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HomeMy WebLinkAboutAgenda Report - July 18, 2007 E-06AGENDA ITEM "*01* CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing Purchase of Replacementfor AS400 Mid -Range Computer from Logical Design, Inc., of Rancho Cordova, CA ($142,765) (ISD) MEETING DATE: July 18,2007 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt resolution authorizing purchase of replacement for AS400 mid-range computer from Logical Design, Inc., of Rancho Cordova, CA, in the amount of $142,765. BACKGROUND INFORMATION: The IBM AS400 mid-range computer is the City's "workhorse," hosting three major applications, including the JD Edwards enterprise resource planning system, the Business License application, and Alliance Data (Orcom) SCIS utility billing program. Individual JD Edwards modules include payroll, general accounting, payables, and purchasing. The current system was purchased in 2002 for about $108,000. It was financed over two years with equal annual payments of $54,158. Almost five years old, the AS400 is approaching the end of its supportable life. IBM has released the last operating system update for this particular model (V5R4). Hardware support for this system is also expected to become increasingly expensive because of the system's age, or unavailable at all through IBM. In addition, replacement of this system will be necessary as software vendors no longer support the aging operating system version we have, and upgrades to current software applications cease to become available. IBM i5 Model As the AS400 iSeries model 820 is phased out, the i5 model 525 Express most closely matches the city's current hardware configuration. The new model will provide greatly enhanced performance over the current system. The i5 series computers offer speed and performance levels up to twice that of the AS400 model 820, according to IBM literature. In addition to noticeably improving responsiveness, backups and batch jobs will take far less time to complete. Staff is also proposing to replace its current tape backup system with a new one designed to operate with the i5 series. The new system offers far greater storage capacity and backup speed. What now takes five hours to backup will likely take about half the time with the new system. In addition, the new tape device can be remotely located to enhance security. Purchase Details IBM has been aggressively promoting their new i5 models, offering substantial discounts and incentives to customers through their certified business partners. The City of Lodi's Business Partner of Record is Logical Design, Inc. cf Rancho Cordova, California. IBM sets the price for all models and offers discounts and incentives only through their Partners. As the city's Partner of Record, Logical Design, Inc. receives the largest discounts and has passed those discounts along to us. APPROVED: air King, City Manager Highlightsof the new system include: • IBM System i5 model 525 Express Configuration 2 • IBM 3573 L2U Ultrim 4 Tape Library • IBM 3580-L43 Ultrim4Tape Drive • Additional three years of Hardware and Software maintenance (four years total) • Conversion Services and taxes included Summary of System Costs: Equipment $163 350 Conversion services $ 4,000 Three years hardware and solb a r e maintenance $ 26,757 Tax 8,658 Total System Cost $142,765 Financing Summary Staff recommends financing the new system over four years through the IBM Installment Payment MasterAgreement (IPMA). Prevailing interest rates