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6 DATE: March 25, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Diane Pitman, Administrative Services Director
Rob Lasky, IT Manager
DEPARTMENT: Administrative Services
SUBJECT: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND
BUDGET FOR FY 2024-2025
RECOMMENDATION
It is recommended that the City Council review this report and its attachments, by Minute Order, and provide policy direction on the proposed Information Technology (IT) internal service expenditures budget, including the scheduled replacement purchases and Information Technology Fund charges in the Fiscal Year 2024-2025 Preliminary Budget.
BACKGROUND/ANALYSIS
Attached are the spreadsheets for the Information Technology Equipment Replacement Fund. The City/EMID (“City”) continues to use the Internal Service Fund Methodology developed in FY 2005-2006 in determining the Information Technology Replacement Fund listing for FY 2024-2025.
On an annual basis the Information Technology Division reviews with each department their list of assets to determine which items are no longer needed, which equipment should be replaced, or which new assets will be requested. The replacement lives and values of each asset are also reviewed by the IT Division and adjusted where necessary. Assets that are fully funded are not automatically replaced. If it is determined that it is in good working condition, the asset accrual is frozen, and no replacement charges are accrued.
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6 Total IT internal service charges for FY 2024-2025 will be $2,525,706 which is $365,563 (or ~ 12.6%) lower than internal service charges for FY 2023-2024 of $2,891,269. The main reason for the decrease is that FY 2024-25 has less high cost capital projects planned than in FY 2023-24.
The following list summarizes the items that had the most impact to the IT fund:
•Police Dispatch Uninterruptible Power Supply: Police Dispatch systems need to stay running 24/7, even during the time it takes for the generator to turn on in the event of a power outage. This requires a large Uninterruptible Power Supply (UPS) that protects all of the power outlets in Dispatch. The current Dispatch UPS (purchased 20+ years ago) is at end-of-support, so a replacement is required. Estimated cost is $50,000.
•Surveillance Camera Servers: The City’s facilities have security cameras to deter and investigate theft and other crimes. The servers used to store and retrieve video footage from these cameras are aging (purchased in 2014 and 2016), so they need to be replaced. Estimated cost is $30,000.
•Livescan Fingerprinting System: The Police Department’s Livescan Fingerprinting System is used by the Police Department for criminal investigations, and by Human Resources as part of the background check procedure for new employees. The current system is aging and is in need of replacement. Estimated cost is $31,000.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
Total IT internal service charges for FY 2024-2025 will be $2,525,706 which is $365,563 (or ~ 12.6%) lower than internal service charges for FY 2023-2024 of $2,891,269. The main reason for the decrease is that FY 2024-25 has less high cost capital projects planned than in FY 2023-24.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
ATTACHMENTS
Attachment 1 – Draft FY 2024-2025 Operating Budget – Information Technology Fund Attachment 2 – Department Internal Services Charges Allocation Summary for FY 2024-2025
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6 Attachment 3 – Information Technology Fund Comparison for FY 2024-2025 Attachment 4 – Internal Service Fund Variance Analysis
Attachment 5 – Schedule of Items to be Replaced for FY 2024-2025 Attachment 6 – Items Added to or Deleted From the Equipment Replacement FY 2024- 2025
Attachment 7 – Changes to Estimated Useful Lives for FY 2024-2025 Attachment 8 – Changes to Replacement Values for FY 2024-2025 Attachment 9 – Budget Narrative for FY 2024-2025 - Information Technology Fund