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87-900 WHITE - CITV CIERK PINK - FINANCE GITY OF SAINT PALTL Council 7� CANARV - DEPARTMENT File NO. �� ��r" BLUE - MAVOR Council Resolution Presented By � Referred To Committee: Date Out of Committee By Date WI�RF,AS, Dollars were designated in 1/1/1986 Fund Balance for a planned 1987 Citywide coanputer upgrade r�ecessary to keep response times at a level required to su�ort Department employees productivity, ar�d Wf�REAS, The Mayor; pursuant to Section 10.07.1 of the City Charter, does certify that there are available for appropriation revenues in eccess of those estimated in the 1987 budget; ar�d W�REAS, The Mayor recomner�ds the follawing changes to the 1987 budget: B�i.�drgett Changes B�ud�td FII�INCING PLAN 001 GII�RAI, FUI�D 9890 Fund Balance, Unreserved 109,646 +56,460 166,106 Designa� ted All Other Financing 113,614,938 0 113,614,938 ��� � 113,724,584 +56,460 113,781,044 001 GII�I3AL FU1�D Finanee & Mar�agem�ent Services 01115 Ci�ywide Ir►formation Services 01115-0857 Data Processing Hardware 532,300 +56,460 588,760 01115.A11 Other pe ing 1,050,536 0 1,050,536 All Other Fur�d Spe�l.i g 112,141,748 0 112,141,748 113,724,584 +56,460 113,781,044 1�T CHANGE +56,460 NOW Tf�'ORE BE IT RESQLVFF�, that the said Agreement is approved on behalf of the City and the proger City officers are authorized to e�cecute the same on behalf of the City, and FUR�RR RESOLVID, That the City Council a�roves these changes to the 1987 budget. Financing is Avai le� App oval Recomnended . Director of Finance Budget Di r COUNCILMEN Requested by Department of: Yeas p�eW Nays Nicosia � [n Favor � t• Finance & em�ent Services Rettman � � Scheibel Sonnen __ AgBiflst BY Tedesco Wilson Adopted by Council: Date JUN z � �7 Form Approv y City Attorney Certified Pas e ouncil cr t BY By, Approv Mavor: Date � JUN �t �7 Approved b ayor u m ion to Council . By — P�tS� J U L � 1987 Finance and Management Services DEPARTMENT �47`�QB� N� 146� . . Gregory �. Iiaupt CONTACT 298-4985 PHONE June 5, 1987 DATE 1 ��� Qr � ASSIGN NUN�ER FOR ROUTING ORDER (Clip All Locations for Signature) : i Department Director 4 Director of Management/Mayor Finance and Management Services Director 5 City Clerk for 6/16 Council Agenda 2 Budget Director � City Attorney WHAT� WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Rationale) : Upgrade of computer capacity on the central machine called "CIS." Approval of Council Reso.ietian authorizing 1987 funding for upgrade from 1986 designated fund balance. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: $406,512 over 36 months. 1987 bud et ammendment of $56,460. Benefit will be lowering of response times so as to permit greater employee productivity in computer-assisted work. FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction: $406,512 quired if under $10,000) Funding Source: �eneral Fund • q, 2yl a�av� P�� t 9 S� �u,�, �3 Do,o o� .w- � Activity Number: 0111� �j � Dp ,G� P'w.•�� �6��h� U��WI�c'�"'�, , Q ATTACHMENTS (List and Number All Attachments) : n np � �p�� o�D a� c� �� ���� 19 s7 +�� ��,� . 1) Council Resolution � n�R ������ u���� ,, � T 2) Report �(p.S'g'�� . .vL 3� �orr �S"- �!o -8�- - P2/M� C U a�c�t O� ��'�?�L DEPARTMENT REVIEW CITY ATTORNEY REVIEW x Yes No Council Resolution Required? Resolution Required? Yes No Yes x No Insurance Required? Insurance Sufficient? Yes No Yes No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 . - , ���` � o� :0-= CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM Information Services Division - 298-5892 Dated: June 5, 1987 T0: Mayor GEORGE LATIMER Council President VICTOR TEDESCO Council Member JOHN DREW Council Member CHRIS NICOSIA Council Member JANICE RETTMAN Council Member JAMES SCHEIBEL Council Member KIKI SONNEN �y Council Member BILL WILSON ` � FR: GREGORY HAUPT, Citywide Information Services Manager l��� 817 Commerce Building RE: Report and Recommendation on Upgrade to CIS Compute CC: Gregory Blees Jim Conklin John Connelly Ron Kline Gary Norstrem Betty Offermann Gene Schiller Lee Ann Turchin . CIS Files Budget:1987 General Fund CIS files Operations:Capacity Planning CWDP Route Copy Haupt desk copy This memorandum presents a report and final recommendation on the planned 1987 upgrading of one of