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HomeMy WebLinkAboutAGENDA REPORT 1996 0821 CC REG ITEM 07Dn e 7 • AGENDA REPORT CITY OF MOORPARK �cn- TO: Honorable City Council FROM: Martin R. Cole, Mana g ement Analyst Department of Administrative Services _ DATE: August 14, 1996 (CC Meeting of August 21, 1996) SUBJECT: Consider Resolution 96- Making a Supplemental Appropriation from Several Funds to Complete the Purchase of Accounts Receivable Software for the City's Computerized Accounting System and for Software Support Agreements for the Accounts Receivable and Purchase Order Modules ($2,173.75) BACKGROUND As part of the Adopted Budget for Fiscal Year 1996/1997, the City Council authorized a $3,500 expenditure for an Accounts Receivable Module (A/R Module) for the City's computerized accounting system (which expenditure was allocated using the general overhead distribution). When staff contacted the vendor to issue a purchase order for this item, we were informed of the availability of a Software Services Agreement (SSA) for the A/R Module at a cost of $100 per month. Additionally, with the start -up of the new chart of accounts and the use of the Purchase Order Module (PO Module), staff also inquired about the availability of an SSA for the PO Module. Such an SSA is available at a cost of $60 per month. The price of $3,500 for the A/R Module was also not inclusive of sales tax (an additional $253.75). DISCUSSION At the time of researching the purchase of the A/R Module, it was initially thought that the costs of an SSA could be saved due to the similarities of the A/R Module operations with the City's existing system. While such similarities do exist, as staff installed the A/R Module on the system, it became apparent that staff would benefit from start-up training and the availability of monthly software support. There has been a similar response to the installation and daily use of the PO Module. Staff inquired as to the costs of training without the existence of SSA's. The price quoted was $750 per training day plus reimbursement of travel expenses. Given the benefits of staff training on both modules, it is cost effective to have SSA's on both the A/R and PO Modules. Because the accounting system supports operations of the entire City and Moorpark 1111 Memo to the Honorable City Council Request for Supplemental Appropriations ($2,173.75) August 14, 1996 Page 2 DISCUSSION (Continued) Redevelopment Agency, the costs for the SSA's and the sales tax are proposed to be distributed by the general overhead allocation formula (in the same manner the $3,500 capital cost was distributed). The following tables outline the proposed supplemental appropriations and their effect on projected fund balances: TABLE I - PROPOSED SUPPLEMENTAL APPROPRIATIONS ITEM AMOUNT 100.500 45% Sales Tax $253.75 114.19 AIR SSA $1,200.00 540.00 PO SSA $720.00 324.00 TOTAL: $2173.75 1 $978.18 220.600 240.801 100.700 (10 %) 410.504 (10 %) 20% 105%) 50.75 1 38.06 1 25.38 1 25.37 240.00 1 180.00 1 120.00 1 120.00 144.00 108.00 72.00 72.00 434.75 $326.06 $217.38 $217.37 TABLE N - SUPPLEMENTAL APPROPRIATIONS BY ACCOUNT NUMBER i" CURRENT APPROPRIATION SUPPLEMENTAL APPROPRIATION TOTAL APPROPRIATION ACCOUNT NUMBER 000.950.0000.000.9201 $38,000.00 $1,920.00 $39,920.00 100.505.5001.000.9908 1,575.00 114.19 1,689.19 100.700.5001.000.9908 350.00 25.38 375.38 220.600.5001.000.9908 700.00 50.75 750.75 240.801.5001.000.9908 525.00 38.06 563.06 410.504.5001.000.9908 350.00 25.37 375.37 TOTALS: $41,500.00 $2173.75 $43,6 i" Memo to the Honorable City Council Request for Supplemental Appropriations ($2,173.75) August 14, 1996 Page 3 TABLE III - EFFECTS OF PROPOSED SUPPLEMENTAL APPROPRIATIONS TO FUND BALANCES FUND CURRENT PROJECTED FY 96/97 YEAR END BALANCE PROPOSED SUPPLEMENTAL APPROPRIATION REVISED PROJECTED FY 96M7 YEAR END BALANCE 100 (General Fund) $4,558,993.00 $1,195.57 $4,557,797.43 220 (Community Dev.) 37,388.00 434.75 36,953.25 240 (Gas Tax) 862,081.00 326.06 861,754.94 410 (MRA) 7,535,931.00 217.37 7,535,713.63 TOTAL: $2,173.75 RECOMMENDATION That the City Council adopt Resolution 96- making a supplemental appropriation in the amount of $2,173.75. Attachment: Proposed Resolution V(lt) 5 7