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Home My WebLink About0211.094... .. March 31, 1994 HONORABLE CITY COUNCIL Palo Alto, California 6 IUrvISBD '1'0 INCLUDE II T'I'ACIIl4BNT REOUBB~-AllYl\lli1!l_ PUNOINO OF 199i=;?_~_JNl'ORllhTIQN SYSUtlS PRVRLOPKENT CAnx.~jtOJEC-4' TO PJ\CIL~_~!t8I;.QJl DRIVEN BUDGETI«Q IMPLEHB.NTAiI.\lli Members of the Council: ~rt in BriH The purpose of this report is t'o request council approval to advance the funding for the 1994-95 In(,ormation Systems Development capital project (Project Number 18812) to the current year, in ordor to .allow staff to begin work immediately on the transfer of the financial system to the UNIX environm~nt. A bud~et amendment of $160,500 is ne9ded to purchase the new hardware and software necessary for this transfer. Of the $160 l 500, 45 percent, or $72.225 will be reimbursed from the Enterprise Funds. Staff recommends the immediate purchase ~f, the equipment because the current system environment will not· readily accommodate the massive changes and the aggressive schedule nec~ssary to implement the new Mission Driven Budgetinq {MDB) system by July 1, 1995. Backaround. In .June 1993, staff committed to implementing the MOB with the 1995-96 Budget. MDB is based upon allocating resources to areas of major service provision rather than to organizat.ional components of t,he City'S operations. As such, MOB requires a complete revision of the structure of the City's financial operations, including the chart of accounts, cost allocation plan, labor reporting, etc. CtIR:211:94 . ;; . ~ . \ , ;. - I " I I I I' I I i. I I · Tho. current financial system, Integr.ftted Fund Account,inq System (IFAS~, operateD on a Hewlett pack~rd (HP) 3000 series 949, using HP's proprietary Hultiproqramminq EJ<ecutive (HPEl operatinq sl'stero that does not support relational data base developl'l'lent or UNIX. Relation~l data baBe cl'Ipaolty is req\iired in implemcmtinq MDB. The HPE oPQr~tinq system i9 outdated and requires a large investment in ti~e to pr09r~m new features and 8yste~B. The 1994-95 C4pital I~proveAent ProqraM contains funding for the continuing project, Intonaati9n Systems [)Qveloprnant (18812). Por 1994-95, funding of $160,900 is requested to purchase a new UNIX 8yBtem.~hlch will, amon9 other things, acco~modate the transfer of the City's finanoial system to the. UNIX environment from t.he current HP 3000 environment. This tr~n8fer is required to ensure that the tiftBline for HDB IDplamentation can be aChieved. 5ta;t! Is requost~ng Advancing the entire $160,500 of fundinq for this project to the current fiscal year, to allow the Finance oepartl'1ont to begin pr09ranudng the changes neCeSSal"y to implement HDB. Tho i1'!!1llodiate purchase of the hardwar.e and soft ... are aS60ciatcd with the conversion of IFAS to the UNIX environment is requosted for two rel!sons. BscauSQ of the massive structural changes required to tho City's financial systO}fl, dotailEld in Attachment 1, and the relatively short til!~ period in which they can be accomplished, it is critical th~t IFAS operate in an environment where staff can ~ost readily deveHip the neoded progralllB. The UNIX environment offers more powet:'~ul I'md qUicker development tools which will reduce the. amuunt of time it t"kes to design the new MDB structure. The UNIX environThent ~lso has much improved and eaay to use reporting tools for end .. users to extract the information they naod from the strategic dat~ bases. second~ the oriqinal i!rlplementation calendar fo)'; MOB originally prepa.l·cd by Finance stafl did not provid-3 ,foOr acquisition of a payroll system that 'WDS not an integral part of the IFAS financial syatem. Decau~e the decision has been made to acquire a'third party payroll!human resources system, additional time will be needed tor programming interfaces to the firli'utci&l system: Lobor reporting is a crttical part. of MDB. ' Rfil!1!!!!I.ndat 1.2.1\ Staff raC01Ul!ends that Council approve the attached Budget Amendment ordinance in the amount of $160,500 to purchase the new UNIX hardware and software to allow implementation of Mission Driven C!Ul:211:94 L ., ' , 2 " " Budqetin 9 by July 1, 1995. Of the $160,500, 45 pe~c.nt or $12,2~5 will be reiaburs8d from the Enterprise Fuhds. R~pecttullY submitted, ~ ! ' " O~~· Sonior Syste •• Ana.yst .