96-828"`�i��i��i�� A����o�b-�'
�"! v � � Council File #
Green Sheet #
RESOLUTION
/yJ J �� CITY OF SAINT PAUL, MINNESOTA
Presented By:
Referred To:
�l�o � �i��.�
J � a .7�+
a�
Committee: Date
Whereas, the City's prese�rt mix of PCS represents a rznge of tlifferent machines, running tliffereM ve'sions of soRware applieations and with d'rffereirt levels of
computing power,
Whereas, the machines tlo not have the capacity to satisfactority handie certain citywide applicaGOns, such as electronic mail antl some specializetl applications,
which hurts staft protluctivity by making itEifficutt orimpossibleto communiwte or share information among staftand wifhin and across tleparhne�rt.s;
Whereas, the City experiences many technical prohlems wifh tM1ese machines, which are no longer covemd by wamMy antl resuk in high maiMenance cosffi and
tlisruption of work;
Whereas, disposal costs forthe old equipment are increasing;
Whereas, the diversity and age of the citywide PC base makes k increasingly tlifficult for information technology stafFto supportthis'mirzed system`
environment, puking additional pressure on aur already scarce technical staff support resources;
Whereas, Ne City lacks a clearly tleTinetl strategy in place for replacing microcomputer equipmenR making i[ difficult W plan antl budgM for technology-based
service improvements, yM PCs are a standartl, integral paR of supporting our intemal operetions and Me delivery of services W extemal customers and upkeep
of ourtechnology infrastructure is essential;
Whereas, by implementing a plan fot regular acquisition, repiacement and disposal of PCS, the City will achieve more stable, consistent butlgeting for
microcomputer equipment in the future;
Whereas, use of an outside lessor for providing PCS to the City will allow the City to capitalize on lessor-provided services such as maintaining a tlatabase of all
of the equipment and associated maintenance for us, simplifying this aspect of PC atlministation antl will eliminate the wsts associatetl with tlisposing of the
equipment;
Whereas, by implementing a plan for regular acquisition, replacemeM and disposal of PCS, the City will be able to maiMain a more uniTOrm base of suitably
powertul technology without substantially increasing our costs;
Whereas, the Mayor, pursuant to Section 10.07.1 antl 10.07.04 of the City ChaRey recommentls the following changes to the �996 Atloptetl Butlget
for the City of Saint Paul:
CURRENTBUDGET CHANGES AMENDEDBUDGET
t1. .a-_� r.. .u., .
GENERAL FUNO (Transfer)
TRANSFERFROM:
Generel Government Accounts
Generai Contingent Reserve
001-09060-0548 Contingency
ToGI Transfer From
TRANSFERTO:
Generel Government Accounts
001-09066-0856 PC Replatement Program, Computer Soitware
ToG4 T2nsfer To
Generol Fund NM Change Because of Trznsfer
700,000
900,OU0
60,000
100,000
_i. • 91\ e�l Iv : . S. S e ILY . I r.1�=
GENERAL FUND (Amentlment)
FINANCMG
General Govemment Accounts
007-09066-7399 PC Replacement Program, Inter Fund Tronsferto GF}
001-09066-7499 PC Replacement Progrem, Intre Fund Trensfer to GF}
Yotal Fund Change
SPENDING:
Genen9 Government Accounfs
007-09066-0856 PC R¢plaeement Program, Equipment ReMal
007-09066-0856 PC Replacement Program, Computer Software
0
?1
0
Page 1 of 2
zzo,000
zzo,oao
200,000
20,000
220,000
zzo,000
220,000
ToWI Puntl Change
Grand Total Funtl Change
160,000 (100,000)
(100,000)
220,000
200,000
20,000
220,000
��� � i
_fEt. C����.�
Presented By:
Refened To:
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Green Sheet #
Committee: Date
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72
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74
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Then, therefore be it resolved the City will accelerdte replacemerrt of the old micracomputers tluring tha balance of 7996, so Mffi by the end of the year, there will
be a relativety uniform base of microcomputers which meets tlesired minimum techniwl stantlartls;
Be it resolved that once this upgrade is completetl, the CHy will implement a regularthreeryear replacemeMSChetlule;
Be it resolvetl that the City will implement the replacement strategy Nrough the use of an operating lease which will provitle the financing for the PC
acquisition, which will allowthe City to take ativantage of changes in PC technology, price reductions antl othertrentls in the PC marketplace;
Be it inally resolved, that the City Council approves these changes to the 1996 butlget
Be it finally resolved t
is a purchasing decision
how the city provides in
structure for future yea
bv the Citv Council.
Page 2 of 2
ning the organizational structure
the financine mechanism and budee
Requested by Department of:
. . E��,� '
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Approval Recommended by Budget Director.
Adopted by Council: Date � 3� �.�� ,
Adoption CeRifed by Council Secretary:
�y:
Approved by Mayor: Date p '( �
By: �t- (� ��
Council File # �
BY: �as� Y�'` �3"'y
Form Approved by City omey:
sY: � X�- � �( � � � �, �
Approved by Mayor for Submi;gion ?o Council:
By:
_�
SaiMPauiBUdgetOfice( Mine H'\USERS�BUDGETDEPTSIFINANCEU23WCREPRES.WK4 W14198)
nFanrtrn�txrro�c�cout+ca DA'IEQJIMIFD �( �,�'1�
.o
FinanceandManagement5ervices/BudgetOffice 06✓78/96 GREEN SHEET NO. 35862
CONTaCTPER50NffiPNONE ' ' lO DEPARThffNfDIRE(,10R ' SO C[IYCOUNCd
CindyMUlian(2665538) RonKlineQ66S548) �� � crtvnTTOnt� O cmcc�c
MOSfHEONCOUNCILAGII9ABY(DA'f£) p �p 2O B[IIXiElDQtEC10R O FAI.&MGI.SFBV[CRDIR
)une26,i996 O nfnvox(oa.nssisrnNl) Oi Finance-ACCOU`rting
TOTAL # OF SIGNATURE PAGES I (CLIP ALL LOCATIONS FOR SIGNATURE)
Cf10NREQUESIID
Approva� of: 7) the concept of a managed personal computer (pc) replacement program, and, 2) a budget hansfer / amendment for 1996
establishing spending and financing authority to allow for the purchase of sokware, and for the leasing and installation of 7996's allotrnent of pc's.
l�cohu�maunnons: np�ow <n7 orx�apq PERSONAL SERVICE CONTRACIS MUSf ANSR'ER THE FOLLOWAG QIIFSfIONS:
eurmwccoe.uussioN crv¢.smv�cECOnnwsstox 1.Huth;spersoWfumevnwadcedmdttacom�actforUtisdepaxm�em?
cm cotwur� YES NO
SfAFF 2. Has Utis pecson/firm ever been a city employce?
o��treit YES NO
sweox'rs wlucx co[mca oelECmE? 3. Dces tltis persoNfiim possess a sldll not nomtally possessed by any cn�rent city employeel
YES NO
(Ezplain aIl yes answeis an aeparate sheet aud attach to grcen shcet)
Alf[IATfNG PAOBLEM, ISSUE, OPPORTUNRV �Mo, What, Whcn, Where, Why)
The city has an aging pc inventory comprised of a variety of machines of different makes, models, condition and power levels. The age and diversity
of the pc's, coupled with a lapse of warranties, is creating a servite demand cost that is rapidly becoming uneconomical relative to the value of the
machines, and is limiting the transfer of employee skills from station m station. In addition, there is very little ciry wide coordination and planning for
the replacement of pc's, leading to surplus disposal problems, unreasonable replacement decisions, fragmented lowvolume purchases, and poor
budgeting practices.
ADVANTAGES&APPROVSD:
All city pc users, who depend on a low end pc as a primary work tool, will move up to a suitable machine. The Ciry will move closer to a consistent
pc platform in place across all departments. Many aged pc's will be removed from service, eliminating a high demand for maintenance sWff resources.
