HomeMy WebLinkAboutREP FC 322 01/22/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: January 22, 1991 Re: 'Comm. 2201
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No . 265-91, reports as follows :
Resolution No. 265-91 proposes to authorize the County to enter into
a multi-year lease with Wang Laboratories, Inc. for a "Global
Maintenance Plan" for hardware maintenance and software support of
all of the County' s Wang computer systems .
Your Committee understands that Wang Laboratories, Inc. was the only
bidder to the County' s bid for Wang computer systems hardware
maintenance and software coverage. It is also understood that based
on a 30% discount for the annual payment plan option, the County
would realize an approximate savings of $100, 000 .
The new plan will also provide the County with 12 hours of daily
coverage from Monday through Friday. The previous plan provided
8 hours of daily coverage with a 15% additional charge for extended
hours coverage.
During discussion at the January 8, 1991 Committee meeting, the
Administration explained that they intended to enter into a 3-year
agreement with Wang Laboratories, which would result in a 30%
savings in maintenance costs for the County. The "Global
Maintenance Plan" is a brand new plan and is probably a result of
the competition in the computer maintenance industry.
The Plan will provide a much improved software support program as
well as a doubling of staff support services . The Plan is based
upon the County providing Wang with a certain level of business .
The agreement also provides for the County to be released from its
obligation should the County decide to change its equipment to
another make.
The Plan is based upon an annual cost of $300, 000 . Current
equipment maintenance costs amount to $262, 000 . Adding the
anticipated new equipment to the equipment maintenance list, the
County' s maintenance cost would then rise to $331, 000 . The Global
Maintenance Plan would cost the County only $232, 000, resulting in
about a $100, 000 savings .
FC REPORT NO. 322
ADOPTED : FEB 6 1991
FC- 322 Page 2 January 22, 1991
It was explained that the additional equipment being added were not
to be all new; some would be purchased on the used market.
Warranties on used equipment generally are good for 30 days . The
resolution does not cover the maintenance costs for other brands of
computers owned by the County.
Your Committee also inquired as to how all of these long-term
commitments would mesh with the development of a written,
County-wide, long-range electronic data processing plan, as
recommended by the external auditors . The administrative response
was that they were not sure as to the scope of the EDP plan that the
external auditors had in mind and that they will be having a meeting
to define the scope.
Your Committee felt that it needed to review the terms of the
agreement and deferred action on Resolution 265-91.
In response to your Committee' s request, the Price Term contract and
bid proposal were submitted for committee review. The equipment
included both existing and anticipated equipment.
As explained, an annual contract would result in 27% savings or
$89, 582 . A three-year contract would amount to savings of 30% or
$99, 536/year . The net difference is $9, 900/year. The new contract
will also simplify the billings resulting in reduced paper shuffling.
Your Committee also received a second draft to Resolution 265-91,
clarifying that the proposal was not to enter a lease but to enter
into a contract . Your Committee concurred with the second draft and
amended Resolution 265-91 accordingly.
Your Committee on Finance concurs with the intent and purpose of
Resolution No. 265-91, Draft 2, and recommends its adoption.
HELENE H. HALE, CHAIRWOMAN
ROBERT H. MAKUAKANE, VICE CHR. BRIAN J DE LI . , ME ER
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