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.