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HomeMy WebLinkAboutItem 2d - Purchase Order with SunGard PentamationSTAFF REPORT Administrative Services Department DATE: July 15, 2014 TO: FROM: Honorable Mayor and City Council Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City Treasurer SUBJECT: PURCHASE ORDER WITH SUNGARD PENTAMATION FOR FINANCIAL SYSTEM SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED $34,000 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 a one year purchase order 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 $500,000 and $700,000 with annual maintenance costs that are typically 15 % -20% of the original licensing fees ($75,000 - $140,000). 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 2014 to June 2015 is approximately $34,000. It is recommended that the City enter into a contract with SunGard for ongoing support and maintenance of the City's automated financial system. Purchase Order with SunGard Pentamation July 15, 2014 Page 2 of 2 FISCAL IMPACT Funds for the proposed annual maintenance costs are budgeted in the FY 2014 -15 Operating Budget. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with SunGard Pentamation for financial system software maintenance in an amount not to exceed $34,000. Approved: Dominic LazzareW City Manager