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TOWN OF LEXINGTON
DATA PROCESSING ADVISORY TASK FORCE
FINAL REPORT
FEBRUARY 4, 1984
David Gilbert, Chairman
Michael E Ash
Michael Carvey
Alan Chickinsky
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Richard Kissel
Robert Monaco
William Rosenfeld
Robert M. Hutchinson, Jr. , Town Manager
Richard M. Perry, Town Comptroller
James R. Kane, Town Revenue Officer
TABLE OF CONTENTS
Introduction and Recommendations p 1
Chapter 1-Accounting Functions p 5
General Overview
Detailed Applications p 9
Chapter 2- Department Needs p 13
Chapter 3- Libary Circulation
System p 16
Chapter 4- School Adm. Computer p 18
Appendix A- Accounting System
Specifications p 23
INTRODUCTION
UIn October of 1978, the Town of Lexington"s first Data Processing
Advisory Task Force was formed. At the time this initial study of the
Town' s data processing needs was conducted, the evolution of computer
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hardware and software had not evolved to the point where the Task
�� Force felt justified in recommending that the Town acquire its own
computer capabilities. The primary thrust of the Task Force's analysis
was the extension of the use of than cost effective service bureaus
for relatively high volume applications. In addition, the Task Force
recommended that subsequent review of these conclusions occur on a
periodic basis.
In August of 1983, Robert Hutchinson, Town Manager, formed the second
Data Processing Advisory Task Force. The charge to the committee is as
follows:
The committee shall advise the Town Manager on its
general and specific observations about existing data
processing capabilities within the municipal and
school administrations. It further shall comment on
recommended interim approaches to handling day to day
1 accounting and financial applications such as tax
receipts,water and sewer billing, payroll,budgetary
accounting, etc.
In light of the time that had passed since the report of first Task
Force, it was decided by the committee to engage in a comprehensive
1 review of all of the town' s accounting and information processing
I activities as currently transacted. The Committee benefited from the
ongoing support df Jim Kane, Town Revenue Officer, and Dick Perry,
J Town Controller. These gentlemen provided not only numerous hours
beyond the usual workday, but perspective and coordination.
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1 In completing its review of current activities, Committee members met
with a spectrum of Town Departments including: police, fire, dpw,
1 town clerk, assessors, town managers office, school administration,
Cary Memorial Library. These meetings in general, had several goals :
1) identification of all the current components
i/ of the Town' s accounting activities and
their interdependencies.
lI 2) identification of duplication of work effort
dicatated by the current manual and service
bureau environment utilized by the town.
I 3) evaluation of information processing requirements
that are unique to individual town functions and
departments.
It4) evaluation of the capabilities of the
School Administration System to support
the Town' s general data processing requirements.
jl 5) recommendations on the prioritization of potential
expenditures for town data processing capabilities
1 As the information gathered from the many meetings with Town employees
was analyzed, the committee became convinced that it was dealing with
two separate issues 1) the potential paths the town could pursue with
respect to the accounting activities, and their associated benefits;
2) identification of mechanisms for dealing with the needs of
individual departments . The analysis and conclusions that are
presented in this 'study represent this distinction.
Since the completion of the 1978 analysis, dramatic changes have
occured in the world of computerization. Continued rapid declines in
the cost of computer hardware, and the adaptation of the computer to
the office environment, dictated that the Committee seriously evaluate
the substitution of a Town owned and controlled computing environment,
for the current combination of manual, and service bureau
capabilities. Further, whether micro or mini-computers would offer
cost effective solutions had to be an area of focus.
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Lastly, and most importantly, the Committee concluded early in its
deliberation that the Town was not prepared to take on the difficult
burden of custom software development to meet its need. Such a process
requires highly specialized personnel, expensive outside consulting,
and can expose to the Town to substantial risks. Therefore, any
recommendations to shift from outside services to in house computing
I had to be based on the availability of software which currently meets
the Town' s immediate and expected requirements. These considerations
had to be evaluated in the context of quantified costs and benefits.
The "ultimate bottom-line" was whether the Committee could measure
both tangible and intangible benefits from changes in the Town' s
current methods for handling its information processing.
I The Committee strongly concluded that measurable economic benefits
could be reaped through the replacement of current manual and service
bureau operations with a Town owned and controlled computer facility
IIdevoted to primarily accounting and financial activities.
Additionally, an opportunity for improving departmental level
productivity exists through a limited implementation of
micro-computers.
The Committee' s recommendations are as follows:
1) The Town should have prepared and disseminate
a Request for Proposal (RFP) to replace
the current manual and service bureau
components of its accounting system.
The RFP is directed at the acquisition of a
mini-computer, and software for following major
applications:
a) ledger system, including payables, receivables ,
b) payroll
c) property tax assessment
d) tax billing and receivables
e) water and sewer billing
f) motor vehicle excise receivables
2) The Town should have prepared and disseminate an
RFP for the acquisition of four micro-computers, and
spreadsheet,word processing, database sorting
and reporting software. Two of the micros would
be deployed respectively to the Police and Public
Works Departments. The remaining two would initially
be shared among all departments and be housed
within the Town Office Building. Experience with
demand for this capabilitity will provide the basis
for evaluating the extent to which other departments
can justify exclusive use.