We will be able to lease machines at a time when they have a short working life and quickly become obsolete, rather than buy and own them.
The program will also establish a more consistent mechanism for planning, budgeting, and purchasing the city wide pc inventory. Better decisions
about the employment of pc's can be made on a ciry wide basis, evening the field for department haves and have nots.
D6ADVANCAGFS Q�' APPROVED.
The City will have an investment cost in replacing machines now that might not have been replaced for 1 or 2 more years.
� °�.� L�a�s
DISADVANiAa66Q�N0'[APPROVP,D ��� � � @��n
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There will be opportunity losses associated with the advantages cited above.
Continuation of: significant investment in maintaining aging machines, and the inefficiencies related to few generalist staff trying to service a range
of diverse machines.
The Ciry will fall further behind in its ability to use technology successfully to deliver services to the citizens of Saint Paul.
iOSALAMOUNiOFi1tAMSACCION $100,000transfer, $220,OOOamendment cosrmeverroeauncereo�cua.eoive> ves No
rov�mmcsourzce acrm�rrnunmex general fund (09066)
tINANQAL INFORMATION: (ExRLAA�
This action may trigger other intra department transfers in order to provide for the $500 -$685 per pc department share of the cost. The second year
payment of this leue has been considered as part of the initial 1997 budget projections and included in the 1997 fu�ly tinanced and balanced base
budget.
H:\USER9BUDGETDEPTSiINANCEV 23�PCREP GS
t� � •
Interdepartmental Memorandum
CITY OF SAINT PAUL
To: Council Members
From: Martha Larson
Joe Reid
Cindy Mullan
Re: New Microcomputer Replacement Strategy
Date: May 13, 1996
This is to provide you with an overview of a new citywide microcomputer (PC)
replacement strategy that we hope to begin implementing within the next few months. if
this approach is successfui, we believe it wili pave the way for other technology
acquisition and replacement efforts that will be required in the future.
Background
At present, there are approximately 1,000 DOS-compatible microcomputers in place in
the various departments. Approximately one third of these are oid and outdated
machines. Continued use of these machines:
Limits Productivitv
• The machines do not have the capacity to satisfactorily handie certain citywide
appiications, such as electronic maii and some specialized applications. This
hurts our productivity by making it difficult or impossible to communicate or
share information among staff and within and across departments.
Raises Maintenance Costs
• We experience large numbers of technicai problems with these machines, which
are no longer covered by warranty. This results in high maintenance costs and
disruption of work. Also, disposal costs for the old equipment are increasing.
Underutilizes Staff Time
• The diversity and age of our citywide PC base makes it increasingly difficult for
information technology staff to support this "mixed system" environment, putting
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additional pressure on our already scarce technicai staff support resources.
Postpones Improvements
• Finally, the City has no cleariy defined strategy in piace for repiacing
microcomputer equipment, making it difficult to pian and budget for technology-
based service improvements. PCs are a standard, integral part of supporting
our internal operations and the delivery of services to externai customers.
Upkeep of our technology infrastructure is essent+al.
Overview of Plan
Our proposed strategy is to accelerate replacement of the oid microcomputers during
the balance of 1996, so that by the end of the year, there wiil be a relatively uniform
base of microcomputers which meets desired minimum technical standards (as defined
by a Citywide team of IT staff). This will ailow:
• More rapid depioyment of the priority software applications
• Substantiaily reduced maintenance costs
• More technicai staff time spent on high-priority, value-added activities
Once this upgrade is completed, we intend to implement a regular three-year
replacement schedule. Because of the accelerated upgrade of PCs during 1996, we
should not need to purchase many replacement PCs in 1997. The first significant
recurring PC repiacement activity (foliowing this one-time upgrade) will likely begin in
1998.
Please note this is a replacement strategy for existing outdated PCs. We wiil be
disposing of the old machines (keeping a very few on hand centrally for parts, etc.). if
we do not dispose of those machines, we don't achieve the labor savings of having a
more uniform base of adequately-powered PCs in place in all departments nor do we
increase the ability for employees to efficiently communicate and share data across
departmental lines. This is also not an acquisition strategy to increase the existing PC
inventory in any individual department. Departments wishing to add PCs for staff who
do not currently have them will budget for those acquisitions as they have in the past.
Financing of the Equipment
During the past six months we have expiored a number of options for financing
computer technology inciuding tax-exempt lease/purchase financing, operating leases,
capital notes, and an interfund loan. As part of that research process, the Purchasing
Office issued an RFP requesting proposals for creative financing options. After careful
review of ail of the responses and other information, we believe our best strategy wili
be to impiement the proposal for an operating lease offered by a local firm, Winthrop
Resources.
Under this proposed operating lease, Winthrop wouid provide the financing for the PC
acquisition, and the City would pay a monthly lease payment to Winthrop. The City
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wou�d have the option, but would not be obligated, to purchase the equipment at the
end of the three-year lease period. Winthrop would own the equipment during the
lease term and would be responsibie for disposing of the equipment at the end. This
financing mechanism is desirable since it is our intention to replace a portion of our PC
base every three years and the resale value of computer equipment is dropping rapidly.
In fact, by not °owning" those PCs, the City can more easily take advantage of changes
in PC technology, price reductions and other trends in the PC marketplace. The
private sector is shifting to this strategy as a way to manage its investment in and
administration of a wide array of computer technology, from PCs to larger information
systems.
The key advantages of shifting to this approach are:
• We will achieve more stable, consistent budgeting for microcomputer
equipment in the future;
• Winthrop Resources will maintain a database of ail of the equipment and
associated maintenance for us, simplifying this aspect of PC administration;
• We will be abie to maintain a more uniform base of suitably powerful technology
without substantialiy increasing our costs;
• We wiii eliminate the costs associated with disposing of the equipment;
• We will have the option to purchase the equipment if we desire to do so.
We pian to create a centrai Computer Equipment Replacement budget from which all of
the lease payments will be made. The start date for the lease agreement will likely be
around July 1, so it will be necessary to budget for some lease payments in 1996. Our
plan is to finance these 1996 lease payments through a combination of the
departments' existing IT budgets and from the General Fund contingency. Once the
details are finalized, we will bring forward to the Council for its approvai the proposed
budget amendment to reflect this transaction.
We expect each department to contribute a small sum, proportionai to the number of
PCS they acquire in 1996 toward the 1996 lease payment. This sum wili be less than
$500 per PC received--far less than the cost of purchasing a PC outright.
Each City department will control the ailocation of replacement and existing PC
equipment within the department. (See Attachment 1 for the proposed listing of PCs
to be replaced in each department.) Last year, an interdepartmental IT team
established the Citywide microcomputer specifications (exclusive of Macintoshes)
reflected in our existing vendor contracts. This group has been working closely with
Purchasing staff to update these specifications for use in selecting the machines to be
acquired through this replacement strategy.
The interdepartmental IT staff group will also be involved in working with CIS staff to
create the "roil ouY' plan for installing the new PCS in each department. We expect that
our financing may also cover some contract assistance to help with installation of this
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large number of PCS. However, we wiil also look at ways to increase the capability of
IT staff outside of CIS to assist with this instailation. This may be an opportunity to
improve Citywide IT cross-training and facilitate timely installations through a
cooperative Cifywide IT effort. We have had discussion with Department and Office
Directors and staff on this project and will work closely with them as it moves forward.
In summary, we believe this is a solid approach that wili help the City to address some
of the issues identified in the ITLP Report of December 1995. Not only will it allow us
to move forward more rapidly with a wide range of service improvements, it will also
aliow us to make more effective use of the limited staff resources that we already have.
And, just as important, it wili allow us to gain some experience with a new method of
financing information technology. If successful, we may be able to expand this idea to
other kinds of computers and capital equipment such as vehicles.
We wiil be contacting you individually to answer any questions and discuss this plan in
more detail as needed.
