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