Table of Contents: Chapter 8

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808 PROCEDURES FOR RECEIVING, TRANSFERRING, AND DISPOSING OF COMPUTER EQUIPMENT

808.1 Purpose

Outline procedures for Information Technology Services (ITS) to adequately prepare new computer equipment for service, obtain proper maintenance agreements and licenses, initiate Managed Equipment Replacement Program (MERP) files, and provide the necessary information to properly record disposals and transfers.

808.2 New IT Equipment

Initial capital purchases are budgeted in the departmental capital account, subject to Council approval. All equipment and/or software will be purchased by ITS in accordance with the Capital Asset Policy.

808.2.1 Departmental Expansion Requests (New projects or new equipment)

• Departmental ITS budget requests will be sent to ITS for costing and evaluation.
• ITS will evaluate budget requests for technical productivity, cost efficiencies, and effectiveness.
• ITS will identify system wide needs, including prioritization and cost estimates.
• All requests are presented to the management team, evaluated, and prioritized for inclusion in the Fiscal Year Budget. All purchases are coordinated by ITS.

New hardware (PCs, printers, scanners, digital cameras) or software will be listed as an expansion item in the capital asset account in the ITS fund 043 040. If approved, the user departments will be charged through their 800 000 capital purchases account and Finance will transfer the funds immediately to ITS at the beginning of the program year. ITS will purchase the necessary equipment/software and add the appropriate new equipment to the MERP for the next fiscal year.

808.2.2 Equipment for New Positions. Departments are required to budget for the necessary technology with new positions in the departmental 800 000 capital account. ITS will provide the cost of a desktop PC, printer, and phone to the department. If the position is approved in the budget, ITS will purchase the necessary equipment/software and add the appropriate new equipment to the MERP for the next fiscal year.

808.2.3 Citywide Network Hardware/Software Expansion (New projects or equipment. All ITS network hardware/software equipment purchases will be included in the ITS overhead program 4030 in the capital account (800) and allocated based on the overhead allocation formula. If the project benefits the entire network, the cost is allocated to user departments proportionately. If the project has a limited benefit, only the benefiting departments are assessed the cost. ITS is responsible for making this determination.

808.3 Receiving Computer Equipment

808.3.1 All computer equipment and software shall be centrally ordered by ITS, unless approved prior to purchase by ITS and the user department. Computer equipment includes all equipment related and attached to the City's computer network or the PC desktop including, but not limited to, CPUs, monitors, printers, external disk drives and modems, digital cameras, and scanners; and any related software applications.

808.3.2 All new computer equipment will be delivered to ITS for coordination of installation and asset tracking, unless approved prior to purchase by ITS and the user department. The receiving document (green sheet) will be sent to ITS for final sign off for payment upon arrival of the unit.

808.3.3 Upon delivery of the newly purchased unit, ITS will inspect the item to ensure that the requirements of the specifications have been met.

808.3.4 An asset number will be assigned and all paperwork necessary will be prepared to record the item as an insured asset of the City; and a master maintenance file will be initiated.

808.3.5 ITS will be responsible for affixing the asset tag on the computer equipment, as well as an installation date tag.

808.3.6 A representative of ITS will install the computer equipment, unless otherwise agreed upon by ITS and the user department.

808.3.7 A Capital Asset Tracking Form will be completed and distributed to the Insurance Manager, Finance (attached to the green receiving), and the original copy will be maintained in ITS central files.

808.3.8 Upon acceptance and installation of the unit, ITS will sign the receiving copy of the purchase order, which will be on file at ITS. ITS will return it immediately to Accounts Payable for payment authorization.

808.3.9 The item will be added to the appropriate MERP account by ITS.

808.4 Disputes and Non-acceptance

If the delivered unit is deemed as unacceptable, the Purchasing Division Buyer will be notified immediately and will be responsible for resolving any and all disputes, corrections, or adjustments.

808.5 Obtaining Licensing

808.5.1 All documentation necessary to obtain legal licenses and maintenance agreements regarding the computer equipment will be delivered to ITS which will be responsible for the ensuring proper licensing of all City owned computer equipment prior to delivery of the unit to the department.