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DEPARTMENT OF FINANCE AND
MANAGEMENT SERVICES
Martlw C. Larsoq Ovector
CITY OF SA1NT PAUL
Nom+ Colonai, Mayor
To: Department and Of6ce Directors
From: Martha Larson �
Joe Reid �e---
Cindy Mullan C�'�`'
Re:
Date:
PC Replacement Initiative
Friday, June 14, 1996
290 Ciry Haf!
IS W. KeAogg Boulevmd
Saini Pau1, M'mnesota SSIO2
� V ��
Telephone 672-266�8797
Faccmile 6I2•266.8919
This memo is to address certain questions that have arisen related to the PC
replacement initiative tbat we described to you in a memo dated May 13, 1996. To
recap a key point &om the earlier memo, the intent of this initiative is to bring all City
users up to a consistent standard for PC platforms across all departments. In 1996, we
plan to replace all PCs at the level of 386 machines and below and begin to provide for
common PC software applications across the City. The replacement program will help
us improve productivity and reduce technical support requirements. The program will
also establish a more consistent mechanism for planning, budgeting and purchasing for
tbe Citywide PC inventory.
1. Can the leasing arrangement be used by departments to acquire more PCs - not just
replace existing PCs?
No, not in 1996. The PC replacement plan is a multi year initiative. We plan to similarly
finance an additionai number of new PCs, as well as replace some lower-powered 486s,
in 1997 (see Question #3 below), and continue replacing older equipment over the next
several yeazs. Because this leasing approach is new for the City, and because we want to
conservatively manage the level of debt we are incurring, we will be limiting use of the
leasing arrangement in 1996 to only the replacement PCs noted on the attachment to the
May 13 memo. We are aware of the operational and support problems that exist
because some City staff still use terminals, rather than PCs, and want to assure you that
those locations will be given priority in the next round of PC leasing.
Those departments who have included eacpendihues for more PCs in their 1996 adopted
budgets have the option of either going ahead with that outright purchase in 1996, or
waiting to incorporate those additions for consideration into the 1997 financed lease. If
the department d'uector chooses to go ahead with a purchase in 1996, these new 1996
�2� -g 2b
4. What kind of PC wil! we get with the 1996 replacements?
Two contracts for PCs were established last fall: one for Compaq equipment, and one for
Dell equipment. An interdepartmental team of technical staff developed the technical
specifications and selected these vendors. The contracts inciude three options: an entry
level, a power user level and a developer-level machine. Based on comments from the
departments and cunent pricing, we plan to use the Deil contract for the 1996 PC
replacement purchases. (The Purchasing Office will rebid these contracts later in 1996,
to ensure the City has access to tbe most current technology and pricing when planning
for the 1997 PC purchases. Department technical staff will continue to provide input on
the specifications.)
Department technical staff have recently been provided with updated copies of the
specifications and pricing for the Dell equipment, together with the proposed number of
PCs to be replaced for their department in 1996. For your information, attached to this
memo are the number of replacement PCs, by level, requested by your department for
1996, and the related contribution you will need to make for these 1996 replacements.
You will note that if your department has requested PCs at the power user and
developer level, the required coniribution reflects the higher purchase price for those
machines.
5. What is the status of implementing the PC replacement initiative for 1996?
As noted in #4, department technical staff have confirmed the final numbers and
specifications for PCs to be replaced in their departments in 1996. The Budget Office
and Purchasing staff aze reviewing these numbers and working with Dell representatives
to finalize the total cost to the City for these replacement PCs. This information will be
provided to Winthrop, wbo is providing our lease financing. Our intent is to keep the
level of financing at about $1 million in 1996. Working with this target financing
amount, there will be excess financing over the amount required to purchase tbe PCs.
This will be used for contract assistance in installing the PCs. We will also make
provision for the purchase of additional software, such as WordPerfect and Windows 95,
to further improve the consistency of the PC platforms across all departments. All of
this information will be incorporated into a budget amendment, which we plan to take to
the Council this month. The actual installation of the new PCs will be worked out on a
department-by-department basis, based on the departmenYs needs and the availability of
technical support. We plan to make this major instailation effort a project that uses TT
staff from across the City, to enhance the timeliness of installation and to provide better
cross-training in thi� important technical support skill.
6. Will we be able to keep any of the old equipment and use it in locations not currently
served by PCs?
No. All e�cisting 286 and 386 PCs scheduled for replacement will be removed and
disposed of as surplus when the new PCs are instailed. Surplus revenues, if any, will be
at�-g2�
1997 Department PC Information Sheet
Date:
Instructions: Please provide recommendations on the PC s you would like to have included as
part of the pianning for the 1997 replacement and acquisition schedule. In 1997, priority will be
given to re�lacement of verv old or �oorlv performin{� 4861eve1 machines. and those loctions
currentiv served bv dumb terminals or no machines at all. Please include the name of a contact
person who can answer questions in case further ciarificarion is needed. Please return form to
Linda Cam�n room 280 Citv Hall by June 26, 1996.
Department or Office: Contact Person:
I. 486 Level Machines
Number of machines recommended for replacement:
Please attach a list of the equipment, including description and condition (size of monitor, hazd
drive, etc.)
Location(s) of machines
Recommended replacement equipment :
Entry level Pentium machines
Power user level Pentium machines
_ Developer level Pentium machines
(Please use specifications included in the Master Contract with Dell as a planning guide.
Contract will be rebid during the third quarter of 1996 for 1997 purchases.)
IL Terminat Replacement
Number of temunals to be replaced with PC s:
Please attach a list of the equipment currently in place with description and condition.
Recommended replacement equipment:
Entry level Pentium machines
Power user level Pentium machines
_ Developer level Pentium machines
DEPARTMENT OF FINANCE AND
MANAGEMENT SERVICES
CTTY OF SAINT PAUL
Norm Co7emvq Ma}m
To:
From:
Date:
Councilmember Mike Harris
Martha Larson�
June 27, 1996
Martha C. lQnon, D'vector
�f�'4Z�
290 Ciry Hal! Tekphane: 612•266-8797
IS W. Kellogg Boulevmd Faaimilc 6I2-266�8979
Saint Pa+�f, M'u+nesota 55101
Re: PC Replacement Strategy
This memo is to provide you with additional information as you requested in our
conversation yesterday regarding the proposed PC replacement strategy and related
budget amendment.
You had asked for: 1) speci�ics regarding the benefits of the leasing arrangement we are
recommending, and 2) justification for the detailed technical specifications for the
various levels of PC we will be replacing the 286s and 386s with.
1. L.easing Arrangement
I have attached a memo from Linda Camp which reflecu the various proposals we
received in response to our RFP for financing the replacement of appro�timately 335 PCs
in 1996. As you can see, the proposal we received from Winthrop provides us with the
financing to acquire the PCs at the lowest monthiy cost. (The Winthrop financing is less
expensive than even our own intemal cost of borrowing.)
The structure of that Winthrop lease is an operating lease, rather than a capital lease;
this means we don't own the PCs at the end of the three year lease term. However, we
believe that with the rapid changes in technology, and the decline in PC prices, that we
aze best served by having the flexibility to lease or buy different machines when this
three year lease is done. The three year lease term ties to our three year replacement
schedule; no matter how we finance tbe 1996 replacements, it is our intent to replace
those 1996 machines in 1999.
Linda Camp's memo also highlighu some of the additional benefits we receive through
the Winthrop lease.
q(� �� 26
2. PC Technical Specifications
The detailed specifications for the PCs were defined by an interdepartmental team of
information technology support staff. In identifying the requirements for each
departments' replacements, each department determined the level of PC that best met
theu operating needs. Most departmenu requested the basic level PC for their
employees; we believe theu choices reflect conservative estimates of tbe level of
computing power and ancillary features that their users need.