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' The committee estimates a 3.3 year payback on the investment to
`` acquire hardware and software to meet the Towns accounting
requirements. As the detailed analysis that follows indicates, the
11 Committee has concluded that the potential for additional qualitative
and quantative benefits exists, including properly preparing the town
for the retirement of key personnel who are the glue that holds the
current fragile environment together. The Committee's review of the
availability of "off the shelf " software suggests that the town does
not have to engage in custom software develop to accrue the economic
benefits of goingin house. Key personnel from the accounting
functions of the town must be involved in the development of the
detailed RFP, and in the subsequent review of vendor offerings. A
Project Coordinator should be appointed to manage the initial
conversion from manual to automated systems, and then to provide for
] ongoing computer operations. Further, the current Task Force should
assume an ongoing responsibity to work with Town Personnel in the
implementation of the RFP, and vendor review.
IThe Committee. in its review of the discrete non-accounting
requirements of individual town departments was continually exposed to
the extensive manual manipulation of information that has to occur on
a regular basis. No one application in itself was overwhelming. The
sum-total of these applications however, provides an opportunity to
significantly improve the productivity of department managers and
II administrative personnel. Though it is difficult to fully measure the
economic benefits of providing micro-computer capabilities within the
Town, the review of the myriad of current activities is suggestive
that the relatively modest expenditure will yield quick returns. In
fact, the saving of one man-year of effort across all the functions
analyzed, would payback the investment in one year. Additionally, the
rapid flow and the improved accuracy of information possible with the
micro-implementation, will improve the ability of town functions to
make recommendations and decisions.
Though several of the departments interviewed currently have personnel
capable of benefiting from micros in the near-term, the committee
recommends that volunteer support within the town be solicited to work
with individual departments in designing their micro- applications.
This will help to insure a rapid return on investment.
The sections of the Task Force Report that follow provide a detailed
review of:
1) current andproposed accounting data processing
2) micro-computer appplications
3) the role of the School Departments Computer
4) the on-line library circulation system.
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CHAPTER I
ACCOUNTING FUNCTIONS
Figure 1 1 depicts the interdependency of the elements comprising the
total accounting function of the Town of Lexington. Revenue and expense
generating activities are represented, including volume levels for tax
1 and water bills , purchase orders, payment vouches and encumbrances.
The data and functional interrelationships of the accounting function
as depicted, strongly suggest that a computerized replacement for the
towns manual functions must provide for an integrated environment. The
concept of integration is both with respect to the software and hardware
utilized. In the software category, data must flow freely among the
appropriate sub-systems. For example, the initiation and subsequent
approval of a purchase order dictates an entry to the encumbrance
system. Duplication of effort, and the avoidance of error is only
possible in a comprehensive environment. Though independent "machines"
can communicate, hardware fragmentation gives rise to additional costs
in terms of communication capability, and operating efficiencies.
Therefore, a minicomputer capable of handling the spectrum of
{ applications under consideration, offers greater potential benefits.
Throughout this analysis, the Town's business activities are segregated
into those which cross department lines, and those which are discrete
As the discussion of micro-computers in Chapter . . suggests, where
discrete activities exist, than discrete solutions are analyzed.
However, the accounting function can only be viewed practically as a
challenge which comprise several sub-applications, discussed in detail
below, requiring multiple users to have simultaneous access.
As the task force conducted a detailed review of the current manual
work efforts engaged in by Town personnel, the uniform impression
reached by Task Fotce members was the competence demonstrated by the
TOWN accounting personnel in accomplishing their work responsibilities.
1 The Town is not in a state of chaos. Bills go out in a timely fashion,
purchases are properly tracked and supervised, and payables are not
delayed. The combination of manual activities and service bureaus has
gotten the job done. Therefore, why consider automation when for many
Town' s it is the unsatisfactory condition of the manual accounting
activities which provides the motivation for seeking an automated
solution. Automation and going inhouse will provide tangible dollar
benefits delineated below. A more subtle benefit is the expectation
that maintaining the quality of the manual work effort will prove to
be increasingly difficult with the expected retirement of key personnel
and the probable difficulty in competing against the private sector
' for replacements. Using service bureaus to automate currently manual
activities does not offer the same financial returns and constrains
the opportunity to acquire the operational benefits of integration.
Lastly, the service bureau applications all suffer some levels of
deficiency, typically in the area of management information which can
be extracted. Included are issues such as timely reports on
receivables, analysis of assessments, and review of absenteism. The
benefits of improved and more timely information are always difficult
to quantify, yet there is the intuitive suggestion that the result
will be enhanced control and efficiency.
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Figure 1.1
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As part of the process of quantifying the benefits of computer
automation of the Town' s current accounting and analytical activities,
a review of expenditures for outside computer services was conducted.
f The potential for replacing these outside expenditures with inhouse
capability represents a substantial return on a major capital
expenditure.