the two central computers owned by the City. This upgrading will hopefully provide necessary departmental automation computer capacity through 1988, at which time we will have our master planning process in place to set further development direction. SUMMARY/ACTION REQUEST The action requested is approval of a resolution transferring $56,460 from 1986 designated fund balance for 1987 computer upgrade to activity 01115 (Citywide Information Services). The transfer will apply to 1987 payments on a three-year loan. Action must be taken with PRIME computer by June 26 in order to capture the economic savings outlined below ($117,000 difference). The matter was reviewed and recommended April 21 by the interdepartmental Information Systems Policy Advisory Group (ISPAG) and is scheduled for the City Council meeting of June 16. . ���_ �� o Page 2 of 2 PROPOSAL We are proposing trade-in of the current PRIME machine called "CIS", a 9955-II, for a 6350. The 6350 would be purchased with a loan arranged by the Treasury Division and repaid over three years. PRIME Computer will not be involved in the financing arrangement as Treasury can obtain more favorable rates. BACKGROUND The major applications which currently run on the CIS machine are: - Police - Fi re - Valuations and Assessments - Licensing - Alarm Permits - Certificate of Occupancy - Inspection Monitoring - Garage Billing - Public Works - Health - Payroll/Personnel - Workers' Compensation - Budget applications - Electronic mail It is also used by CIS staff as the machine on which requested new applications for customers are being developed (as an example, the Complaint-Handling System). The 6350 is double the capacity of the 9955-II. It is in the mainframe computer class, equivalent to models of the IBM 3090 series (130E to 150E range) , whose pricetags are more than twice the cost of the PRIME machine. The reason for the upgrade is to restore the deteriorated response time on the CIS machine. Response times have degraded due to continuing increased use of that processor in departmental work automation as the 1986/1987 CIS Division work program is implemented. The past capacity improvements on the CIS machine, the relative performance gains and date of order are shown as follows: PRIME Relative Model Performance Rating Ordered 550 II 1.0 1982 850 3.3 1983 9950 5.0 September 24, 1984 9955 8.0 December 4, 1985 9955 II 10.0 June 24, 1986 6350 20.0 Proposed June 24, 1987 . . ��'7_lo c� Page 3 of 3 ECONOMICS We've have been able to negotiate a 15% discount from after trade-in list price on this machine, if the order is place by June 26 (end of PRIME's quarter). This pricing was approved by PRIME's Vice President for Western Region Sales on June 4. We met in face-to-face negotiations after several weeks of interaction with PRIME that concluded with his involvement. In addition, PRIME's trade-in depreciation schedule on the machines changes for us (annual threshold) on June 26. The trade-in credit on the 9955-II now is $248,050. On June 27, the depreciation credit is $186,000. The list price of the system is $673,950. The trade-in credit of $248,050 reduces that to $425,900. The discount further reduces the price to $362,015, which is 54% of list price and more than offsets the cost of borrowing. Annual payments on the 6350 are estimated as follows (estimated using 7.5% interest rate; exact rate depends on the market on date of placement) : Year Principal* Interest* Total 1987 $ 50,420 $ 6,040 $ 56,460 1988 121,008 14,496 135,504 1989 121,008 14,496 135,504 1990 70,588 8,456 79,044 Totals $363,024 $ 43,488 $406,512 (*rounded figure) Finally, the most important economics of all are those related to employee productivity. I believe that current poor response due to overload on the CIS machine is costing the City as much as $5,000 per week in lost employee productivity during some work weeks. Response time on the computer, during payroll weeks especially, has been more than double what it ought to be. This trend will continue as departmental automated applications in progress go into production. We cannot forestall adding necessary production capacity during the current planning transition period. Attached for additional information is my report of May 26 to Mr. Schiller on the