from IBM are at or below current market rates. The purchase package includes hardware and software support and maintenance costs that the city now pays for on an annual basis. We currently spend about $45,000 annually for hardware and software support costs through IBM. The city will save about $6.400 annually under this Proposal. The monthly paymentswill be $3,217.03 or about $38,604 annually. This is the four-year IPMA payment schedule and interest rates. IBM charges different rates for IBM and non -IBM products. The blended rate is approximately 3.897%. Item Monthly payment Interest rate 15 model 525 $2,315.09 3.66% HW and SW maintenance $610.15 4.60% Conversion Services $92.21 5.17% Taxes $199.58 5.17% Disposal of current AS400 The current AS400 model 820 may have marginal cash value, which is being researched by ISD staff. Unlike PCs, large mid-range computers like the AS400 attract a very select, limited market. The current box may be worth $3,000, according to preliminary estimates. Regardless of whether the city is able to sell the current AS400, or must literally dispose of it through other channels, the system hard drives will be thoroughly erased (or destroyed) so that no data remains or can be retrieved by new owners. Summary: Staff recommends the purchase of anew i5 series IBM computer to replace its current 5 -year old AS400, which will soon be unsupportable. It is also recommended that the city finance the purchase over four years through the IBM Installment Payment MasterAgreement (IPMA) at interest rates that are at or below current market. Staff recommends a payment schedule of $3,217.03 per month, or about $38,604 annually, which will eliminate current support expenditures, thus saving the city about $6,400 per year. FISCAL IMPACT The city currently budgets $45,000 for IBM support and maintenance. The city will instead make monthly payments totaling $38,604 per year. The city will save approximately $6,400 annually. FUNDING: Budgeted item 100471.732: (ISD Equipment Rental) Budget Manager Kirk Respectfully Submitted, es R. Krueger eputy City Manager Prepared by: Stew Mann. Information Systems Manager JWSM City of Lodi model 525 and tape drive configuration Extended Extended Product Description Qty Purchase Maint Term 9406-525 Server 1:9406 Model 525 1 N/C 50.00 Mth 0041 Device Parity Protection -All 1 N/C 0163 Fibre Channel Attach 1 N/C 0290 Ext Tape Attached via #5736 1 N/C 0532 V5R4 OS, V5R4M0 Machine Code 1 N/C 0835 #4327 Load Source Specify 1 N/C 0909 1/2W Sery Feat 525 1x8330 1 N/C 66.00 Mth 1025 Modem Cable - US/Canada 1 N/C 1483 10m HSL -2 Cable 2 1,700.00 2640 DVD -ROM 1 207.00 2844 PCI IOP 2 4,200.00 2888 HSL-2/RIO-G Ports - 2 Copper 1 475.00 2924 English 1 N/C 4327 70.56GB 15k rpm Disk Unit 14 13,986.00 4400 1GB DDR2 Main Storage 2 1,100.00 4746 PCI Twinaxial Workstn IOA 1 750.00 5000 Software Preload Required 1 N/C 5095 PCI -X Expansion Tower 1 7,995.00 241.00 Mth 5138 Redundant Power and Cooling 1 1,350.00 5159 850 Watt Power Supply 1 417.00 5540 Sys Console on Twinax WSC 1 N/C 5704 PCI -X Fibre Chan Tape Ctlr 1 2,646.00 5727 Integrated Cache - 40MB 1 1,499.00 5736 PCI -X Disk/Tape Ctlr w/IOP 1 587.00 5776 PCI -X Disk Ctlr-90MB No IOP 1 1,999.00 6008 SPCN Power Cable - 6m 2 100.00 6470 6 -Ft 125V/15A Power Cord 4 N/C 6574 4 -Disk Slot Exp - Base Ctlr 1 244.00 64.00 Mth 7180 Acoustic Front Door 1 N/C 7791 Express Configuration #2 1 59,900.00 50.00 Mth 7885 Deskside 1 N/C 8330 1.9GHz Proc 0/2 -Way 1 N/C 8410 Base Proc Activation 1 N/C 9517 