'ra The present annual Town costs for outside data processing services
are: (vendors in parenthesis)
Payroll (ADP) 30K
Real estate tax billing and payment logging 20K
11 (Arlington Trust Bank)
Water billing and receivables 14K
1 (Town of Arlington)
Auto excise bills (prepared by the state of 8K
Massachusetts for $5K, receivables done by
11 the Arlington Trust Bank)
Parking fine payment logging and demands for 14K
payment ($1 per ticket to service bureau)
Real Estate reassessment ($30K every 3 years 10K
for linear regression)
Personal Property reassessment ($10K every 3K
three years)
IllCensus processing and street listings (LHS) 8K
'p TOTAL $107K
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IA In addition to the above annual savings achievable from "going
inhouse" with the Town' s accounting activities, is a one time capital
expense substitution. The current Burroughs accounting machine is 10
jy years old and in need of replacement. The estimated replacement cost
is approximately $20,000. In addition, there would an operating
expense savings of $2000 per annum for the maintenance of the
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accounting machine.
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jl Introducing a computerized accounting environment to the Town, in
J addition to the capital acquisition costs, will also introduce new
{ operating expenses. Forms and materials, now often provided as part of
outside services, software and hardware maintenace, custom programming
! for package modifications are all proper categories. Preliminary task
force estimates indicate that these categories will approximate
$40,000 per annum, resulting in interim benefits, before considering
�1 personnel, of $69,000 in the first fall year of operation.
IWill the introduction of the computer system require the hiring of
1I specialized personnel? Based on the experiences of other towns in New
England and a preliminary review of current software packages, the
Town is expected to be able to meet its need thru the acquisition of a
turnkey system.Therefore, there is no expectation that the Town will
hire programming personnel. However, the need for trained personnel to
handle operations is present. Training of existing personnel to handle
systems operations is possible Chapter 4 provides a discussion on the
1 use of the high school' s physical facilities, and a sharing of computer
j operators as another alternative. Independent of which option is pursued,
the cost should prove to be a substitution for personnel costs in other
activities. It is clear that a clearly designated reponsibility for
Ii overseeing the entire computer process must occur. The Task Force
recommends that the Town Manager assign the responsibility for data
processing operations to one individual who will be responsible for
1 maintaining the operational integrity of the accounting system.
I Where can personnel costs be saved? It should be noted at the onset
1 that the Task force does not expect a substantial reduction in
1111 personnel costs. However, some cost savings are achievable First,
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there is a great deal of duplicated effort in the present manual
system .For example, the same information is entered repeatedly in
jJ purchase requisitions, in entries into the appropriaton ledger for
encumbrances, disencumbrances and then voucher payments, and then
finally in entries into the detail accounts for each appropriation
1 catagory. This example is not unusual. Duplication of records by
multiple departments is another example of potential for reduced work
I effort.
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1 Second, billings for ambulances, dog licences, etc. take a great deal
of manual effort separate from the more automated use of outside
services for the larger billings (real estate and personal property
1taxes, auto excise taxes, water bills, parking fines, etc.) .
I Thirdly, substantial amounts of time are expended by Town personnel in
acquiring and reviewing data for management decision and action Aging
of receivables, personnel analysis, including incidence of sick leave,
budget reports, outstanding purchase orders are all examples. An
integrated financial management environment will provide ready access
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to the necessary data for day to day management decisions, replacing
J the current manual data acquisition and presentation.
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On net, therefore, the task force projects no increase in total
headcount, though specialized personnel will be necessary to operate
the system, with the longer run potential of possible personnel
R reduction being present.
The benefits delineated above will not be achieved instanteously. A
phased conversion from a manual environment to the automated
environment is a necessity Top priority should be focused on the
manual accounting system, with the second phase directed at replacing
the current outside services. The entire implementation and transition
1 can be expected to take approximately one year. Table 1.2 condenses
this entire discussion by representing the expected annual outlays and
savings, with an expected 3 year payback on investment using
conservative assumptions with respect to tangible cost savings.
Additionally, the Task Force strongly concludes that major intangible
benefits will be achieved including improved access to information for
analysis and management, preparation for the retirement of key
l personnel, and better overall control of the Town' s financial affairs,
including cash management. Importantly, department managers will spend
less time moving paper, with more time available for developing new
efficiencies in delivery the Town' s services. To achieve these results
will require a carefully designed plan of implementation which provides
for timely transition from outside services and current manual
activities to the automated environment. The DP Coordinator should be
charged with prepared the implementation plan.
In the section that follows, a detailed description of the current
accounting environment is provided.
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Table 1 2
BENEFITS SUMMARY
ACCOUNTING SYSTEM
yrl yr2 yr3 yr4
Outlay for Software, Hardware
for Automated Accounting and
Sub-Systems 200,000
-Burroughs Accounting Mach.