The key poinu about the technical specifications are:
• Three levels of PC were defined ( a basic user configuration, and configurations
for "power" and "developer-level" users)
• Windows will be standard on all City IBM-compatible machines; to run Windows
(any version), users need at a minimum a 486 PC
• Most of the specifications we have defined for all three levels of PCs are
standard, in today's market
• The levels of PCs are distinguished primarily by increasing amounts of inemory
and storage capability; basic users essentially run applications off their local area
networks, such as Windows, WordPerfect, Lotus or GroupWise, while power- and
developer-level users run addirional applications on their own PCs and manipulate
larger amounts of information and databases, which requires more memory and
storage capacity
• Power- and developer-level PCs also have larger monitors, because these users
typically have more applications open and running simultaneously and larger
screens display this more effectively
• Basic users will NOT get PCs with modems; modems were originally requested as
add-ons by the Police Department, to support their PC users out in the fieid, but
their request has since been dropped
• Most basic users will NOT get PCs with CD ROM capability; those were
requested as add-ons primarily by the Library users, who frequently access Library
reference databases on CD ROM (and there is an increased department
contribution for this add-on)
• Only PED users will receive PCs with the thin net cable network cazd; this is a
requuement driven by the technical configuration of PED's network, which is
different than most other departments' networks (and there is an increased
department contribution for this add-on)
• Although many basic users today use a limited number of applications, such as
e-mail or WordPerfect, the technical d'uection for large applications is toward
client-server based systems. Client-server systems, such as LIEP's new licensing
system and like those we are evaluating as payroll system replacement options,
minimize reliance on mainframe computers and allow users to run programs and
manipulate data on their own PCs. For basic users to be able to access those
enterprise-wide systems in the City, their PCs must be 486s or above
• Having a reasonable level of computing power and standard features on the PCs -
even if an individual users may not use all of the capacity or features - makes the
QI��gZ�d
PCs more interchangeable when employees or job duties are restructured and PL's
need to be sbifted among users
Leasing PCs of the capacity and configuration we are recommending also has a
positive financial impact on our lease terms; at the end of the lease, the machines
we have leased will hold their resale value at much higher levels than very
stripped-down, low end machines
Please feel free to contact me with questions on the above. I appreciate your time and
consideration of this matter.
t�������
c: Linda Camp
Ron HIine
Cindy Mullan
Joe Reid
��-�2�
Interdepartmental Memorandum
CITY OF SAINT PAUL
June 27, 1996
To: Martha Larson
From: Linda Camp
Re: PC Replacement Strategy
Per our discussion of yesterday, I am attaching the tabulation of the responses to RFP
for lease/purchase financing that we issued eariier this year as part of the PC
repiacement project. Our RFP encouraged responders to be creative in offering
financing proposals. In addition, I asked staff in the Treasury Division to provide cost
information on two internal financing options--an interFund loan and issuing Equipment
Notes. That information has been included in the tabulation as weil.
The first six responders on the list, proposed tax-exempt lease financing. Under this
option, the City would own the equipment at the end of the lease period. Winthrop
Resources was the only company to propose a"true" lease (also referred to as an
operating {ease). Under this option, the City is essentiafly "renting" the computers from
Winthrop for the lease period. Winthrop retains ownership of the equipment during and
at the end of the lease period. The City will, however, have the option to purchase the
equipment at the end of the lease period at the fair market price.
Financing Rationale
As you recall, the group that made the decision to go with the Winthrop proposal did so
for several reasons.
• Computer equipment is depreciating faster and faster; and has an extremely low
resale value after about 2.5 years. In some cases, it is costing the City money to
dispose of old equipment. Under the selected proposal, the burden and costs
associated with disposing of the old equipment get shifted to Winthrop
Resources.
In addition, it is important to note that older equipment is much more costly to
q�
maintain. Under the lease strategy, the equipment wili be under warranty for the
ownership period, which shouid eliminate some maintenance costs.
Because Winthrop will own the computers, they need to manage this asset. As
part of the package, they tag all equipment and establish a database of all of the
computers, including details about configuration. They have indicated a
wilfingness to have this database reside with the City, so we can enter repair and
other information for each computer. The City does not currently have this kind
of management tool.
• As a partner in this project, Winthrop has an interest in seeing that good service
is provided by the vendor providing the equipment. They will be an ally should it
be necessary to deal with vendor regarding equipment perFormance or delivery
problems.
A final note, Winthrop specializes in financing computer equipment of various kinds
through this kind of leasing strategy. My research has showed that the private sector is
shifting away from outright ownership of equipment and relying more on leasing.
Winthrop has considerabie experience to offer us.
Hope this information helps. Let me know if you have additional questions.
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PC Replacement Plan
PC Specs and Price - 6/18/96
- - Price ,- Tax - - '_ Total , _ DepartrneM:
- - - - - � � Lease--=-
Entry User System
100 mhz
32 meg ram
2 meg video mem
15" monitor
1.44mb floppy drive
850 meg hard drive
Windows 95
3com ethemet adapter
3 year warranty
'I year on site
a�
� w128.8 modem
� w/network card thin net wbie
� w/cd rom
'17" monitor
Power User System
100 mhz
ax cd rom
32 meg ram
sound blaster card
2 meg video mem
Nf '17" mondor
7.44mb floppy drive
p4 1 gig hard drive
Windows 95
3com ethemei adapter
3 year warranty
1 year on siie
Developer System
.�a 133 mhz
4x cd rom
sound blaster card
32 meg ram
2 meg video mem
0� t7" monitoc
j�e 2 gig hard drive
Windows 95
3com ethemet adapter
3 year warranty
t year on site
7.935.00 '122.25
2,075.00 131.63
�,954.00 123.76
2,074.00 134.81
2,394.00 152.36
2,657.00 169.45
2,05725 500
2,206.63 536
2,077.76 505
2,208.81 537
2,546.36 619
2,826.45 687
HiUSQtSBIJDGGTDEPIS�NfO_OFCVO�FPIAC (SpsvRSS)
DEPARTMENT OF FINANCE AND
MANAGEMENT SERVICES
Manha Larson, Dincmr ^� - � ��
''F
CITY OF SAINT PAUL �sn a H� Tekphone: 672-2668797
Natm Coleman, Mayor " 1 S W. %cllogg Boufcvard Facsimife: 612-266-88I9
Saira Pau[, Miivusom S51 D2
TO: Councilmember Mike Harris
FROM: Martha Larson (���,��,��
./ � U
DATE: July 15, 1946
RE: PC Replacement Strategy
Attached is the follow up you requested after our most recent review of our proposed
strategy for replacing the City's PC inventory. You had asked me to show you what the
financial impact of financing our replacement PCs over four, and five, years would look like.
For the Winthrop operating lease that we are proposing to use, those amounts are shown on
Attachment l. The $1 miliion in financing is the same amount that our original RFP for
financing had reflected. You will aiso note that the $1,026,720 total cost for the 36 month
lease, noted on Attachment 1, is the same amount you saw on earlier documents I have
provided you (copy at Attachment 2). Please recognrze that these 48-month and 60-month
numbers are not formal bids by Winthrop; ihey were provided to us i� formally to help
respond to your request.
Please recall from our discussion that we believe that a three-year repiacement cycle makes
the most sense for the City, because:
• The PC industry and technical community has recognized that the "shelf life" of cunent
PCs is no longer (and some say much shorter) than 36 months
We maintain the most flexibility to take advantage of changing technology and declining
PC prices by adhering to a three-year replacement rotation
• A three-year replacement cycle creates at most three "layers" of hardwaze that have to be
maintained; one of our goals with this replacement strateg}+ is to minimize PC support
costs
So, operationally and financially, we think the three-yeaz replacement cycle makes the most
sense. This leaves us with the options of financing the 1996 replacements over the same
period, a shorter period, or a longer period. Financing over a shorter period - as you can see
Q�-8Zg
from the attachment - does not save the City a substantial amount (9% and 3% for 24 and 30
month lease terms, respectively, compared to the total cost of the 36 month lease). And, it
pushes the City's expenditures for the lease into a 24 or 30 month period. Another goal of
the PC replacement strategy is to smooth the year to year budgetary impact of replacing
PCs, so we favor the idea of spreading the total cost over the fu1136 months.