Base HSL-2/RIO-G Bus Adapter 1 N/C 9793 Base PCI 2 -Line WAN w/Modem 1 N/C 9844 Base PCI IOP 1 N/C Serial: 000000000 Total USD 99,155.00 USD 471.00 Mth 3573-L2U TS3100 Tape Library Express 1 4,000.00 800.00 Ann 6013 13m LC/LC Fibre Channel Cable 1 184.00 8144 Ultrium 4 Fibre Channel Drive 1 10,770.00 8405 Ultrium 4 Data Cartridge (5 -pack) 4 2,056.00 9800 2.8m Power Cord 125V US/Canada 1 N/C Serial: 000000000 Total USD 17,010.00 USD 800.00 Ann 3580-1,43 TS2340 Tape Drive Express 1 5,170.00 939.00 Ann 5610 10m VHDCI/HD68 SCSI Cable 1 176.00 9400 Attached to i5/OS or OS/400 System 1 N/C 9800 2.8m Power Cord, 125V 15A, US/Canada 1 N/C Serial: 000000000 Total USD 5,346.00 USD 939.00 Ann June 21, 2007 Mr. Steve Mann City of Lodi 212 West Pine Street Lodi, CA 95242 Dear Steve, LOGICAL DESIGN, INC. I have redone this proposal based upon a 48 month Installment Payment Master Agreement. (IPMA) The system is configured as follows: IBM System i5 model 525 Express Configuration 2 150 users 2GB main storage 980GB DASD (800GB usable after RAID protection) Feature 5095 Expansion cabinet Winax controller (Full configuration attached) IBM 3573 L2U Ultrim 4 Tape Library Fiber attached IBM 3580-L43 Ultrim 4 Tape Drive SCSI attached Additional three years of Hardware and Software maintenance Conversion Services and taxes included The list price of the i5 model 525 and the tape drives is $119,505.00 Logical Design, Inc. can offer you a price of $103,350.00 The additional three years of Hardware and Software maintenance after the warranty period is $26,757.00 The Conversion Services are $4,000.00 The tax is $8,658.00 You are only taxes on the system unit and the software maintenance. The Hardware maintenance and Conversion services are not subject to tax. P.O. Box 3128 • Rancho Cordova, CA 95741 • (916) 638-2322 Fax (916) 638-0422 The four-year IPMA numbers and interest rates follow. IBM charges different rates for IBM and non -IBM products. ITEM Monthly payment I5 model 525 $2,315.09 HW and SW maintenance $610.15 Conversion Services $92.21 Taxes $199.58 Interest rate 3.66% 4.60% 5.17% 5.17% The total monthly payment would be $3,217.03. This quote is based on a July 2007 system install date with payments commencing on August 1, 2007 due on September 1, 2007. Feel free to call me with any additional questions or changes. Sincerely, 2d"vl/ Ron Coy P.O. Box 3128 • Rancho Cordova, CA 95741 • (916) 638-2322 Fax (916) 638-0422 Quote Type: Quote Number: Quote Validity Date: Article of Incorporation Name: Customer Name: IBM Customer Number: IBM Enterprise Number: Field Contact: Direct Rates Usercode: Direct Rates Filename: Bethesda Processing Code: Administrative instructions IBM Credit LLC Special Bids Cover Sheet June 27,2007 Installment Payment Master Agreement Q02894265-01 July 31, 2007 CITY OF LODI CITY OF LODI 305 W PINE ST LODI, CA 95240-2021 1785322 5252708 DENISE GARCIA DAG LODI CA The quote consists of this cover sheet and its attachment(s). All conditions in this quote must be satisfied for the rates to be valid. This quote will expire after the quote validity date. The terms and conditions in this quote may be different from the original quote submitted. Please review this quote to ensure that you are aware of any differences. If the customer accepts your financing proposal based on this quote, the required documentation listed in this quote must be signed by the customer and received by IBM by the quote validity date. Attachment IBM CREDIT LLC ATTACHMENT FOR DOCUMENTATION, CONDITIONS, AND FINANCING RATES Customer Name: CITY OF LODI Quote Number: Q02894265-01 Date June 27, 2007 REQUIRED DOCUMENTATION: 1. IBM Corporation Installment Payment Master Agreement - State and Local Government, if one has not been previously signed. 