HomeMy WebLinkAboutItem IAGENDA REPORT rl�
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DATE:
December 10, 2001
TO:
Honorable Mayor and City Council
THRU:
John B. Bahorski, City Manager
FROM:
Pamela Arends -King, Director of Administrative Services/Treasurer
SUBJECT:
Payroll Services Fee Increase
SUMMARY OF REOUEST:
Staff requests City Council to approve a budget amendment increasing the expenditure
for the payroll services agreement between the City of Los Alamitos and the City of Seal
Beach for FY2001/2002.
Payroll Services Unlimited, the company providing payroll services to the City was
bought out by a firm unable to provide municipal payroll services. To continue the
municipal payroll service, the City of Los Alamitos acquired the computer hardware and
payroll software from Payroll Services Unlimited. By Resolution, City Council approved
the new one -year contract, a good option at the time because it appeared to provide the
same service for the same cost and it made it possible to pay the City's employees
uninterrupted.
Since the signing of the contract, the City of Los Alamitos has determined the cost of
processing Seal Beach payroll is higher than the estimated $12,500 annually and
therefore the City of Seal Beach has been invoiced at a higher rate than what was
discussed at the contract negotiations. Staff is estimating the FY2001/2002 payroll costs
will be $19,500.
Staff is currently researching other options for processing payroll that may be more cost
effective. Until another service is acquired, staff proposes City Council increase the
budget by $7,000.
Agenda Item
i
December 10, 2001
Payroll Services
Page 2
FISCAL IMPACT:
The annual cost for payroll services will be $19,500. The $7,000 increase will be
covered by undesignated fund balance. The current undesignated fund balance is
$3,078,272. The proposed budget amendment will decrease undesignated fund balance
to $3,071,272.
RECOMMENDATION:
Approve a Resolution adopting the 2001/2002 Budget Amendment for payroll service
costincreases.
Pamela Arends -King �J
Director of Administrative Services/Treasurer