Explanation
This legislation recognizes a cooperative effort between the City Auditor and the Department of Finance and authorizes the City Auditor to enter into contract with Tier Technologies, Inc. to upgrade existing financial and procurement software. There is an increasing demand for more complex and detailed accounting management information and related accounting, procurement, and reporting capabilities. The City's current systems have been in place for several years. As a result, the City will be faced with declining support for such systems.
The City of Columbus has been selected as a test site for Tier Technologies, Inc.'s new "Tier Financials" applications and will also be participating in the development of this upgrade, resulting in substantial savings to upgrade the City's systems. Because Tier Financials will be an upgraded version of the City's current systems, it will utilize existing software licensing and, therefore, create even further savings as well as eliminate the need for competitive bidding on an entirely new financial system. The upgrade of the City's procurement module to Tier's hosted "WebProcure" provides the advantage of having a web based application that delivers comprehensive eprocurement capabilities complete with industry standard ecatalog support.
Fiscal Impact: Bonds for this project have yet to be sold; therefore a transfer of cash from the Special Income Tax Fund is necessary. The total cost of this software upgrade is $1,283,000.
This legislation is considered an emergency measure to ensure that the contract is in place so that the Auditor's Office and Finance may begin work on the program as quickly as possible to be a beta test site.
Title
To authorize and direct the City Auditor to transfer $1,283,000 from the Special Income Tax Fund to the Auditor Bond Fund; to authorize the City Auditor to enter into contracts for the acquisition of professional services and computerized systems necessary to upgrade the City's accounting, budget preparation, fixed asset, and procurement systems; to authorize the expenditure of $1,283,000 from the Auditor Bond Fund; to amend the 2006 CIB; and to waive the provisions of competitive bidding and to declare an emergency. ($1,283,000.)
Body
WHEREAS, there is an increasing demand for more complex and detailed accounting management information and related accounting, procurement, and reporting capabilities; and
WHEREAS, the City's current financial accounting systems have been in place for several years and the City will be faced with declining support for such systems; and
WHEREAS, the City of Columbus has been selected as a beta test site for final testing of Tier Technologies, Inc. Tier Financials and will be participating in the development of such upgraded software, resulting in substantial savings to upgrade the current systems; and
WHEREAS, the Tier Financial systems will be an upgraded version of the City's current financial systems utilizing software licensing that is already in place, creating further savings and eliminating the need for competitive bidding on an entirely new financial system; and
WHEREAS, the accounting module for the City's financial systems will be upgraded with contracted professional services in the amount of $240,000; and
WHEREAS, the budgeting preparation and reporting module for the City's financial systems will be upgraded with contracted professional services in the amount of $198,000; and
WHEREAS, the fixed asset module for the City's financial systems will be upgraded with contracted professional services in the amount of $120,000; and
WHEREAS, the procurement module (WebProcure) for the City's financial systems will be upgraded to a web based, hosted application with contracted professional services in the amount of $375,000; and
WHEREAS, the infrastructure to support the upgraded system will need to be purchased at a cost of $350,000; and
WHEREAS, it is necessary to appropriate and transfer $1,283,000 from the Special Income Tax Fund to the Auditor Bond Fund and to expend same; and
WHEREAS, this transfer should be considered as a temporary funding method and upon receipt of funds from the issuance of bonds, the Special Income Tax Fund will be reimbursed; and
WHEREAS, the aggregate principal amount which the city will issue to finance this phase of the project is presently expected not to exceed $1,283,000.00
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to ensure that the contract is in place so that the Auditor's Office and Finance may begin work on the program as quickly as possible to be a beta test site.; thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS, OHIO:
Section 1. That the City Auditor is authorized and directed to enter into contracts with Tier Technologies, Inc. for the acquisition of professional services and computerized systems necessary to upgrade the City's accounting, budget preparation, fixed asset and procurement systems.
Section 2. That the competitive bidding procedures of Chapter 329 of the city code are hereby waived.
Section 3. That the sum of $1,283,000 is hereby appropriated from the unappropriated balance of the Special Income Tax Fund No. 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purchase during the fiscal year ending December 31, 2007, to City Auditor, Dept./Div. No. 22-01, Object Level One 10, OCA 902023, Object Level Three, 5502.
Section 4. That the City Auditor is hereby authorized to transfer said funds to the Auditor Bond Fund 783 at such time as deemed necessary by the City Auditor, and to expend $1,283,000 or so much thereof as may be necessary.
Section 5. Monies needed to carry out the purpose of this ordinance are hereby deemed appropriated as necessary.
Section 6. That the expenditure of $1,283,000, or so much thereof as may be necessary, be and is hereby authorized from the Auditor Bond Fund 783, Division 22-01, Project 783001, OCA Code 783001, Object Level Three 6649 to pay the cost thereof.
Section 7. That the City Auditor is hereby authorized to transfer the unencumbered balance account within the same fund upon receipt of certification that the project has been completed and the monies are no longer required for said project; except that no transfer shall be so made from a project account funded by monies from more than one source.
Section 8. That upon obtaining other funds for this project, the City Auditor is hereby authorized to repay the Special Income Tax Fund the amount transferred under Section 4 above, and said funds are hereby deemed appropriated for such purpose.
Section 9. That the City Auditor is authorized to make any accounting changes to revise the funding contract or contract modification associated with the expenditure of the funds transferred in Section 4 above.
Section 10. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations promulgated pursuant to the Internal Revenue code of 1986, as amended.
Section 11. That the 2006 CIB (Ord 1108-2006) be amended as follows: Fund 783, Division 22-01, Project 783001/ Current CIB $0 / Amended CIB $1,283,000.
Section 12. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.