You can see that by financing over a longer period - e�ctending the lease repayment period by
12 and 24 months beyond the 36 months we are recommending - the following happens:
• The City pays more in total for the same principal amount that we finance: 17% more for
the 48-month lease and 26% more for the 60-month lease. Although the PCs remain the
same, and no additional services are obtained, we have spent more in total for them.
• Financing over a longer period than we intend to hold the equipment is not financially
prudent; we don't want to be paying for something over a period longer than we can or
will use it. As noted above, we want to replace the machines after three years, regardless
of our financing mechanism.
• After the three-year period, ihe Winthrop warranty does not apply. Were we to hold the
PCs beyond our recommended three year life, the absence of this warranty would increase
our repair and maintenance costs, especialiy since the machines would be four and five
years old.
• Resale value drops and disposal costs increase significantly with older PCs. Again, were
we to hold the PCs beyond our recommended three-year life, this aspect of our
costs/recovery would increase the overall expense of providing PCs to City staff.
You had aiso asked me to provide you with our most recent investment portfolio, so that
you could verify that our intemal rate of return on our investments exceeds the financing
rates proposed to us by the outside leasing companies, and exceeds the rates at which the
City can bonow internally or through short-term notes. Our portfolio summary is included
as Attachment 3, As of July 1, our combined portfolio yield was 6.6545%. As you and I
have discussed before, this return is achievable in today's market in targe part because of the
pooled investment structure we went to last year. This allows the City to take its individual
funds' investments and pool them to achieve higher returns (longer maturities), while still
maintaining an adequate cash position.
Attachments
f4�se�sV>knfh-�15
�-�+-�.�,�,�.��-- i
4�-�2 �
Winthrop Resources
Estimated Costs For Operaring Lease
otes:
��
Assumes the City wouid be financing $1,000,000 worth of equipment and installation
Lease factor is based on rates at tizne of City's RFP; final costs will depend on date lease
agreement is signed. Costs should not vary significantly, however.
Lease Term Lease Rate Factor
24 months
30 months
36 months
48 months
60 months
.03872
.03317
.02852
.025
.0215
Monthlv Pavment
�38,720
S33,170
528,520
�25,000
S21,500
Cost difference between 3-yeaz and 4-yeaz lease =$173,280
Cost difference between 3-yeaz and 5-yeaz lease =$263,280
Other relevant oints
Total Costs To Citv
$ 929,280
$ 995,100
$1,426,720
$1,200,000
$1,290,000
• Equipment will be under warranty for three years; after that City will have to pay for
repairs. The older the equipment, the more likely it is to need repair. Cost of ownership
would therefore likely increase for 4-year and 5-yeaz lease scenarios beyond what is
noted above.
• Equipment that is 4 to 5 yeazs old, is likely to have no or very limited resale value. This
will have some impact on the lease factor that is used to calculate monthly payments.
a
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07-15-1996 10:52:12
ACCWNT: ALL - ALL ACCWHTS REPORTING
AS Of 07/Ot/96
CITY OF ST. PAUL
I N V E S T M E M T H 0 L D I N G S
PCSITION REPORT
FACE MATURITY LAST SET PURCHASE
SEC ID DESCRIPTIOH RATE DATE DATE YIELD
"_"'_' """""'___"""""""""' """' """" """" ""_"
CD - CERTIFICATE OF DEPOSIT
"_"_"'_"""__'_'_"'_"___'
'___'______'_____'_"'__"__"'_
00004108 MINNESOTA STATE BANK CD
00003965 MIDAMERICA CERT OF DEPOSIT
00004077 EASTERN NGNTS CD
00004089 6ANK OF ST PAUL CD
00004716 LERTIFICATE OF DEPOSIT
00004193 LERTIFICATE Of DEPOSIT
00004268 CERTIFICATE Of DEPOSIT
00003816 MIDAMERICA CERT OF DEPOSIT
00004270 CERTIFICATE OF DEPOSIT
5.2000 07/02/96 07/04/96
5.6300 OS/30/96 09/01/95
5.2500 12/O6/96 72/07/95
5.7500 12/23/96 12/22/95
5.1500 O1/09/97 Ot/10/96
5.3500 03/26/97 03/26/96
5.5000 OS/20/97 OS/20/96
6.7200 OS/23/97 OS/24/95
5.6000 06/21/97 OS/21/96
5.2584
5.7084
5.3377
5.8456
5.2361
5.4243
5.5764
6.1200
5.6862
SUBTOTAL
CORP - CORPORATE BONDS
_""___'_'_""_'_'_""'_'___'
____"_____"_"_"_'_"_'_"_"
00000716 AIG FIN PROD CORP CONTR
SUBTOTAL
CPD - COMMERCIAL PAPER - DISCWNT
OOODL225 ANCHOR FUNDING CP 5.378823D
00004226 MERRILL IYNCH CP 5.300
00004227 MERRILL LYNCH CP 5.30D
00004227 MERRILL LYNCM CP 5.30D
OODDL227 MERRILL LYNCN CP 5.30D
00004227 HERR1lL LYNCN CP 5.30D
00004306 FIRST CREDIT CORP CP 5.39D
00004228 MERRILL LYNCH CP 5.26D
SUBTOTAL
PAR
PAGE: 1
SELURITY TYPE SEGUENCE
ACCRUED
COST INTEREST
500,000.00 500,000.00
500,000.00 500,000.00
7,000,000.00 1,000,000.00
100,000.00 100,000.00
�,000,000.00 i,000,000.00
500,000.00 500,000.00
500,000.00 500,000.00
1,000,000.00 1,000,000.00
100,000.00 100,000.00
-----"--'-"" ---"----""--
5,200,000.00 5,200,000.00
13,000.00
23,8G9.31
30,333.33
3,082.64
24,891.67
7,281.94
3,284.72
68,850.00
653.33
775,226.94
9.2000 12/Ot/OS OS/31/96 9.7430 7,845,000.00 7,845,000.00 64,754.67
""-'-""'--' '-°""'-"-'- "'-""-"---'
7,845,000.00 7,845,000.00 64,154.67
0.0000 07/12/96 04/18/96
0.0000 08/01/96 OL/18/96
0.0000 OS/01/96 OL/78/96
0.0000 08/O1/96 OL/18/96
0.0000 08/Ot/9b O4/18/9d
0.0000 08/Ot/96 O4/18/96
0.0000 O8/O1/96 07/07/96
0.0000 11/22/96 04/18/96
5.5129
5.4877
5.4877
5.4877
5.4877
5.4877
5.4151
5.5346
7,SD0,000.00 t,G80,950.00
500,000.00 492,270.83
7,950,000.00 1,979,856.26
800,000.00 787,633.33
1,200,000.00 7,181,450.00
200,000.00 .196,908.33
1,000,000.00 995,358.61
700,000.00 677,703.46
°------------- -------°------
7,850,000.00 7,732,130.82
fHLB - FED HOME LOAN BANK
_'__'__"_"`__'__"_"_'"'_____
00003323 FHl6 STEP-UP F/XAT 7/15/09 7.1500 07/15/96 01/15/96 9.0800 3,000,000.00 3,000,000.00
00003505 FHLB STEP-UP i/MAT 10/27/00 5.0000 10/27/96 04/27/96 5.0000 7,000,000.00 7,000,000.00
16,808.82
5,520.84
21,531.24
8,833.34
73,250.00
2,208.34
0.00
7,670.83
75,823.41
99,504.17
9,027.78
07-75-1996 70:52:12
ACtWNi: ALL - ALL ACCOtlNTS REP6RTING
SEL ID DESCRIPiION
"""" _""""""""""'_"_'
00003877 FHLB a 100.796875
00004278 FHLB STEP-UP F/MAT 4/75/04
00003L65 FED HOME LOAN BANK
00003465 FED NOME LOAH BANK
00003020 FNLB - C/9-21-94
00003376 FHLB NOTES C/8-2-96
00003376 FHLB C/8-2-96
00003855 FHLB / LALLABLE 6-72-96
00003136 FED NOME LOAN BANK
00003736 FE� HOME LOAN BANK
00003655 FED XOME LOAN BANK/86.90625
000�3656 FEO HOHE lOAN BANK
00003956 FHLB CALL 8-25-98
SUBTOTAL
iHLt - FHLB - MORTG. CERT.
