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HomeMy WebLinkAboutAgenda Statement 1975/06/17 Correspondence 17EPARTMENTAL CORRFSPONDF'NCF DATE: TO: June 16, 1975 Lane F. Cole, City Manager VIA: Eugene R. Asmus, Assistant City Manager FROM• Gordon K. Grant, Director of Finance S UBJECT• Automated Accounting System INTRODUCTION At the Data Systems Steering Committee Meeting of June 6, 1975, the Finance Department was requested to prepare a report and recommendations on the implementation of an Automated Accounting System for the City of Chula Vista. RECOt~It~ENDATIONS 1. 7o authorize our computer consultant firm, E.D.P. Management, Inc., in accordance with Resolution 7683 to provide a multi-city automated accounting system. 2. To request a special appropriation of $20,500.00 from the General Fund's Unappropriated Surplus for this program. 3. To allow participating cities the opportunity to use and purchase this system at a negotiated price when they acquire their own computer facilities or desire to run it elsewhere. BACKGROUND Since the City established a Data Systems Division in March, 1970, and purchased a 6urroughs h1odel 2510 computer in January, 7973, we have computer- ized many of our manual operations, This was necessary to accommodate the gro~ring volume of transactions within the City and produce greater efficiency for the various departments, The following is a list of systems that are presently on the computer: 1. Payroll and specialized reports. 2. Business license applications and renewals, 3. Dag license applications and renewals, 4, General Fixed Assets - All Departments, 5. Project Accounting for Public Works and Redgvelopment Agency, 6, Planning and land use inventory, 7, Library Report - overdue books. C~.~y o~ Chu.Ca V~.4.ta, CaQ~.$ann~.a > > 7I 11.1 -2- 8. Police Reserve System 9. 1911 Tax Assessment 10. Deferred Compensation The last major system still being done on a manual basis is our general accounting system. This includes the General Ledger, Revenue Ledger, Departrt~ental Expenditure Accounts, and the Asset and Liability Accounts for all funds. For the past 15 years we have been using a Burroughs F-1500 bookkeeping machine; however, it is over-loaded and has reached its maximum capacity. It can no longer meet the expanding needs of the City. This is the principal reason the Data Systems Steering Committee has authorized that this report be prepared and recommendations be made on a new automated accounting system. E.D,P, Management, Inc., was selected to review our needs and submit a report on the cost of implementing an automated accounting system. The proposal indicates a fee of $18,000 for systems and programming costs. In addition, they suggest the City add a city file which would cost $1,000, The city file would give the system multi-city capability. This appears desirable in as much as five cities in the area have expressed an interest in participating in the system. Council policy in the past has been to provide computer services to outside cities as long as we have the time and capability to do so. We have been assured by our consultant firm that we have adequate computer time and capacity to meet these multi-city needs, The city file operating ~!nder ideal cenditicns would allow new cities to be added to the system without modification to a single computer program. Computer documentation for the system would cost an additional $1,500. This would make the total cost of the program $20,500. There are two possible methods of financing this service with E.D.P. Management, Inc,: 1. A special appropriation from the General Fund, 2. A division of the service cost with participating cities, It would be my recommendation to provide the necessary funds from our General Fund reserve, This would allow the City the following benefits:. 1, The City of Chula Vista would have exclusive ownership of the system, 2, The City could charge user cities a fixed fee for research and develop- ment costs in addition to normal processing costs. 3, ldhen other participating cities acquire their ovrn computer facilities, Chula Vista could se11 them the system package at a negotiated price, recovering our own investment costs and probably more, e c, f_ -3- E.D.P. Management, Incorporated, has estimated the entire automated accounting system could be operational within six to nine months. This would allow the Finance Department the necessary transition period for conversion, forms design, parallel runs, interdepartment cooperation, inter-city coordination, and the myriad of details necessary to make this a smooth and efficient operation. CONCLUSION It would be in the best interest of the City to convert our manual accounting system to a~multi-city automated accounting system. The cost of $20,500.00 is only slightly more than the fixed cost of $18,000.00 to provide us with just our own automated system. If the City Council approves the recommendations in this report, we can proceed immediately with a minimum of delay. GY.G: j 7~ RESOLUTION NO. 7789 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PROVIDING FOR THE SPECIAL APPROPRIATION OF FUNDS FOR THE DEVELOPMENT OF A MULTI-CITY ACCOUNTING SYSTEM BY EDP MANAGE- MENT, INC. The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City Council of the City of Chula Vista is authorized by Section 11Q5 of the City Charter to amend or supplement the annual city budget by the affirmative votes of at least four members at any meeting after its adoption, and WHEREAS, it is the desire of the City Council of the City of Chula Vista for EDP Management, Inc. to develop a multi-city accounting system in the near future, and WHEREAS, it is necessary to appropriate the sum of $20,500.00 to provide funding for the development of a multi-city accounting system. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that the sum of $20,500.00 be appropriated from the unappropriated surplus of the enera and for the purpose hereinabove set forth. BE IT FURTHER RESOLVED that the Director of Finance be, and he is hereby directed to record this Council action in the accounting records of the City. Presented by Approved as to form by '~ Lane F. Cole, City Man George D Lindberg, City Attorn_ ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, this 17th day of June , 1975 , by the following vote, to-wit: AYES : Councilmen Hobel, Hamilton, Hyde, Scott NAYES : Councilmen None ABSENT: Councilmen Egdahl ATTEST-~jL JL {~;_ G!1-~' Mayor of the City of Chula Vista ~~ City~Clerk ~/ ~, ~,= STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO } ss. CITY OF CHULA VISTA } I~ , City Clerk of the City of Chula Vista, California, DO HEREBY CERTIFY that the above is a full, true and correct copy of Resolution No. and that the same has not been amended or repealed. DATED City Clerk UN~1NIri0U5 CONSENT FORAi the following IT IS HEREBY REQUESTED by the undersigned that item- with the unanimous consent of the City the11Counciltpursuantof Chula Vista, be considered and acted upon by to the provisions oz Section 1.16 of the Chula Vista City Code. RESOLUTION PROVIDING FOR SPECIAL P CONTRACT WITH EDP MANAGEMENT TI•/~f~T7ATT TAT(_ CV~TF.M (Signature Unanimous Consent of the City Council, as indicated by the following signat res : ~ ~'~ {Councilman Egdahl - absent) 77~A-301