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KLG/fm 8/1/79 RESOLUTION NO. 79-133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING EXECUTION OF CONTRACTS SETTLING A CERTAIN CLAIM AND FOR CERTAIN COMPUTER EQUIPMENT DEEMED BY THE COUNCIL TO BE OF URGENT NECESSITY FOR THE PRESERVATION OF PROPERTY; AND DECLARING FACTS CONSTITUTING SUCH URGENCY. WHEREAS, this Council finds and determines as follows: 1. That the City presently leases from Burroughs Corporation a certain B2771 computer; that said computer is a model first developed by the manufacturer in 1962; that said model is no longer marketed; that said computer is subject to frequent failures of mechanical and electrical components thereof; that said failures result in unantici- pated delays in production and expensive use of human labor; and that repair and replacement parts needed to maintain and repair said computer are rapidly becoming more and more difficult to obtain due to said computer's state of techno- logical obsolescence. 2. That the City's obligation and liability for the remaining term of the lease of said computer is presently approximately the sum of $250,000. 3. That conversion to another computer system of any manufacturer other than Burroughs Corporation would result in the costs therefor being increased to the extent of said sum of $250,000, the City's obligation to pay which would not then be waived by Burroughs Corporation, plus additional costs of programming conversion made necessary by such change in a sum estimated by the Director of Finance to be in the range of $200,000 to $300,000. 4. That said obsolescent computer can be replaced by novation of the present agreement with Burroughs Corporation to effect the following transactions: (a) until delivery of the computer hereinbelow referred to as a "B3950 computer" can be received, replace existing obsolescent B2771 computer temporarily by leasing for a period of approximately 1 year from Burroughs Corporation a B3890 central computer at an annual cost of approximately $85,000 to overcome present problems of delays and expense caused by break- downs and unavailability of replacement parts; (b) purchase a B3950 computer with peripheral equipment and software for delivery in the 4th calendar quarter of 1980 for a total cost of not more than $420,000; (c) relieve the City of its present contractual obligation to pay Burroughs Corporation the sum of approximately $250,000 still due and owing for said obsolescent computer, thus settling any and all claims that Burroughs Corporation may have for said sum or any part thereof; and