HomeMy WebLinkAboutItem 12i - Purchase Order for Financial System Software Maintenance
DATE: July 17, 2018
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Shannon Huang, Financial Services Manager/City Treasurer
SUBJECT: PURCHASE ORDER WITH SUPERION LLC FOR FINANCIAL SYSTEM
SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED
$41,000
Recommendation: Approve
SUMMARY
The City currently utilizes proprietary financial system software developed and solely
supported by Superion LLC. Annually, the City renews the maintenance agreement for
the support of its software. It is recommended that the City Council approve a one year
purchase order with Superion LLC for maintenance and support of the financial system
in the amount not to exceed $41,000.
DISCUSSION
The City has used the Pentamation Plus System since 1999, which supports most of
the City’s Finance, Purchasing, and Human Resources operations, including financial
reporting, payroll, accounts payable, general ledger, cashier, accounts receivable, and
budget preparation. 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 been
increased by an inflationary factor. The annual given cost for the period of July 2018 to
June 2019 is approximately $41,000, an increase of $2,900 over last year’s price of
$38.100. It is recommended that the City issue a purchase order to Superion LLC for
ongoing support and maintenance of the City’s automated financial system. The City
has explored alternatives to the existing financial system and has found the alternatives
to be considerably more expensive given all that the current system includes.
Purchase Order with Superion for Financial
System Software Maintenance
July 17, 2018
Page 2 of 2
ENVIRONMENTAL IMPACT
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Sufficient funds for the proposed annual maintenance costs are budgeted in the FY
2018-19 Operating Budget.
RECOMMENDATION
It is recommended that the City Council approve a Purchase Order with Superion LLC
for financial system software maintenance for Fiscal Year 2018-19 in an amount not to
exceed $41,000.