SR-04-08-1980-6XSanta Monica, California. Mar 28, 1980
To: Mayor and City Council APR 8 1980
From: City Staff
Subject: Data Processing, Data Entry Equipment Modernization
INTRODUCTION
This report presents information regarding the need to increase
the productivity of the Data Processing Division through the use of
modern Key -to -Disk Data Entry equipment as a replacement for the Key-
punch equipment presently used by this Division.
BACKGROUND
Since its entry into Data Processing in 1960, Santa Monica has
utilized the familiar punched card as its major source of preparation
of data for entry into the computer, and is still doing so even though
the majority of Data Processing installations have converted to other
systems. There are now other modern and more efficient methods for
preparing data for entry into the City's computer. The method used by
most installations of Santa Monica's size is known as Key -to -Disk. It
consists of a very small computer to which are attached several
electronic (Cathode Ray Tube) terminals. Data is entered into this
very small computer, is verified, and then automatically transferred
over to the larger main computer. This type of system completely
eliminates (1) the need for cards (2) card storage space and equipment,
(3) transportation of cards to computer area (4) and the long slow
process of reading the cards into the computer by a card reader.
There are many vendors of Key -to -Disk equipment and City Staff has
investigated four whose systems would fit in every respect the needs
of Santa Monica. The information obtained has been used to derive cost
figures and is presented in the following paragraphs of report.
THE PROBLEM
The Data Processing Division has the need to increase productivity
in the face of an ever increasing data entry work load with only a
small probability of an increase'in personnel. The preferred method is
to increase the productivity of present personnel through the utiliza-
tion
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APR 8 9980
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of modern Key -to -Disk equipment as a replacement for our present
keypunch- machines, Staff also believes this will be the least costly
method over the long term. City Staff has surveyed several similiar
sized installations, who have already made this change, and find they
have realized gains of 15 to 25 percent in data entry output. Santa
Monica should expect to realize the same by moving to the cardless
Key -to -Disk approach,
Presently, the City is paying $9000 per year for keypunch machine
rental and $6000 per year for cards (approximately 3,000,000 used per
year), for a total cost of $15,000 per year. By July 1, 1981, the
rental cost of these obsolete machines will have risen to $12,000 per
year and cards to $7000 for a total cost of $19,000 per year. Even
though the rental cost of these machines may stabilize, the cost of
cards will not. Due to increased useage and inflationary costs, cards
can be expected to increase in price at the rate of $S00 to $1000 per
year. Thus, the City is faced with an increasing cost with continued
utilization of its present keypunch machines,
SOLUTION
City Staff believes that the City should purchase modern Key -to-
Disk equipment as a replacement for its present obsolete keypunch, card
based equipment, The estimated cost of the newer equipment is $35,000
to $39,000. This would be off -set by a reduction in card and keypunch
rental costs of approximately $8000 next year and $15,000 to $20,000
each year in subsequent years, The cost of the new equipment would
therefore be returned in less than three (3) years.
RECOM11END_ATION_
It is recommended that $39,000 be transferred from the reserve
fund to account number 46-100 - 223 -000- -950. Normally, this request
would have been placed in next years (FY81) Data Processing budget,
however, in order to maximize cost savings and other benefits an
early change over in FY 1981 is desireable. Additionally, there is
a 120 day lead time for the equipment and a 3 to 4 month installation,
reprogramming, and operator training period will be required after
the receipt of the equipment,.
Prepared by; Richard D, Fuller Kay Watanabe
Data Processing Mgr. Acting Finance Director
j Agenda Item 6 -X: Contract No. 3469(CCS) was awarded to Key -to -Disk
1$Equipment in an amount not to exceed $39,000 and appropriation of
39,000 from the reserve fund.
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CITY COUNCIL MEETING - ApriZ 8, 2980