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HomeMy WebLinkAboutItem 13p - Financial System Software Maintenance DATE: June 21, 2022 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 $49,500 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 $49,500. DISCUSSION The City has used Superion LLC’s, Pentamation Plus Financial System since 1999. This system includes several software modules supporting most of the City’s Finance, Purchasing, and Human Resources operations. Some of those daily operational features include: financial reporting, payroll, accounts payable, general ledger, cashier, accounts receivable, purchase order processing, personnel record, 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 with troubleshooting or guidance on implementing new regulatory updates within the system. Annually, maintenance costs have typically been increased by an inflationary factor. The annual cost for the period from July 2022 to June 2023 is approximately $49,500, an increase of $2,400 over last year’s price of $47,100 (a 5% increase). The adopted Budget for FY 2022-23 includes funding for the acquisition and installation of a fully updated financial management system. As such, this will be the last Purchase Order with Superion LLC to support and maintain the current system. Purchase Order with Superion for Financial System Software Maintenance June 21, 2022 Page 2 of 2 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 funding for the proposed annual maintenance cost has been budgeted in the FY 2022-23 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, authorize, and direct the City Manager to execute a Purchase Order with Superion LLC for financial system software maintenance in an amount not to exceed $49,500.