"'_"_'_'_""""'_"__'__'_"'
_""'_""'_'_'_'___'__'__"'"'
00003441 FHLB - STEP-UP
00002979 FHLB - MORTG. CERT.
00003021 FHLMC NOTES - C/9-20-96
00003206 PHLMC NOTES - C/3/7/95
00003657 FHLB - MORTG. CERT/92.537250
00004166 iHl6 - MORTG. CERT.
00003787 FHLMC NOTES - C/2-18-97
00003334 FHLMC NOTES C 07/07(97
00003924 FHLMC - CALLABLE 8/3/98
00003934 FHLMC - CALL 8-10-98
00003995 fHLB - MORTG. CERT. a 99.336
00004�20 FNLB - MORTG. CERi. e'199.86
00004020 FHLB-MORTG. CERT, a'199.88
SUBTOTAL
CITY OF 5T. PAUL
I N V E 5 T X E H T H 0 L D I N G 5
POSITION REPORT
AS Of 07/O1/96
fACE MATURITY LAST SET PURCHASE
RATE DATE DATE YIELD PAR
""'_' "_""'
6.8750 77/18/96
6.5000 04/75/97
6.4800 07/08/97
6.4800 07/OS/97
4.8300 09/27/98
7.2900 08/02/99
7.2900 08/02/99
7.0000 Ob/72/00
5.7200 11/22/00
5.7200 17/22/00
5.4900 02/07/O1
8.0000 09)it/O1
7.7250 08/25/OS
4.7500 OS/26/96
4.9500 09/09/98
5.2700 09/20/00
6.3500 03/07/Ot
6.5500 70/02/02
6.5600 03/04/03
6.4850 02/18/04
7.9700 07(O7/04
7.4600 OS/03/OS
7.4350 08/70/OS
7.1200 09/30/OS
7.2500 19{24/OS
7.2500 70/24/OS
OS/78/96
04/15/96
01/08/96
01/08/96
03/21/96
02/02/96
02/02/96
06/12(96
OS/22/96
OS/22/96
02/O7/96
03/t8/96
02/25/96
03/Ot/96
03/09/96
03/20/96
03/07/96
04/02/96
03/04/96
02/78/96
Ot/Q7/96
02/03/96
02/10/96
03/31/96
OL{2L/96
OL/24/96
6.7400
8.7700
6.6791
6.6797
4.8436
7.2900
7.2900
7.0000
5.7188
5.7188
7.8546
7.8500
7.2531
4.7469
4.7512
5.2259
6.3500
7.8679
6.5600
6.4850
7_970a
7.4600
7.4344
7.2740
7.267D
7.2670
FHLP - FHLMC PASS THRWGH �
""'_'___'_"_'_'__'_""'_'__'
D0003173 FHLMC PASS THRWGH 6.0000 09/75/20 06/15/96 6.2830
SUBTOTAL
675,000.00
3,000,000.00
470,000.00
645,000.00
1,000,000.00
2,500,000.00
1,000,000.00
15,000,000.00
1,500,000.00
7,500,000.00
1,000,000.00
1,000,000.00
2,000,000.00
--'----""-"'
35,290,000.00
�,000,000.00
1,000,000.00
2,000,000.00
1,000,000.00
2,110,000.00
1,000,000.00
1,000,000.00
600,000.00
7,000,000.00
1,400,000.00
1,000,000.00
L75,000.0D
525,000.00
14,170,000.00
�(�-�2B
PAGE: 2
SECURITY TYPE SE�UENCE
ACCRUED
COST INTEREST
675,000.00
3,000,000.00
467,576.56
641,674.22
999,375.00
2,500,000.00
7,000,000.00
75,000,000_0�
7,500,000.00
7,500,000.00
889,062.50
1,000,000.60
1,982,000.00
--"-'-""'-'
35,'154,688.28
5,671.88
41,708.33
14,720.40
20,201.40
13,550.83
75,937.50
30,375.00
58,333.33
9,533.33
9,533.33
23,027.50
24,666.67
50,270.83
--"'-""--"-
486,062.28
i,000,000.00
1,000,000.00
2,000,000.00
1,000,000.00
1,952,409.38
7,000,000.00
7,000,000.00
600,000.0�
1,000,000.00
1,400,000.00
993,360.00
47L,430.00
524,370.00
-"----""--"
13,944,569.38
3,000,000.00 2,955,000.00
----•------- ---------------
3,000,000.00 2,955,OD0.00
16,625.00
75,537.50
29,863.33
20,284.72
34,557.25
21,502.22
24,138.67
23,245.83
30,876.11
41,057.72
78,195.56
6,504.86
7,189.58
""'--""""
289,572.29
8,500.00
8,500.00
FNMA - FED NAT NORTG ASSOC.
occcevcce 'eecaviceevzcceccecc'vc
07-15•1446 10:52:t2
ACCWNT: ALL - ALL ACCWNTS REPORTING
POSITION REPORT
AS OF 07/Ot/96
SEC ID
DESCRIPTION
00003082 FED NAT MORTG ASSOC.
00003083 FED NAT MORTG ASSOC.
00003098 FNMA MEDIUM TERM NOTE
�00�4044 FED NAT NORTG ASSOC.
000040G5 FED NAT MORTG ASSOC.
00004045 FED NAT MORTG ASSOC.
00004057 FNMA a98.508/CALL 17/25/96
00004243 FED NAT HORTG ASSOC.
00003868 FFD NAT MORiG ASSOC. a 101
00003171 FNMA MED TERM NOTE C/i-27-97
00003177 FNMA MED TERN NOTE C/1-27-97
00003772 FNMA - C/1-27-97 .
00003184 FNMA MED TERM NOTE C-2-18-97
00003374 FNMA HOTES C/7-14-97
00003894 FNMq - C 07/1G/98
D0003942 FNMA a 99.75 - CALL 8/17/98
00003954 FNMA - cAll 8-24-98.
0000G047 FNMA a 94.78125 !C 11-10•00
0000G070 FED NA7 MORTG ASSOC.
