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HomeMy WebLinkAboutResolutions - 1995.06.08 - 24477MISCELLANEOUS RESOLUTION #95168 June 8, 1995 BY: FINANCE AND PERSONNEL COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: APPROVAL OF LOAN FROM DELINQUENT TAX REVOLVING FUND FOR PURCHASE OF MAINFRAME DIRECT ACCESS STORAGE DEVICE (DASD) To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the mainframe direct access storage device, hereafter referred to as DASD, is necessary to store vital mainframe application data for many Oakland County Departments; and WHEREAS 24 hour operation is required to provide the necessary service to the customers and interruptions of any magnitude are unacceptable; and WHEREAS many components of this system have been in operation since 1987 with mechanical components which make them prone to failure and such failure rate has increased significantly during 1994; and WHEREAS DASD technology has drastically improved over the past several years offering features such as Random Array of Independent Disks (RAID) and mirrored systems designed to eliminate many of the interruption problems currently experienced and affords significant power savings; and WHEREAS a loan is requested from the Delinquent Tax Revolving Fund (DTRF) in the amount of $805,000 for the initial equipment investment to be repaid over a five-year period; and WHEREAS annual operating costs are estimated to be $201,250 for depreciation for the first two years and $238,870 for depreciation and maintenance beginning in year three; and WHEREAS interest expense is estimated to be $28,175 for 1995; and WHEREAS funds for the annual operating costs and interest expense are available in the non-departmental reserve account for office automation. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the purchase and installation of a new DASD system inclusive of the RAID and mirrored system features. BE IT FURTHER RESOLVED that the Chairperson of the Board is authorized to execute the attached Borrowing Agreement in the amount of $805,000 with the County Treasurer as agent of the DTRF. BE IT FURTHER RESOLVED that principal and interest made to the DTRF in repayment of this agreement will be accounted for in the Information Technology Operations Fund, fund #63600. BE IT FURTHER RESOLVED that the 1994/95 Biennial Budget is amended as follows: 1995 General Fund (10100) Expenditures 903-01-00-9920 Office Automation 181-01-00-6360 Computer Services Operations TOTAL Information Technology Fund (63600) Revenue 181-01-00-2037 Operations Subtotal $ (128,800) 128.800 5 128.800 5 128.800 Expense 186-01-00-3304 Depreciation $ 100,625 184-01-00-3418 Interest Expense 28,175 Subtotal 1 128.800 TOTAL 0 Chairperson, on behalf of the Finance and Personnel Committee, I move the adoption of the foregoing resolution. FINANCE AN] PERSONNEL COMMITTEE principal $ 161,000 161,000 161,000 161,000 161,000 S 805.000 Year 1 2 3 4 5 Total REVOLVING FUND BORROWING AGREEMENT WHEREAS the County of Oakland is desirous of borrowing monies from the Oakland County Delinquent Tax Revolving Fund, and WHEREAS the Delinquent Tax Revolving Fund Agent has determined sufficient monies are available to loan to the County, THEREFORE, in consideration of agreements setforth below it is hereby agreed by and between the parties as follows: The County will borrow the principal sum of $805,000 from the Delinquent Tax Revolving Fund to be paid back in annual principal and interest payments not to exceed five years. Said payments shall be deducted from the annual Revolving Fund distribution made to the County on or about June 1st of each year. Interest on each payment will be based on the average monthly rate paid during the term of this agreement by the agent of the Delinquent Tax Revolving Fund for that year's outstanding borrowing. The schedule of principal payments will be: It is further agreed that the County may plus accrued interest without penalty. pay off the loan at any time Agent for Revolving Fund Chairperson Board of Commissioners In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 8th day o(,,..Talne 15t5-, (21111010EL...- L). Allen, County Clerk Resolution #95168 June 8, 1995 Moved by McCulloch supported by Amos the resolution be adopted. AYES: Douglas, Garfield, Holbert, Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Moffitt, Obrecht, Palmer, Pernick, Powers, Quarles, Schmid, Taub, Wolf, Amos, Crake, Devine, Dingeldey. (25) NAYS: None. (3) A Sufficient majority having voted therefor, the resolution was adopted. 1 HEREVAPPRy4E. FORECV:"k I SOLUTION ‘/YeA L. Brooks Pet1011on, County Executive Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 8, 1995 with the original record thereof now remaining in my office.