Orange County NC Website
Browse       Search
1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Action Agenda <br />Item No =-T <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 24, 1992 <br />SUBJECT: Financing for E911 /CAD Hardware /Software <br />DEPARTMENT: -Land Records /Finance PUBLIC HEARING YES NO x <br />ATTACHMENT(S) <br />IBM Financing Summary <br />INFORMATION CONTACT <br />Roscoe Reeve, ext 2500 <br />Ken Chavious, ext 2450 <br />TELEPHONE NUMBER <br />Hillsborough 732 -8181 <br />Chapel Hill 968 -4501 <br />Mebane 227 -2031 <br />Durham 688 -7331 <br />PURPOSE: To consider a proposal for financing a portion of Orange <br />County's agreement with IBM for provision of hardware, software, and <br />systems integration of Enhanced 911 /Computer Aided Dispatch <br />capabilities. <br />BACKGROUND: On January 6, 1992 the Board of Commissioners approved an <br />agreement with IBM for $380,727 for E911 /CAD hardware, software, and <br />system integration services. Staff recommended at that time that non - <br />IBM hardware /software and IBM system development, totaling $185,164, be <br />paid over a nine month period in accordance with the payment schedule <br />established in the agreement. Because the County has not accumulated <br />sufficient revenues from telephone subscriber charges to cover all <br />upfront costs at once, the balance of $195,563 was recommended to be <br />paid on an installment basis, with details to be arranged and brought <br />back for Board approval at a future meeting. <br />IBM has developed a proposed financing plan that would enable the <br />County to finance the balance for 59 months at interest rates of 5.96% <br />for software ($11,496) and 6.06% for hardware ($184,067). For <br />comparative purposes, staff also solicited quotations from a number of <br />lending institutions and received quotes as low as 5.85% for 36 months. <br />However, staff recommends approval of the IBM proposal as it will <br />provide the longer payback period necessary to match the revenue flow <br />from monthly telephone subscriber charges, and result in greater <br />administrative ease and savings of staff time. The finance charges <br />total $31,037, about $3,000 less than projected back in January. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the <br />financing arrangement with IBM, subject to final review by the County <br />Attorney, and authorize the Chair to sign a contract amendment for this <br />purpose. <br />