Memorandum

City of Lawrence

Information Systems Dept.

To:	Dave Corliss Interim City Manager
From:	Ron Hall Information Systems Director
cc:	Debbie Van Saun Assistant City Manager
Date:	May 5, 2006
Re:	Agenda item City Hall iSeries/400 computer system upgrade

Please place the following items on the City Commission consent agenda for consideration at their May 16, 2006 meeting:

City Hall iSeries/400 upgrade:

The City Hall IBM iSeries/400 is the primary computer system for the City’s SunGard HTE financial software applications including payroll, accounts payable, accounts receivable, purchasing, and utility billing.  The building inspection and code enforcement applications for Neighborhood Resources are also housed on this system.  Last upgraded in 2002, it is recommended that this system be upgraded to an IBM i5 model in order to maintain adequate data storage capacity and provide quicker response times for system users.  If this upgrade order can be placed before the end of May, IBM is offering a $38,000 trade-in on the old model.

Project Background

Financial applications for the City have long been housed and run on an IBM AS/400 system as required by the SunGard HTE applications used by the City.  Model upgrades to this system have historically been done approximately every four years.  It is anticipated that HTE financial software will continue to be used by the City for the next several years and continue to require this hardware platform.  Beyond that time period the City will investigate and consider other financial computer systems that may provide improved capabilities.  In the near term however, the existing financial system and iSeries platform is providing consistent reliable service for the City, but data storage, model age, and improved response time are the primary issues underlying the upgrade request.   This model i5 upgrade will increase storage by approximately 2.5 times and increase performance power by approximately 2.5 times as well.

Project Funding

The discounted cost for this model upgrade is $109,735.  In an attempt to move customers off older models to the new i5 models IBM is offering a larger trade-in incentive ($38,000) if the upgrade order is placed before the end of May 2006.  This trade-in incentive would be in the form of a check sent directly from IBM to the City of Lawrence after installation of the i5 model.  Therefore the net cost after the trade-in check has been received will be $71,735.

Commission Action

It is requested that the City Commission approve the purchase of an IBM i5 model upgrade from the City’s hardware service provider, Synergistic Online Solutions, in the amount of $109,735 with the expectation of receiving a trade-in check from IBM in the amount of $38,000 soon after installation.