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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.