2. This quote requires the customer to execute a Certificate of Acceptance form (2126-5057) available on FAWN. 3. Installment Payment Supplement (Vendor Supplied Equipment) CONDITIONS: 1. This quote is for an IBM Credit LLC National Account. The Selected Government Account (SGA) Code is: 664 2. Payments are monthly in arrears. 3. These rates are CONTINGENT upon IBM Credit qualifyingthis customerfor eligibilityto receivestate and local rates under section 103(a) of the Internal Revenue Service Code. Please complete the State and Local Qualification- Section 103 form found in Global Financing Online under the Tools and Reference Information for Customer Financing Category. 4. The rates in this quote are contingent upon meeting the criteria outlined in the Credit comments below. These credit comments reflect credit log 9935151: P 1. Total Unsecured fin'g limited as a % of TOTAL secured H/W: 100.00% AND P 2. UCC -1 exempt AND P 3. Total Solution financed must have min 75% IBM content AND P 4. Accept no modificationsto UCC attestation, legal name, etc. 5. Recurring sales/use and personal property taxes required to be paid by you under the Term Lease Master Agreement, are not in the rates. 6. IGF financing rates contingent on equipment having a confirmed ship date from IBM of 12/31/2007 or sooner. 7. If the financing is for a model or feature addition, the base machine must be either owned by you with clear title, or currently financed under an Installment Payment Master Agreement (IPMA). 8. The following statement must appear on all IPMA Payment Schedules associated with this quote: "The payments shown on this payment schedule, reflect waiver of the Prepayment Fee provision of the Installment Payment Master Agreement." 9. Validity Date: This quote is valid through: July 31, 2007. PAGE 1 of 2 IBM CREDIT LLC ATTACHMENT FOR DOCUMENTATION, CONDITIONS, AND FINANCING RATES Customer Name: CITY OF LODI Quote Number: 002894265.01 Date June 27, 2007 FINANCING RATES: DEALER/REMARKETER SOURCED HARDWARE L T i O e n P r Install Interest Rate % e Mach Mod t m Month Net Purchase Price monthly annualized 1 9406 525 IG 48 08/07 3.60 3.66 103,350.00 Low Rate Financing OTHER ISM PRODUCTSAND SERVICES L T i O e n p r Install Interest Rate % e Mach Mod t m Month Net Purchase Price _ monthly annualized 2 9SSR 001 S' 48 08/07 4.51 4.61 26,757.00 Low Rate Financing NON -IBM PRODUCTS AND SERVICES L T i O e n p r Install Interest Rate % e Mach Mod t m Month Net Purchase Price — — — — — monthly annualized 3 9994 001 T 48 08/07 5.06 5.18 4,000.00 4 98PP 004 T 48 08/07 5.06 5.18 8,658.00 (**) For IBM EMO, "INSTALL MONTH' is the finance effective start month. End of Individual Quote Number 002894265-01 dated June 27, 2007 PAGE 2 of 2 Down Payment 0.00 nnlAin Pnvmcn4 r)nwn Pavmant 0.00 0.00 IBM CREDIT LLC IPMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Mach/Model: 9406/525 Net Purchase Price: 103,350.00 Term: 48 Payment Frequency: monthly Install Month: 08/07 Option: IG monthly Rate: 3.60% Interest Commencement Date: 09/01/2007 PAYMENT START DATE: 09/01/2007 Payment Schedule calculations are based on the Planned Install Date, the Interest Commencement Date and reflect any downpayments. Payments and charges resulting from loan prepayment prior to the stated end