Title
Adoption of Resolution Amending the Fiscal Year 2020-21 Project Budget by Reducing Revenue and Appropriations in the Enterprise Resource Planning System Implementation Project 90002704 by $360,000 and Increasing Revenue and Appropriations for the Strategic Technology Plan Project 90003704 by $360,000. (Information Technology 704.1)
body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
With the reduction in travel expenses during the pandemic, $360,000 in funds allocated for that use in the Enterprise Resource Planning System (ERP) Implementation Project (90002704) will not be utilized. Staff is requesting authorization to reallocate those funds by increasing the Strategic Technology Plan Project (90003704) budget in the amount of $360,000 to support City Council priorities, such as the Smart City Master Plan, as well as a Communications Master Plan and implementation of the Geospatial Information System (GIS) enterprise solution.
BACKGROUND
Since 2017, City Council has allocated a total project budget of $4,097,000 in order to implement a replacement of the current Finance and Human Resources ERP system. The total project budget includes a budget transfer in the amount of $500,000 that was performed in FY 2018-19 to move monies from the Strategic Technology Plan Project (90003704) to the ERP Implementation Project (90002704).
With the pandemic, estimated travel expenses for traditional in-person training and onsite project management was not spent since all training and support was performed remotely. Monies for various conversion fees were also not spent as several conversions were performed manually or were not needed.
As of March 8, 2021, the ERP Implementation Project has an available budget of $2,736,889. The proposed budget transfer of $360,000 would reduce the available budget to $2,376,889.
ALTERNATIVES
Options include:
1) Direct staff to revise and reduce the project budget for the ERP Implementation Project by $360,000 and increase the budget for the projects identified in the Strategic Technology Plan by $360,000.
2) Do not authorize the transfer of funds at this time.
FINANCIAL IMPACT
Transferring previous budget appropriations between the ERP Implementation Project (90002704) and the Strategic Technology Plan Project (90003704) would have no financial impact as the funding source and total amount of budget appropriations for the two projects would not change.
|
Fund/Account |
Amount |
|
FY 19-21 ERP Implementation Project (90002704) |
|
|
Reduce Project Expense |
$360,000 |
|
FY 19-21 Strategic Technology Plan Project (90003704) |
|
|
Increase Project Expense |
$360,000 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
There is no impact to the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378(b)(4).
CLIMATE IMPACT
There are potential climate action opportunities associated with developing and implementing the Smart City Master Plan and other projects identified in the Strategic Technology Plan Project.
RECOMMENDATION
Adopt a resolution amending the Fiscal Year (FY) 2020-21 Project Budget by reducing revenue and appropriations in the Enterprise Resource Planning System Implementation Project 90002704 by $360,000 and increasing revenue and appropriations for the Strategic Technology Plan Project 90003704 by $360,000.
CITY MANAGER RECOMMENDATION
The City Council could amend the FY 2020-2021 Project Budget by increasing appropriation for the Strategic Technology Plan Project by $360,000. Alternatively, the City Council could appropriate $260,000 to the Strategic Technology Plan Project and appropriate $100,000 back to the General Fund.
Respectfully submitted,
Carolyn T. Hogg, Information Technology Director
Financial Impact section reviewed,
Annie To, Finance Director
cc: Eric Levitt, City Manager