SUBTOTAL
GNAP - GNMA - PASS TNRWGH
'_" '"'_'_" "'__"'
00004012 GNMA - PpSS THRU t1418483%SF
00004194 GNMA - PASS THRU 1t41857G
00003389 GNMA - pqSS THRWGH #38431
00003392 GNMA - PASS THRWCH �140747
00003390 GHMA - PASS THRWGH N39389
00003391 GNMA - PASS THRIXJGH �t040534
000�3343 GNMA - PASS THRWGH #41572
00003394 GNMA - PA55 THRWGH t142450
00003395 GNMA - ppSS THRWGH #42575
00003396 GNMA - PASS THROUGH #42672
0 0003397 GNMA - ppSS THRWGH iW4078
00003398 GNMA - PASS THRWGH #45356
00003399 GNMA - PASS THRWGH #47276
00003400 GNMA - PASS THRWGH #50669
00003417 GNMA - PASS THROUGN #69578
0 0003407 GNMA - PASS THRWGN #62118
0 0003402 GNMA - PASS THRWGH tt70014
CITT OF ST. PAUL
I N Y E S T N E N T H 0 L D! H G S
FACE NATUR[TY LAST SET PURCNASE
RATE DATE DATE YIELD PAR
6.7700 12/02/96
6.1700 12/02/96
6.3900 12/09/96
53800 tOf23l98
5.4700 11/03/98
5.4700 11/03/98
5.2300 71/25/98
6.5000 04/30/99
�.z000 oiiioioz
6.7400 07/27/04
6.1400 01/27/04
6.1400 O1/21/04
6.4800 02/78/04
8.0500 07/14/04
7.0600 07/14/OS
7.4700 08/17/OS
7.5600 08/24/OS
6.7000 1t/10/OS
7.7300 12/OS/OS
7.5000 11/O7/96
7.5000 11/07/96
12.5000 04/75/70
12.5000 04/15/70
12.5000 06/15I10
72.5000 O6/15/10
12.5000 66l15IM10
�zs000 o�iisi�o
izs000 oii�siio
72.5000 t2/15/70
12.5000 12/15/10
12.5000 72/15/70
�zs000 ovisit�
12.5000 O7/15/12
72.0000 09/15/13
12.5000 10/15/13
12.5000 10/75/13
Ob/02/96
06/02/96
06/09/96
�J23196
OS/03/96
OS/03/96
OS/25/96
04/30/96
Ot/10/96
01/27/96
07/27/96
07/27/96
02/18/96
Oi/14/96
O1/14/96
02/17/96
02/24/96
OS/tOf96
Ob/OS/96
6.7698
6.1698
6.3900
5.3800
5.4700
5.4700
5.7800
6.5233
7.0059
6.1400
6.1400
6.2031
6.4800
8.0486
7.0600
7.4458
7.5600
6.7304
7.1300
7,500,000.00
7,000,000.00
S,OOO,OOO.OD
1,000,0�0.00
1,000,000.00
i,000,000.00
2,000,000.00
2,000,000.00
4,500,000.00
2,000,000.00
7,200,000.00
1,500,000.00
1,000,000.00
1,000,000.00
3,000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,0OO,OD0.00
37,700,000.00
06/15/96
06/15/96
06/15/96
06/15/96
06/15/96
06/15/96
06/15{96
06/15/96
06/15/96
06/15/96
06/15/96
Ob/75/96
06/15/96
06/75/96
Ob/15/96
06/15(96
06/15/96
7.7094
7.7094
12.8250
72.8250
12.8260
12.8260
12.8264
72.8250
72.8250
12.8260
72.8260
72.8260
72.8260
12.8260
12.3000
12.8250
72.8250
1,436,487.13
887,267.38
61,401.77
37,907.25
36,533.31
16,235.61
30,887.39
2,030.00
89,176.63
7,177.76
16,066.80
7,172.91
10,692.97
42,958.30
23,937.79
3,320.47
15,466.86
a�-�z�
PAGE: 3
SECURITY TYPE SEOUENCE
COST
ACCRUED
INTEREST
7,500,000.00
1,000,000.00
5,000,000.00
1,000,000.06
1,000,000.00
�,000,000.00
1,970,160.00
7,998,750.00
4,500,000.00
2,000,000.00
1,200,000.00
1,492,968.75
1,000,000.00
1,000,000.00
3,000,000.00
2,992,500.00
2,000,000.00
1,995,625.00
2,000,000.00
37,650,003.75
1,421,397.99
an,9s�.o�
61,407.17
37,901.25
36,533.37
16,235.61
30,88739
2,030.00
89,776.63
7,177.76
16,066.80
1,172.91
70,692.97
42,958.30
23,931.79
3,320.4t
15,466.86
7,712.50
5,141.67
20,412.50
10.311.67
8,964.72
8,964.72
10,750.56
22,388.89
154,800.00
54,918.89
32,951.33
41,189.17
24,720.00
37,566.67
98,840.00
83,362.50
53,760.00
19,355.56
70,695.00
706,206.35
5,087.54
3,142,47
362.44
223.72
275.65
95.84
182.32
71.98
526.39
6.95
94.84
6.92
63.72
253.57
735.61
19.6U
97.30
07-15-1996 70:52:12
ACCWNT: ALL
ALL ACCWNTS REPORTING
CITT OF ST. PAIIL
I N V E 5 T M E N T H 0 L D I N G 5
POSITION REPORT
AS Of 07/Oi/96
SEC ID
DESCRIPTION
FACE MATURITY LAST SET PURCHASE
RATE DATE DATE YIELD
PAR
" " " " " " "'
00003403 GHMA - PASS THRWGH t1700394 12.5000 10/'IS/13 ObJ'IS/96 12.8250
00003404 GHMA - PA55 THRWGH i1107483 12.5000 10/15/13 Ob/15/96 12.5250
00003405 GNMA - PASS THRWGH #104454 12.5000 10/15/13 06/15/96 12.8250
00003406 GNMA - ppSS iHRWGH #104666 t2.5U00 10/t5113 06l15l96 '12.8250
00003407 GNMA - PASS TXRWGH #704812 12.SD00 11/15/13 O6/15/96 12.8260
SUBTOTAL
NMA - MOHEY MARKET ALCWNT
00002275 PRIME VALUE TREASURY iUND
SUBTOTAL
NOTE - U.S. TREASURY NOTES
'_'_""_"'___""'__'__'
00003707 U.S. TREASURY NOTES
00004266 U.S. TREASURY NOTES
00003347 U.S. TREASURY NOTES
00003708 U.S. TREASURY NOTES
00004267 U.S. TREASURY NOTES
00004267 U.S. TREASURY NOTES
00003709 U.S. TREASURY HOTES
00004776 U.S. TREASURY NOTES - SIGS
00003254 U.S. TREASURY NOTES
00003770 U.S. TREASURY NOTES
00003237 U.S. T-NOTES a 98.09375
00004056 U.S. T-NOTES a700.531250
00003659 U.S. T-NOTE a 96.392371
00004067 U.S. T-HOTES a99.897079
00004177 U.S. TREASURY NOTES - SLGS
0000328p U.S. TREASURY NOTES
00003467 U.S. TREASURY NOTES
0 0003296 U.S. TREASURY NOTES
0 0004778 U.S. TREASURY NOTES - SLGS
0 0003238 U.S. T-NOTES � 97.39D625
0 0003975 U.S. T-NOTES 8 106.5625
0 0003935 U.S. T-HOTE a 99.515625
00 003940 U.S. T-NOTE a 99.575625
OOD0424$ U.S. TREASURY NOTES
47,745.19
30,089.34
34,989.97
22,531.63
196,567.39
""-""'--"'
3,044,625.73
4.7100 72/29/00 04/12/96 5.2700 394,000.00
6.2500 08(31l96 02/24(96
6.2500 OS/31/96 OS/20/96
6.5000 71/30/96 OS/31/96
6.5000 11/30/96 OS/31/96
7.SOD0 12/31/9b Db/3D/9b
7.5000 12/31/96 O6/30/96
6.8750 02/28/97 02/29/96
6.7115 03/O1/97 03/O7/96
6.7500 OS/31/97 OS/31/96
5.6250 08/37/97 02/29/96
5.5000 09/30/97 03/31/96
5.7500 10/31/97 04/30/96
6.0000 11/30/97 OS/31/96
5.3750 11/30/97 OS/31/96
6.7715 03/01/98 03/Ot/96
5.3750 05f31l98 OS/3t(96
5.3750 OS/37/98 OS/31/96
5.1250 O6/30I98 Ob/30/96
6.7115 03/O7/99 03/01/96
5.8750 03/37/99 03/37/96
7.7500 17/30/99 OS/31/96
6.1250 07/37/00 01/31/96
6.1250 07/37/00 01/31/96
6.3750 03/31/Ot OS/O7/96
6.4067
4.8646
6.4957
6.5851
5.4097
5.4097
6.5277
6.7004
6.3785
6.5451
6.1750
5.7477
7.4500
5.4300
6.7053
6.4998
6.4910
6.SN5
6.7072
6.4954