of term, will be based on the actual Install Date and Interest Commencement Date. The payments on this schedule reflect waiver of the Installment Payment Master Agreement prepayment fee provisions. Payment Due Payment Fin. Charge Principal Balance 103,350.00 OCT 01, 2007 2,315.09 310.05 2,005.04 101,344.96 NOV 01, 2007 2,315.09 304.03 2,011.06 99,333.90 DEC 01., 2007 2.315.09 298.00 2.017.09 97,316.81 JAN 01, 2008 2,315.09 291.95 2,023.14 95,293.67 FEB 01, 2008 2,315.09 285.88 2,029.21 93,264.46 MAR 01, 2008 2,315.09 279.79 2.035.30 91.229.16 APR 01, 2008 2,315.09 273.69 2,041.40 89,187.76 MAY 01, 2008 2,315.09 267.56 2,047.53 87,140.23 JUN 01, 2008 2,315.09 261.42 2,053.67 85.086.56 JUL 01, 2008 2.315.09 255.26 .2,059.83 83,026.73 AUG 01, 2008 2,315.09 249.08 2,066.01 80,960.72 SEP 01, 2008 2,315.09 242.88 2,072.21 78,888.51 OCT 01, 2008 2,315.09 236.67 2.078.42 76,810.09 NOV 01, 2008 2,315.09 230.43 2,084.66 74,725.43 DEC 01, 2008 2,315.09 224.18 2,090.91 72,634.52 JAN 01, 2009 2,315.09 217.90 2.097.19 70,537.33 FEB 01, 2009 2,315.09 211.61 2,103.48 68,433.85 MAR 01, 2009 2,315.09 205.30 2,109.79 66,324.06 APR 01, 2009 2,315.09 198.97 2,116.12 64,201.94 MAY 01, 2009 2,315.09 192.62 2,122.47 62,085.47 JUN 01, 2009 2,315.09 186.26 2,128.83 59,956.64 JUL 01, 2009 2,315.09 179.87 2,135.22 57.821.42 AUG 01, 2009 2.315.09 173.46 2,141.63 55,679.79 SEP 01, 2009 2,315.09 167.04 2,148.05 53,531.74 OCT 01, 2009 2,315.09 160.60 2,154.49 51,377.25 NOV 01, 2009 2,315.09 154.13 2.160.96 49,216.29 DEC O1, 2009 2,315.09 147.65 2,167.44 47,048.85 JAN 01, 2010 2,315.09 141.15 2,173.94 44,874.91 FEB 01, 2010 2,315.09 134.62 2.180.47 42.694.44 MAR 01, 2010 2,315.09 128.08 2,187.01 40,507.43 APR 01, 2010 2,315.09 121.52 2,193.57 38,313.86 MAY 01, 2010 2,315.09 114.94 2,200.15 36,113.71 JLJN 01. 2010 2,315.09 108.34 2,206.75 33,906.96 JUL 01, 2010 2,315.09 101.72 2,213.37 31,693.59 AUG 01, 2010 2,315.09 95.08 2,220.01 29,473.58 SEP 01, 2010 2,315.09 88.42 2.226.67 27.246.91 OCT 01, 2010 2,315.09 81.74 2,233.35 25,013.56 NOV 01, 2010 2,315.09 75.04 2,240.05 22,773.51 DEC 01, 2010 2,315.09 68.32 2,246.77 20,526.74 JAN 01, 2011 2,315.09 61.58 2,253.51 18,273.23 FEB 01, 2011 2,315.09 54.82 2,260.27 16,012.96 MAR 01, 2011 2,315.09 48.04 2,267.05 13,745.91 APR 01, 2011 2,315.09 41.24 2.273.85 11,472.06 MAY 01, 2011 2,315.09 34.42 2,280.67 9,191.39 JUN 01, 2011 2,315.09 27.57 2,287.52 6,903.87 JUL 01, 2011 2,315.09 20.71 2,294.38 4,609.49 AUG 01, 2011 2,315.09 13.83 2,301.26 2,3D8.23 PAGE 1 of 2 IDM CREDIT LLC LPMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Payment Due Payment ------------ ------------- SEP 01, 2011 2,315.09 ------------ Total 111,124.32 Fin. Charge -------------- 6.86 ------------- 7,774.32 PAGE 2 of 2 Principal -------------- 2,306.23 -------------- 103,350.00 Balance -------------- 0.00 IBM CREDIT LLC WAU PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Mach/Model. 9SSR/001 Net Purchase Price: 26,757.00 Tarin, 48 Payment Frequency: monthly Install Month: 08/07 Oration: S' monthly Rate: 4.51% Interest Commencemen[ Date: 09/01/2007 2007 610.27 PAYMENT START DATE: 09/01/2007 Payment Schedule calculations are based on the Planned Install Date, the Interest Commencement Date and reflect any downpayments. Payments and charges resulting from loan prepayment prior to the stated end of term, will be based on the actual Install Date and Interest Commencement Date. The payments On this schedule reflect waiver of the Installment Payment Master Agreement prepayment fee