Replacement - 20,000
Net Outlay 180 ,000
Operating Costs
Forms 3,000 3 ,000 3,000 3 ,500
Software and Hardware
Maintenance 5,000 17 ,000 17,000 17 ,000
Contract Programming 20 ,000 20,000 20,000 20,000
TOTAL 28,000 40 ,000 40,000 40 ,500
Cost Savings
Replacement of Service
Bureaus 50,000 107 ,000 107 ,000 107 ,000
Accounting Machi,ne Service 2,000 2,000 2,000 2,000
TOTAL 52,000 109,000 109,000 109,000
NET SAVINGS 24,000 69,000 69,000 68,500
ilDETAILED APPLICATION ANALYSIS AND DESCRIPTION
The Comptoller' s office (Comptroller, Assistant Comptroller, and 6
clerks) maintains the accounting system for the Town. The major
11 components of the manual system include the Appropriation Ledger, the
Encumbrance and Warrant Ledger, Payables, Receivables. The 150
appropriation accounts approved by the Town Meeting are maintained in
11theAppropriation ledger. There are 8,000 encumbrances, the same number
of disencumbrances, and 13 ,000 payment vouchers posted per year. A pen 10
and ink general ledger is maintained for accounts not in the
appropriation category, such as grants, gifts, payroll withholding,
investment of funds, posting of receivables, etc. There are 8,000
general ledger entries per year. This could increase if summary entries
are replaced by detailed entries in an automated system.
Ilq A separate set of books is manually maintained for the Town retirement
system. Currently, monthly checks are sent to 280 retirees. This figure
10 will grow in the future. Payments are made from a current appropriation
and interest from an investment portfolio. About $300K is appropriated
annually to add to these investments to fund the future retirement
1 obligations of the Town.
Input to the accounting system are purchase requisitions, payment
ivouchers, payroll information, receivables information, utility and
other bills, and investment and banking information. Output from the
q accounting system are a weekly Warrent to the Treasurer to pay bills, a
weekly report to the Treasurer for investment decisions, monthly
il management control reports for budget tracking, and yearly historical
summaries to be used in yearly budgeting and 5 year planning.
Currently, purchase requisitions are written out in each Department and
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1 then pass through a signature approval cycle. When approved the
requisitions are let to the vendors and encumbrances entered into the
1 appropriation ledger. When partial or complete deliveries are received,
III they are accepted and a payment voucher is made out. The payment
voucher leads to an entry into the appropriation ledger, a canceling of
the original encumbrance, and entries into the detail account ledger.
go For the various classes of receivable, dominated by real estate tax
bills, Bills are prepared and sent out, payments received, entries sent
to the accounting system, bank deposites made, and the billing file
III periodically searched to send payment demands for the following items.
(use of outside services is noted)
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TABLE 1.3
ACCOUNTING SYSTEM
TRANSACTION LEVELS
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Real estate taxes for 11 ,000 parcels of 22,000
II property twice per year (bills prepared by
Arlington Trust Bank)
11 Personal property taxes for 500 items twice 1,000
per year
Water bills (might eventually include sewer 22,000
:fig and trash) (bills prepared by the Town of
Arlington)
ki Auto excise (bills prepared by the State of 30 ,000
Massachusetts)
Parking tickets (collections made by service 14 ,000
bureau)
Moving violations (collections made by courts) 5,000
15 Ambulance 900
Miscellaneous (inspections, dogs licenses, and 5,000
building permits, recreation fees, etc. , for
which bills are not sent)
15 TOTAL NUMBER OF BILLS 100,900
Currently, tax 'bills are prepared by Arlington Trust Co , with
j Lexington personnel having access to the bill preparation system thru a
terminal resident in the Town Office Building The tax process involves
generically both the assessment activity, and the billing /collection
IMfunction.
In the face of proposition 2.5, the assessment activity is in the
spotlight. Though assessments and billing can be functionally separate,
and are under the current fragmented environment of Lexington,
logically they are vertically related to each other, with the
assessment system feeding the billing environment The goal of the
II assessment system is to derive fair, equitable, and defensible
assessments. There are separate real estate and personal property
systems. Using the capabilities of an outside vendor. the Town has to
maintain an extensive database on real estate parcels (11000) Data
maintained include, owners, current assessment, location, and features
of the parcel. The features of the property (land area, floor area,
age, rooms, fireplaces, bathrooms, bedrooms, garage, style of
construction, roof, swimming pool, etc.) are updated based on building
permits and visual inspections.
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%��}Y A separate sales record file is maintained The physical characteristics
�L and selling prices of all real estate parcels sold is maintained as
basis for evaluating the current market value of comparable properties.
The file extends for a number of years into the past and is updated
with a maximum of about 100 sales per month.
Quarterly and yearly reports are made to the state giving how the
current assessments compare with current sales figures Every three
years new assessments must be derived by state law The next
re-assessment must be ready for fiscal year 1987. On an ongoing basis,
11 the Board of Assessors requires access to these data. Currently,
analysis is prepared manually.
