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HomeMy WebLinkAboutItem 10f - Purchase Order for Financial System Software Maintenance DATE: August 6, 2019 TO: Honorable Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Henry Chen, Acting Financial Services Manager/City Treasurer SUBJECT: PURCHASE ORDER WITH SUPERION LLC FOR FINANCIAL SYSTEM SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED $45,000 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 Purchase Order with Superion LLC for financial system software maintenance in an amount not to exceed $45,000. 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 updates. It also includes phone and web -based support when staff needs help with troubleshooting or guidance on implementing new regulatory updates within the system. Since purchasing Pentamation, the annual maintenance costs have typically been increased by an inflationary factor. The annual given cost for the period of July 2019 to June 2020 is approximately $45,000, an increase of $4,000 over last year’s price of $41,000. This larger than normal increase is due to the addition of $2,500 in support for an Electronic Time Sheet and Employee Access Center that is expected to be implemented in Fiscal Year 2019-20. Without those additional costs, the increase is approximately 3.65%, which is within normal inflationary expectations. The addition of an electronic timesheet module will save well in excess of $2,500 in staff time throughout the year. Purchase Order with Superion for Financial System Software Maintenance August 6, 2019 Page 2 of 2 It is recommended that the City issue a Purchase Order to Superion LLC for ongoing support and maintenance of the City’s 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 offers. 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 Fiscal Year 2019-20 Operating Budget. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with Superion LLC for financial system software maintenance in an amount not to exceed $45,000.