provisions. PAGE 1 of 2 Payment Due Payment Fin. Charge Principal Balance 25,757.00 OCT 01, 2007 610.27 100.56 509.71 26,247.29 NOV 01, 2007 610.27 98.65 511.62 25,735.67 DEC 01, 2007 610.27 96.72 513.55 25,222.12 JAN 01, 2008 610.27 94.79 515.48 24,705.64 FEB 01, 2008 610.27 92.86 517.41 24,189,23 MAR 01, 2008 610.27 90.91 519.36 23,669,87 APR 01, 2008 610.27 88.96 521.31 23,142 56 MAY 01, 2008 610.27 87.00 523.27 22,525,29 JUN 01, 2008 610.27 85.03 525.24 22,100.05 JUL 01, 2008 610.27 83.06 527.21 21,572.84 AUG 01, 2008 610.27 81.08 529.19 21,043.65 SEP 01, 2008 610.27 79.09 531.18 20,512.47 OCT 01, 2008 610.27 77.09 533.18 19,979,29 NOV 01. 2008 610.27 75.09 535.18 19,444.11 DEC 01, 2008 610.27 73.08 537.19 18,906.92 JAN 01, 2009 610.27 71.06 539.21 18'367'71 FEB O1, 2009 610.27 69.03 541.24 17,826.47 MAR 01, 2009 610.27 67.00 543.27 17;283.20 APR 01, 2009 610.27 64.96 545.31 16,737.89 MAY 01, 2009 610.27 62.91 547.36 161190,53 JUN 01. 2009 610.27 60.85 549.42 15,641.11 JUL 01, 2009 610.27 58.78 551.49 15,089.62 AUG 01, 2009 610.27 56.71 553.56 14,536.06 SEP 01, 2009 610.27 54.63 555.64 13,980.42 OCT 01, 2009 610.27 52.54 557.73 13,422.69 NOV 01, 2009 610.27 50.45 559,82 12,862 87 DEC 01, 2009 610.27 48.34 561.93 12,300,94 JAN O1, 2010 610.27 46.23 564.04 11,735,90 FEB 01, 2010 610.27 44.11 566.16 11,170,74 MAR 01, 2010 610.27 41.98 568.29 10,602.45 APR 01, 2010 610.27 39.85 570.42 10,032.03 MAY 01, 2010 610.27 37.70 572.57 9,459 46 JUN 01, 2010 610.27 35.55 574.72 8,834.74 JUL 01. 2010 610.27 33.39 576.88 8,307,86 AUG 01, 2010 610.27 31.22 579.05 7,728.81 SEP 01, 2010 610.27 29.05 581.22 7,147.59 OCT 01, 2010 610.27 26.86 583.41 6.564.18 NOV 01, 2010 610.27 24.67 585.60 5,978.58 DEC 01, 2010 610.27 22.47 587.80 5,390,78 JAN 01, 2011 610.27 20.26 590.01 4,600.77 FEB 01, 2011 610.27 18.04 592.23 4,208,54 MAR 01, 2011 610.27 15.82 594.45 3,614.09 APR 01, 2011 610.27 13.58 596.59 3,017.40 MAY 01, 2011 610.27 11.34 598.93 2,418.47 JUN 01, 2011 610.27 9.09 601.18 1,817,29 PAGE 1 of 2 IBM CREDIT LLC IPI IA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Payment Due Payment JUL O1, 2011 610.27 AUG O1, 2011 610.27 SEP 01, 2011 610.27 Total ------------ 29,292.96 Fin. Charge 6.83 4.56 2.13 ------------- 2,535.96 PAGE 2 of 2 Principal 603.44 605.71 608.14 -------------- 26.757.00 Balance -------------- 1,213.85 608.14 0.00 IBM CREDIT LLC IPMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Mach/Model: 9994/001 Net Purchase Price: 4,000.00 Term: 48 Payment Frequency: monthly Install Month: 08/07 Ootion: Ti monthly Rate: 5.06% Interest Commencement Date: 09/01/2007 2007 92.23 PAYMENT START DATE: 09/01/2007 Payment Schedule calculations are based on the Planned Install Date, the Interest Commencement Date and reflect any downpayments. Payments and charges resulting from loan prepayment prior to the stated end of term, will be based on the actual Install Date and Interest Commencement Date. The payments on this Schedule reflect waiver of the Installment Payment Master Agreement prepayment fee provisions. PAGE 1 of 2 Payment Due Payment Fin. Charge Principal Balance 4,000.00 OCT 01, 2007 92.23 16.87 75.36 3,924.64 NOV 01, 2007 92.23 16.55 75.68 3,848.96 DEC 01, 2007 92.23 16.23 76.00 3,772.96 JAN 01, 2008 92.23 15.91 76.32 3,696.64 FEB 01, 2008 92.23 15.59 76.64 3,620.00 MAR 01, 2008 92.23 15.26 76.97 3,543.03 APR O1, 2008 92.23 14.94 77.29 3.465.74 MAY 01, 2008 92.23 14.61 77.62 3,388.12 JUN 01, 2008 92.23 14.29 77.94 3,310.18 JUL 01, 2008 92.23 13.96 78.27 3,231.91 AUG 01, 2008 