The re-assessment calculations are based on cost, comparables, and
evaluation of a formula which weights the various features of the
parcel. The weights are derived by a linear regression on the features
of sold properties during the past few years. The service bureau, which
II updates the data and runs the linear regression on a large mainframe
computer charges about $30K when it is done each three years.
I10Personneland Payroll
in Payroll preparation currently occurs thru the manual preparation of
Ili data entry sheets that are provided to ADP which prepares the Town' s
payroll. There are 1 ,000 full time employees and 500 part time
employees in the Town, with about 2,100 W2 forms prepared every year.
15 Employees are paid every two weeks, with the school teachers being paid
on weeks alternating with the other employees.
I SOFTWARE REQUIREMENTS
in Appendix A details the major function requirements of Lexington' s
proposed automated financial management and accounting environment
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General Ledger
1pPayroll
Bilings and Receivables
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Tax Assessors System
The requirements presented are the result of a detailed review of both
the current manual activities conducted by the Town' s personnel, and an
excellent analysis conducted by the Town of Franklin.
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i HARDWARE REQUIREMENTS
z Based on a review of the applications under consideration for inclusion
on the mini-computer installation, estimates of storage,memory, and
;I. other hardware requirements have been made. .
The disk storage capacity required for the applications described in
1 this chapter are
Accounting 40
Purchase requisitions 16
Billing and receivables 10
Personnel and payroll 30
Check preparation and reconciliation 8
Assessment and tax administration 40
TOTAL (megabytes) 144
Perhaps another 15 megabytes of disk storage would be required for the
operating system and any software development that might be undertaken.
A half-inch 9 track 1600 bits-per-inch industry standard magnetic tape
drive would be required, because information transfer between the
'' towns, banks, service bureaus and the state of Massachusetts is
typically accomplished on 9 track magnetic tape. A 2400 foot 9 track
' 4 reel of tape will hold 38 megabytes of data and is required for backing
up a large non-removable Winchester disk.
Hardware memory requirements are estimated to be 4 mb of Virtual
Memory. Additional equipment required includes
High Speed Printer
Eight Terminals
One Remote Printer
1 Operators Console
The time sharing operating system should have a good security system
that prevents unauthorized access to sensitive files, particularly the
financial data files in the accounting system.
In the process of conductings its overall analysis of Town computer
1 needs, the Task Force identified a number of self contained needs which
are unique to each department. These needs, and potential solutions are
reviewed in the next chapter.
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CHAPTER 3
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DATA PROCESSING REQUIREMENTS WITHIN EACH DEPARTMENT
SCHOOL DEPARTMENT
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The school department needs are not considered, because they have their
,a own PDP-11/70 computer system used for administrative purposes outside
of school hours. From 9 00 A.M. to 3 00 P.M. the PDP-11/70 is used for
instructional purposes, and in fact is saturated with time sharing
student users.
OTHER TOWN DEPARTMENTS
in In the DPTF' s survey efforts, the needs of Town functions were
evaluated from two prospectives 1) those functions which cut across
department lines because of work flow and data sharing requirements and
1 2) those activities that are discrete. This distinction was dictated
by the realization that micro-computer technology affords the
individual manager or department low cost solutions to computing and
analytical needs, but is only appropriate if the implementation of a
' micro-computer does not fragment the overall work effort.
1 Interviews were held with DPW, Fire, Police, Town Clerk, the Town
1 Manager, and the Personnel Coordinator, with a view towards
understanding their individual application requirements, and the extent
to which those requirements were interdependent, in a work flow sense,
on other Town activities. Those interviews yielded an important common
r element among all departments, though the specific applications were
often unique to the department being interviewed. Specifically,
spread-sheet and planning capability, word and list processing, and
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small database access and reporting permeated the definition of needs
Fire incident reports, auto accident and crime reports, work and shift
scheduling, permit files, moving violation citations, street inventory
and repair scheduling, police dispatch reports and crime report
preparation and arrest warrants are all examples of activities
currently being performed manually by Town departments. Table 3 1
iiprovides further examples of applications by department.
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TABLE 3.1
DEPARTMENT PROCESSING NEEDS
DEPARTMENT APPLICATION DESCRIPTION CURRENT MANHOURS/
TRANSACTION LEVEL
FIRE
ambulance report 700 per year
IRinspection schedules 400 per year
manning schedules
word processing
statistical reporting
00 injury reports
mutual aid avail.
hydrant testing
alarm response
00 fire incidents 6 hrs per month
vehicle and equipment
inventory
permit file 200 per year
TOWN MANAGER
budgeting/spreadsheet 100 hrs over 3
months
POLICE
shift scheduling
accident reporting 1200 per year
moving violation reports 6000 per year
rIgUll
dispatch records 10,000 per year
bicyle registrations 800
i arrest warrants 20 inquiries
per days
EJ DPW
street inventory/and cond
work scheduling
word processing
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work scheduling
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permit reports
parking meter inventory
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11 Though no one application is major in character, a substantial manual
I work efforts is occuring on an ongoing basis to process and report
1information necessary for the day to day management of department
0functions, reporting to regulatory and other governmental bodies, and
reporting within the Town to supervisory levels, including the Board of
j Selectmen.
