Report to Mayor and City Council
Tuesday, June 20, 2017
Consent
SUBJECT:
Title
APPROVE AMENDMENT TO SERVICE CONTRACT WITH SUPERION, LLC TO RENEW ONE YEAR MAINTENANCE AND SUPPORT AGREEMENT FOR THE CITY'S FINANCIAL SOFTWARE (CITY COUNCIL)
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I. SUMMARY
The City utilizes Superion, LLC’s (“Superion”) (formerly SunGard Public Sector, Inc., and Bi-Tech Software, Inc. prior to that) software for a number of essential administrative/financial applications. Maintenance and support from Superion is required in order to ensure prompt resolution of problems as they occur. The fee to renew services for the period of August 1, 2017 through July 31, 2018 is $97,631.78. The software is proprietary and is available only through Superion. Since the cost of this maintenance and support exceeds the amount that the City Manager may approve, the City Council is being asked to approve the extension of the service contract.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the bidding requirements in Chapter 6 (“Purchasing System”) of Title II of the Carson Municipal Code, pursuant to Carson Municipal Code Section 2611(e) (“Sole Source Purchasing”); and
2. APPROVE Amendment To The Agreement For Contractual Services By And Between The City Of Carson With Data General Corporation, A Delaware Corporation And Superion, LLC (formerly known as SunGard Public Sector Inc. and Bi-Tech Software, Inc. prior to that) for the period of August 1, 2017 through July 31, 2018 in an amount of $97,631.78 (“Amendment”); and
3. AUTHORIZE Mayor to execute the Amendment upon approval as to form by the City Attorney.
1.
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III. ALTERNATIVES
None.
IV. BACKGROUND
The City has been using Superion, LLC’s software system called Integrated Financial and Administrative Solution (IFAS7i) since 1993. Annual renewals of Superion, LLC’s maintenance and support coverage have occurred every year since the original Agreement was executed between the City and Superion, LLC (formerly SunGard Public Sector Inc. and Bi-Tech Software before that). Each such renewal has included an increase in the annual fee. The fee to renew services for the period of August 1, 2017 through July 31, 2018 is $97,631.78 (constituting approximately a 3% increase from the last year’s fees of $94,624.80).
A partial list of software modules used by the City includes: General Ledger, Budgeting, Accounts Payable, Accounts Receivable, Purchasing, Stores Inventory, Bank Reconciliation, Payroll and Human Resources. The annual maintenance and support order will provide the City with professional services, remote assistance online or via telephone, fax and e-mail to correct software modules and programming problems.
The IFAS7i software is proprietary and is available only through Superion, LLC. It is important to note that the IFAS7i software is planned to be replaced by the Tyler-Munis software and the conversion is currently underway through the Finance Department. It is anticipated that this will be last year for the IFAS7i system.
As such, Staff recommends waiving the bidding requirements in Chapter 6 (“Purchasing System”) of Title II of the Carson Municipal Code, pursuant to the exemption in CMC section 2611(e) which reads as follows:
“Sole Source Purchasing. The City Manager may dispense with this Chapter’s bidding requirements if he or she finds that the materials, supplies, equipment, or services are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source, or, if available from more than one (1) source, can be purchased from the manufacturer or service provider for a lower price. If the cost of such sole source purchasing is $25,000 or greater, then the City Council’s approval shall be required.”
V. FISCAL IMPACT
Funds have been budgeted in the proposed budget for FY 2017/18 for these items in account number 01-50-615-003-6004 in the amount of $97,631.78.
VI. EXHIBITS
1. Superion (formerly SunGard Public Sector, Inc.) Invoice Document. (pg. 4)
2. Original Software License and Support Agreement. (pgs. 5 - 21)
3. Prior Amendment No. 23 (pgs. 22 - 29)
4. (Proposed) Superion, LLC Amendment No. 24. (pgs. 30 - 34)
Prepared by: Robert Eggleston, Information Technology Manager