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February 11, 1982 <br />To: <br />Board of County Commissioners <br />From: Jeffrey K. Barton, Finance Director <br />Subject: Lease Purchase IBM System 38 <br />P. 0. BOX 1028 <br />VERO BEACH • FLORIDA <br />32960 <br />As background, when the decision was being made in 1979 to upgrade our <br />old data processing equipment, we wanted equipment that would be "state- <br />of-the-art" and had the ability to beexpanded for our future use require- <br />ments for the next 8 yo 12 years, The IBM System 38 was chosen for these <br />reasons. We entered into a government lease contract which is upgraded <br />annually to match our Fiscal Year. A portion of the monthly lease accrues <br />to purchase of the system. <br />The present system's lease payment for FY 81-82 is $6,679.00 per month. <br />The proposed lease -purchase for the present system on a 60 month basis <br />is $5,748.80 per month - a saving of $930.20 per month. This savings <br />should be used for expanding the present system. The proposal for the <br />system expansion will increase capacity of processor by 2-1/4 times plus <br />5 additional CRT's (for a total of 12) for $1,435.00 per month. The net <br />increase in monthly payments of $504,80 will increase our capabilities <br />to perform the data processing function for the county. <br />It is my recommendation. to enter into the 60 month lease purchase for the <br />following reasons: <br />1) Known costs for data processing equipment for the next 60 months. <br />2) Current storage capacity is being 90% utilized and upgrade must be <br />done for any possible project expansionover current level. <br />Finance Officer Barton went over the figures involved <br />in detail, emphasizing the growing need for expansion; the <br />fact that we have an ever increasing rent payment; and also <br />the fact that we now are at the point where we have just <br />about maximized the credit we can accrue towards purchase. <br />Chairman Scurlock's basic question was whether we have <br />done enough analysis of alternate systems to lock ourselves <br />in for the next 8-12 years. <br />Mr. Barton noted that this analysis was done at the <br />time we purchased the original system. <br />Commissioner Fletcher commented that he had talked to <br />some computer people, and they all felt this was a good <br />system. <br />3 <br />FEB 171982 <br />. P'OK 8 -GE 832 <br />