ADMINISTRATIVE COMMITTEE
4.	CONSIDER EXPENDITURE OF BUDGETED FUNDS TO PURCHASE REPLACEMENT COMPUTERS AND RELATED SOFTWARE AND HARDWARE
Meeting Date:		April 14, 2008	Budgeted:	Yes (included in 2007-08 budget as Capital Assets Replacements and FY 07-08 IT budget)
From:		Darby Fuerst,	Program/	Information Technology
		General Manager	Line Item No.:	Fixed Assets
Prepared By:		Inder-Mohan S. Osahan,	Cost Estimate:	$ 106,000
		Chief Technology Officer
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on April 14, 2008, and recommended ____________.
CEQA Compliance: N/A

SUMMARY: District staff is requesting authorization to proceed with the scheduled replacement of up to 36 of the 42 computers/laptops currently used by District staff, and related software (e.g. Microsoft Word, Adobe Acrobat, and Adobe Photoshop) and hardware (e.g. printers, scanners, backup systems, firewall, routers and switches). Exhibit 4-A shows how the computers are currently being utilized. The scheduled replacement will allow the District to upgrade to MS-Office 2007/XP (later Vista) and avoid repair costs related to failure of the existing equipment. The MS-Office 2007/XP/Vista upgrade will ensure that the software used by the District is compatible with the software used by the public, consultants, and agencies that the District interacts with.

Since June 2006, staff has been working on pilot systems designed in-house by staff and built by CJM Networking Solutions to alternative potential problems with the new hardware, software, and compatibility issues with other peripherals. Based on the results of this pilot project, staff developed a minimal computer design, with assistance from CJM Networking Solutions. Once the design was completed, staff requested quotes from vendors to custom build computers, and branded products vendors based on specifications and design provided by staff. The District received quotes from three (3) vendors and reviewed them for parts configuration, ease of use/deployment, related support, and overall cost consistent with the design and specifications. After extensive review of the quotes received, staff selected CJM Networking solutions to supply the new computers that would be custom built along with deployment, CDWG to supply laptops and other software, and DELL to supply servers. CJM Networking Solutions would also build custom servers, per staff specifications, and design large disk arrays for storage and virtualization. Server infrastructure and technical support has been provided by CJM Networking Solutions since the last upgrade in April 2002.

RECOMMENDATION: Authorize the General Manager to purchase up to thirty-six (36) computers and related software and hardware for a not-to-exceed cost of $91,000, authorize an expenditure of $10,000 for assistance from CJM Networking for technical support and deployment of these systems, and $5,000 for any change in costs during the upgrade process. The Administrative Committee discussed this item on April 14, 2008 and recommended that the Board _______ this item by a vote of _____ to ____.

IMPACT ON STAFF AND RESOURCES: Prior to FY 2001-2002, $90,000 was reserved for replacing computer equipment. When the computers were upgraded in April 2002, the actual cost was $70,000. The savings of $20,000 was due to the low cost of equipment and the work being done in-house with minimal consultant assistance. Of the $70,000 budgeted for computer replacement in FY 2006-2007, $4,500 was spent to acquire equipment to test hardware and software for the new workstations as a pilot. Accordingly, a balance of $65,500 remains in the Capital Equipment Reserve for computer replacement in FY 2007-2008. The FY 2007-2008 budget included the transfer of $65,500 from the Capital Equipment Reserve to the Fixed Assets line item in the 2007-2008 budget for computer replacements.

Summary of Computers and Related Software and Hardware Replacements

Quantity	Item for purchase in FY 2007-2008	FY 2007-2008 Budget	Expenses
36	Computers and Laptops Upgrade	Capital Reserves	$ 37,500.00
various	Software Upgrade	Capital Reserves	$ 10,745.00
4	Server Hardware Upgrade	Capital Reserves	$ 9,500.00
various	Server Licenses Upgrade	Capital Reserves	$ 7,652.00
	Taxable Upgrade Sub-Total FY 2007-2008	$ 65,500.00	$ 65,397.00
various	Hardware Purchases	Capital Equipment	$ 9,637.00
various	Software Purchases	Software Purchases	$ 8,638.00
	Taxable Purchases Sub-Total FY 2007-2008	$ 26,181.36	$ 18,275.00
	Sub-Total Purchases FY 2007-2008	$ 91,681.36	$ 83,672.00
	Taxes 7.25%		$ 6,066.22
	Shipping		$ 1,000.00
	Total Purchases FY 2007-2008	$ 91,681.36	$ 90,738.22

The FY 2007-2008 budget includes the additional funds for the extra amount of $18,275 required to complete the computer upgrade included in the capital projects, software, hardware and consumables accounts for information technology.

The rise in cost is due to the fact that the District has ten (10) computers and laptops that have been added since the last upgrade in FY 2001-2002. These computers were needed to support staff functions in the various divisions of the District. Staff uses all of these computers to accomplish their daily tasks along with other equipment.

In addition, another computer and a new video processing server was added to the District’s network infrastructure to support video capture at the San Clemente Fish Ladder to track the steelhead migration along the Carmel River.

Furthermore, a new GIS (geographical information system) was implemented in 2003. This led to adding three (3) servers to the existing infrastructure to support large amounts of map and imaging data that were acquired by the District. The GIS platform has its own licensing for server and GIS related software that is also maintained and upgraded as needed.

The conference room was modified and has a digital audio visual system which is also supported by a separate server that uses specialized hardware and software. This server allows the Board meetings to be televised and cablecast in the Monterey Peninsula area. Staff maintains these servers and all computer equipment in-house to minimize operations cost.

BACKGROUND The District has all computers on a three-year replacement schedule and thirty-three (33) computers were replaced in April 2002, along with the MS-Office suite of products. Although these computers were scheduled to be replaced in April 2005, the District decided not to incur any extra expenses in FY 2005-2006 to balance the budget. Late in 2006, Microsoft announced the release of its new operating system called Vista, along with the new Office 2007 software products. To avoid start-up problems, staff recommended that the computers be replaced after the service packs are released for the new software products. In the meantime, a pilot was done with to make sure that all current hardware and software is compatible with the new operating system. Microsoft has released the service packs for these new products and the products are more stable than when they were released to manufacturing.

Recently, various components including monitors, hard drives, video cards, network cards and main boards in the District computers have started to fail, requiring significant repairs. The District desires to upgrade to MS-Office 2007/XP/Vista to have software that is compatible with that used by the majority of the public, consultants and agencies that the District interacts with. The software package includes Microsoft Word, Excel, PowerPoint, and Outlook. The replaced computers will either be disposed of in accordance with the District’s Policy Regarding Disposal of Surplus Property or traded in to the vendor.

EXHIBIT

4-A List of Computers being replaced

U:\staff\word\committees\Admin\2008\20080414\04\item4.doc