same topic but dealing with preliminary figures. I will be pleased to discuss this matter with you at any time. attch: 1) Council Resolution 2) Haupt to Schiller 5/26 Re: PRIME Capacity Planning 1987/88 • � couwcu aeort�e »e� eunset � �(�-'�'7-�f'6� AtiALYS1S OF UUBb FUMD BNLANLE F�1 TiE 6ENERAL FUND IFINl6 EQUtTY) 111/86 less Av�il�6le for iwd Couitted Financing the RESERVEO Balince Use 1981 Budget Encu�bnacec 1,850,697 1,850,697 I�prest and Change Funds 57,540 57,540 IMr�nces to Other Funds 5�069,067 5,069�067 Inventory - Materi�l and Supplies 712,248 1t2,298 ---------- --------- ------°-- TOTAL RESERVED 7,689,652 7,689,652 � =__�:_�::: :.:_�:'=: ==�.=�___ UNRESERVED __________ 8eference Design�ted for: ----'---' 1986 financing Plan: Adopted Budqet 1�037�525 1�037,525 Cuh FIoM i Revenue Security !S1 l+1 5,501,000 5,504,000 Coun�il Rctions Anticipated in 19Bb Incre�se Cash FIoM L Revenue Securit� lf*1 t,321�000 116,000 Lo�p�r�ble Morth Adj.: All Ueits (1985 k 19861 1,300,000 Co�piri6le North Adj.: Clerical i TecAnic�l 0 1,/25,000 f�ir L��or Standuds Overti�e CF1 86-xxx 1,OOA,000 350,000 ;ncrease C.I.S. �P hud�are CFi 86-744 ��73i000 271,000 C.I.S. Uninterroptible porer source AO i D-8031 70l000 Oept. Trsfr. Personnel Recl�ssific�tion study CFI Bb-Kx� 40,000 40,000 Budget Sivingz incentive proqn� CFt 86-192 529,51/ �,100 MEE� Training 6rint ior a4fir�. flction CFI A6-:xt 20,130 20,{30 Utility Rate Heariegs CFf 86-zxz 100,000 4 Huun Rights Oirector attorney fees 15,000 1#+i1 Co�puter M�pping: CityMide; City Council CF/Bb-xxx I8,000 /8,000 Une�ploy�ent Cap. for 1486 Cuts Y00,000 0 Norkers Ca�p. Co�puterization - City Rtt. CFi 86-zxY 25,000 25,000 Fire Ueput�ent re�odeling �ove CFt B6-xxx 50�000 0 CH L CH 14Eb budget Y 1985 bills Cft 8b-ixs 18,550 60,000 Ret�ined fw Future Lia6ilities k Other Uses Ch�rter Coe�ission revenues 11,818 ]1,818 Tort Liability future li�bilities 600�000 100,000 E�ployee Insurince 360�000 116,000 Yorkers Co�pensation lia6ility 350�000 175,000 Balance Aviilahle for 1986 Budget Finmcing - - - - 3,602,664 -------- -------- -------- iot�l Unreserved, Oesign�ted 53,029,837 9,�27,t73 3,b02,661 Undesign�teC: Fund 8al�oce Use in 1986 Budget R�end�ents: 2,517,5T2 1496 Budget hdj.: 6RS revenue lass CFt Ab-823 0 170,213 Increace P�rk Ranger Progr�� CFt 86-83R 0 W,52/ Pending Use of Fund Bal�nce for A�end�ents: �udgeoents - Matergate M�rin� Settle�ent 0 325,000 Purchasing Costs: 1485 li�bilities L 1986 Set Aside 0 83,000 Court Nouse Elevitor 6enerator Advmce 0 667,000 Fire Oepart�ent Study 0 200�000 C.I.S. Co�puter Roo� Oesign 0 70,000 Restore PT of 1986 6�s Cut , 0 15,000 Une�ploy�e�t costs overcut 0 25�000 PERAlFICA lFlSA, C111 0 101,132 Building Tr�des Fringes 0 90,000 Y�tergite M�rin� Oper�tinq �dvince a ����� Acade�y of St�te L Local 6ov't. lNlC1 0 10�000 Police Feder�tion: �rug Suit Settle�ent 0 Ib,000 6. 0. Bonding Study: City Share 0 15,000 1987 Pri�e Co�puter Upgr�de 0 100,000 H.1.0. Deficit 0 76,000 Personnel Office re�odelling 0 0 Police -Vice Unit Expansion 0 76,000 Couocil Consideration lAttorneys, Council Reseirch, Couunity Rel�tions, Puk Enterprisesl 0 149,700 B�l�nce Ar�ilable for 19W Budyet Fiamc[nq - - - - 1244,247) Tot�l Unreserved, Undesigntted 2�511�572 2�761�869 I24/,2911 TOiAI UNRESERVE�: OESifiNATE� k UNDES(6qAiE0 15�5/7�409 12,189,042 3,358,367 :::...:..::::..:::::s:�:�:_ .:�::__=� :�:_:�==:_ =:::=:=_:: TOiAI FUND BALANCE IRESERVE� � UNRESERVE01 23,2S7�Od1 19�878,69/ 5�358,i6T ooecv"eoaznvo=vvoevness"sen''zavs'aavza umassrs saa'z'saae ssaszn:ssx . . . . (�1 Oesign�:ed for i�prove�mt to the C�sh Fla i protettion for Revenue lotsec in IWopted Budgetc d' (t+i Incrc�se to I.BI of fI13,520,000. � l*f+! Tr�esfer Peading fro�Contiaqent Reserve (BM 126 6NFNOBAL i. CRAN 9/30186 Council Adopted . '. �fi"F7 Qo� .