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6 <br /> <br />WHEREAS, <br /> ownership of Water Street, LLC has been transferred and the new <br />owner is pursuing plans to develop the property, which differ from the development <br />originally contemplated in the Contract; and, <br /> <br />WHEREAS, <br /> Water Street, LLC, through its new owner, has proposed an <br />amendment to the agr eement between the City and Water Street, LLC, to reflect the <br />development envisioned for the site. <br /> <br />NOW, THEREFORE, BE IT RESOLVED <br /> by the Council for the City of <br />Charlottesville, Virginia that the City Manager is authorized to execute an amendment to <br />the Contract dated January 3, 2001 between the City and Water Street, LLC, a copy of <br /> <br /> <br />which is attached to this Resolution. <br /> <br />APPROPRIATION <br />: $5,000,000 - LOAN FROM UTILITY FUND FOR <br />INTEGRATED SYSTEMS PROJECT <br /> <br /> Mr. O'Connell said that the Integrated System s Project (ISP) will provide for an <br />integration of all the City's computer systems and has been a vision for six years. He said <br />it is an important investment. He said it will connect government with citizens. He said <br />the current system is greatly out of date and will improve efficiencies. <br /> <br /> Ms. Linda Peacock, Assistant City Manager, said the City has an aging <br />mainframe computer. She said Council approved moving forward with the project in <br />2000, and is now being asked to approve a ten year loan from the Utility Fund and <br />Capital Fund and to authorize execution of the contract to implement the enterprise <br />resource package. Ms. Peacock provided a powerpoint showing the goals, benefits and <br />examples of similar technology in other cities. <br /> <br /> Mr. Schilling asked if the surcharge instituted on gas bills was to pay for this, and <br />Ms. Peacock said yes and for other technology. <br /> <br /> Mr. Schilling asked why we are inflating the cost of the project and charging <br />ourselves interest. He questioned why we should charge ourselv es interest in the first <br />place. <br /> <br /> Ms. Peacock said it has been the City's practice to charge interest when loans are <br />made from other funds, but it is not something we have to do. <br /> <br /> Mr. Schilling said if we can save money and not charge ourselves interest g iven <br />the fund was dedicated to this he sees no compelling reason to charge interest. <br /> <br /> Mr. O'Connell said if other Councilors agree with Mr. Schilling the interest rate <br />can be eliminated. <br /> <br /> Mr. Schilling said staff has made a business case of the ISP, and he appreciates <br />looking at the efficiencies that can be achieved which is why he supports it. He proposed <br />having a report out on an annual basis over a three year period on how it is working and <br />what efficiencies have been achieved. <br /> <br /> Regarding the interes t rate, Mr. O'Connell said there is the issue of charging the <br />full 3%, but a second issue is that we cannot use the money for investment purposes. Mr. <br /> <br /> O'Connell recommended that staff run a financial spreadsheet to show interest <br />rates and no interest r ate. <br /> <br /> Ms. Richards said she likes the idea of replenishing the fund to have money to <br />invest in the future. <br /> <br /> It was recommended that the appropriation be moved as is with the understanding <br />that it can be amended at the second reading to reflect no interes t if desired by Council. <br /> <br />