~~ Fr,riiK7f Manaqer U CMR'211'94 3 " ,'. r ';" . I I I I i I r,O:," •••• < .-'. ATfACHMF.NT I MISSION DRIVEN BUDGE'nNG STRUC'I1JRAl CHANGES 1. Implement new position badgeling :SYSle_tn. 2. Develop and program a method for aJlocJ.llng cbarges to the gr~tI}' Lnru-ued aCC:Ounts. 3. Redesign chart of account'S to handle Ilew Mission Dri\'cn B\tdgeltng 1ttu(fU«'. 4. Implement new payrolllhuill;M1 resour(:(' system. S. Establish new interfaces to exisdng mtS-SLon critic-a] system'S to IU.lldJe new chut of accounts, 6. Develop a new MDD budget do<:uuu'nt and auTomated generation tool. 7. F....stablish new Council. management and project report formals utili.zing the nC'W MDB structure. 8. Devtlop a methodology thi!t incorporatt';S the Capital Impro\'emf'nt Progr-.un into the Opmtional Budget: " ;- ORO WANCE NO. ORDH1ANC8 OF TIlE COUNCIL OF THE CI.1'Y OF PALO ALTO ~~RNDING THE BUDGET FOR THE FISCAL YEAR 1993-94 TO PROVIDE AN ADDITIONAl. APPROPRIATION FOR CAPITAL IMPROVEMENT PROJBCT NO. 18812, "INFORMA.TION $YS'TEl>1S DEVELOPMEtIT" "'HEREAS, ·pursuant to the provl.sJ.ons of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on .June 21, 1~93 did. adopt a budget for fiscal year 1993-94; and WHEREAS, the Information Systems Development capital project (Project Number 18812) has been requested in the .1994 -95 Capital Improvement Program to purchase a new L~IX computer systero; and WHEREAS, the new UNIX hurdwa-l"e and software systems are necessary to accommodate the massive financial changes necessary to implement the new Mission Driven Budgeting (MOB); and HHBRE:AS, the current computer system doeo not have the development tools and flexibili~y to implement MOB; and l'.'HBRBAS, an aggressive schedule is necessary to implement MOB by July 1. 1995; NOW, THBRBFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTIOH...l. The sum of One Hundred Sixtj' Thousand Five Hundred Dollars ($160,500) is hereby appropriated to elP Project Number 18012, II Information Systems Development." This appropriat ion increases Project 18812 from One Hundred Eight Thousand Dollars (S10a,OOO) t;O '!"I/O Hundred Sixty Bight Thousand Five Hundred Dollars ($268,500) The following Reserves will be reduced to fund this change: Budget stao.bilization Reserve (General Fund) Refuse Rate Stabilization Reserve Electric Rate Stabilization Reserve Nater Rate Stabilization Reserve Gas Rate Stabiliz:atiO!t Reserve ~'astewater Collection Rate Stabilization Reserve Wastewater Treatment Rate stabilization Reserve Sto~ Drainage Rate Stabilization Reserve Total $ 88,275 $ 11.564 $ 24. 136 $ 8,342 $ 9.811 $ 3.548 $ 7.969 $ 6,855 $160,500 \ . , ,,' i I I I I I . .,'; .. -. , I· i ;':i \ f ~~. This tl.'aneactiQn 'l'Jill .i'educe the Budget Stabilization Reserve from $11,353,624 to $11,265,349 as of March 25, 1994 and reduce the following Rate Stabili zation Reserves (RSR) 80 of February 28, 1994~ Refua~ RSR from $1,273.224 to 1,261,660 Electric RSR from $26,156,978 to $26,132,842 Water RSR from $6,690,911 to $6,682,569 Gas RSR from $7,051,65"' to $7,041,846' Wastewater Collection RSR from $4',1'71,454 to $4,167,906 Wastewater Treatment RSR fro~ $3,798,235' to $3,790,266 Storm Drainage RSR from $528,436 to $521,581 ~CTIQN 3. As specified in Section 2.26.0BO(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SEcrION 4. 'fhe Council of the City of Palo Alto hereby finds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmen tal impact assessment is necessary, SECTION 5. Municipal Code, adoption. As provided in Section 2.0-4.3'15 of the Palo .~l to this ordinance shall become effective upon I1ITRODUCIlD AND PASSED: AYES: NOES: ABSTF.N','IONS: ABSENT: ATTEST: APPROVED: City Clerk "-------------Mayor APPROVRD AS TO ~'ORM: Sr. Asst, City Attorney "." . ,.,.,." . . ' APPROVr.O,