5.9686
6.2392
6.2392
6.4107
"'--°'-'--"'
394,000.00
`��'��.�
PAGE: 4
115,000.00
1,000,000.00
150,000.00
2,480,000.00
700,OOD.00
300,000.00
81,000.00
550,000.00
3,000,000.00
16,000.00
3,000,000.00
2,000,000.00
2,048,000.00
1,000,000.00
600,000.00
2,000,000.00
7,000,000.00
3,000,000.00
625,000.00
S,OOO,OOO.oO
1,000,000.00
2,000,000.00
2,000,000.00
z,000,000.00
SECURITY TYPE SEOUENCE
COST
""_'""""' _
47,745.19
30,089.34
34,989.97
22,531.63
196,567.39
--""--"'-"'
3,020,225.68
ACCRUED
INTEREST
"' •""""' •'
281.83
777.61
206.54
133.00
1,760.29
'-"""""-"
12,479.47
394 ,000.00 177,002.00
-"'--""--"' """"'-""'
394,000.00
114,748.44
7,016,100.54
150,000.00
2,476,378.75
728,977.77
312,418.78
87,000.00
SSO,OOO.OD
3,000,000.00
75,670.00
2,942,812.50
2,000,000.00
7,974,115.76
998,970.79
600,000.00
�,9z�,zso.00
960,937.50
2,853,046.88
625,000.00
4,869,531.25
7,008,876.37
1,990,312.50
1,990,312.50
2,004,346.77
177,002.00
2,421.88
174,981.49
852.46
74,093.99
285.33
122.28
1,876.43
72,337.88
17,704.92
303.26
41,926.23
t9,687.5�
70,743.67
4,699.45
13,459.50
9,398.91
4,699.45
835.60
74,02032
74,641.39
6,775.96
51,49038
51,490.38
28,913.93
07-15-1996 10:52:12
ACLWNT: ALL - ALL ACCWNTS REPORTING
CITY OF ST. PAUL
I N V E S T N E H T H 0 L D I N 6 5
POSITION REPORT
AS OF U7/Otl96
SEC ID DESCRIPTION
"""'_ """"""'_"""""""""
00004249 U.S. TREASURY NOTES
00004250 U.S. TREASURY NOTES
00003227 U.S. TREASURY NOTES
00003658 U.S. TREASURY NOTES
00003210 U.S. TREASURY NOTES a96.375
00004245 U.S. TREASURY NOTES
00004246 U.S. TREASURY NOTES
00004288 U.S. TREASURY NOTES
SUBTOTAL
FACE MATURITY LAST SET PURCHASE
RATE DATE DATE YIELD
""" """" """_' """'
6.3750 D3/31/07 OS/O7/96 6.4738
6.2500 04/30/Ot OS/01/96 6.3795
5.7500 08/15/03 02/15/96 6.6550
5.7500 08/15/03 02/15/96 7.6336
5.8750 02/15/O4 02/15/96 6.3721
6.5000 OS/15/OS OS/01/96 6.6950
6.5D04 08/15f05 05/01/96 6.69D0
7.2500 OS/15/16 Ob/72/96 6.4587
REPO - REPURCHASE AGREEMENT
" "'__ "_'
00004305 SMITH BARNEY RP 5 35 5.3500 07/02/96 07/Ot/96 5.3500
00004305 SMITH BARNEY RP 5.35 5.3500 07/02/96 07/01/96 5.3500
SUBTOTAL
�{�
PAGE: 5
SECURITY TYPE SEOUENCE
PAR COST
""""""' "'_"""""'
9,000,000.00 7,002,077.77
1,000,000.00 994,699.&4
1,D00,000.00 937,500.00
2,200,000.00 1,944,250.00
7,500,000.00 1,445,625.00
2,000,000.00 2,000,892.86
2,0OO,OD0.00 2,000,892.8b
1,000,000.00 1,093,506.30
---"'---•-" -"'---...'--"
47,365,000.00 46,604,730.53
ACCRUED
INTERE57
""_""""'
14,456.97
10,699.73
21,799.45
47,958.79
33,410.03
49,285.71
G9,285.71
9,456.52
-'--•--•'-'-•-
734,715.64
z,000,000.00 z,000,000.00
2,100,000.00 2,100,000.00
"'--""-" ---"'-""'-"
4,100,000.00 4,100,000.00
o.00
0.00
0.00
STRP - STRIPPED U.S. TREASURY CWPONS
00003410 STRIPPED U.S. TREASURY CWPO 0.0000 OS/15/98 71/15/94 5.2950 4,051,500.00 3,725,724.53 0.00
00003583 STRIPPED U.S. TREASURY CWPO 0.0000 02/15/07 03/37/95 7.7200 278,000.00 774,478.36 0.00
""'--"'-"" --"'--°"--" ""-""'-""
SUBTOTAL 4,329,500.00 3,299,602.89 0.00
T61L - U.S. TREASURY BILLS
"__'_:'__'_____""'_'_""__'_'
00004295 U.S. TREASURY BILLS
SUBTO7AL
USTR - US 7REASURY RECEIPTS
'_"_"__'_'__ e"_ cvcv_ c'coc=
0 0001828 US TREASURY RELEIPTS
SUBTOTAL
0.0000 OS/22/96 09/Ob/95 5.5569 4,109,000.00 3,900,673.70 0.00
--'-""'-""- "--""-'-"" --""-"'-"--
4,709,000.00 3,900,673.70 0.00
0.0000 OS/15/99 OS/15/94 8.4699 830,000.00 402,975.20 0.00
""--"""-" --""""""- "-"""""-'
830,000.00 <02,915.20 0.00
"""""""' '-""-""'-" '-""-""""
0�-,5-,996 ,�:52:,2 ��- U 2j�
CITY OF 5T. PAUI
I NVESTMEN T HOLD I N GS PAGE: 6
ACCWNT: ALL - ALL ACCWNTS REPORTING
POSITION REPORT SECURITY TYPE SEGUENCE
- AS OF 07/01/96
FACE MATLIRITY lAST SET PURCHASE
SEC ID DESCRIPTION RATE DATE DATE YIELD PAR COST
'_"'_" """""""""'_"""'_""' '_""' """" """" """' """""'_'_' """""""'
ACCWNT SUBTOTAL 175,167,125.73 172,202,940.23
AVERAGE VEIGHTED YIEID 6.6545
AVERAGE VEIGHTED DAYS TO MATURITY 1,6L8.95
GRAND TOTALS
ACCRUED
INTEREST
2,729,742.85
"""""""' """'_"""" """""""'
175,167,725.13 172,202,940.23 2,729,142.85
AVERAGE uEIGN7ED YIELO 6.6545
AVERAGE WEIGNTED DAYS TO MATURITY 1,6G8.95
Councii Fiie # 96-828
Green Sheet # 35862
RESOLUTION
CITY OP SAINT PAUL, MINNESOTA
Presented By:
Referred To: Committee: Date
71
72
73
7d
75
76
77
78
79
80
81
82
83
Then,
bear
Be it
is comPleted,
a
Bekreso edth theCitywili piemeMtherepl emeMSlrategythrou9 theuseofan ratingleasewhic�willp idethefinancingTorthePC
acquisHlo whi will allow the ity to take ativ Uge of chan9� �� PC tec ology, p' e retluctions and other s in the PC marketplace;
B_�_kresONed,lhatfheC'dyCOUncii theseeM1angestothe7996budget
6e k finalty resoived that ihe replaceme�rt of PCS, which are tlesktop microcomputers, is a purchasing tlecision matle wiNout predetermining the
organixational structure of howthe city provides infortnation services; antl the financing mechantsm antl 6udgetary structure for future years' lease
paymenfs and desktop replacements will be discussetl by the Cily Council.
resoNed Ne City wiil accelerate repiaceme�M1 of the old microcomputers during the baiance of 1996, so that by the end of the year, there will
n�e of microcomputers which meets �leei�ed,minfmum teehnical standartls; _ _ _
\
�
��
�
�� �
� � �
� � /
V �
Page 2 of 2
Requested bv Department of:
By:
Approval Recommended by Budget Director.
By:
Adoption Certified by Council Secretary:
B
Approved by Mayor. Date
Form P.pproved by City Attomey:
By:
Approved by Mayor for Submission to Council:
By:
BY� Snm Paul Butlpet Olfim ( laiw H:\USERSBUDGET DEPTSIFINANCE�IZ3�PCREPRES.WK< W14196)
Adopted by Council: Date