HomeMy WebLinkAbout11385RESOLUTION NO. 11385
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO (CITY) AND
INNOPRISE SOFTWARE, INC., TO PROVIDE SOFTWARE AND TRAINING FOR THE
INSTALLATION OF A BUSINESS LICENSING AND SALES AND USE TAX SOFTWARE,
AUTHORIZING THE PRESIDENT OF THE CITY COUNCILTO EXECUTE THE SAME, AND
TRANSFER; $150,000 FROM CAPITAL PROJECT (CP0710), PURCHASE OF 305 S. MECHANIC
TO (CP0511), SALES TAX SOFTWARE, FOR THE PURPOSE OF PURCHASING THIS
SOFTWARE
WHEREAS, The City's primary source of revenue is sales and use tax, and
WHEREAS, the City's software used for the licensing of businesses and collection of sales
and use tax is in dire need of replacement, and
WHEREAS, Innoprise Software, Inc. is qualified and capable of providing an appropriate
software for the City's need, and
WHEREAS, funds to purchase this software are available for transfer from Capital Project
CP0710, Purchase of 305 S. Mechanic to CP0511, Sales Tax Software.
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council hereby authorizes the transfer of $150,000 from Capital Project CP0710,
Purchase of 305 S. Mechanic to CP0511, Sales Tax Software
SECTION 2.
The agreement with Innoprise Software, Inc. to provide Business Licensing and Sales and
Use Tax Collection Software, a copy of which is attached hereto, and is hereby approved. The
President of the City Council is authorized to execute the agreement in the name of the City, and
the City Clerk is directed to affix the seal of the City of Pueblo and attests same.
INTRODUCED August 25, 2008
BY Vera Ortegon
Councilperson
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PRESIf NT'ei Cif' Council
ATTEST D BY
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 19
DATE: AUGUST 25, 2008
DEPARTMENT: FINANCE DEPARTMENT, ROBERT F. HAIN
INFORMATION TECHNOLOGY, JOHN WILKINSON
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO
(CITY) AND INNOPRISE SOFTWARE, INC., TO PROVIDE SOFTWARE AND
TRAINING FOR THE INSTALLATION OF A BUSINESS LICENSING AND SALES
AND USE TAX SOFTWARE, AUTHORIZING THE PRESIDENT OF THE CITY
COUNCILTO EXECUTE THE SAME, AND TRANSFERING $150,000 FROM CAPITAL
PROJECT (CP0710), PURCHASE OF 305 S. MECHANIC TO (CP0511), SALES TAX
SOFTWARE, FOR THE PURPOSE OF PURCHASING THIS SOFTWARE.
ISSUE
Should City Council approve an agreement between the City and Innoprise Software,
Inc. to replace the existing Business Licensing and Sales and Use Tax Collection
Software, and allocate funds for such purchase?
RECOMMENDATION
The Staff recommendation is, Approval of Resolution.
BACKGROUND
Fifty -seven percent of the City's General Fund revenues come from sales and use tax
collections. We are very concerned that our existing Software system is unstable and
could go down at any time, causing interruptions in the cash flow, or even worse
unrecoverable loss of data. The City no longer has technical support for it's existing
Business Licensing and Sales and Use Tax Collection Software, nor is it adequate to
support the licensing, collection, and audit functions in an efficient manner. Software for
this purpose in Colorado is difficult to obtain, because of the intricacies and differences
between Cities. Our first attempt at replacing the software was a low budget attempt,
and did not work out. Although, we did not get the desired result from that effort, we
made valuable strides in preparation for moving forward. We have solicited through the
RFP process, vendors with the capability to provide the product and services we need.
After careful review and due diligence by both the Information Technology, and Finance
Departments, we have selected Innoprise Software, Inc. to provide the services we
need.
FINANCIAL IMPACT
In 2005 Capital Project CP0511, Sales Tax Software was established with a budget of
$50,000. Approximately $10,000 was used for equipment purchased and $22,000 for
services. There is $18,000 remaining in that project. This transfer in of $150,000 will
cover the cost of this agreement, and leave the remaining $18,000 for the purchase of
equipment and unforeseen contingencies.
The $150,000 is available because land was originally purchased for an undetermined
purpose with general fund money. This land was subsequently used for the Justice
Center project as the location for the annex building. Because of its use, the purchase
price of the land is appropriately a cost, which is chargeable to the Justice Center
Project. Therefore, the purchase price will be transferred from a general fund project to
the Justice Center Project. This releases the general fund money to be spent for other
purposes.