HomeMy WebLinkAbout Agenda Statement 1984/06/19 Item 10 COUNCIL AGENDA STATEMENT
Item 10
Meeting Date 6/19/84
TEM TITLE: Resolution //.$-j- Approving Agreement with the City of El Cajon for
the Provision of Data Processing Services
UBMITTED BY: Director of Management Services di (4/5ths Vote: Yes NoX )
EVIEWED BY: City Manager 7 /y
.hula Vista has been providing contractual data processing services to the City of El
ajon since 1972, and El Cajon is currently the City's second largest data processing
ustomer among the outside users. The proposed contract would continue this arrangement
y updating the rate-setting procedures in the existing contract with El Cajon.
ECOMMENDATION: Adopt the resolution approving the agreement.
OARD/COMMISSIONS RECOMMENDATION: Not Applicable.
ISCUSSION
he City's existing data processing services agreement with El Cajon became effective
n July of 1980. That agreement delineated the methodology for determining the billing
ates during the life of the agreement rather than specifying particular rates of charge.
he billing system was based on a fair-share, full cost recovery system that was very
ppropriate for batch processing. As more and more processing is done on-line, however,
hat billing system has become less appropriate and less workable. Because of these
roblems with the existing rate-setting procedures, El Cajon's Director of Finance and I
eached conceptual agreement on a new rate-setting system in mid-1983. Because of a
urnover in El Cajon's Director of Finance position, the proposed contract was not completed
ntil recently but the effective date of the contract has remained July 1983.
nder the proposed contract, El Cajon will be billed for data entry and programming services
rovided by Chula Vista based on the City employees' hourly rate plus a 100% overhead
actor. Base rates for computer operations charges in FY 1983-84 are also included in the
ontract, with the stipulation that these rates will be adjusted in the future based on
hanges in processing volume or system changes requested by El Cajon. In addition,
djustments to the computer operations charges may be made annually to reflect changes in
hula Vista's cost of providing the computer service, with a cap determined by the
nnual change in the Implicit Price Deflator for State and Local Government Purchases of
oods and Services. For FY 1984-85, for example, this latter type of adjustment will be
5% increase in computer operations charges. These rate-setting procedures should result
n tbe _City continuing to charge El Cajon an approximation of the full-cost of the services
rovided by the City.
he computer operations charges for FY 1983-84 will total $23,820. In addition, a projected
13,830 will be charged for data entry and programming services. Thus the total revenue
rom El Cajon in FY 1983-84 is projected to be $37,650. The FY 1984-85 revenue from El
ajon under the proposed contract will be an estimated $39,500. The current computer
ervices provided to El Cajon include payroll and personnel , automated accounting,
usiness licenses, dog licenses , project accounting, fixed assets, microfiche logs, and
911 Acts.
arm A-113 (Rev. 11/79)
10
Page Two, Item
Meeting Date 6/19/84
-ISCAL IMPACT
he estimated revenue from El Cajon for data processing services provided under the
:ontract are $37,650 for FY 1983-84 and $39,500 for FY 1984-85. These revenues are
ncluded in the revenue estimates in the City Manager's Proposed Budget. The Data
'rocessing Division will be able to absorb the work for El Cajon without any additional
-Y 1984-85 budget increases. The Data Processing budget reflects a nominal cost for
:onsumable items, such as paper and printer ribbons, related to work to be performed
or El Cajon.
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