Explanation
Background: This ordinance authorizes the Director of Finance and Management to enter into an Amended and Restated Service Agreement with Lease Harbor LLC for a one-year initial term with four (4) automatic renewal terms, each renewal being one-year in length and subject to appropriation of funds by City Council and certification of funds availability by the City Auditor and authorizes the expenditure of up to $27,000.00, or as much as may be necessary for the initial term commencing December 15, 2021. The current service agreement contract was authorized pursuant to Ordinance 2579-2015. The City, through the Department of Finance and Management, contracts with Lease Harbor, LLC for provision of secure, redundant, hosted real estate and lease management software services, support, and related services necessary for the administration of the City’s real property inventory and lease portfolios. These portfolios are currently hosted on its Harbor Flex software service. The financial reporting standards for government accounting of lease income and expense have significantly changed. The lease income and expense reporting provided as part of the Harbor Flex software cannot meet these new requirements. The Auditor’s Office must meet reporting standards for lease income and expense compliant with GASB 87 effective January 1, 2022. Working with the Auditor’s Office, it has been determined that by converting the existing portfolios now residing on the Harbor Flex software platform to the APEX software service from Lease Harbor LLC will allow for the calculation of balances at a point in time as well as production of general ledger entries compliant with the GASB 87 financial reporting standards for leases. The conversion of the portfolios and the training on APEX can be completed before the end of December, which will allow the City to have lease accounting records by 1/1/2022 in compliance with GASB 87 requirements. The conversion of the City’s real propert...
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