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HomeMy WebLinkAboutItem 12p - Financial System Software Maintenance DATE: July 21, 2020 TO: Honorable Mayor and City Council FROM: Hue C. Quach, Administrative Services Director By: Henry Chen, Financial Services Manager/City Treasurer SUBJECT: PURCHASE ORDER WITH SUPERION LLC FOR FINANCIAL SYSTEM SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED $47,100 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 $47,100. 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 2020 to June 2021 is approximately $47,100, an increase of $2,400 over last year’s price of $44,700 (a 5.4% increase). While this increase is above area inflation levels, it is much less than the cost of upgrading the system. The City is overdue for an upgrade to its financial management systems; this is something that has been put off due to the impacts to the City budget by the COVID-19 pandemic. Purchase Order with Superion for Financial System Software Maintenance July 21, 2020 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. ENVIRONMENTAL ANALYSIS 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 2020- 21 Operating Budget. RECOMMENDATION It is recommended the City Council determine that this action does not constitute a project and is, therefore exempt, under the California Environmental Quality Act (“CEQA”); and approve a Purchase Order with Superion LLC for financial system software maintenance in an amount not to exceed $47,100.