�.. :� � CITY OF SAINT PAUL Info�mat4onA�ervi ces� Di vi^s�i onN� Z�-5892 Dated: May 26, 1987 T0: GENE SCHILLER, Director of Finance and Management Services �� V FR: GREGORY HAUPT, Citywide Information Services Manager 'i N Third Floor, 100 East lOth Street 7 RE: PRIME Capacity Planning - 1987/1988 � CC: Gregory Blees Jim Conklin ' John Connelly Ron Kline Jim Snyder Shirley Truax Lee Ann Turchin ISPAG Members CIS Files Budget:1988 Ge�eral Fund CIS Files Budget:1987 General Fund v8'IS Files Operations:Capacity Planning On May 1, you, Greg Blees, Ron Kline and I discussed the 1987 and 1988 capacity planning needs necessary to keep the PRIMEs within an acceptable productivity range (generally 2 - 4 second response time) for City department processing. At that meeting, I was asked to develop an alternative lease/purchase plan desig�ed to minimize annual cost impact while making needed capacity available. Also, since that meeting, we have received the Fitzgerald and Long (third party) software design audit report on FM80. This memo puts forward a capacity planning proposal for 1987 - 1988 that takes into account three factors: 1. Fitzgerald and Long report; 2. 1988 CIS staff work program projections as affected by what we perceive to be elected official direction regarding computer expenditures; 3. the consultant-assisted Information Systems Master Planning effort. ��� I �� �7-�l o� • Page 2 of 4 ' 1. FITZGERALD & LONG Fitzgerald and Long technically audited FM80 software design in late April . FM80 is a large system, so they did an audit sample. Their analysis and recommendations, dated April 30, provide valuable guidance to us regarding where and how to improve the performance of FM80. Price Waterhouse, while not initially supportive of having a third-party audit, concurred in the usefulness of the assessment for the target machinery (PRIME) after reading same. With respect to camputer capacity, Fitzgerald and Long's message is to expend res�urces on re-doing FM80 code and file structures rather than on a FIN comp�ter upgrade at this time. is is good news in that it appears that we can forego upgrading the FIN machine during 1987; however, it means that we have to invest in re-programming the code furnished by Price. Based on the Fitzgerald and Long report, I am also hopeful that we will not need to upgrade the FIN machine during 1988, assuming additional contract reprogramming resources (roughly estimated at an additional $50,000 based upon Fitzgerald and Long's assessment of the amount of work) are provided. If timely reprogramming is not undertaken, a mid-1988 equipment upgrade will in all likelihood be necessary. While Price Waterhouse has been trying to improve perfarmance on the FIN PRIME, the software was originally written for a different computer (MicroData). So, we have a functioning finance system, but one which is not as efficient as it can be. Our goal needs to be to improve terminal response, balancing, posting and reporting if customer agencies are to have the financial data they need for more timely management decisisions. 2. :988 CIS STAFF WORK PROGRAM PROJECTIONS In our meetings on developing a 1988 budget, our assessment has been that City Council has concerns about the direction systems development is taking citywide. Council has not expressed this concern in explicit policy terms, but that is definitely the "signal " I read based upon their discussion of past upgrades and of the Computer Center. During most of 1988, CIS plans to devote its efforts to finishing and polishing the systems we now have underway. Those are listed in the 1988 CIS budget submittal. This is a significant workload. Not undertaking new system work will permit us to assign appropriate senior staff (EDP Systems Analysts) during 1988 to follow-up on the consultant-assisted Information Systems Master Plan effort. The plan and on-going annual process hopefully will be formulated by the end of 1987. Formal presentation of it and debate and decisions will then need to occur in early 1988 to tie into the 1989 budget process. ' � . �� � ����--�� ' Page 3 of 4 Quring this transition period, the impact on capacity planning is that the necessary upgrade this year to the CIS machine hopefully will be adequate on that central processing unit (CPU) through 1988. {PLEASE NOTE: Adequate CIS machine capacity through 1988, with the recommended upgrade, assumes that ap lications develo ment b other users of the machine, es ecially the Police Department s Systems Unit, a so is significantly s owed, something over w ic I have no direct contro . It a so assumes that departmental managers and staff will not take full advantage of the relatively easy ad-hoc reporting capabilities of INFORMATION, either on CIS or FIN. Since I do not have direct control over these uses, I can only request cooperation from the user departments. I will initiate discussion with and solicit support from ISPAG for keeping ad-hoc reporting within the bounds of machine resources available. 