The productivity of Town departments can be enhanced by permitting
Town department managers the opportunity to creatively apply generic
micro-computer software to individual department needs. The committee
has been impressed by the desire of department managers to improve the
quality of the work effort through the application of commonly
available technology. For example, the Fire , Police, and Public Works
11 Department all have personnel currently, who are capable and anxious to
utilize micro-computers. In several cases personnel are taking courses
on micro-computer technology and programming. A high level of
t motivation is critical to attaining benefits from the limited
implementation of micro-computer technology. Individual departments,
working with generalized software in the categories defined above,
would tailor the software to their unique needs This "customizing"
process does not require highly technical expertise. The application
ii software available primarily requires an understanding of the end user
information requirements. There is even an opportunity to solicit
fl volunteer assistance from the general populace, and high school
111 students.
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To provide a more detailed flavor of th.a class of applications needed,
and the benefits that accrue, the Police Department provides several
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examples. The department maintains a manual record of outstanding
arrest warrants issued throughout the Commonwealth. Information
1 includes defendants name, warrant number, crime description. The manual
record keeping activity consumes approximately 240 hours per year, with
111 approximately 700 warrants active at any given time. The data are
i accessed manually approximately 20 times per day Estimates indicate
that approximately 75-80 hours per annum could be eliminated with a
l micro-computer based solution. In addition, the ability to access and
analyze information would be enhanced. Meeting this application need is
readily accomplishable using commonly available,and inexpensive
database sorting and reporting software available for micro-computers.
The general flavor of this application i.e. maintaining a limited
l database for sorting and reporting, is found in several departments. In
each case, reduced time for maintenance of manual data records, and an
improvement in the speed and quality of information flow is likely to
result.
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;a Another class of application involves the manipulation of financial
information for' purposes of budgeting and planning The term "spread
sheet" application has been popularized because the software available
automates the analytical process by using row and column structures
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similar to the classical paper based spread sheet. The primary advantage
of this technology is the ability to rapidly change assumptions for
purposes of evaluating total financial effects. In the face of cost
pJcontrols and revenue limitation, the planning process is now spotlighted
more than ever. Visi-Calc, and the subsequent generation of similar
applications that have evolved, are the most popular micro-computer
application available today. Recent surveys indicate that 76% of all
imicros installed in the corporate environment utilize "Calc"
applications. The Town Manager function is a perfect example of the
application of this class of software. Substantial manhours devoted to
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I0 arithmetic manipulation can be reduced, and the range of analysis
, conducted can be increased by utilizing this office productivity tool.
,, The last general category of micro-computer applications is word and
list processing. The Town currently has one IBM display writer. Demand
for usage exceeds the available capacity. Work in many of the departments
represents repetitive activity, where at a minimum, the general "form"
11 remains the same. Examples include accident and fire reporting
requirements. Report preparation, list access and mailings, and general
correspondence can be readily accomplished on micro-computer based word
41 processing software. In excess of 30% of all micro-computers in the
corporate environment are utilizing word-processing applications today.
°
Though the applications described in this review are obviously
11 supportable by a central shared computer, the additional load on the
machine would impact response time, in the absence of additions to
capacity. Secondly, micro-computers tend to be inherently more user
1 friendly and adaptable to small applications. In summary, micros are
superb for the non- computer professional requiring intereactive
computing and manipulation of only relatively small databases
'] It is the recommendation of the Data Processing Advisory Task Force
that the Town acquire four micro-computers for Initially, one micro
would be provided to the police and public works department
1 respectively, with the two remaining micros centralized in the Town
office building for sharing among Town departments. Actual demand for
and benefits from use of the shared micros can provide the foundation
jI�, for future deployment decisions. Standardization of manufacturer should
be required, as should the general application software. Such
standardization will provide for internal back-up, and the
opportunities for sharing of expertise. The micros should be configured
with 128kb memory, at a minimum, dual floppy, double density disk
drives, daisy wheel printers and 1200 baud modem, with communication
software. The communication software will permit the micros to function
I, as terminals in interacting with the central shared computer
recommended in this study. Total cost estimated for hardware and
I software is $25,000 for the total installation.
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CHAPTER 4
Data Processing Task Force
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Library Circulation System Evaluation
i At the request of Robert Hutchinson, Town Manager, David Gilbert and
Robert Monaco meet with representatives of the Cary Memorial Libary
Computer Applications Committee for the purpose of reviewing a proposal
I to acquire and install a computerized circulation system. The libary
committee has prepared a detailed Request for Proposal (RFP) and a
complete executive summary. These materials have been made available to
the DPTF.
As pointed out by the Library Task Force, and confirmed in the above
referenced meeting, the expected benefits from the $150,000 estimated
capital expenditure, are primarily qualatative in nature. Specifically,
it no claims of personnel reduction, or other sources of expense reduction
are represented, though this issue is still under review. The
potential for supporting circulation growth, without consequent
, personnel increases is implied. However, in light of current Town
demographics, and modest population reduction, it is unlikely that
' significant increases in circulation will materialize. Modest dollar
{ benefits are suggested from improved fine collection, and the reduction
in lost books. Current estimates approximate $7500 per year. The
primary area of benefit is directed at using the libary' s resources
more effectively, and proving improved services to its patrons.
