Computer Replacement - Page 2
B. Kirk

The costs involved breakdown as follows:

Hardware $420,000

System software 34,000
Application software 210,000
Training - 29,000

Other costs including modems, cabling, dat
conversion, and installation supervision 57,000

TOTAL | $750,000

The major cost in the hardware is the central processing unit and disk storage
(approximately 60% of hardware cost) which will be located in the Treasury
department, the remainder of the hardware cost is micro computers for some of
the Engineering department and terminals and printers to be located at various
locations. For more detail on where the individual pieces are to be located
please see the attached schedule, also attached is a comparison of our proposed

systems. in other municipalities.

In addition to the above costs there will be ongoing annual maintenance costs
which will be approximately $10,000 highter per year chan our existing system.

In the draft 1988 budget there is a request for a new staff person to assist
with the operating and safeguarding of the system. This position would be a
mid-level range and would cost (including benefits) $35,000 per year. In
addition there will be annual training costs to maintain and improve staff

skills with the system.

Implementation of the system (and payment) will be phased in over three calendar
years, actually about eighteen months.

Our existing system will be kept until at least the end of 1988 at which time it
is expected to have a minimal disposal value.

At the next regular Council meeting I will be seeking final reading of the
law and --rroval of the contracts with WANG and NISSI.

If Council has any questions on the proposed system either myself or our consultant,

Mr. Mike Strain of SKEW will be available to answer any questions.

proposed by

As with some of our previous purchases out of our Tax Sale Reserve it is planned
that we will make annual levies to repay the reserve for this purchase without

interest.

JM/ms
Attachment