808.5.2 ITS shall maintain a central file of all licenses and maintenance agreements.

808.6 Disposal of Computer Equipment

808.6.1 Disposal Method. Upon retirement of computer equipment, ITS shall complete a Capital Asset Tracking Form so that a determination can be made as to the method of disposal.

808.6.2 ITS shall be responsible determining the method of disposal of the computer equipment including sale, transfer, and parts inventory. ITS shall be responsible for preparing the unit for disposition, including deletion of all data on the unit.

808.6.3 Purchasing shall arrange for the sale or disposal of the unit and shall prepare all necessary documentation to effect the sale of the unit. Any advertising for bids shall be accomplished through the Purchasing Division. Cash receipts from the sale of all City property shall be collected by the Purchasing Division and forwarded through the proper channels to Collections.

808.6.4 Upon disposal, a copy of the Capital Asset Tracking Form shall be provided by ITS to the Insurance Manager and Finance.

808.6.5 The item will be deleted on the appropriate MERP account by ITS.

808.7 Disposal through Bid Process

808.7.1 Any computer equipment disposed of through a bid process shall require the purchaser of the equipment, be present at the Purchasing Division to sign the Release Form and pay for the purchase. Both the receipt/bill of sale and the release form shall be notarized. Copies of this documentation shall be presented to ITS in order to release the unit to the purchaser or his/her agent.

808.7.2 Upon disposal, a copy of the Capital Asset Tracking Form shall be provided by ITS to the Insurance Manager and Finance.

808.8 Disposal through Auction

808.8.1 Sale of computer equipment sold through a licensed auction shall be handled by ITS, with oversight from the Purchasing Division.

808.8.2 ITS shall be responsible for setting a minimum bid based upon the MERP salvage value or other best available data prior to the item being taken to auction for any item valued at more than $1,000.00.

808.8.3 ITS shall be informed by Purchasing of the amount of the sale receipts from auction.

808.8.4 Upon disposal, a copy of the Capital Asset Tracking Form shall be provided by ITS to the Insurance Manager and Finance.

808.9 MERP Replacement

ITS shall be responsible for centrally coordinating the replacement of all computer related equipment. Fees for PCs and printer replacement purchases will be assessed annually to each department for the computer equipment they are currently using, excluding software and telecommunications. The user department's replacement fund will be reduced by the purchase price of the replacement. In the event that funds are not sufficient to cover the anticipated replacements, the purchase will require Administration approval.

808.9.1 The formula is as follows:

Replacement Cost / Life Cycle = Annual MERP payment

808.9.2 To calculate the MERP payment on an annual basis, the inventory as of 12/31 (including any known planned replacements through the end of the fiscal year) is used as the basis for determining the next fiscal year MERP payment (beginning the following 7/1).

808.9.3 Life Cycle. Personal computers, printers, and other IT equipment will have a life cycle determined by the Chief Technology Officer and approved by the Assistant City Manager.

808.10 IT Overhead Charges

Each department will be charged an annual fee for ITS services. The overhead charge to the departments will be based on a percentage of the operating budget for ITS allocated to the user departments. The formula considers the amount of equipment, IDs for the network and IDs for the AS400 system for each department in an attempt to measure and allocate the demand for operating support.

808.10.1 The allocation is based on the following formula:

Total ITS Budget (Funds 4030 and 4040)
x ( (Equipment points determined in MERP account + Number of Network IDs + Number of AS400 IDs)/Total Possible Points) )
= Departmental Overhead Cost Allocation
Total ITS Budget - ITS operations budget (043 4030) allocated proportionally among user departments; ITS capital budget (043 4040 account) includes capital projects which are allocated Citywide if it is a complete system enhancement or to a specific department(s) if there is a limited benefit from the project.

Equipment Points - Each piece of equipment will be weighted by its complexity factor. The weights will be summed and divided by the total weights to determine the % of equipment. This is automatically calculated as a part of the inventory stock in the MERP.

Number of Network IDs and AS400 IDs - this is the number of departmental IDs assigned to the network and the AS400.

808.10.2 Software Maintenance. ITS will include software maintenance costs in the ITS overhead program. If vendor software maintenance is not available or not purchased, the department will be assessed an hourly fee for software modifications if outside assistance is required. The department will request the modifications prior to budget adoption and a cost proposal will be provided by ITS that will include estimated hours and hourly rate.