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.