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HomeMy WebLinkAboutItem 12g - Financial System Software Maintenance DATE: July 6, 2021 TO: Honorable Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Henry Chen, Financial Services Manager/City Treasurer SUBJECT: PURCHASE ORDER WITH SUPERION LLC FOR FINANCIAL SYSTEM SOFTWARE MAINTENANCE FOR FISCAL YEAR 2021-22 IN AN AMOUNT NOT TO EXCEED $47,100 Recommendation: Approve SUMMARY The City currently utilizes a 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 an 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 in 1999, the annual maintenance costs have typically been increased by an inflationary factor. This year, however, there was no increase for the period of July 2021 to June 2022. The cost of the maintenance remains the same as last year’s price of $47,100. It is recommended that the City issue a purchase order to Superion, LLC for ongoing support and maintenance of the City’s financial system. Purchase Order with Superion, LLC for Financial System Software Maintenance July 6, 2021 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 Fiscal Year 2021-22 Operating Budget. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and approve a Purchase Order with Superion, LLC for financial system software maintenance for Fiscal Year 2021-22 in an amount not to exceed $47,100.