provide services around January 1, 2000. For this reason, making the recommended changes
before the Winter months is desirable.
Funding has been identified in the existing budget to cover the upgrades in hardware, software,
and related expenses, and staff would like to proceed with the purchases as soon as possible.
t