92.23 13.63 78.60 3,153.31 SEP 01, 2008 92.23 13.30 78.93 3,074.38 OCT 01, 2008 92.23 12.96 79.27 2,995,11 NOV 01, 2008 92.23 12.63 79.60 2,915.51 DEC 01, 2008 92.23 12.29 79.94 2,835.57 JAN 01, 2009 92.23 11.96 80.27 2,755.30 FEB 01, 2009 92.23 11.62 80.61 2.674.69 MAR 01, 2009 92.23 11.28 80.95 2,593.74 APR 01, 2009 92.23 10.94 81.29 2,512.45 MAY 01, 2009 92.23 10.59 81.64 2,430.81 JUN 01, 2009 92.23 10.25 81.98 2.348.93 JUL 01, 2009 92.23 9.90 82.33 2,266.50 AUG 01, 2009 92.23 9.56 82.67 2,183.83 SEP 01, 2009 92.23 3.21 83.02 2,100.81 OCT 01, 2009 92.23 8.86 83.37 2,017.44 NOV 01, 2009 92.23 8.51 83.72 1,933.72 DEC 01, 2009 92.23 8.15 84.08 1,849.64 JAN O1, 2010 92.23 7.80 84.43 1,765.21 FEB 01, 2010 92.23 7.44 84.79 1,680.42 MAR 01, 2010 92.23 7.09 85.14 1.595.28 APR 01, 2010 92.23 6.73 85.50 1,509.78 MAY 01, 2010 92.23 6.37 85.86 1,423.92 JUN 01, 2010 92.23 6.00 86.23 1,337.69 JUL 01, 2010 92.23 5.64 86.59 1,251.10 AUG 01, 2010 92.23 5.28 86.95 1,164.15 SEP 01, 2010 92.23 4.91 87.32 1,076.83 OCT 01, 2010 92.23 4.54 87.69 989.14 NOV 01; 2010 92.23 4.17 88.06 901.08 DEC 01, 2010 92.23 3.80 88.43 812.65 JAN 01, 2011 92.23 3.43 88.80 723.85 FEB 01, 2011 92.23 3.05 89.18 634.67 MAR 01, 2011 92.23 2.68 83.55 545.12 APR 01, 2011 92.23 2.30 89.93 455.19 MAY 01, 2011 92.23 1.92 90.31 364.88 JUN 01, 2011 92.23 1.54 90.69 274.19 PAGE 1 of 2 IBM CREDIT LLC IFMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Payment Due Payment JUL 01, 2011 92.23 AUG 01., 2011 92.23 SEP 01, 2011 92.23 ------------ Total 4,427.04 Fin. Charge 1.16 0.77 0.57 ------------- 427.04 PAGE 2 of 2 Principal 91.07 91.46 91.66 -------------- 4,000.00 Balance -------------- 183.12 91.66 0.00 IBM CREDIT LLC IPMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Mach/Model: 9BPP/004 Net Purchase Price: 8,658.00 Term: 48 Payment Frequency: monthly Install Month: 08/07 Option: T' monthly Rate: 5.06-t Interest Commencement Date: 09/01/2007 2007 199.62 PAYMENT START DATE: 09/01/2007 Payment Schedule calculations are based on the Planned Install Date, the Interest Commencement Date and reflect any downpayments. Payments and charges resulting from loan prepayment prior to the stated end of term, will be based on the actual Install Date and Interest Commencement Date. The payments on this schedule reflect waiver of the Installment Payment Master Agreement prepayment fee provisions. Payment Due Payment Fin. Charge Principal Balance 8.658 .00 OCT 01, 2007 199.62 36.51 163.11 8,494.89 NOV 01, 2007 199.62 35.82 163.80 8,331.09 DEC 01, 2007 199.62 35.13 164.49 8,166.60 JAN 01, 2008 199.62 34.44 165.18 8,001.42 FEB 01, 2008 199.62 33.74 165.88 7,835.54 MAR 01, 2008 199.62 33.04 166.58 7,668.96 APR 01, 2008 199.62 32.34 167.28 7,501.68 MAY 01, 2008 199.62 31.63 167.99 7,333.69 JUN 01, 2008 199.62 30.92 168.70 7,164.99 JUL 01, 2008 199.62 30.21 169.41 6,995.58 AUG 01, 2008 199.62 29.50 170.12 6,825.46 SEP 01, 2008 199.62 28.78 170.84 6,654.62 OCT 01. 2008 199.62 28.06 171.56 6,483.06 NOV 01, 2008 199.62 27.34 172.28 6,310.78 DEC 01, 2008 199.62 26.61 173.01 6,137.77 JAN 01, 2009 199.62 25.88 173.74 5,964.03 FEB 01, 2009 199.62 25.15 174.47 5,789.56 MAR 01, 2009 199.62 24.41 175.21 5,614.35 APR 01, 2009 199.62 23.67 175.95 5,438.40 MAY 01, 2009 199.62 22.93 176.69 5,261.71 JUN 01, 2009 199.62 22.19 177.43 5,084.28 JUL 01, 2009 199.62 21.44 178.18 4,906.10 AUG 01, 2009 199.62 20.69 178.93 4,727.17 SEP 01, 2009 199.62 19.93 179.69 4,547.48 OCT 01, 2009 199.62 19.18 180.44 4,367.04 NOV 01. 