MEMORANDUM

TO: Pete Sprague, Assembly President

Assembly Members, Kenai Peninsula Borough

THRU: Mayor Dale Bagley

THRU: Scott Holt, Finance Director

THRU: Mark Fowler, Purchasing and Contracting Officer

FROM: Richard Campbell, General Services Director

DATE: June 7, 2004

SUBJECT: A RESOLUTION AUTHORIZING THE SOLE SOURCE PURCHASE OF A UNISYS APPLICATIONS SERVER PACKAGE

The current mainframe used by both the borough and school district will no longer be supported by Unisys at the end of this year and needs to be replaced. Because the applications on the mainframe utilize Unisys's proprietary operating (MCP) and database (DMSII) systems, instead of open systems such as Windows NT and SQL, a replacement is only available from Unisys.

We have identified a suitable hardware and software package for a discounted price of $241,531. Purchase of this computer utilizing the equipment replacement fund was approved in our current FY2004 budget.

Please note that, with our on-going efforts to convert our applications to run on the Windows NT Platform, this will be the last Unisys proprietary system we will need to purchase.