HomeMy WebLinkAboutItem 2m - Contract for financial system software maintenance-'to
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STAFF REPORT
Administrative Services Department
DATE: July 2, 2013
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Shannon Huang, Financial Services Manager /City Treasurer
SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A ONE -
YEAR CONTRACT WITH SUNGARD PENTAMATION FOR FINANCIAL
SYSTEM SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO
EXCEED $32,800
Recommendation: Approve
SUMMARY
The City currently utilizes proprietary financial system software developed and solely
supported by SunGard Pentamation. It is recommended the City Council approve the
one year agreement with SunGard Pentamation for the City's financial system software
maintenance.
DISCUSSION
The City has used Pentamation Financial System since 1999, which supports most of
the City's accounting functions including financial reporting, payroll, accounts payable,
general ledger, cashier, accounts receivable, budget preparation, and purchasing.
Software maintenance fees pay for ongoing product development for regulatory updates
such as annual payroll tax table updates and bug fixes. It also includes phone and web -
based support when staff needs help with the system. In the current market, licensing
costs for a mid -size financial system similar to Pentamation range between $300,000
and $500,000 with annual maintenance costs that are typically 15 % -20% of the original
licensing fees. As the Pentamation software was acquired in 1999, the City's
maintenance costs have only increased by an inflationary factor. The annual cost for
the period from July 2013 to June 2014 is $32,800. It is recommended that the City
enter into a contract with Pentamation for ongoing support and maintenance of the
City's automated financial system.
One Year Contract Extension For
Financial System Software Maintenance
July 2, 2013
Page 2 of 2
FISCAL IMPACT
The total cost of the proposed maintenance agreement is $32,800. Funds are budgeted
in the FY 2013 -14 Operating Budget for this annual maintenance costs.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute a one -year contract with SunGard Pentamation for financial system software
maintenance in an amount not to exceed $32,800.
Approved:
Dominic Lazza
City Manager