3. CONSULTANT-ASSISTED INFORMATION SYSTEMS MASTER PLAN Obviously, we cannot wait until the Information Systems Master Plan (ISMP) is complete to upgrade the CIS machine and meet response time needs for user departments. Current non-finance systems are on the CIS PRIME. Those systems serve the non-finance business of City government by providing to City staff inembers automated processing of large-volume work. I have shared with you before (and include again as an attachment) the analysis which describes the loss in City employee productivity which accompanies even relatively small worsening of computer resp�nse time. It is important, and it is a sound business decision, to invest in enough PRIME computer horsepower in 1987/88 to keep department = employee productivity levels reasonable during the planning transition period. While the audit and lan ma impact our mainframe/microcom uter mix citywide, any new direct�on will take severa years to implement pro er y and thorough In t e meantime, we need to run t e �t s usiness on PRIME computers of adequate size if we are to keep City sta productive �n t eir PRIME-based automated work. SUMMARY/RECOMMENDATIONS 1) Do not upgrade the FIN machine in 1987 or, hopefully, in 1988 - rather, improve Price Waterhouse's software for optimal performance on PRIME. Budget $50,000 in 1988 (and possibly 1989) for third-party contractual assistance to optimize in a timely fashion. 2) Upgrade the CIS machine to a PRIME 6350 in 1981. 3) Book the order before June 30, 1987 in order to take advantage of PRIME's depreciation schedule on the CIS 9955-II, saving $53,000 because of PRIME's depreciation schedule on trading in used machines. .. ". ��>_�/e� . Page 4 of 4 ' 4) Take delivery on the 6350 in late August during completi�on of the new computer center to facilitate smooth switch-over to the new site (move only one of the current PRIMEs, having the new machine in place "hot" for taking on the load). 5) Lease/purchase the 6350 over three years to smooth the impact on the budget (a cash-flow scenario is attached). This plan will put the necessary "punch" in the CIS machine's support to City staff in 1987 and 1988. The upgrade could carry us into 1989 as well , under my assumption of slowed development of new systems while we replan and program our citywide approach. Please advise. attchs: l. Lost-time Analysis as Response Times Degrade 2. Upg�ade Cash-flow Scenario r ' �, - , ��,--�a� � LOST-TIME ANALYSIS As Computer Response Time Worsens CIS:gjh:05/11/87 09:11:54 Analysis of the impact of poor computer responsiveness supports a timely decision: 1. Fact: Between the two computers, we have the equivalent of about 60 employees working 8 hours per day at terminals for 200 work days per year. (I acknowledge that it is not the same 60 bodies hour after hour, but it is FTE to 60 ). 2. Assumption: Those 60 FTEs are doing something worthwhile and produ�tive an the computer. 3. Fact: Hourly wages for those employees average about $12 or more (that is $25,Q00 per year, a conservative estimate). 4. Fact: If response time increases 12.5X, that adds the equivalent of one hour to the time those 60 employees need to get their work at the terminal done ( 9 hours divided by 8 hours = 12.5�). 5. Fact: 60 employees x 1 hour per employee x $12 x 200 days per year = $144,000 in lost employee time given a 12.5� increase in response time. 6. Fact: An increase in response time from 3 seconds to 4 seconds is 33%; from 4 seconds to 5 seconds is 25%; from 5 seconds to 6 seconds is 20�. Conclusion: The City should address response time on the PRIMEs earlier in 1987 rather than later. ,,�.,�.�..�-i��«��-�.�.�.s..„��.� _ _ ,�,� .. . . - . .-. v . , •N , � N 3 C � � Q a � � N � a o� � - a � N v W N Q S C.1 � � O O C Q d O O L u a �a M .°� E W C Z .J � . _ _ _ LA _ _ ___ 41 \, _ , _ , r+ . W ;o .� t.i L � J 2 y,� � � Z O O t N Z F- � � � � a z .� � n _ ,� r. � Q� � N O = F �- W V N +i N „ t� a+ = O O C C � N � � � W 0� .. 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