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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 r°T: o M id Im PRESIf NT'ei Cif' Council ATTEST D BY Re-s 1t38-< J 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.