BOARD MEETING DATE: August 14, 1998 AGENDA NO. 13
PROPOSAL:
Adopt Resolution Authorizing the Execution of an Installment Sale Agreement for New Integrated Financial and Human Resources System
SYNOPSIS:
On April 10, 1998, the Board awarded a bid for new financial/human resources software, hardware, and implementation services. This action is to approve a resolution authorizing an installment sale agreement between the AQMD and Municipal Leasing Associates, Inc., for a three-year period at a total cost of $721,487. Funds in the amount of $241,064 are included in the FY 1998-99 Budget to cover the initial installment sale payment and the remainder will be requested in the budgets for FY 1999-2000 and FY 2000-01.
COMMITTEE:
Administrative, July 24, 1998, Recommended for Approval
RECOMMENDED ACTION:
Adopt attached Resolution authorizing the execution of an Installment Sale Agreement with Municipal Leasing Associates, Inc., for a new integrated financial and human resources system, with an initial payment of $241,064 and an annual lease cost not to exceed $240,212 per year for FY 1999-2000 and FY 2000-01.
Barry R. Wallerstein, D.Env.
Acting Executive Officer
Background
On April 10, 1998, the Board awarded a bid for new financial/human resources software, hardware, and implementation services and authorized the Executive Officer to execute a three-year lease/purchase agreement with Mikon Computer Systems through Digital Financial Services. Digital Financial Services, however, withdrew its financing offer during contract negotiations.
As part of AQMD’s price/cost analysis of the Digital Financial Services bid, quotes from three additional leasing companies were requested during the contract process. Municipal Leasing Associates, Inc., a company with whom AQMD currently has a Master Lease agreement, submitted a financing package that provided the greatest overall value to the AQMD at lower cost. Because of the slightly lower interest rate charged by Municipal Leasing Associates, Inc. and the restructuring of the lease/purchase arrangement, the AQMD will realize additional savings of approximately $6,400.
Resource Impacts
As previously approved by the Board, the total cost of the new integrated financial/human resources system, including software, hardware, and implementation services, is $1,184,572. A savings of approximately $5,400 will be realized due to more favorable terms.
Resolution
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