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HomeMy WebLinkAboutItem 2i - Purchase Order for Financial System SoftwareSTAFF REPORT Administrative Services Department DATE: July 7, 2015 TO: FROM: Honorable Mayor and City Council Hue C. Quach, Administrative Services Director By: Shannon Huang, Financial Services Manager /City Treasurer SUBJECT: PURCHASE ORDER WITH SUNGARD PENTAMATION FOR FINANCIAL SYSTEM SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED $35,199 Recommendation: Approve SUMMARY The City currently utilizes proprietary financial system software developed and solely supported by SunGard Pentamation. Annually, the City renews the maintenance agreement for support of its software. It is recommended that the City Council approve a one year purchase order with SunGard Pentamation for maintenance and support of the financial system in the amount of $35,199. DISCUSSION The City has used Pentamation Financial System since 1999, which supports most of the City's Finance and Human Resources operations including financial reporting, payroll, accounts payable, general ledger, cashier, accounts receivable, budget preparation, human resources, and purchasing. Software support and maintenance fees pay for ongoing product development of regulatory updates such as annual payroll tax tables and other program fixes. It also includes phone and web -based support when staff needs help with coding or guidance on implementing new regulatory updates within the system. Since purchasing Pentamation in 1999, the annual maintenance costs have only increased by an inflationary factor. The annual given cost for the period of July 2015 to June 2016 is $35,199. It is recommended that the City issue a purchase order to SunGard Pentamation for ongoing support and maintenance of the City's automated financial system. The City has explored alternatives to SunGard's system and has found the alternatives to be considerably more expensive given all that the current system includes. Purchase Order with SunGard Pentamation July 7, 2015 Page 2 of 2 FISCAL IMPACT Funds for the proposed annual maintenance costs are budgeted in the FY 2015 -16 Operating Budget. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with SunGard Pentamation for financial system software maintenance for Fiscal Year 2015 -16 in an amount of $35,199. Approved: Dominic Lazzar City Manager