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HomeMy WebLinkAbout2007-10-29 Ordinance 4972:' ORDINANCE NO. 4972 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2007-08 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $4,000,000 TO CAPITAL IMPROVEMENT PROGRAM (CIP) TE-07006, SAP CONTINUOUS IMPROVEMENT PROJECT The Council of the City of Palo Alto does ordain as follows: of the City of Palo Alto finds and as follows: _______ ~A. Pursuant to the p:t:'ovisions of Section 12 of Article _____ _ III of the Charter of the City of Palo Alto, the Council on -------Jl:lBe-1-1---r-2-0-0-'7-d-id-adep1;-a-b"btGlge-t-fe::r-f-i-sGa-J..-yea-r-2-Q-Q-'7~OB+-anGl B. In fiscal year 2007-08, the Council did adopt a budget for CIP Project TE-07006, SAP Continuous Improvement Project (Project), with an initial appropriation of $3,000,000 for the Project; and C. Prior to upgrading the existing SAP system and implementation of SAP's Industry Specific Solution for Utilities (IS-U) 1 it is necessary to put into place all software licensing, maintenance and training. On July 23, 2007 1 the Council approved contract changes with SAP including licensingl maintenance and training for an estimated costs of $636,352; and D. With the preparations in place, the City is now ready to proceed with the upgrade of the existing SAP database .. · .. ·soi .. t-wa-re-system .. Some--of -theuupg:r;adesinthe. system will include enhancement to~he Budgeting process, implementation of Employee Self Service (ESS) and Manager Self Service (MSS) Modules, and implementation of the Utilities Module. The upgrade also lays the foundation for future portal development and constituent outreach giving the ability for community members to submit one line work orders for items such as tree trimming and pot holes; and E. A Request for Proposal (RFP) was mailed to prospective consultants and after a selection process Axon Solutions, Inc. (Axon) was the selected vendor. Axon will perform the upgrade and IS-U implementation within sixteen months for a total estimated cost of $7,000,000; and F. The existing appropriation balance of the Project is not sufficient to cover for the costs of the upgrade; and G. The total additional appropriation of $4,000,000 for this project will be funded by a transfer of appropriation from a number of CIP Technology projects and from the Technology Fund Reserve. The details of the funding sources are summarized in the following table; and Funding Source Amount TE-02014 (eGov-Web $788,960 Infrastructure) TE-050Ql (S~2 CQntinllO~ ~~,127 Improvemen t) Techno IOgy Fund Reserve $-3, {)-61, ~13 Total $4,000,000 H. City Council authorization is needed to amend the 2007-08 budget to make available the funds required for the upgrade for CIP Project TE-07006, SAP Continuous Improvement Project. SECTION 2. The Technology Fund Reserve is hereby decreased by Three Million Sixty One Thousand Nine Hundred Thirteen Dollars ($3,061,913) with a remaining balance of One Million Two Hundred Seventy Four Thousand Forty Nine Dollars ($1,274,049) . =================--~-S~lli~e~T~±~et!'i!N~--~3~~-~ria:f~_¥-e~-==l5J;;l-d.g:e~t ifi:t~e-E~O'j:ac=-~0:L0jlfr6 -,=, ========= SAP Continuous Improvement Project from CIP Project TE-02014, eGov-Web Infrastructure in the amount of Seven Hundred Eighty Eight Thousand Nine Hundred Sixty Dollars ($788,960) reducing the appropriation in CIP Project TE-0201S by $788,960. SECTION 4. Transfer of budget into CIP Project TE-07006, SAP Continuous Improvement Project from CIP Project TE-OS001, SAP Continuous Improvement in the amount of One Hundred Forty Nine Thousand One Hundred Twenty Seven Dollars ($149,127) reducing the appropriation in CIP Project TE-OS001 by $149,127. SECTION 5. The sum of Four Million Five Dollars ($4,000,000) is hereby appropriated to CIP project TE-07006, SAP Continuous Improvement Project. SECTION 6. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 7. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 8. The Council of the City of Palo Alto hereby finds that this is not a project under the provisions of the California Environmental Quality Act, and therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED AS TO FORM: Sr. Assist. City Attorney October 29, 2007 BARTON, CORDELL, DREKMEIER, KISHIMOTO, KLEIN, KLEINBERG, MORTON, MOSSAR BEECHAM APPROVED: Director of Services