Report Prepared by: Jeff Bennyhoff, Director of Information Technology.
Title
SUBJECT: Approval of a Supplemental Appropriation in Fund 7009-Computer Replacement in the Amount of $138,474 for the Replacement of Computers That Have Reached Their End of Useful Life
REPORT IN BRIEF
Considers approving a Supplemental Appropriation in Fund 7009-Computer Replacement in the amount of $138,474 for the Replacement of Computers that have reached their End of Useful Life.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a supplemental appropriation from the unreserved, unencumbered fund balance in Fund 7009-Computer Replacement in the amount of $138,474 and appropriate the same for replacing end-of-life technology assets; and,
B. Authorizing the Finance Officer to make the necessary budget adjustments; and,
C. Authorizing the City Manager or designee to execute the necessary documents.
Body
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget.
DISCUSSION
During fiscal year 2008/2009 austerity measures put in place by council stopped funding of the PC Replacement account using general fund monies. The PC Replacement account was utilized to replace technology assets in a coordinated and timed manner to ensure up to date technology across all departments in the City. Acquisition of replacement technology assets from 2008 onward has been performed through department savings or the budget process each fiscal year.
A large number of technology assets, pc computes and laptops, must be replaced because they have reached their end of useful life. The total cost to replace all of the assets is $386,100. Staff have proposed breaking up the acquisition of these asset into two tranches across fiscal year 2023/2024 and fiscal year 2024/2025. In fiscal year 2023/2024 the cost will be $138,474, and fiscal year 2024/2025 the cost will be $247,625.
A supplemental appropriation from the unreserved, unencumbered fund balance in Fund 7009-Computer Replacement in the amount of $138,474 is needed to replace these end-of-life technology assets for this fiscal year.
Staff will evaluate budget saving from current fiscal year (FY23-24) or set aside funding during fiscal year 2024-25 budget for the additional amount of $247,625 that needed to replace all end-of-life technology assets in fiscal year 2024-25.
Below are departments that had savings available in their FY22-23 budget and these saving have been moved into Fund 7009-Computer Replacement to be used toward replacing end-of-life technology assets.
|
Fund |
Org |
Department |
Description |
Amount |
|
1000 |
10001500 |
City Attorney |
PC Replacements |
$3,300 |
|
1000 |
10002500 |
Economic Development |
PC Replacements |
$5,900 |
|
1000 |
10003000 |
Fire |
PC Replacements |
$12,200 |
|
1000 |
10003500 |
Police |
PC Replacements |
$44,400 |
|
3000 |
30005000 |
Development Services-Engineering |
PC Replacements |
$20,300 |
|
3000 |
30005010 |
Development Services-Planning |
PC Replacements |
$7,900 |
|
3000 |
30005020 |
Development Services-Inspections |
PC Replacements |
$9,900 |
|
7000 |
70006000 |
Public Works - Admin |
PC Replacements |
$6,000 |
|
7005 |
70056020 |
Public Works- Fleet |
PC Replacements |
$3,300 |
|
7008 |
70084500 |
Support Services |
PC Replacements |
$9,100 |
|
7008 |
70084700 |
Information Technology |
PC Replacements |
$16,174 |
|
|
|
|
Total |
$138,474 |
On July 3, 2023, council approved the contracts that will be used to procure the replacement technology assets. The procurement shall use multiple state contracts that were competitively bid.
If the supplemental appropriation is not approved the City will not be able to upgrade our technology assets to keep up with regulatory mandates and compliance obligations that are imposed upon the city and put the city at additional risk. All of end-of-life assets must be replaced before October 14, 2025.
If the supplemental appropriation is not approved this fiscal year, additional professional service dollars might be required as the timeline to replace all the asset will be needed to accelerate to meet the October 14, 2025, deadline.
IMPACT ON CITY RESOURCES
A supplemental appropriation in the amount of $138,474 from Fund 7009-Computer Replacement is required to replace end-of-life technology assets.
ATTACHMENTS
None.