2009 199.62 18.41 181.21 4,185.83 DEC 01, 2009 199.62 17.65 181.97 4,003.86 JAN 01, 2010 199.62 16.88 182.74 3,821.12 FEB 01, 2010 199.62 16.11 183.51 3,637.61 MAR 01, 2010 199.62 15.34 184.28 3,453.33 APR 01, 2010 199.62 14.56 185.06 3,268.27 MAY 01, 2010 199.62 13.78 185.84 3.082.43 JUN 01, 2010 199.62 13.00 186.62 2,895.81 JUL 01, 2010 199.62 12.21 187.41 2,708.40 AUG 01, 2010 199.62 11.42 188.20 2,520.20 SEP 01, 2010 199.62 10.63 188.99 2,331.21 OCT 01, 2010 199.62 9.83 189.79 2,141.42 NOV 01, 2010 199.62 9.03 190.59 1,950.83 DEC 01, 2010 199.62 8.23 191.39 1.759.44 JAN 01, 2011 199.62 7.42 192.20 1,567.24 FEB 01, 2011 199.62 6.61 193,01 1,374.23 MAR 01, 2011 199.62 5.79 193,83 1,180.40 APR 01, 2011 199.62 4.98 194.64 985.76 MAY 01, 2011 199.62 4.16 195.46 790.30 STUN 01, 2011 199.62 3.33 196.29 594.01 PAGE 1 of 2 IBM CREDIT LLC IPMA PAYMENT SCHEDULE Customer Name: CITY OF LODI Reference Number: Q02894265-01 Date: 2007-06-27 Payment Due Payment JUL 01, ------------------------- 2011 199.62 AUG 01, 2011 199.62 SEP 01, 2011 199.62 Total ------------ 9,581.76 Fin. Charge 2.50 1.67 0.68 ------------- 923.76 PAGE 2 of 2 Principal 197.12 197.95 198.94 -------------- 8,65$.00 Balance -------------- 396.89 198.94 0.00 RESOLUTION NO. 2007-125 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING PURCHASE OF A REPLACEMENT AS400 MID-RANGE COMPUTER WHEREAS, Lodi Municipal Code §3.20.070 authorizes dispensing with bids for purchases of supplies, services, or equipment when it is in the best interest of the City to do so; and WHEREAS, the IBM AS400 mid-range computer is the City's 'workhorse," hosting three major applications, including the JD Edwards enterprise resource planning system, the Business License application, and Alliance Data (Orcom) ECIS utility billing program. Individual JD Edwards modules include payroll, general accounting, payables, and purchasing; and WHEREAS, the current system was purchased in 2002 and is approaching the end of its supportable life; and WHEREAS, IBM has released the last operating system update for this particular model (V5R4), and the hardware support for this system is also expected to become increasingly expensive because of the system's age, or unavailable at all through IBM; and WHEREAS, replacement of this system will be necessary as software vendors no longer support the aging operating system version the City currently utilizes, and upgrades to current software applications cease to became available. WHEREAS, staff recommends purchasing a new i5 series IBM computer from Logical Design, Inc,, of Rancho Cordova, in the amount of $142,765.00, and financing the purchase over four years through the IBM Installment Payment Master Agreement at interest rates that are at or belowcurrent market; and WHEREAS, staff further recommends a payment schedule of $3,217.03 per month, or approximately $38,604 annually, which will eliminate current support expenditures, thus saving the City about $6,400 per year. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the replacement purchase of an AS400 computer from Logical Design, Inc., of Rancho Cordova, California, in the amount of $142,765, which includes financing costs. Dated: July 18, 2007 ------------------------ hereby certify that Resolution No. 2007-125 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 18,2007, by the following vote: AYES: COUNCIL MEMBERS —Hansen, Katzakian, Mounce, and MayorJohnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS—Hitchcock ABSTAIN: COUNCIL MEMBERS— No VN D D1 city Clerk 2007-125