Based on 1981 circulation statistics, the library was approaching
annual home circulation of 500,000, with main desk circulation of
315,000 . The library' s collection is approximately 200,000 items. j
Currently, a microfilm system is used to check-out home circulation
material. The system does not provide for any automated data retrieval
Thus, analysis of usage statistics by subject matter or author, ;
reserves, overdue billing, patron registration, and knowledge of 1
availability of material requires manual processing.
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In classic investment analysis, the return on dollar outlays is
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measured in the same numeraire. The evaluation of the appropriateness
' of the library system cannot be viewed in a normal financial context,
11 anymore than the addition of a ball field to the town' s recreation
1 complex. Library professionals can offer intuitively appealing
suggestions of the benefits of gaining greater control over the town' s
library collection. For example, focusing additions to the collection
I in those area' s where circulation statistics suggest high demand is
certainly meeting part of the service component of the library
II function.
The "demand" for the benefits offered by an on-line circulation
system is not addressed by the libary committee study. To what extent
is the user population dissatisfied with the quality of the current
library service? Secondly, the study proposes a total integrated
solution. It was indicated that partial solutions were not acceptable -
dealing narrowly with check-out activities using less sophisticated
software and hardware than a total integrated system. The Data
Processing Advisory Task Force recommends that alternatives, short of a
total integrated solution be evaluated. Thirdly, how should the
library system be prioritized against other areas of town activities
which would benefit, both qualitively and quantatively from
computerization. In the face of finite financial resources for the
town, it is critical to review the totallity of needs, rather than each
case in isolation. It is the recommendation of the DPTF that the need
li for automation of the town' s basic accounting activities take
prececence. The accounting function has been accomplished because of a
mature and highly qualified labor force. The town will face increasing
difficulties in meeting its basic accounting and control requirements
as key members of this labor reach retirement. Recruiting, training,
and motivating personnel of the same caliber will prove to be difficult,
if not impossible, when competiting against the private sector.
Automation will provide structure for the accounting activities, while
key personnel are freed from repetitive tasks and reapplied to the
financial analysis that is necessary to efficiently run the town' s
business function, in the face of constrained revenue growth. The
detailed analyses and benefits supporting this conclusion are contained
in the Report of the Data Processing Advisory Task Force.
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School Administration Computing Capability
The Lexington Public School system has had a centralized data
processing capability since 1972 and now supports numerous
instructional and administrative users, located at 10 sites. The school
system' s central facility includes a PDP 11/70 , 50 video terminals, 15
LA 120 printers, 2 programmer/operators, 2 data entry clerks, and an
overall project coordinator ( in addition to a large number of Apple
and PET microcomputers) . This substantial capability provides a
potential source of computer processing power and staff expertise that
the town could use to supports its administrative needs. Therefore,
the Task Force has evaluted five types of support or joint effort that
could be potentially arranged:
1. Sharing the School Computer- the town would use the
school's computer as a service bureau to perform some
or all of its processing.
2. Facilities Management-the town would procure its own
computer but would rely on school personnel to
operate and/or program the machine.
3. Systems Software-the school system has invested
heavily in the LEADS database management system.
This is a general tool that could be applied to
a number of applications.
4. Cable Network-the school system has pioneered in using
the town' s cable network for data communications.
The town could share this network for its own
communication needs.
5. Application Software-the school system has developed
systems for purchase order encumbrance, personnel
management, budgeting, and accounting. These could
be tailored for town use.
Each of these areas is evaluted in further detail below.
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SHARING THE SCHOOL COMPUTER e
Discussions have occurred at many times over the last several years to A
consider the possibility of supporting town data processing on the
school computer. Under this arrangement, the School Department would
essentially act as a service bureau. The 1979 Data Processing Advisory a
Task Force, for example, reviewed the school department' s computer
resources but determined that is "highly unlikely that the School
Department' s computer resources offer an effective solution to the
Town' s data processing needs. " The current Task Force concurs with this
basic position because of;
Priorities - the School Department has indicated that the Town will be
the third priority after needs of instructional and school
administrative users have been met. This effecitvely limits the town to
using the system for on-line access between 3-5 P.M. each day. Batch
processing would also be feasible. The restricted schedule greately
diminishes the value of on-line processing.
Security - although security has not been a problem for the school
department, and depsite the protectionbuilt into the school' s systems,
the Task Force believes that it is essentially dangerous to put serious
administrative applications on a computer that is routinely used by
students. The opportunities for vandalism or other damage are too great
and current technology does not offer adequate safeguards.
Capacity - the school's system is adequate for its current needs but
new applications place major demands on its resources. New languages
such as Pascal and Fortran, database applications, and word processing
all degrade systems performance. The system has a fixed upper limit of
60 simultaneous users and is already print bound (i.e. in need of a
faster printer) . Declining enrollment may help in the future but it
seems reasonable to assume that School Department users will continue
to absorb all the resurces available to them.
