HomeMy WebLinkAboutAgenda Statement 1980/03/11 Item 11COUNCIL AGENDA STATEMENT
Item 11
Meeting Date 3-11-80
ITEM TITLE: Resolution~po3 ~ Approving agreement with City of Coronado for
the provision of Data Processing services
SUBMITTED BY: Director of Policy Analysis and ~ (4/5ths Vote: Yes No x )
Program Evaluation
On March 4, 1980, the Coronado City Council approved the attached "Data Processing Ser-
vices Agreement." This contract provides that our Data Processing Division will pro-
vide data processing services to the City of Coronado and that Coronado will be billed
for the utilization of our staff, equipment, and facilities. Since this contract is
beneficial to both cities, it is my
RECOMMENDATION: that Council adopt the resolution approving the agreement.
BOARD/COP-1MISSION RECOMMENDATION: Not applicable.
DISCUSSION
The Data Processing Division has computer operations staff and equipment that are re-
quired for the City's data processing function but which are not fully utilized in
meeting the City's own needs. For several years, the division has been providing
data processing services for Sani-Tainer and for the Cities of E1 Cajon and Imperial
Beach. These agreements have proven to be mutually beneficial in terms of both ser-
vice and cost. From Chula Vista's standpoint, we have been able to keep our net costs
down while upgrading our computer equipment by allocating some of our fixed costs to
these contract users. With the installation of our new and faster B-2805 computer,
we are in a better position to increase our contract service to other agencies, thereby
further increasing the user base over which our fixed operations costs can be spread.
The proposed agreement involves the provision of the following services to Coronado:
payroll operations, automated accounting, fixed assets operations, business licenses,
and land use inventory. We will be providing data input and computer processing ser-
vices for these systems. Coronado will contract separately with EDP Management, Inc.,
for the systems and programming required to implement the systems. The systems should
be operational by July 1, 1980, or shortly thereafter.
FISCAL IMPACT
Revenues from this agreement with Coronado should be approximately $16,000 during fis-
cal year 1980-81. If some of the systems are operational before July 1, 1980, there
will be additional revenue realized during the current fiscal year.
The Data Processing Division will be able to absorb the new work without any special
increases in the budget for the computer, facilities, or personnel. The 1980-81 budget
request reflects a nominal increase for consumable items, such as paper and printer
ribbons, related to work to be performed for Coronado.
This agreement, together with updated rates for existing agreements and a new agreement
currently being negotiated with the Sar, Diego Housing Commission, should allow the
division to increase the percentage of its budget recovered from outside agencies from
about 27% in the current fiscal year to about 45% in fiscal year 1980-81, with a cor-
respondingly significant drop in the division's net budget.
Form A-113 (Rev. 11/79) ~ O
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