PDP/11 Technology - the PDP 11/70 is an excellent computer for
instructional use, however, it may not be appropriate for Town
administrative use. There are relatively few application packages
available for it. This technology has been replaced by the DEC Vax
line, for which software is available. Lastly, the basic programming
language is relatively undesirable for business applications.
Programming - the town would still need its own programmer operator
since the School Department personnel are fully utilized with existing
projects. The value of a service bureau approach is therefore limited.
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FACILITIES MANAGEMENT 1
Running a data center requires a specialized environment and a lot of
skilled manpower. There would be an obvious advantage in consolidating
the Town' s requirements with those of the School Department so that
they would only be funded a single time and so that these part time
responsibilities could be satisfied without hiring full time staff. The
physical plant at the high school has been modified to meet the
computer' s heating, ventilation and air conditioning,electrical and l�
Fire/Burglar Alarm requirements and the computer room is adequately
large to allow inclusion of an additional machine. Also there is a
large valult that school uses to store backup files. All this pysical
plant would need to be examined but could probably be upgraded at less
cost than developing a separate site.
The savings in manpower would probably be more significant. Normal
functions such as backup, mounting disks and tapes, inserting paper and
special forms into the printer, restarting the system after a failure,
monitoring the data communications network, initiating batch jobs,
ordering and inventorying supplies, handling service problems, and
negotiating with vendors, are all time consuming and require
training/expertise to be done effectively. Since the town does not
appear to require a full time operator of its own, there would be clear
benefit in utilizing the staff of the School Department of perform
these functions. This would be particularly useful during the off hours
when the School Department data center is staffed (12 hour coverage)
but a town data center would probably not be staffed.
There is one disadvantage to centralizing the Town and the School Data
Centers-increased vulnerability to disaster. The Town would be subject
to greater loss due to fire, flood or vandalism if two machines were at
the same site. Given that adequate security and insurance were in place
and the Town' s applications do not generlaly have critical processing
schedules, this seems a manageable risk given the above advantages.
The School Department may be willing to support a facilities management
relationship, although no formal negotiations have been initiated to
verify the conditions that would be acceptable to the School
Department. Three basic approaches seem viable as a basis for
compensating the School Department:
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Offloading School Administrative Processing - the school' s PDP 11/70
$ could be dedicated solely to instructional use if the Town obtained
enough hardware to support the School Department' s administrative needs
as well as its own needs. The Town would provide the School Department
11 with the computational support in exchange for facilities management.
Additional Staff - the Town would fund additional one full time staff
member at the School Data Center. That person and the others now
employed would work, as needed for both the Town and the school
I department. This would provide both the Town and the School department
with broader coverage than either could afford on its own.
Transfer Payments - the Town would pay for the services rendered
directly.
SYSTEMS SOFTWARE
IIThe LEADS database system was developed, beginning in 1972, because
there weren't any good database management systems that could be
obtained to meet school department needs. The system is a classical
DBMS and has all the standard features one would expect hierarchical
�. data storage and access, data definition independent of applications,
security, report writer, query language and application program
interface (to Basic programs) . School department personnel are
I10justifiably quite proud of the tool and the applications they have
developed with it. There success can be measured in the length of time
the system has been in use, the size and complexity of the
i administrative files supported, that the system has been transferred
from its original development team ot other programmers, and that it
has been sold ot other school systems. The tool would be made available
to the Town without charge.
`
Using LEADS hasseveral serious disadvantages, however. The tools is
currently only usable in a Basic environment on a PDP 11. The cost of
Ilia conversion to other environments must be compared to cost of a
commercially available product. There are no general application
packages designed to run with LEADS, while there are several
commercially avaialbe tools that packages integrated in with them Also
the long term maintenance cost for LEADS must be compared to the large
investments that vendors typically make in their products at relatveily
iglow cost to individual users. This cost of keeping current with
evolving hardware/software advances is the most serious disadvantage of
in-house developed systems.
It is the view of the Task Force that the Town is best served by
acquiring commercially available software. Pursuing this path will
minimize delays between decision point and the accruing of benefits, as
igwell as containing long-run maintenance costs. Additionally, the
uncertain process, of application design and implementation, with its
1 inherent risk, is substantially mitigated.
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CABLE NETWORK
El The Town has negotiated free installation and use of an institutional
cable into the agreement with Adams-Russell Cablevision This separate
cable is not connected to any homes and will be installed without cost
in all town buildings. The cable has almost unlimited capacity-up to
20,000 terminals in simultaneous use at high speed (9600 baud) . The
cost of doems is only slightly higher than traditional telephone modems
($1200 per pair) The cost of purchasing these modems is clearly cost
,. justified just by eliminating the cost of leased telephone lines.
Whether the Town uses a School Department facility,y, or its own location
in the Town office building, the option for connecting remote sites
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(DPW) is facilitated by the cable network.
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